Online Advertising - Present and Future
Posted by Universal Ad at Tuesday, December 25, 2007 12:44 AM and is filed under Advertising,online,ROI 
Several "where is online advertising headed" articles have been published recently. First, an interview with a Microsoft exec (head of advertising & publishing, former CEO at aQuantive Inc.) who claims that "too much emphasis is put on Internet-search
advertising" and that "more buyers will switch to other kinds of online ads." Kind of predictable, considering Microsoft's position (ad revenue mostly from display ads) against Google (revenue mostly from search ads but still 7 times Microsoft's ad revenue...)
According to Microsoft, graphical ads are becoming more important as big-brand advertisers spend more of their budgets online on videos and banners that closely resemble what they use in television and print advertising. Because Google is newer to display ads (through DoubleClick & YouTube), Microsoft may benefit if more buyers embrace the format. Microsoft is working on a system that would reduce the importance of search - "conversion attribution" will dole out credit to other sources that influenced the buyer's decision, regardless of which ad the person clicked on directly before he or she made the purchase.
Following Microsoft's point-of-view, it's interesting to see a neutral POV regarding the ROI of online advertising. Bottom-line - measuring it is "as difficult as ever." This comes from Jupiter Research (via this eMarketer article) reporting that:
Posted by Universal Ad
According to Microsoft, graphical ads are becoming more important as big-brand advertisers spend more of their budgets online on videos and banners that closely resemble what they use in television and print advertising. Because Google is newer to display ads (through DoubleClick & YouTube), Microsoft may benefit if more buyers embrace the format. Microsoft is working on a system that would reduce the importance of search - "conversion attribution" will dole out credit to other sources that influenced the buyer's decision, regardless of which ad the person clicked on directly before he or she made the purchase.
Following Microsoft's point-of-view, it's interesting to see a neutral POV regarding the ROI of online advertising. Bottom-line - measuring it is "as difficult as ever." This comes from Jupiter Research (via this eMarketer article) reporting that:
- 50% of online advertisers said that measuring and attributing ROI was their top challenge for 2007
- Of the 42% of online advertisers who said they used an agency, only 19% said they were satisfied with their agency’s cross-tactic ROI, and only 23% were satisfied with measurement
- More than six in 10 respondents said that better measurement tools would have the greatest positive effect on their implementation.
- Advertisers using agencies said they wanted help executing across
both search and display, but only 19% worked with an agency
specifically for such execution. Only 26% used cross-tactic measurement
and analysis.
Posted by Universal Ad
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