online advertising

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)

Where are the great online magazines? Where?

Magazines have not enjoyed the same high profile, runaway success of their newspaper counterparts in the online world. Magazines aren’t big online. Websites of print magazines have had a rather low profile in more than 10 years of internet in this country. Compare this to the high-profile online news brands that rake in big numbers and you will see what I mean. It’s no secret that the news brands dominate the top half of the local online readership rankings, whereas very few magazines even make the top 50 sites….

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?

Battle of the business sites

Websites that report on financial news and information were always going to crack it online. The web is the perfect medium for delivering up-to-the-minute financial news and data. Moreover, the LSM of the average business news reader matches that of the online reader: Both are high. The five biggest consumer-focused business sites, reporting on general financial news in South Africa, are engaged in a tussle to capture a bigger share of this lucrative reader and advertising market….

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