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Showing posts with label online display advertising. Show all posts
Showing posts with label online display advertising. Show all posts

February 5, 2014

35% Users Click On less than 5 Banner Ads per month

MediaPost Publications Banner Blindness: 60% Can't Remember The Last Display Ad They Saw 03/19/2013: "After being asked to recall the last display ad they saw, only 14% could name the company, the brand or the product. A recent report by  Infolinks  shows that 60% users ( based on random sample) couldn't recall the  advertising  which was visible across the web

However lthough 75% of respondents who remembered seeing the last ad remember seeing it online. The survey analyzes responses from U.S.-based consumers in December from all genders, ages, income and education levels

The research data throws some interesting numbers on how consumers tend to interact with display and search ass
  1. Relevance remains a key challenge, and 3.65% of respondents who remembered the last ad they viewed did not remember the context
  2. Only half of users ever click on online ads, while 35% click on less than five ads per month.
  3.  Among online ad viewers, 75% saw the ad on their computer, while the remainder viewed the ad on their phone or tablet.

Tags: banners, Online advertising, Digital,CTR,CPM,Search marketing,banner blind

April 21, 2011

The Unfolding of Yahoo Search Revenue Disaster

During the last two quarters, Microsoft has taken over Yahoo’s U.S. search advertising in return eventually for 12 percent of Yahoos’ search revenues. The red line shows what Yahoo got to keep after paying Microsoft, and the blue line is what it makes off of search before paying Microsoft. That blue line is down 8 percent in the last two quarters You can see the gap between the red and the blue lines in the second chart below. 

Yahoo continues to have consistent  lousy quarters. Revenues were down 6 percent, profits were down 28 percent. What’s more, it’s search partnership with Microsoft isn’t going so great. And the finger pointing is starting.

In a very detailed analysis, Danny Sullivan of SearchEngine Land charts the decline of Yahoo’s search revenues over the past two years. What he calls “net search revenues” (the money Yahoo gets to keep after paying off partners) is down 35 percent from a peak of $551 million two years ago to $357 million. He shows the decline in this first chart below. 

Before the fourth quarter of 2010, Yahoo used its own ad platform. But in late October 2010, it began carrying ads from Microsoft. This was part of the Yahoo-Microsoft deal, where Yahoo largely gave up having its own search technology and ad system, outsourcing this to Microsoft.

As part of the deal, Yahoo agreed to pay Microsoft 12 percent of its net search revenues. The red line reflects this, net revenues that were left after payments went out to Microsoft. This big new chunk of money flowing out is what Yahoo has been calling “headwind” that has accelerated its year-over-year growth decline.

 According to Techcrunch 
"The Microsoft Yahoo Deal  is not working out as planned, and Yahoo blames Microsoft. It’s not quite where it should be yet in terms of its revenue per search. Yahoo CEO Carol Bartz said during the earnings conference call:

"adCenter isn’t yet producing the RPS [revenue per search] we hoped for and are confident as possible."

What is implies is that  Microsoft is under-monetizing Yahoo's properties(search). And organic search results from Bing apparently are too good, which makes people click the paid search ads even less. Even Yahoo’s inflated search market share figures (due to slideshows and other forced search methods) weren’t enough to generate more revenues.

December 26, 2010

Online Display Advertising: Top 5 Reasons Why The Click is Over

One of online marketers’ simplest metrics and a key challenge to keep track of, is  the clickthrough rate. While there are a lot of  debate on whether its just the CTR that matters... and whether that should be a standard metric  of  judging the " results and effectiveness of the campaign

The importance given to the CTR .. is  primarily due  to "  the fact that apart from the CTR model, there has been no unamity on  just " how to judge the  metrics" of an online ads . While the CPM model ensured that " advertisers bombard users with their banners ...the CPC model recognized that  a click  leads to a action which may or may not convert. A high CTR rate does not guarantee a high conversion .. which means that "even a click to the landing page  of the advertisers which does not convert is actually wasted clicks which is again equal to users not clicking at all . 

However the fact of the matter is that the CTR ( click through rates ) has been in decline for years. As many recognize the importance of other measures in determining the success of online campaigns in attempts to capture the branding as well as the direct-response effects of advertisements, fewer and fewer web users were clicking on fewer and fewer ads.

Based on longitudinal data from digital ad solutions provider MediaMind, however, that decline appears to have stopped. The company’s analysis of data from July 2006 through July 2010 shows that annual average click rates have plateaued, at 0.09%.

According to “Standard Banners—Non-Standard Results,” it was the success of online display ads that caused the drop in clicks to begin with. As users saw more and more ads across the internet, many continued clicking, but not fast enough to keep up with the expanding inventory. Clickthrough rates fell steadily until reaching an equilibrium.

The study also provides further evidence to back up brand marketers who want to measure more than just clicks to determine the effects of their campaigns. Just 20.4% of conversions came after clicking on a banner ad. Instead, the vast majority happened among web users who had seen the ad but not clicked on it, and who converted at a later date.

The new findings are an encouraging sign for advertisers,” said Gal Trifon, CEO and co-founder at MediaMind, in a statement. “Although CTR is only a partial measure of online success, the leveling of CTR shows that online advertising has reached a level of maturity and that advertisers have become more sophisticated in luring users’ interest.

June 14, 2009

Display advertising Plunges by 14%

Display advertising still battling » Adotas: "Total measured advertising expenditures in the opening quarter of 2009 plunged 14.2 percent versus a year ago, to $30.18 billion, according to TNS Media Intelligence.

This follows a 9.2 percent decline in Q4 2008 as the advertising recession accelerated in the new year. But, according to TNS, Internet display expenditures grew 8.2 percent as telecom, travel and local retail advertisers expanded their online marketing programs.

“The ad market declined significantly in the first quarter, overtaken by a collapsing economy which prompted consumers and marketers alike to shut their wallets and conserve,” Jon Swallen, SVP Research at TNS Media Intelligence, said in a statement. “While there are hopeful signs of general economic indicators bottoming out, the advertising sector still appears to be lagging behind. Available data from second quarter shows ad expenditures tracking on a comparable plane to recent months"