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Page Impressions are outdated - they aren't a true measure of a users interaction or use of a site.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).


Anonymous Michael Feiner said...

And now AOL buying Tacoda. Is Revenue Science next?

25 July, 2007 21:46  

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