Tuesday, July 24

All things being equal, Online Advertising isn't

Yahoo, ComScore, Nielsen and many industry pundits are questioning the digital advertising industry's currency.

Page Impressions are outdated - they aren't a true measure of a users interaction or use of a site. Monthly Unique users are overly flattering given that they measure reach over a month, rather than a day, hour (like Newspaper, Radio, TV).

More worrying for industry beheamouths, Google and MSN (even Yahoo), between 4-6 percent of a users time is spent on Search. But search accounts for over 40% of internet ad revenue, so something is out of sink.

So advertisers and agencies need to work on new metrics to measure the value of their campaign? Perhaps.

Could this be a threat to searches dominance? Unlikely. You can't really argue with the results from a search marketing campaign and this is what has driven the industry. The fact people spend less time on search versus destination sites may actually favour the advertiser - since they less engaged and more likely to be pulled away.

If advertisers do follow time-spent or another metric, the big guns will want to have a hold on the market if it moves...and this could be what's behind their acquisitions of DoubleClick (Google), Aquantive (Microsoft) and Right Media (Yahoo).

1 Comments:

Anonymous Michael Feiner said...

And now AOL buying Tacoda. Is Revenue Science next?

25 July, 2007 21:46  

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