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Pricing Online Ads

Futuristic Play @Andrew Chen has an interesting read: Internet Advertising Bureau and Bain on pricing in online ad markets.  One point for publishers stood out:

Need to better support the value of premium inventory – through more innovative offerings and/or reducing units available

Too often websites get greedy about making money and put ad placements all over their pages (what I like to call the “porn effect”).  Putting too many ads on a page is detrimental to all the advertisers because they have to fight for share of voice (SOV) or attention.  Visitors are more likely to ignore ads entirely if they are lumped together (they subconsciously know that area of the page is just “ads”).  It may seem a bit non-intuitive but creating an ad inventory – or set amount of ads and ad spots can help you increase their value.  As your traffic grows, more advertisers will be interested in advertising on your site.  If you sell out of spots, you’ll be able to raise the prices of your ad spots.  Selling out of spots also entices advertisers because it infers that your site is a valuable advertising placement.

If you have ads on your blog or website, what has been your experience with creating an ad inventory?  What about on other websites that you visit – what are your thoughts about their advertising?

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SEO for Business – More Than Just Keywords

I was speaking with a client today who said his previous SEO company asked him for 20 keywords and got his website on the front page of Google for all of them.  But he still hadn’t seen his traffic go up, nor seen any leads from the experience. I think this provides a very important lesson about SEO – first you need to understand your business goals and your goals for your website.

Just because you’re on the front page of the search engines for some keywords you think are important doesn’t mean you’ll get more traffic or leads.  You don’t know if those keywords are the same as what your potential customers are using.  SEO is really an ongoing experiment in finding out how your customers want to find you.

After speaking with the client for awhile longer, he came to the conclusion that he really wanted more leads from his website.  In his experience he’s found that he closes 80% of business from people who contact him.  Leads are important way to increase his sales and are a good goal for his website.  Now we have something to work with – and SEO isn’t the only answer, it should be part of an overall Internet strategy.

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Internet Strategy Forum Summit – End to End Marketing: A Fundamental Shift

Presented by Nancy Bhagat, VP Sales & Marketing Group, Director Integrated Marketing, Intel

Cost of media is low per person, but is unfocused.

There is a 300% growth rate in timeshifting TV.  But TV is not media, it’s a delivery.  Video will continue to exist, just in different places through different delivery strategies.  Behavior has changed in how people interact with ads.  56% say skipping ads is important part of timeshifting.

Technology is no longer about who is tech saavy and who is not anymore.  It is about the desire to purchase.  80% turn to Internet for information to make a purchase decision. Our targets are online.

People are looking for a person like them, but they don’t need to see or know them directly.  This is defined much differently than previously.

Great brands are no longer the brands that tell the best stories, but are the brands that have the best stories told about them. (needs source)

Power of online marketing:

  • Impact
  • Agility
  • Targeting
  • Scale

Leadership requires flexibility and focus. Online vehicles offer speed and flexibility to test multiple content types in one place and to determine what content is best.

Success metrics are shifting away from traditional impressions and CPC. The ability to evaluate success is critical.  Content is increasingly delivered through social media which is difficult to measure.  We now need to measure what matters – user engagement, behavior, movements & trends.  Data that is not actionable is meaningless.

We need to know what place people are in the buy cycle/qualification.  Data without valid business context is meaningless. We need to understand what activities are valued.  And if things don’t go well in those activities, we need to know what and why.

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