Jonathan Despinidic

The Internet Is Too Big!

I never thought I'd be telling someone in casual conversation that the internet has grown too big, until now. But here it goes: Advertisers, the Internet has grown too big! And yes, that's bad news for you if you haven't yet learned your way through the crowd.

internet ios too bigBooking an effective media campaign should be easy when there are a huge amount of impressions available on the Internet. Major publishers like Fairfax, News Ltd. and ninemsn produce billions of impressions. And ad networks like AdConion, Drive, Admeld and AdKnowledge (amongst many others) are providing astronomical volumes of inventory (impressions) to the online advertising market.

This massive oversupply of impressions is driving down publisher earnings. As publishers have more and more unsold inventory, they are forced to adopt a performance model, where they are now flogging off inventory to any Joe who will take it and pay the highest effective cost per 1,000 impressions (eCPM) – whether this is on a cost per Click, Lead, Sale or Acquisition model.

While lower prices for the same inventory seems like a fantastic proposition for you as an advertiser, your online campaigns are becoming less and less effective as banners continue to be shown over and over to the same audience, or an audience that is not relevant to your brand and has no interest in purchasing worming tablets for a pet they don’t even have.

I recommend putting the performance publishers or networks you are using through their paces. Ask them if they offer any of the following to increase your campaign effectiveness and results.

  • Automated Campaign Optimisation
    Automated optimisation is run by the technology the performance group is using. This is usually based on Click through rates and conversion rates (how many people click on a banner ad or perform a certain action).
  • Profile Targeting
    Is your network or performance product targeting known consumer profiles (obtained through reputable online databases) or having a guess at who people are by their online behaviour? If the latter, then you should have paid a slightly lower price and booked your campaign on a behavioural targeting product.
  • Behavioural Targeting
    Networks and publishers will set certain criteria of targeting behaviour (i.e. if you visit more than three male-oriented sites, or visit the same site more than four times in a day). This type of behaviour then profiles you as interested in a certain type of product, or that you are most likely a male between the age of 18 and 34, etc.
  • Campaign re-targeting
    Campaign re-targeting can be used effectively in two main ways. The first is specific to the banner ads that the user is seeing across any particular network; e.g. if I have seen banner A twice in one hour, I will now be served banner B. Re-targeting can also be used to re-message or re-target banner ads to a user who has either already landed on your page, or completed a certain stage of an application process. This can be effective in offering an additional discount to finish filling in the form they started and closed.

More important than asking ‘if’ is to find out how. Understand what drives their system and how it all works. Challenge your network or publisher; make sure they are using the method of targeting they have labelled rather than labelling a different type of targeting.

By using this knowledge to plan and run your campaigns, you should be increasing user response rates and running a more effective campaign.


COMMENTS

Posted by hoppingmad designs, 21 August 2010

I do think the internet has become far too large as well - for a company like ours: www.hoppingmad.com.au we really have to scatter our ad revenue all over the place as there are just so so many websites that we have to be part of - we have increased our online ad spend over the past couple of moths and I feel tat it will only increase.


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Jonathan Despinidic Digital Network Sales Jonathan Despinidic
Company: Digital Network Sales
Position: Head of Performance & Technology
Jonathan's latest appointment is as the Head of Performance & Technology at Digital Network Sales (DNS), overseeing the launch of a DNS Perform, the operations team and technology/product development Read Jonathan's full bio

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