Ads & Marketing

Online ads: What’s working?

Online advertising as we know it is crude. But it is entering a new era of sophistication….

The internet allows us to target advertising to an unprecedented degree, so why are most banner ads still served on such a hit-and-miss basis?

Publishers slap up an insurance ad on a homepage in the hope they will get the industry average 0,3% click-through rate or more. If they achieve that click-through rate, everyone is happy. But here is the question — what happened to the other 99,7%? Surely by any standards this is a pretty inefficient ratio? It may be at first glance, but that 0,3% is still valuable enough for advertisers to achieve major return on investment by forking out big bucks to be on the major sites.

The type of client found on local online publishers give us a clue as to what is working on the web. For example, insurance and car companies have had a very successful love affair with the internet. The one thing they have in common is that a single acquisition equals very high value for them, for example someone buying a car or taking out a long-term insurance policy. It’s also why the high-worth online audience, which can afford to pay regular premiums, works for their brand… (read on)

Online ‘permanence’

Imagine a world where you could actively sell advertising on archived content. Well, it’s here. Content on a website should never die. Never, ever. To delete content on a website is a waste. Online articles and their links should be permanent. In the world of the dead tree, articles have limited lifespans. You read your paper, then it’s used to wrap fish and chips, is thrown in the rubbish bin, or lives a lonely life of obscurity in some dusty library archive….

It’s about branding, stupid

Online advertising is not only about clicks, leads and acquisitions… branding is important too. There are a number of competing online advertising models on the net. By far the most dominant one used by online publishers is the Cost-per-Thousand (CPM) model. CPM is the closest online advertising gets to advertising in traditional media. The advertiser pays in advance to place an advert that will be displayed to the website’s readership base, which should generate return on investment. Through the campaign there will be branding for the advertiser, click-throughs on the advert, leads and hopefully acquisition of the product. Everyone’s happy?

Sign up to our newsletter to get the latest in digital insights. sign up

Welcome to Memeburn

Sign up to our newsletter to get the latest in digital insights.