Comments on: Does Online Advertising Deliver the Target Audience?

By: Neil

Neil — Mon, 21 Dec 2009 14:18:38 +0000

Is it not the case that the majority of online display advertising is almost entirely untargeted, the same ads are being delivered across a wide range of different types of websites, with little to no regard as to the suitability of the ads to the user. This leads users to automatically filter out all advertising they see, meaning that even the very usefull and relevant ads genrate very low click CTRs? CTR should be a relevant measure of effectivness but until publishers take the brave steps towards only deleivering relevant ads,this will never be the case.

By: Sandro

Sandro — Mon, 26 Oct 2009 13:16:05 +0000

@Jon: Thanks for this very informative article. It’s true, I think, that CTR is not a definitive measure for online advertising. The problem with dwell-time, however, may be the “multiple tabs” browsers.

@Adey: I think also that the CTR are often very low due to the fact that ads are not targeted. With correct behavioral targeting, for example, one can increase CTR up to 400%.

By: Planner Reads » Blog Archive » Rethinking CPM and Display Advertising

Planner Reads » Blog Archive » Rethinking CPM and Display Advertising — Mon, 12 Oct 2009 06:40:54 +0000

[...] First, just stop using the CPM. Yes, it will break every model and process that the industry holds dear, but we need to get rid of the crutch. The ensuing turmoil will bring creative thinking, new ideas, and entrepreneurial passion. Nielsen on Delivering the Target Audience [...]

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Mon, 12 Oct 2009 03:31:21 +0000

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By: Rethinking CPM and Display Advertising

Rethinking CPM and Display Advertising — Sat, 10 Oct 2009 14:09:48 +0000

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Permuto Discoveries » Online Targeting: Time Matters — Thu, 08 Oct 2009 01:44:52 +0000

[...] Jon Gibs @ Neilsen Categories: Uncategorized Tags: Comments (0) Trackbacks (0) Leave a comment [...]

By: Is Online Advertising Effective, Valuable? | Proeber

Is Online Advertising Effective, Valuable? | Proeber — Wed, 07 Oct 2009 23:14:10 +0000

[...] Online Advertising Effective, Valuable? I recently read an article on Nielsen’s blog roll about the effectiveness of online advertising, by Jon Gibbs. It argued that we [...]

By: Nielsen Wire

Nielsen Wire — Wed, 07 Oct 2009 18:57:37 +0000

Adey,

While click though rates might be low, we think that there is plenty of evidence to suggest that clicks are not the most important metric to judge the impact of online advertising. Online advertising, particularly with higher dwell time, tends to have longer, more impactful brand effect. If you are solely judging the impact of any form of advertising solely on its direct response, you would dramatically underestimate its impact. I agree firmly that clicks are low, and this is precisely the reason we need to find better measures to encourage sensible online buying. For more insight and data on click throughs, watch for my colleague Ken Cassar’s post later this week. — Jon Gibs

By: Jon Proeber

Jon Proeber — Wed, 07 Oct 2009 16:27:11 +0000

I think the interesting point here is how economics will effect the value of these ads. You pointed out that the increase of these ads will only decrease the value, therefore making the publishers more disincentivized to provide good advertising and lead to increased clutter. But also the publishers themselves and their algorithm’s for these ads put a strain on the value as well. Facebook with over 300 million viewers are limited to only a few advertisements per page, but the exposure the mafia wars or some other unrelated advertisement is without a doubt hurting the value of their ads.

By: Adey

Adey — Wed, 07 Oct 2009 09:50:41 +0000

Advertising is the bane of good website design and sub 0.2% response rates suggest its little better than spam.