April 27, 2012

Online Clicks = Online Conversions? NOT!


A study out by Comscore and Pretarget this week states that:

If an online conversion is your goal, your ad being seen matters more than your ad being clicked.

What ? Are they mad? No, absolutely not.

In our industry, this is important news that may begin to put to rest those who continually ask for click through rates on display ads as the holy grail of online metrics.

The study cannot be taken lightly since it was based on  263 million ad impressions delivered  over nine months across 18 advertisers in numerous verticals.

Simple Study Highlights

  • Clicks had the lowest correlation with conversions
  • Ad ‘hover'(dwell time in the ads) and viewable ad impressions had the highest correlation with conversions.

Other Recent studies with similar findings

1. A 2009 Mediamind study released in July 2010 that found that :

  • on average, increasing Dwell time in the banner [hover] from 5% to 15%, increased conversion rates by 45%, from 0.4% to 0.6%.”

2. Casale Media’s 2011 “Ad Visibility Report,” found that

  • “ads appearing above the fold were 6.7x more effective at generating conversions than those appearing below the fold.”

Interesting to note that there are now several online auditing tools available that confirm whether your online ads are being delivered above or below the fold eg do you have to scroll down your screen to see them.

I had been wondering for a while who would be the first online ad supplier selling advertising space on a ‘cost per guaranteed exposure’ basis and now we know.

Saymedia announced on April 17th that they now offered ad impressions based on this model – interesting to note that they were also the first to launch the Cost per guaranteed ad engagement model several years ago.

So the gloves are off. It will be interesting to see who has the guts and the inventory to follow Saymedia’s innovative model…watch this space




Posted by Rob Booth | Filed under: All, General, Media, Useful | 1 comment - read it or leave a reply

February 9, 2011

Display ads are dead. Long live Display ads.

In October last year in my Facebook status, I posted Google’s 7 display ad predictions for 2015. I recently attended the Toronto part of their world tour and thought it was time to post. Interestingly enough, and prior to Google’s recent predictions, many people seemed to believe that display ads were going the way of the dodo with the growth in social media etc and search.

Clearly our industry to date has not even scratched the surface in terms of display advertising’s possibilities because of the numerous obstacles to success that include poor perception, insufficient brand metrics, traditional processes, production costs, ad serving costs etc.

The best real world analogy I can think of is the evolution of the automobile with the creation of the first unsophisticated, clunky cars at the beginning of the last century – do we see these exact, inefficient vintage cars on our roads in 2011 – absolutely not. However, are cars still around in 2011 – absolutely, and not only that, they are faster, more high tech, aesthetically beautiful and highly efficient.

  1. 50% of display ads will include cost per view video
  2. 50% of audience will be buying in real time
  3. Mobile will be the #1 screen
  4. Five metrics will be more important and widely used than clicks
  5. 75% of ads will be socially enabled
  6. Rich media will be in 50% of brand campaigns
  7. Display will be a $50 billion industry, $2 billion in Canada

Like Google, I strongly believe that display ads will continue in the future as one of the elements in online marketing strategies and unlike today, they will be bought differently, will be more beautiful, more mobile, more entertaining, more interactive, much more useful and very very social!

Display ads are dead, long live display ads.

Posted by Rob Booth | Filed under: All, General, Media, Useful | 2 comments - read them or leave a reply

December 17, 2010

>1 trillion online display ad impressions served in U.S each quarter

Following on from my recent post about Facebook delivering 24% of all display ad impressions in U.S, I thought it would be fun to visually represent this to illustrate the sheer scale of what this actually means.

Now imagine if 100$ bill represents 100 ad impression delivered:

Now imagine 10 000 ad impressions – not much, eh? Not going to get noticed, right?

Now imagine 1 million ad impressions – still pretty small.

Now 1 billion ad impressions – getting up there now in size.

But check out 1 trillion ad impressions (and by the way, the man in red is standing in the bottom left corner and the $ pallets are now double stacked,  head high : )

Now if there are currently 1,3 trillion display ad impressions available each quarter in US and 24% are delivered in Facebook, look at the last image and imagine what that actually represents!  Last year, Facebook impressions represented 9% of all display ad impressions delivered, this year 24% – what will it be next year, 40% ?!!

Posted by Rob Booth | Filed under: All, General, Media, Useful | No comments yet - be the first

November 18, 2010

Facebook changing the online ecosystem

Recent studies show that Facebook is delivering 24% of all display ads available in the US online market each quarter – this mind blowing statistic is contradicted by emarketer’s finding that only 10% of ad dollars are actually being allocated to Facebook. Reasons for this could be :

  • Advertisers not realizing the scale of influence of Facebook in the online ecosystem
  • General uncertainty as to how to approach advertising strategies on social media sites such as Facebook, which were ultimately created to build relationships and facilitate human connections, not advertising
  • Relatively untested and traditional banner formats available

One thing is for sure, Facebook’s new messaging service and it’s joint announcement later today with Myspace (that I think may involve Myspace conceding defeat by opening up to using Facebook Connect ) is only likely to make Facebook even more attractive to users and advertisers alike !

Posted by Rob Booth | Filed under: All, Media, Useful | 2 comments - read them or leave a reply


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