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Would you pay for …
            A vacuum
            cleaner that
            doesn’t work
            99% of the time?

10/3/2012                      1
If you pay CPM for …
                                                       Search CTR: 0.19%
                                                       Display CTR: 0.05%
                                                                                        That even
                                                       Search CTR: 0.25%
                                                       Display CTR: 0.03%               assumes a
                                                       Search CTR: 0.13%                generous 1%
                                                       Display CTR: 0.07%
                                                                                        click through
                                                       Search CTR: 0.24%                rate!
                                                       Display CTR: 0.07%
            Source: http://go-digital.net/blog/2011/03/search-ads-versus-display-ads/




… display ads, you ARE!
2/15/2012                                                                                               2
Users don’t look at banner ads




            Image credit: http://www.useit.com/alertbox/banner-blindness.html

10/3/2012                                                                       3
“If users don’t see your
      ads, even branding
      doesn’t occur.”

10/3/2012                        4
Don’t pay for impressions…
  Pay for impressions




                           Pay for clicks


   … pay only for results (clicks).
10/3/2012                                   5
Dr. Augustine Fou – Chief Digital Strategist
   Dr. Augustine Fou is an industry-recognized thought
   leader with over 16 years of management consulting
   and digital strategy consulting experience, advising
   marketing executives in digital strategy, search and
   social media marketing. Dr. Fou is the former Group
   Chief Digital Officer of Omnicom's Healthcare
   Consultancy Group. Dr. Fou completed his PhD at
   MIT at the age of 23. He started his career with
   McKinsey & Company.

   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.clickz.com/author/profile/1151/augustine-fou
   Slideshares: http://www.slideshare.net/augustinefou
   LinkedIn: http://www.linkedin.com/in/augustinefou

10/3/2012                                                                                        6
                                                                              acfou@mktsci.com

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The myth of cpm based display advertising

  • 1. Would you pay for … A vacuum cleaner that doesn’t work 99% of the time? 10/3/2012 1
  • 2. If you pay CPM for … Search CTR: 0.19% Display CTR: 0.05% That even Search CTR: 0.25% Display CTR: 0.03% assumes a Search CTR: 0.13% generous 1% Display CTR: 0.07% click through Search CTR: 0.24% rate! Display CTR: 0.07% Source: http://go-digital.net/blog/2011/03/search-ads-versus-display-ads/ … display ads, you ARE! 2/15/2012 2
  • 3. Users don’t look at banner ads Image credit: http://www.useit.com/alertbox/banner-blindness.html 10/3/2012 3
  • 4. “If users don’t see your ads, even branding doesn’t occur.” 10/3/2012 4
  • 5. Don’t pay for impressions… Pay for impressions Pay for clicks … pay only for results (clicks). 10/3/2012 5
  • 6. Dr. Augustine Fou – Chief Digital Strategist Dr. Augustine Fou is an industry-recognized thought leader with over 16 years of management consulting and digital strategy consulting experience, advising marketing executives in digital strategy, search and social media marketing. Dr. Fou is the former Group Chief Digital Officer of Omnicom's Healthcare Consultancy Group. Dr. Fou completed his PhD at MIT at the age of 23. He started his career with McKinsey & Company. 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.clickz.com/author/profile/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefou 10/3/2012 6 acfou@mktsci.com