Sponsored Links vs. Static Banners
Only the WP, USA Today, and LA Times use sponsored links more than static banner ads; http://eicker.at/NewsAdvertising
Tagged: Display Advertising Toggle Comment Threads | Keyboard Shortcuts
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Gerrit Eicker
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Gerrit Eicker
Static Banner Advertising
Static banner ads make up nearly half (46%) of all the ads on news websites; http://eicker.at/NewsAdvertising
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Gerrit Eicker
Banner Ads Volume
eMarketer predicts that banner ads will increase from $7.6 billion in 2011 to $11.7B by 2015; http://eicker.at/NewsAdvertising
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carlo
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Gerrit Eicker
Well, first of all any advertising interferes. But what I really can’t second is your opinion regarding contextual advertising: if done correctly (talking about quality targeting, not quantity spamming!) you still see very high CTRs and following conversions. – With a share of 24% of all online advertising, classic banners still come second – and still grow in overall volume. In my opinion this has several, pretty simple reasons: 1. the production of banners is fast and easily done compared to rich media ads etc. 2. Being produced fast they can be iterated fast as well to get good CTRs and conversions. 3. Banners still “make an impression” compared to pure text links (SEM etc.). Branding works and still needs lots of impressions – besides all other methods of course.
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Gerrit Eicker
News Sites: Advantage of Display Ads Growth?
Whether news sites will be able to take advantage of display ads growth is becoming less certain; http://eicker.at/NewsMedia2012
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Gerrit Eicker
Display Ads: Strong Growth
Display ads will continue to see strong growth, thanks to the healthy appetite for banner ads; http://eicker.at/NewsMedia2012
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Gerrit Eicker
Online News and Advertising
PEJ: Online advertising on news sites is still not targeted, neither by context nor behavior; http://eicker.at/NewsAdvertising
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Gerrit Eicker
PEJ, Who Advertises on News Sites and How Much Those Ads are Targeted: “A new study of advertising in news by the Pew Research Center’s Project for Excellence in Journalism finds that, currently, even the top news websites in the country have had little success getting advertisers from traditional platforms to move online. The digital advertising they do get appears to be standard ads that are available across many websites. And with only a handful of exceptions, the ads on news sites tend not to be targeted based on the interests of users, the strategy that many experts consider key to the future of digital revenue. – Of the 22 news operations studied for this report, only three showed significant levels of targeting. A follow-up evaluation six months later found that two more sites had shown some movement in this direction, but only some, from virtually no targeting to a limited amount on inside pages. By contrast, highly targeted advertising is already a key component of the business model of operations such as Google and Facebook.”
PEJ, Who is Placing Ads? – “Who is buying ads on news sites? The answer reveals part of the trouble the news industry is having findings its way in the new marketplace. Across these 22 news sites, the biggest single advertiser is the news organization itself or its parent. Ads promoting the organization’s own products, known as ‘in-house ads’ in industry terms, accounted for 21% of the online ads studied – more than any category. … The magazine websites studied here (time.com, newsweek.com, economist.com and theatlantic.com) ran the largest percentage of in-house ads, fully 50% overall, from economist.com at 40.1% on the low end to time.com at 56% at the high end. In the print version of these magazines, by contrast, 10% of the ads were promoting the magazine or its company (Time magazine 11%, The Economist 13%, Newsweek 4%, and The Atlantic’s print edition contained no self-promoting ads). – Newspapers contained the second-highest level of self-referencing advertising, 21% of the Web-based ads versus 9% of their print ads. … For these print-related outlets, though, the heavy reliance on self-promoted ads could reflect two different factors. First, the newspaper industry still relies on its print product for the vast majority of its ad revenues. At the end of 2010 (the latest data available) fully 88% of overall newspaper revenue came from the print product versus just 12% from the Web. … Another phenomenon could be the inability of the industry to draw advertisers-and thereby ad revenue-to their online space.”
PEJ, The Financial Industry: “The second biggest category of advertising online was one that played a fairly small role for news in legacy platforms, the financial industry. Ads for financial products or services accounted for 18% of all Web ads captured, more than triple that of the next biggest category, toiletries and cosmetics (5%). And on more than half of the sites, 12 out of 22, financial ads ranked first-above self-promotion. … These numbers stand in contrast with the small role financial advertising plays in most of the legacy platforms studied. Only magazines contained more financial industry advertising in their original platform than online.”
PEJ, Targeting: “The customization or targeting of ads based on audience data is one of the newer ways to serve advertisers interests-helping those selling goods to reach consumers perceived to be the most likely to be interested in and thus to act on their ads. In targeted advertising, in other words, the ads one person gets will differ from what another person receives, depending on their online purchase history, location and/or personal habits, even if they click on the same website at essentially the same time. … Overall, only a handful of sites exhibited high levels of targeting. A few more had a moderate level of targeting. Most showed no signs of targeting at all. … Overall, just three of the 22 sites exhibited high levels of targeting, defined here as at least 45% of the ads were different from one user to the next. … One question that emerges is whether targeting has more or less natural appeal on some websites than others. In other words, do national sites with their larger and more diverse audience pools lend themselves more naturally than smaller sites to the benefits of ad targeting? … Finally, on a few sites, there was evidence of another method of targeting-not according to users but according to news story. On a number of occasions, there was a close relationship between the content of the story and the ads displayed.”
PEJ, Use of Discount Sites/Coupons: “About half of the sites studied, 16 of the 22, carried some discount/coupon advertising. But on only five did discount ads make up more than 10% of all the ads studied. For the most part, sites that created their own discount programs tended to rely on these ads more. … Among nationally oriented sites, Yahoo News carried the greatest percentage of discount/coupon advertising, 15% of the ads studied. The majority of these were from the national services Groupon and LivingSocial. – The other two sites with the highest use of discount advertising, the Toledo Blade and Los Angeles Times, have created their own daily deal operations to compete with the national companies. … These were the only two sites in our sample that had tried their own daily deal style business, but they are certainly not alone. Various papers now have their own Groupon-like services…”
PEJ, Format: “That leaves banner ads, classifieds, video and rich media as the four main kinds of ads news sites can offer advertisers. – Banner ads, the oldest form of advertising on the internet, make up the second largest percentage of ads on the internet (24% of total online advertising revenue). Going forward, most market analysts expect banner ads will represent a smaller portion of online advertising than search, but the category is still expected to grow. For instance, eMarketer predicts that banner ads will increase from $7.6 billion in 2011 to $11.7 by 2015, a bright spot for the news online. … Across these 22 news sites, that same tendency toward banner ads emerged; static banner ads made up nearly half (46%) of all the ads on news websites. Some differences in the style of ads used did emerge-mostly according to the legacy media genre, though individual sites did at times stand apart from their media brethren. … The Washington Post, on the other hand, relied on banner ads for just 18% of the ads studied. Instead, the site used sponsored links far more than others, 66%. Two other national papers, USA Today and the Los Angeles Times, also used sponsored links more than static banner ads.”
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Gerrit Eicker
It’s a Facebook World
ComScore: It’s a social world. – The deeper truth: It’s a Facebook world – except of Japan; http://eicker.at/FacebookWorld
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Gerrit Eicker
ComScore: “It’s a Social World – Over the past few years, social networks have evolved to become an integral part of the online experience, providing the means for users to facilitate offline connections and build new ones online. In the process, social networks have shaped the way we communicate and have even cultivated new social behaviors. Indisputably, the way we keep in touch with friends, find recommendations, and share ideas with others has changed with the advent of social networking. – Social Networking is the most popular online activity worldwide – In October 2011, 1.2 billion users around the world visited social networking sites, accounting for 82 percent of the world’s population. Nearly 1 in every 5 minutes spent online around the world is now spent on social networking sites, making Social Networking the most popular content category in engagement worldwide. – Microblogging has emerged as a disruptive new force in social networking – Microblogging, a way of communicating through short-form content, has emerged as a leading social networking platform over the past few years, led by Twitter. In October 2011, Twitter reached 1 in 10 worldwide Internet users, reflecting its emergence as a leading global social network. Other microblogging platforms on the rise are Tumblr and Sina Weibo. – Mobile devices are fueling the social addiction – As mobile devices provide users with the means to connect on-the-go and interact in real-time, they show promise in taking social networking even further. Nearly one third of the U.S. mobile population age 13 and older accessed social networking sites at least once in October 2011. Across five leading markets in Europe, nearly a quarter of the mobile population reported doing so as well. With smartphones driving even more frequent social networking use through apps and the emergence of tablets, we expect mobile social networking to be the wave of the future.”
ComScore Slides: “It’s a Social World – Top 10 Need-to-Knows about Social Networking and Where It’s Headed: 1. Social networking is the most popular online activity worldwide. 2. Social networking behavior both transcends and reflects regional differences around the world. 3. The importance of Facebook cannot be overstated. 4. Microblogging has emerged as a disruptive new force in social networking. 5. Local social networks are making inroads globally. 6. It’s not just young people using social networking anymore – it’s everyone. 7. ‘Digital natives’ suggest communications are going social. 8. Social networking leads in online display advertising in the U.S., but lags in share of dollars. 9. The next disrupters have yet to be decided. 10. Mobile devices are fueling the social addiction.”
BI: “The Only Seven Countries In The World Where Facebook Isn’t The Most Popular Social Network – Facebook is on its way to global domination, but there are still seven major markets where it is not the leading social network, according to a new report from comScore. – We’ve included charts showing how Facebook compares to its rivals in these markets. – Before you click through to take a look, here are some stunning stats on Facebook’s reach from comScore: In October of last year, Facebook reached 55% of the world’s online audience, accounted for 3 of every 4 minutes spent social networking, and accounted for 1 of every 7 minutes on the web. – It’s the number one social network in 33 out of the 40 markets comScore tracks. Here’s a look at those seven other markets…”
TS: “Japan is the only country in the world where Twitter has a higher number of monthly unique visitors than Facebook, that’s according to Business Insider quoting comScore data. – In no other country tracked by comScore analytics has Twitter more visitors than Facebook – although, there are still an estimated seven countries where Facebook has yet to dominate, losing out to the likes of Orkut and other regional networks. … The seven countries where Facebook is not the most popular network are Brazil, China, Japan, Russia, Poland, South Korea and Vietnam, although conflicting reports suggest that Facebook may have actually overtaken Orkut in Brazil recently. – Data from Google Ad Planner adds weights to comScore’s analysis, suggesting that in Japan, as of November 2011, Facebook had reached 19 million unique monthly visitors while Twitter had reached 21 million.”
AdAge: “Japan Lags World in Social-Media Adoption – The Japanese have gained a reputation as rapacious consumers of anything new that technology has to offer. But that doesn’t include social media, according to a new study from ComScore. – Just 58% of Japanese internet users use social media, which is especially striking since 41 out of the 43 markets ComScore studied had social-media penetration of 85% or higher. (The only other outlier with 53% was China, which blocks access to Facebook, though local social networks RenRen and Sina Weibo are popular.) … A recent Forrester report on global social-media adoption paints a similar picture, stating that just 28% of Japanese internet users visit social-media sites on a monthly basis, which is one-third the rate of metropolitan China, including Hong Kong, Shanghai and Beijing, where penetration is extremely high. ‘Only 13% of online Japanese adults visit Facebook on a monthly basis, while social-media sites such as Mixi or Twitter fit Japanese internet users’ preference for anonymity and have been more successful in attracting them,’ according to the report.”
Gerrit Eicker
Yahoo: Google vs. Microsoft?
Are Google and Microsoft participating in a Yahoo bidding? http://eicker.at/YahooGoogleMicrosoft
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Gerrit Eicker
NYT: “As a host of potential bidders circle Yahoo, several of Silicon Valley’s biggest companies are considering whether to jump into the fray themselves. – Microsoft and Google are both weighing whether to participate in the bidding. … [T]here’s one thing the technology giants have in common: Not one of them wants to actually buy or run Yahoo. – Instead, Microsoft and Google are considering lending financial support to private equity firms or others weighing a bid, according to people briefed on the matter. … With a deal, Google could eventually wrest Yahoo away from Microsoft when their partnership expires. … However, it is unclear whether a Google-Yahoo partnership would pass antitrust scrutiny. … Many of the potential suitors for Yahoo have contacted Alibaba‘s chairman and chief executive, Jack Ma, looking to gauge his interest in working with them, these people said. The agreement that governs Yahoo’s 40 percent stake in his company gives Mr. Ma what some analysts have said is a kingmaker role.”
WSJ: “Google Inc. has talked to at least two private-equity firms about potentially helping them finance a deal to buy Yahoo Inc.’s core business, according to a person familiar with the matter. – Google and prospective partners have held early-stage discussions but haven’t put together a formal proposal and Google may end up not pursuing a bid, this person said. It is unclear which private-equity firms Google has talked to.”
WSJ: “The discussions between Google and private-equity firms are the latest indications of growing deal activity around Yahoo. … Jack Ma, CEO of Alibaba Group Holding Ltd., the China-based Internet company in which Yahoo owns a roughly 40% stake, recently said he was interested in buying Yahoo, but it was unclear whether he has made a serious move to do so. … Google has long been the No. 1 player in Web search. But in the display-ad market, Google is a smaller – but growing – competitor. In the U.S., Facebook is expected to generate more than $2 billion in net revenue from display advertising this year, with Yahoo generating $1.6 billion and Google generating $1.1 billion, according to research firm eMarketer Inc.”
Guardian: “Google is already under regulatory scrutiny from governments around the world. … [A] Google bid would trigger regulatory interest. The US government threatened to challenge an earlier proposal by Google to place ads on Yahoo’s site, causing Google to abandon the effort in 2008. At the time Microsoft was making a $44.8bn bid for Yahoo which ultimately proved fruitless.”
TNW: “With Yahoo seemingly unable to find a solid place in today’s online landscape, a sell-off makes plenty of sense, although if Google were to be involved it would undoubtedly face close scrutiny from antitrust authorities – the FTC is already investigating the search giant in the US.”
Gerrit Eicker
Display Drives Search
SEL: How search conversions are driven by display impression frequency; http://eicker.at/DisplayDrivesSearch
Gerrit Eicker
AOL, Microsoft, Yahoo vs. Google
AOL, Microsoft, Yahoo have agreed to sell each other’s display advertising inventory to challenge Google; http://eicker.at/AMY
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Gerrit Eicker
ATD: “AOL, Yahoo and Microsoft compete for ad dollars. But a new pact calls for the rivals to cooperate on ad sales, too. – The three companies are going to start selling ad inventory on each others’ sites, in a plan they hope will make them more competitive with Google. … Executives from all three companies briefed a group of top Web publishers and ad buyers about the plan at a dinner presentation last night in Manhattan. … The three companies will share revenue on the ads, and supposedly they’ll pocket more than they would have if a third-party ad network sold their stuff.”
Guardian: “The potential tie-up comes days after reports that AOL and Yahoo, fallen giants of the first age of the internet, were discussing a merger in the wake of the firing of Yahoo’s chief executive, Carol Bartz. … The advertising hook-up, in the meantime, could help slow the fast growth of Google and Facebook in the lucrative online display advertising market. – Google has long dominated search advertising – or online classified advertising – but overtook Yahoo in display advertising in May this year in the US, according to research firm IDC.”
pC: “All three of issued statements to the effect that there have been some ties before and the portals are exploring ‘future’ collaborations. … But ultimately, it’s hard to see what the value of the three combining sales efforts would be. There is a tremendous amount of similarity in terms of reach among AOL, Yahoo and Microsoft. So where’s the complement? … The reason Google and Facebook are eating away at the portals’ display dominance is easy: the users that advertisers want to reach are more and more easily reachable through social media sites like Facebook, not through general content offered by portals. At the same time, Google’s tight relationship with the agencies, through its demand side platform Invite Media and the Google DoubleClick ad exchange, make it a more efficient funnel for online ad dollars.”
VB: “Since the three companies will be sharing revenue from the display ads, the real challenge will be in convincing each of their separate sales teams to start selling their competitors’ ad inventory. – The partnership, scheduled to begin by the end of the year, doesn’t require that each of the companies exclusively work with each other, according to the report.”
TNW: “The ad pact will start at the end of 2011 and will not require exclusivity so each company is free to work with any ad network, even Google. I imagine it will still require a bit of training to get their internal sales teams to start selling competitors’ inventory. By banding together in Musketeer style, the three companies will share ad revenues in hopes of increasing their total earnings in Google’s shadow. The online advertising world is one of the most competitive landscapes and as companies go head to head in the language of CPM, CPC, DSP and conversion tracking pixels….it’s like the wild west for geeks out there.”
Banner ads, according to the latest research from couponmarketing, are the least effective media. Even if they are placed in the right context, they often negatively interfere with the target’s online behavior which is quite unique in response. The liquidity of surfing meets the concrete slab of invasive, unsexy ads. It’s an offline culture crammed into a digital one. It can’t work properly, unless reinvented from scratch. I’m thus surprised to read about such increase. May be new mkt strategies will be deployed in the future, with richer media and really interactive banners whcih go beyond the click me stage.