5 Reasons Why Your Display Advertising Is Not Working

Image Source: goldspotmedia.com

Image Source: goldspotmedia.com

Are you one of those advertiser, who is struggling to understand why your Display Advertising is not providing the desired results?  If answer is yes, then this post is for you. Below are 4 most common reasons why your display advertising might not be working.

  1. Ad Views: According to a study by Sticky,  77% of ads are never seen by people. Even when the ad is considered viewable, meaning it is within viewing area, only 55% ads are actually viewable. Which results in a very lower click through rate, the average banner CTR is about 0 .1% and declining.
  2. Spider and Bot Ad Clicks:  Spider and bots, instead of humans, make up a significant amount of clicks on the ads. All these spiders do is click on an ad, land on your site and then leave causing millions of dollars in fraudulent clicks.  As a result you will either see a very high bounce rate on your pages and/or mismatch in the clicks reported by ad network and visits reported by your Web Analytics solution.  In 2012, a start-up reported that about 80% of their clicks from Facebook ads were by spiders. Another study found that 20% -90% of clicks on some sites were via spiders. I also showed an example of a bot in my post, 4 Reason Why Your Bounce Rate Might Be Wrong
  3. Fat Finger: Over 35% of the ad clicks on Mobile are by accident, again causing high Bounce Rate.
  4. Mismatched Landing Experience:  Make it a seamless and consistent experience from your banner to conversion. Users don’t have time so make it right the moment they land on your site. For example, If a banner ad promotes “Free Trial” then make sure landing page make it easy for user to sign up for the free trial. Don’t expect the users to click through to your site to find where the “Free Trail” page is.  Mismatched landing page and ad experience leads to High Bounce Rate and Low Conversion Rate.
  5. Site Speed: Slow site speed breaks visitors flow from a display ad to your site. If it takes too long for the page to load then the visitor will be gone before she sees the full page. In this case you will see clicks but not visits and high bounce rate. Fractions of seconds can make a huge difference in the performance of your advertising.

21 Metrics to Measure Online Display Advertising

In this post I am listing the 21 metrics to measure the success of your display advertising.  Most of these are also applicable, with some variation, to other forms of advertising such as Paid Search, Social Media Ads, Print and email. I will cover these other channels and mediums in the future posts.

  1. Impressions – It is the number of times your ad is displayed. The number by itself does not hold much value but it is a metric used to calculate other metrics and KPIs. Keep in mind that an impression does not mean that someone actually saw the ad, it just that the ad was shown on a web page/app.
  2. Reach –This is the number of unique people (generally identified by cookies) that were reached by your ad. This number is always lower than the impressions because your ad is generally shown to same person (cookie) multiple times.
  3. Cost – The total cost of running the ad campaigns.  This is calculated differently by different tools and organizations. Some use actual media cost while other use a fully load number that includes the agency cost, creative cost etc. Whichever number you use, be consistent in your approach. If you are going to do comparisons with CPC models such as Paid Search then I suggest using the actual media cost. Most of the publicly available benchmarks are based on actual media cost and are expressed in CPM (explained later in this list).
  4. Engagement Rate or Interaction Rate– This applies to the Rich Media Ads, where a user can interact with the ad without leaving the Ad unit/widget.  Engagement Rate is the percentage of interactions per impression of the ad unit and is calculated as (Number of Interactions/Total Impressions)*100%.
  5. CPM – This is the cost for 1000 Impressions of the ad unit. Display advertising is generally sold on CPM basis. (For more information on CPM, see  Cost of Advertising: CPM, CPC and eCPM Demystified).
  6. Clicks – Number of clicks on an ad unit that lead to a person leaving the ad unit.  Keep in mind that a click does not mean that a person landed on the intended destination of the banner ad click. There are multiple factors that could lead to a click but not a visit to the destination (I won’t cover those here but am happy to discuss over email or a call).
  7. CTR (Click though rate) – It is the number of Clicks generated per impression of a banner ad. This number is expressed as a percentage. CTR = (click/impressions)*100%
  8. CPC – Cost per Clicks is the cost that you pay for each click.  Generally, display advertising is sold by CMP (see above), you can easily convert the cost in to Cost Per Click to compare it against other channels such as paid search. Cost per click is the effective amount you paid to get a click.  It is calculated by dividing the cost with number of clicks.  CPC = Cost/Clicks. Sometime this number is also referred as eCPC (effective Cost per Click).
  9. Visits – As stated above in the definition of clicks, not every click turns into a person landing on your destination (generally your website). Visits measures the clicks that did end up on your site.  (For more definition of visits, please see Page Views, Visitors, Visits and Hits Demystified)
  10. Visitors – Visitors metric goes one step ahead of the visits and calculates the number of people (as identified by cookies) who ended up on your site as a results of the clicks on the banner ads.
  11. Bounce Rate – Is the percentage of visits that left without taking any actions on your site. It is calculated as Number of Visits with one page view /Total number of visits resulting from the display ads. (Bounce Rate Demystified for further explanation).
  12. Engaged Visit Rate – Generally this is opposite of bounce rate (though you can have your own definitions of engagement).  It measure the quality of the visits arriving from your display advertising. You can calculate Engaged Visits as  (100 – Bounce Rate expressed as percentage).
  13. Cost/Engaged Visit – This is effective cost of each engaged visits. It is calculated as total Cost divided by number of engaged visits.
  14. Page Views/Visit – Page views the number of pages on your site viewed by each visit. With a lot interactions happening on one single page, this metrics is losing its value. However, for now, it is still a valuable metric for ad supported sites.
  15. Cost/Page View – As above, this is valuable metrics for ad supported site to figure out the cost of generating on extra page view.
  16. Conversions – Conversion is defined as the count of action that you want the visitors to take when they arrive from you display ads. Some examples of conversions are – purchase, signup for newsletter, download a whitepaper, sign up for an event, Lead from completions etc.
  17. Conversion Rate  – This is the percentage of visits that resulted in the desired conversion actions.  Conversion Rate = Total conversions/visits*100. If you have more than one conversion actions then you should do this calculation for each one of the action as well for all the actions combined.  In case of Leads, you can take it one step further and calculate not only the “Leads Generation Rate” (Online Conversion Rate) but also Lead Conversion Rate, which is, Leads that convert to a customer divided by total leads generated.
  18. Cost per Conversion – This is the Total Cost divided by the number of conversions achieved from visits coming via display ads.
  19. Revenue – This is total revenue that is directly attributed to the visits coming from display advertising. It is pretty straightforward to calculate in eCommerce but gets a little tricky when you have offline conversions.
  20. Revenue per Visit   – Shows the direct revenue achieved per visit originating from the display advertising. It is calculated as Revenue Generated from Display Ads divided by the total Visits.
  21. Revenue per Page – This is useful for ad supported business models. This is sometimes expressed as RPM (Revenue per thousand impressions of ads) = (Total Ad Revenue/Number of page views) * 1000

Note: In addition to Clicks, you can also looks at View Through and calculate your other related metrics by view through.  View Through is sum of all the cookies that visited a page that showed your ad on it, and then landed on your site. The assumption, in this calculation, is that you landed on the brands site because of that ad exposure.

 Where can you get these metrics from?

  • Impressions, Reach, Cost, Engagement Rate, Clicks, CTR and CPC data is available from your agency or ad server tool.
  • Visits, Visitors, Page Views, Bounce Rate, Engaged Visit Rate, Conversion, and Conversion Rate are available in your Web Analytics tool.
  • Revenue is available in either your Web Analytics tool or other offline sales database.
  • Cost/Conversion, Cost/Engaged Visits, Cost/Page view and Revenue/page are calculated using data from multiple tools.


5 Tips to Improve Marketing Campaigns

Marketers spend millions of dollars on digital marketing campaigns every day. Analytics help marketers get the most of out of every dollar spent and drive great benefits for them and their organization. Data collected at each step of the way to conversion can help marketers and their agencies in optimizing each campaign’s performance. Below I’ve outlined five tips on how to use the data to optimize marketing campaigns.

1. Target the Right Customers

For a campaign to have any chance of succeeding it has to reach the right customers. Clearly defining customer segments is a critical component of any campaign. You can use historical data from previous campaigns to determine which customers are more likely to respond to your campaign.

For an in-house email list, you can use attributes that you have available in the database and create a segment of customers with those attributes that have responded in the past. For display advertising, you can use email attributes or on-site behavioral data and use a technology like BlueKai to target and reach segments that look like those who responded in the past. For search advertising, determine the key phrases (words) that clicked with those customers and then use them as your starting point to figure out which keywords/phrases to use.

2. Target the Right Channels

The question marketers often struggle with is where to spend their budget. Which channel (e.g. direct mail, email, display, search, social, affiliate, etc.) or combination of channels is likely to be most effective for that particular campaign? Use historical data to figure the channels that your target segment is more likely to respond to.

Customers use various channels in their journey to becoming a customer. They use those channels differently. Use data (current and historical) to figure what a typical customer’s (your desired segment) journey is and then determine where you should focus your efforts.

3. Develop Creative and Messages that Resonate with Your Customers

If your creative and messages do not work you will notice it immediately in the form of clicks. Use historical data and industry benchmarks to determine the expected outcome in terms of Click Through Rate. If your CTR is way lower, change the content, if CTR is higher, continue doing what you are doing.

4. Developing Engaging Landing Pages

Getting people to click on your ads or emails is a good start but is of no value unless those users take actions on your landing pages. Use the data to determine if users are engaging with the landing page or are they bouncing off without going any further. If the bounce rate is more than expected, take appropriate corrective actions. You should always conduct testing (A/B or Multivariate) to figure out what resonates with your customer and make them go to the next step.

5. Optimize the Conversion Path

The conversion path is the last step in converting a visitor into a customer. The job of the conversion path is to lead the visitor to final conversion. Every step of the path is there to convince the customer and drive her to take the end action, the action that defines the success of the campaign. Use the data collected on the conversion path to determine which steps are losing visitors. Conduct A/B testing and take appropriate actions to improve the steps of the conversion path.

Note: This article was originally published on CMSWire on Sept 20th,  See 5 Tips to Improve Marketing Campaigns Using Data on CMSWire.com


Digital Marketing Jobs

Cost of Advertising: CPM, CPC and eCPM Demystified

The purpose of this post is to clarify the terms CPM and CPC and also show how to convert from one model to the other.


CPM stands for Cost per 1000 Impressions (number of times the ad is shown) (M is Roman numeral for 1000). Generally display advertising (e.g. banners) is sold in CPM. If the ad is shown 1000 times the cost will be equal to 1 CPM price. For example, if a publisher charges $10 CPM, that means your ad will be shown 1000 times for $10. If your budget is say $10,000 then mean your ad will be shown 1,000,000 times ($10,000 *(1000/$10) ).

Total Impressions = (Total Cost or Budget) * (1000/CPM)

If you are trying to find out how much you will pay for a given number of impressions then you can use the following formula

Total Cost = (Total Impressions * CPM)/1000

If you notice in the above calculations, there are no mentions of how many people the ad will be shown to or how many clicks will be generated. CPM advertising is solely based on impressions. In theory if you don’t set a frequency cap (i.e. the maximum number of times one person will see your ad) then you could end up serving all the impression to one person only. (If you would like to know more about frequency cap then drop me a line and we can talk further).


CPC stands for Cost Per Click. Google Adwords made this model popular. Generally search and text advertising is sold by CPC model. In this kind of advertising model you just pay for number of clicks you get on your ads irrespective of number of impressions it takes to generate those clicks. For example, if the CPC is $1.00 and your ad is shown 12,000 times but gets no clicks then you pay nothing. If you get 10 clicks on your ad then you pay $1.00X10 = $10.00.

CPC = Total Cost/Total Clicks

Total Cost = CPC * Total Clicks

Comparing CPM to CPC and vice versa

The goal of advertising using one model versus the other is really dependent on what you are trying to achieve. If your objective is to generate Brand awareness then you might engage in display advertising which will most likely be sold in CPM model. While search ads on Google or text or display advertising on Google Ad Network are sold in CPC model.

Often you will end up comparing two models to figure out where and how to spend your money effectively. To do direct cost comparison you will need to convert CPM to CPC or CPC to CPM pricing.

CPM to CPC conversion

Below is a formula that you can use to calculate a CPC equivalent of a CPM model

CPC = ((Total Impression *CPM)/(1000 *Clicks)

Below is a spreadsheet to show you the same calculation. Let’s take an example of a campaign that costs you $10 CPM and generates 50 clicks in 50,000 impressions.

Know value
Know value
Expected or Known
Total Cost
Impressions * (CPM/1000)
Cost Per Click
Total Cost/Clicks

The above $10 CPM campaign is equivalent to a $5 CPC campaign.

CPC to CPM conversion

Below is a formula that you can use to calculate a CPM equivalent of a CPC model

CPM = (CPC*clicks*1000)/Total Impressions

Let’s take an example of a campaign that costs $4 per click and generates 100 clicks, resulting in a total spend of $400. Let’s say it took 50,000 impressions to generate those 100 clicks.

Known value
Know values
Total Cost
Impressions * CPM/1000
Cost per 1000 Impressions
Total Cost/(Total Impressions/1000)
Cost per 1000 Impressions


The CPM value you get when you convert CPC into CPM is also known as eCPM (effective CPM).

Note: eCPM is also shown in Adsense reports, in that case it is

Total Adsense Revenue /(Impressions/1000)

I have developed few calculators to calculate CPM and CPC, feel free to use them.

Web Analytics Jobs

Are You Wasting Your Advertising?

I hope you have heard the famous words of John Wanamaker “I know half of my advertising is wasted, I just don’t know which half.”

Today the phrase should be something like “Half my Advertising is wasted because I do not advertise responsibly” or “Half of my advertising is wasted; I can stop that but I fail to use the data”.

Yes that is correct. We have an abundance of data today to help us save the wastage. There is no shortage of tools that will collect all sorts of data. Yet many marketers fail to act responsibly and use this data to stop advertising waste and also save customers from unwanted ads.

Here are some examples that will show you what I mean

  • Newsletter – Nordstrom – In my blog post on email and relevance, I showed an example of an email from Nordstrom that had irrelevant offers. As result of this, not only did Nordstrom waste time, effort and money but also lost a subscriber. Advertising was wasted.
  • Newsletter – Drugstors.com – Same as Nordstrom. Not only did Drugstore lose a subscriber, but a high profile marketing guru “Seth Godin” wrote about this on his blog. Adverting was wasted and resulted in negative publicity.
  • Paid Search – I searched for ‘iPhone Charger” on Google and saw an ad from “Walmart” titled “iPhone”.

    I could take one of the following two actions

    1. Ignore this ad as it does not have relevant copy, which results in lower CTR on the ad and hence higher CPC that Walmart will end up paying in future. (Google punishes you if you don’t have high performing ads).
    2. I click on it and Walmart pays for the click.

    I chose to click on the ad and landed on a page that showed me results for “ipod” instead of “iPhone chargers”. Wow!!! What a mismatch. Net result: My time was wasted with irrelevant results, Walmart wasted its money by paying for click that did not generate any value. Advertising was wasted.

    Here is another example: Search Pay Per Click Tip : A Simple Way to Increase Profit.

  • Offline Advertising – Netflix recently sent me two snail mail pieces on the same day.
    1. Offer to join Netflix and get first month free – Great, I like it, I think I should join Netflix. Wait…I am already a member and receive my movies from them all the time. So should I cancel my subscription and join again to avail this offer? Netflix is known for movie recommendations it makes to its customer based on their past history. Can’t they tie their database to see who is already a member so that they don’t send junk mail to that subscriber? Advertising was wasted.
    2. Offer to recommend Netflix to my friends – They have done it several times now. I have never referred any of my friends as most of them are already subscriber plus who has time to save a print coupon and give it to a friend. The web is full of coupons and they can get it from there. Netflix should have looked at my referral history, I have never referred anybody. Stop sending junk mail and avoid wastage.
  • Display Advertising – We all know the web is full of irrelevant ads. An example is an ad from Air Linus of NYTimes.com for flights from New York to Ireland. I think this works for those who are in New York, but not for me. I live in Seattle. Just because I am browsing NYTimes.com does not mean I live in New York or interested in going to Ireland. Advertising waste could have been avoided by just checking my Geo location. Money Wasted. Advertising was wasted.

Are you advertising responsibly? Are you using data to make sure you are not wasting your adverting?

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5 Questions To Ask When Choosing Behavioral Advertising Partners

At OMMA Global, this week, I attend a panel titled “Behavioral Advertising Partners: Choosing Wisely”. The panel was moderated by Brian Massey, of ClickZ and the panelists were

Joe Apprendi, Founder and CEO, Collective Media
Richard Frankel, President, Rocket Fuel Inc.
Jeff Hirsch, President & CEO, Audience Science (formerly Revenue Science)
Nancy Marzouk, VP Media Sales, x+1
Dave Zinman, VP and GM Display Advertising, Yahoo

Panelist were asked to come up with one question that the advertiser must ask before making a decision about which networks to use for their Behavioral Targeting campaigns. Here are the 5 questions that they came up with:

  1. Where are my ads going to run?
  2. How am I going to achieve my goals?
  3. What data is going to be used for Targeting?
  4. What is fundamentally different about what your company does as compared to other networks?
  5. Why should I be spending my time with various networks, what do they do different?

It was clear that the onus is on the advertiser to dig in and get their questions answered.

I also suggest reading following two blog posts, which I wrote on this subject, before you start engaging in behavioral targeting.

You might also be interested in other Behavioral Targeting Posts.

I am running for the WAA Board of Directors position and will appreciate your support and vote. To learn why you should vote for me please view my details at WAA Site. If you have any questions please feel to email me at batraonline@gmail.com.

Site: AnilBatra.com
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Search Pay Per Click Tip : A Simple Way to Increase Profit

Visitors go to search engines because they are looking for something. They enter their search query and want the search engine to provide relevant results.

Marketers buy Paid Search listings because they want to cash in on visitors searches by providing relevant product/services/offers etc. Remember, users are looking for results and not another set of search boxes or additional navigation to get to what they want. It is marketers’ responsibility to make sure the offers shown on their landing pages are relevant to the search keyword that the user searched for. DON’T make the visitors search again. Provide the user with relevant results right away. Don’t make people click more buttons or links to find what they are looking for.

You are wasting your money if you are doing PPC without thinking about the experience visitors will get once they click on the ad and land on your site. Landing pages are very critical to the success of any kind of advertising, but are even more critical in search advertising. Visitors don’t have patience. They need answers and if you can’t provide them with one immediately, they will go to a site that does. Your competitors are providing answers just a few clicks away. Here is an example to prove my point:

I searched for “hotels in Vancouver bc” on Google,

I clicked through three results,

  1. Orbitz – Which is the top listing on the left hand side
  2. Hotels.com – which is the 2ndd listing on left hand side
  3. Expedia– Which is on the 1st spot on the top

Which one do you think will be most successful in getting visitor to book a hotel? See the screen shots below and you will know.

Orbitz takes me to a generic hotel search page and wants me to search again. It has “Ski Sale” listed in in-house banners on two prominent places. Where is ANYTHING related to Vancouver BC??? The site wants me to search again and does not provide offers or banners that are speaking to me. This site is pushing what it wants to sell and not what I want to buy. I don’t like it. I click back.

Hotels.com takes me to a generic hotel search page, just like Orbitz did. It shows Bora Bora, New York but Vancouver is nowhere to be found. What, you want me to search again??? Sorry, but I don’t have time. Check your bounce rate, you will see me there.

Expedia shows me the Vancouver hotels right on the landing page, provides me ratings, rates etc. It makes it easy for me to book my hotel. Rather than making me search again, it is getting right to the business of selling.
Which one do you think will drive more conversions? Lesson: When it comes to buying paid search traffic, don’t make your potential customers search again or browse around your site to find what they need because they won’t. Give them a relevant landing page and get to the business of closing the deal.

One thing you might be worried about is how you will go about generating all of these relevant landing pages. There are several tools such as Optimost, Test&Target, Widemile etc. that will take care of this for you. Most of the time you might just setup a generic landing page template and fill-in the content on the fly based on the referring keyword (see Follow the Search blog post that I wrote). The increase in conversion will itself pay for the cost of setting up unique landing pages, so cost should not be an issue.

If you still can’t justify the cost of having a unique and relevant landing pages then keep in mind that if you bid without relevant landing pages, two things will happen; First, as we already discussed, your visitors will bounce off of your site and go elsewhere. Second, the ad network (Google AdWords, especially) will penalize your page by decreasing your quality score, thus making it increasingly expensive over time to buy clicks. Yes, Google does score your landing page and will increase your minimum keyword bid prices if it doesn’t think you are providing its users with what they are looking for. Long story short: make your landing pages relevant.
Having relevant landing page will result in increase in revenue, lower bid cost and increase in profit.

Questions? Comments?

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Latest Position: Director, Analytics at Resource Interactive (Columbus, OH)
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5 Best Practices for any Campaign

Burger King recently launched a TV ad that directed visitors to WhopperVirgins.com. I learned about this on AdAge.com which wote:

“What if you don’t remember the exact Web address and Google it? You still better remember the domain name. While WhopperVirgins.com ranks first in Google for “whopper virgins,” it’s invisible when you omit the plural. “

AdAge writes further:

”This is a major missed opportunity. Google Trends shows that recently, the volume of searches for the singular and plural versions have been nearly equal. “Whopper virgin” searchers must either go to an intermediary site or refine their search. Why can’t consumers ‘have it their way’ and get to Burger King’s site even if they’re off by a letter? This multimillion-dollar branding campaign could have covered all its bases with a $10,000 search marketing investment. As it stands now, Burger King risks frustrating consumers instead of serving up one whopper of a video.”

AdAge listed following three areas of neglect:

  • The domain: WhopperVirgin.com is a parked domain filled with ads for Burger King store listings, Virgin Mobile gifts, Virgin Atlantic flights, Virgin Islands vacations and Virgin Mary checks.
  • Search engine optimization: The microsite doesn’t appear on the first three pages of Google results for “whopper virgin” searches.
  • Paid search: While reviewing Google’s listings over several days, there hasn’t been a search ad running on “whopper virgin” queries.

In addition to above another area which was partially neglected by Burger King was Web Analytics. I found two main issues with the web analytics

  1. Web Analytics Tool Implementation – This site did not have any web analytics code implemented on the landing page. However the video does start as soon as user lands on the site which then fires WebTrends code. With this implementation I am not sure if they are getting an referring site or search engine information.
  2. Data Analysis – Clearly Burger King is using web analytics tool. I am sure they were passing the web analytics reports around but I am assume that they were not doing any meaningful analysis. If they were doing any analysis at all they would have uncovered the SEO/SEM issues listed by AdAge.
  3. Simple keyword analysis using their web analytics tool would have helped them uncover these issues. (Lesson: If you are spending millions of dollars on the campaign you should also keep aside few thousands for deeper analysis. Just passing the reports around is not enough).
    It is very common to report on top 10 -20 keywords but these keywords alone don’t tell the whole story. Yes they can be good ego boosters but you have to look beyond top keywords and analyze the keyword that are either in the long tail or are not driving any traffic at all. Doing some basic analysis on search engine keywords would have shown them that they were not getting any traffic (or are getting very little traffic) from “Whopper Virgin” or “Burger King Virgin” keywords (I am sure there are more variations).

I hope Burger King learned its lesson and will be smarter next time they run campaign. (Note: All campaigns, offline or online end up having an impact on the site, search engines and online media)

Below are the 5 lessons that all marketers can learn from Burger King Campaign and apply to their own campaigns in the future:

  1. Search Engine Optimization – Make SEO an Integral Part of your any micro-sites and campaigns (offline or online).
  2. Paid Search – Plan to spend few thousand dollars from your campaign budget to SEM to augment or fill any gaps in SEO.
  3. Web Analytics Tool Implementation – Plan to spend few thousand dollars from your campaign on Web analytics tools (which they did). Make sure the tool is properly configured to capture the accurate data. As I mentioned above, it appeared that the site did not have any code on the landing page, which means they were missing a lot of data and hence not getting the whole picture. Conduct an accuracy audit of the tool implementation; it can potentially save you millions of dollars by providing you data beyond click-throughs.
  4. Data AnalysisAnalysis is different from reporting. Web Analytics tools and SEM reports just provide you a view into the data. You have to conduct a full analysis to understand what the data means and what actions to take to generate a higher ROI from your campaigns. Plan to conduct an analysis on all the data you collect from various tools. Learn from this analysis, it will tell you where you are wasting your money and what’s working for you. Use the insights gained from the analysis and take appropriate actions to improve your campaigns.
  5. Online Reputation Monitoring – Monitor news sites, Social Media (conversations/actions that happen away from your site) etc., look at what people are talking about your campaign and your brand. Learn from it and take appropriate actions. A simple tool like Google Alert can provide this to you this for free. I believe Burger King did pay attention to what was being talked about and as a result now you can see Burger King’s Paid Search campaign for “Whopper Virgin” and “Burger King Virgin” keywords.

Comments? Questions?

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Are Consumers Paying Attention to your Ads?

eMartker reports the results of 2 surveys which show that users are multi-tasking when using the internet.

Few things to think about:

  1. Are consumers watching your video ads when they are already watching TV?
  2. Are consumers reading all the text in your ads when they are already reading bunch of other stuff?
  3. Are consumer paying attention to TV and Print ads when they are surfing web as well?

Are consumers really watching any of your ads?

Marketers have to really work hard to cut though all the noise and make their ads stand out to grab consumers attention.

Looking to fill your Web Analytics or Online Marketing position?
Post your open jobs on http://www.web-analytics-jobs.com/
Latest Position: Director, Analytics at Resource Interactive (Columbus, OH)
Site: AnilBatra.com
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Social Networking Sites and Advertising

Social Networking sites are used by millions of people around the work and thousands of new users are jumping on social networking sites every day. Almost all of these social networking sites and new entrants are dependent on the advertising to generate the revenue to keep them going. However, a study by BurstMedia shows that consumers have a very low tolerance for online ads.

52.6% of those surveyed accepted that advertising will appear on a web page but they had very low tolerance for more than 2 advertising units per web page. 29.9% of survey respondents said that they will leave the site immediately if they perceived it cluttered. Women are more likely than men to abandon the site. (Have lots of ads on the site and can’t figure out why people are abandoning, this might be a reason, time to do some testing)

It is not only the publishers who are negatively affected by the ad clutter but also are the advertiser’s products and services. 52.4% respondents has a less favorable opinion of an advertiser when their advertising appears on a web page they perceive as cluttered.

A study by IDC shows that the users are less tolerant of Social Networking Services (SNS) advertising than other forms of online advertising. Ads on SNS have lower click-through rates than traditional online ads (on the Web at large, 79% of all users clicked on at least one ad in the past year, whereas only 57% of SNS users did), and they also lead to fewer purchases (Web: 23%; SNS 11%).

Lack of ad effectiveness and slowing economy is making marketers cut their spending on Social Networking sites.

Market research firm eMarketer has cut Social Network ad spending estimate for 2009 to $1.3 billion down from $1.8 billion it projected earlier. It has also lowered 2008 estimated from $1.2 billion from $1.4 billion.

“As consumer usage of social networking sites continues to flourish, advertising has not kept pace,” a release from eMarketer explained. “In 2008 and 2009, the recession will affect all forms of online ad spending, but experimental formats, such as the ones available on social networks, which cannot always demonstrate a proven return on investment, will be hit particularly hard.”

So what should Social Networking sites do? Charge customers for the using the site? Nope, that is not going to work either. A recent AdAge study showed that no matter how much consumers hate advertising but they are not even going to pay for their favorite sites.

According to IDC Lower-than-average ad effectiveness on SNS will continue to contribute to slow ad sales unless publishers get users to do something beyond just communicating with others. If the major services succeed in doing so, they will become more like portals, such as Yahoo! or MSN, and they will come closer to the audience reach of the top services. If that happened, publishers would be better able to monetize their SNS.

Side Note:

eMarketer has also cut its overall online ad spending estimates

It reduced 2008 to $23.6 billion from its August estimate of $24.9 billion. The online ad growth is still increasing and is expected to be 11.3 percent higher than 2007. In 2009 this increase will be 8.9 percent over 2008.
Hardest hit is the display advertising, for which the growth rate estimate was cut from 16.9 percent to 3.9 percent. Search ads are expected to grow at 21.4 percent in 2008, its lowest level so far. Next year the search-ad growth rate should be at 14.9 percent, the company predicted, dropping to 10.4 percent in 2013.


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