Monday, March 27, 2006
Wiser About The Web:
"...advertising executives predict that the display banners and videos that appear on Web pages will outpace search this year. "Most of the big money [advertisers] -- cars, movies, packaged goods -- are putting more of their budgets into display," says Jeff Lanctot, general manager at agency Avenue A/Razorfish (AQNT ), the world's largest buyer of Internet ads. "We think growth in search will fall back in '06." Google's chief financial officer, George Reyes, hinted much the same when he indicated on Feb. 28 that Google's per-customer growth in search advertising had topped out, triggering an investor stampede.
As brand advertisers push into display ads, they're hungry for new measurements. With the page view as its standard metric, display has always been far less accountable than search. Sure, Web sites can count the times an ad pops up on a page someone visits. But how many of the readers actually focus on the ad? Studies show that they take in only an average of one of every 12 Internet ads. What's more, in display advertising, even the more concrete metric of clicks is questionable. "Click measurement has been abused," says Greg Stuart, president of the Interactive Advertising Bureau in New York, an industry group. "There's no relationship between clicks and brand awareness."
Some 18 months ago, Stuart's group set out to quantify the value of Internet ads and to compare them with advertisements in other media. The agenda was clear: to attract advertisers, who were placing only about 3% of their budgets online. The resulting IAB studies, which involved 30 major advertisers, including Procter & Gamble (PG ), Kraft Foods (KFT ), and Ford Motor (F ), used testing methods similar to those of social scientists. They created control groups, exposed them to mixes of advertisements from various media, and tracked their effects in recall, brand recognition, and intent to purchase. The IAB concluded that most of the advertisers were underspending online -- and advertisers agreed. Ford, which was spending less than 5% of its ad budget online, quickly moved to triple it...
...
PRIME NET REAL ESTATE
As ads spew out more data, their value rises. According to Avenue A/Razorfish, a banner on a leading portal, such as Yahoo or MSN, now costs about $500,000 for a day, about the same as a 30-second spot on a hit TV series such as CBS's CSI. Some 20 million to 25 million unique visitors stop by while the ad is up. These spots are so hot that the portals, like TV networks, sell them long in advance. And as a condition for prime real estate, portals demand that advertisers buy inventory on their less popular pages..."
"...advertising executives predict that the display banners and videos that appear on Web pages will outpace search this year. "Most of the big money [advertisers] -- cars, movies, packaged goods -- are putting more of their budgets into display," says Jeff Lanctot, general manager at agency Avenue A/Razorfish (AQNT ), the world's largest buyer of Internet ads. "We think growth in search will fall back in '06." Google's chief financial officer, George Reyes, hinted much the same when he indicated on Feb. 28 that Google's per-customer growth in search advertising had topped out, triggering an investor stampede.
As brand advertisers push into display ads, they're hungry for new measurements. With the page view as its standard metric, display has always been far less accountable than search. Sure, Web sites can count the times an ad pops up on a page someone visits. But how many of the readers actually focus on the ad? Studies show that they take in only an average of one of every 12 Internet ads. What's more, in display advertising, even the more concrete metric of clicks is questionable. "Click measurement has been abused," says Greg Stuart, president of the Interactive Advertising Bureau in New York, an industry group. "There's no relationship between clicks and brand awareness."
Some 18 months ago, Stuart's group set out to quantify the value of Internet ads and to compare them with advertisements in other media. The agenda was clear: to attract advertisers, who were placing only about 3% of their budgets online. The resulting IAB studies, which involved 30 major advertisers, including Procter & Gamble (PG ), Kraft Foods (KFT ), and Ford Motor (F ), used testing methods similar to those of social scientists. They created control groups, exposed them to mixes of advertisements from various media, and tracked their effects in recall, brand recognition, and intent to purchase. The IAB concluded that most of the advertisers were underspending online -- and advertisers agreed. Ford, which was spending less than 5% of its ad budget online, quickly moved to triple it...
...
PRIME NET REAL ESTATE
As ads spew out more data, their value rises. According to Avenue A/Razorfish, a banner on a leading portal, such as Yahoo or MSN, now costs about $500,000 for a day, about the same as a 30-second spot on a hit TV series such as CBS's CSI. Some 20 million to 25 million unique visitors stop by while the ad is up. These spots are so hot that the portals, like TV networks, sell them long in advance. And as a condition for prime real estate, portals demand that advertisers buy inventory on their less popular pages..."
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