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Friday, March 11, 2005

Marketers Split on Contextual Ad Effectiveness:
"By Kevin Newcomb | March 10, 2005

Despite early criticism of contextual ads, more marketers are turning to them to extend the reach of their search campaigns. But experts warn there are pitfalls if the campaign is not managed properly.

'We've seen a shift in perception and performance. We were bullish on the idea originally, but disappointed with the results out of the gates,' said Ron Belanger, VP of search marketing at Carat Interactive. 'We expected traditional search conversion rates, but what we got was much lower.'

Still, Carat Interactive now uses contextual ads for about half its clients, mostly as a supplemental tool for incremental reach. Belanger will use contextual ads to create awareness, mostly for things like product launches or branding campaigns that are not tied to specific performance metrics. He suggests avoiding the technique for newer campaigns or keywords that are ultra-competitive, where there's a thin margin..."

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