Who clicks ads? Good read...
- Thread starter Sharksfan
- Start date
Great article, thanks for the post.
CTR Depends. For remnant yes, CTR is low for sure. For hyper-targeted and behavioral, CTR is there.
Unfortunately, no matter the CTR, the current economy is just reeking havoc on conversions. Which basically has frozen conversions to "good" offers. Give it 1-2 years. Things will line back up then.
Depressing
CTR Depends. For remnant yes, CTR is low for sure. For hyper-targeted and behavioral, CTR is there.
Unfortunately, no matter the CTR, the current economy is just reeking havoc on conversions. Which basically has frozen conversions to "good" offers. Give it 1-2 years. Things will line back up then.
Depressing
It's not all doom and gloom:
"Despite the precipitous decline in clicks, says the report, comScore is advocating looking beyond the click because other comScore research has shown that online display ads generate significant lift in trademark search, online and offline sales, and brand-site visitation across all verticals, among those internet users who were exposed to the online ad campaigns - whether they clicked on the ad or not."
If you're an advertiser, who cares if the click brought the sale or not... the sale is all the counts. But, as an affiliate you've got a problem if you're banking on direct response alone.
"Despite the precipitous decline in clicks, says the report, comScore is advocating looking beyond the click because other comScore research has shown that online display ads generate significant lift in trademark search, online and offline sales, and brand-site visitation across all verticals, among those internet users who were exposed to the online ad campaigns - whether they clicked on the ad or not."
If you're an advertiser, who cares if the click brought the sale or not... the sale is all the counts. But, as an affiliate you've got a problem if you're banking on direct response alone.
ThinkEquity Releases In-Depth Analysis on Online Display Advertising
If time allows and anyone is interested in perusing a MUCH more detailed analysis of display inventory cost trending, the ThinkEquity report is pure gold. I cannot attach it due to large file size but if you email the contact at the bottom of the article they will send it to you gratis.
Regarding CTR's and conversion rates in the display space, we must remember that this phenomenon is still subject to supply and demand. As a group of media buyers we can perhaps focus too intently on these performance metrics, but we must not forget about the supply side of the equation. Supply is growing very, very quickly amongst mid and longtail publisher sites and demand (represented greatly by direct response marketer such as us) is balking at current inventory rates.
So while we can all mourn the loss of the power of a CPM today, we have to acknowledge that CPM costs have continued to decline at an equally drastic rate...which definitely diminishes the pain.
The real exciting arbitrage opportunity here is leveraging targeting technologies (i.e. behavioral, contextual, demographic, et al.) to pick up our desired traffic profile on this massively expanding and continually cheaper remnant display inventory.
Large Ad networks that hold guaranteed publisher inventory (AOL, MSN, Yahoo...really most large comscore networks) are being negatively affected by our migration to cheaper inventory opportunities. Google has bit the bullet by opening up their adsense network to the exchanges via DoubleClick 2.0, and Microsoft is not far behind. Yahoo abdicated long ago with RightMedia.
It's going to be exciting to see how this all plays out. But all media buyers need to acknowledge the silver lining, which is a rapidly collapsing inventory cost structure, and focus our energies on exploiting it instead of getting depressed.
My $.02
If time allows and anyone is interested in perusing a MUCH more detailed analysis of display inventory cost trending, the ThinkEquity report is pure gold. I cannot attach it due to large file size but if you email the contact at the bottom of the article they will send it to you gratis.
Regarding CTR's and conversion rates in the display space, we must remember that this phenomenon is still subject to supply and demand. As a group of media buyers we can perhaps focus too intently on these performance metrics, but we must not forget about the supply side of the equation. Supply is growing very, very quickly amongst mid and longtail publisher sites and demand (represented greatly by direct response marketer such as us) is balking at current inventory rates.
So while we can all mourn the loss of the power of a CPM today, we have to acknowledge that CPM costs have continued to decline at an equally drastic rate...which definitely diminishes the pain.
The real exciting arbitrage opportunity here is leveraging targeting technologies (i.e. behavioral, contextual, demographic, et al.) to pick up our desired traffic profile on this massively expanding and continually cheaper remnant display inventory.
Large Ad networks that hold guaranteed publisher inventory (AOL, MSN, Yahoo...really most large comscore networks) are being negatively affected by our migration to cheaper inventory opportunities. Google has bit the bullet by opening up their adsense network to the exchanges via DoubleClick 2.0, and Microsoft is not far behind. Yahoo abdicated long ago with RightMedia.
It's going to be exciting to see how this all plays out. But all media buyers need to acknowledge the silver lining, which is a rapidly collapsing inventory cost structure, and focus our energies on exploiting it instead of getting depressed.
My $.02