As advertisers focus more on ROI, there is a permanent and irreversible shift from display advertising (CPM) to search advertising (CPC) where the advertiser only pays when they get the action -- e.g. the click.
5. Display ad impressions…
Except
Facebook, which
is artificially
inflating
impressions by
serving up to 9
ads per pageview.
Source: go-digital
Blog, May
12, 2012
May 24, 2012
… are headed downward.
5
6. If users can’t see the ads...
“about half are never in view”
“quality problem in long-tail content
sites”
… no wonder click rates suck.
May 24, 2012 6
7. If users don’t look...
Source: Banner Blindness
“The ads to the right are only noticed by 23%
of the respondents, and they spend only half a
second on the ads.” Source: Mashable 12/29/2011
… even “branding” doesn’t happen.
May 24, 2012 7
8. Display ads on portals…
Portals were the
largest share of
display ads (e.g.
AOL and Yahoo)
They are among
the fastest-losing
areas of display ad
spending.
… are dropping by double-digits.
May 24, 2012 8
9. Pay for impressions vs...
Display Ads
Pay for impressions
Search Ads
Pay for clicks
… pay only for results (clicks).
May 24, 2012 9
10. Why is search so much better?
Display Ads Search Ads
Ads next to content Ads based on what the
the user wants to user is looking for
read – (keyword) at the exact
email, scores, news, moment in time.
content, etc.
April 13, 2012 10
11. Search is always better
Search CTR: 0.19%
Display CTR: 0.05%
Search CTR: 0.25%
Display CTR: 0.03%
Search CTR: 0.13%
Display CTR: 0.07%
Search CTR: 0.24%
Display CTR: 0.07%
Source: Search versus Display | go-Digital Blog
May 24, 2012 11
17. So What?
“Smart advertisers are shifting away from
display ads which are paid on an
impression basis to other forms of online
ads such as search and social, for better
measurability and return. Look at your
entire mix and determine what mix is
optimal for your business and industry.”
- Dr. Augustine Fou
May 24, 2012 17
18. Dr. Augustine Fou – Chief Digital Strategist
“I advise clients on shifting their
marketing mix among traditional
and digital tactics, and unifying
them to work optimally together.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://www.slideshare.net/augustinefou
LinkedIn: http://www.linkedin.com/in/augustinefou
May 24, 2012 18
acfou@mktsci.com