Trending this month

Showing posts with label online advertisements. Show all posts
Showing posts with label online advertisements. Show all posts

February 17, 2012

November 2, 2011

The State of Advertising On Facebook :5 Charts That Tell The Story

The Wall Street Journal published this infographic featuring a comScore analysis of the breakdown of large and small advertisers for the top three advertising publishers in the U.S. – Facebook, Yahoo! Sites, and Microsoft Sites. In Q3 2011, Yahoo! and Microsoft shared a similar profile with smaller advertisers delivering around 21 to 23 percent of ad impressions on these properties. In contrast, 62 percent of ads delivered through Facebook came from smaller advertisers.
This chart shows that Facebook appeals greatly to small advertisers, likely due to its intuitive advertising interface minimizing any barriers to entry. It is important to note, however, that Facebook is still competitive with Yahoo! and Microsoft when vying for ad dollars from large brand advertisers. In Q3 2011, Facebook served more ad impressions for the Top 100 advertisers than Microsoft did and only slightly less than Yahoo! did.

The Above data is from a Webtrends survey of more than 11,000 Facebook advertisements.
Click-Through-Rate (CTR) is the measure of the number of clicks divided by the number of impressions of a given advertisement

  • Google AdWords program considers 2% to be a good CTR. However, competitive ads will get a lower CTR due to many players offering ads for the same thing – with many available ads, each individual ad will get less attention.
  • The banner ad is diminishing in popularity for a variety of reasons. 0.25% to 0.5% CTR is the current metric.
  • Video ads may get 1% to 2% CTR which is also in decline as the novelty of ads in videos is wearing off.
  •  0.25% CTR is considered good for Facebook ads.( source : Pixarsolutions)

For the first time, the largest share of US display ad revenues will go to Facebook, eMarketer estimates. The social network’s 80.9% growth in display ad revenues, to $2.19 billion this year, will mean Facebook sees 21.6% of all US display ad dollars.

Facebook's U.S. ad spending per user is tiny, when you compare it to other big ad-reliant industries, as you can see in this chart from Nanigans, a Facebook marketing company.This chart isn't perfect since Facebook is just one company, and the rest of the chart is made up of entire industries. But, the essential point of this chart remains: Facebook has an opportunity to capture many more ad dollars in the future.

September 22, 2007

MySpace To Customize ads

MySpace finally seems to be doing what they should have been doing long time ago . MySpace which saw a 30% increase in its audience to 59 million in June 2007 as compared to June 2006 had quite not been able to target its members with customized advertisements so far.

This only seemed fair enough due to the fact that, the audience at MySpace provided a huge quantity of data and information about themselves that would be considered a gold mine to most advertisers.

Members of the booming social network Web sites treat their individual profile pages as a creative canvas for personal expression . The kind of users that haunt MySpace are a marketers delight since they can micro-target users to the last degree which other vertical websites don't provide.

The social networking companies see those pages as a lush target for advertisers — if only they could customize the ads. Although Internet companies have talked about specifically aiming their ads since the inception of the Web, so far advertising on social networks has been characterized by mass-marketed pitches for mortgages and online dating sites.

Finally Nytimes reported that Web’s largest social network and one of the most trafficked sites on the Internet, MySpace has woken up from its slumber only to realize that they have been doing nothing to increase users probability to click the ads. Now it says that after experimenting with technology over the last six months it can tailor ads to the personal information that its 110 million active users leave on their profile pages.

Executives at Fox Interactive Media, the News Corporation unit that owns MySpace, will begin speaking about the results of that program this week. They say the tailoring technology has improved the likelihood that members will click on an ad by 80 percent on average.

“We are blessed with a phenomenal amount of information about the likes, dislikes and life’s passions of our users,” said Peter Levinsohn, president of Fox Interactive Media, who will talk about the program at an address to investors and analysts at a Merrill Lynch conference in Los Angeles on Tuesday. “We have an opportunity to provide advertisers with a completely new paradigm.”

Richard Greenfield, the managing director of Pali Research, predicts that MySpace’s fledgling program will help increase MySpace’s current revenue to $70 million a month from $40 million a month by next year.

“This is a critical evolution of the MySpace business model envisioned from the day News Corporation bought it,” Mr. Greenfield said.

A 100-employee team ,called the “monetization technology group,” has designed computer algorithms to scour MySpace pages. In the first phase of the program, which the company calls “interest-based targeting,” the algorithms assigned members to one of 10 categories that represents their primary interest, like sports, fashion, finance, video games, autos and health,kind of contextual ads which adsense have been serving.

The algorithms make their judgments partly on certain keywords in the profile. A member might be obvious by describing himself as a financial information enthusiast, for example. But more than likely the clues are more subtle. He might qualify for that category by listing Donald Trump as a hero, Fortune magazine as a favorite publication or “Wall Street” as a favorite movie.

MySpace will also have an automated online system to allow smaller companies to target ads at MySpace users.A Rock band performing in Chicago for example, could publicize a performance by looking up all the people on MySpace who live in that area who are punk fans.

To add a human element to its targetting every two weeks, teams of five “relevance testers” come to Fox Interactive’s offices to manually check member profiles against the categories they have been assigned to.