display advertising
Marketers Put More Work in the Hands of In-House Agencies
source: http://www.emarketer.com/Article/Marketers-Put-More-Work-Hands-of-In-House-Agencies/1010228
Cost-cutting drives changes
A growing contingent of client-side marketers are turning to in-house agencies to take more ownership of their advertising and marketing strategy.
According to an Association of National Advertisers (ANA) survey, 58% of US client-side marketers said their company used an in-house agency this year, compared to only 42% who five years earlier said the same. And 56% of respondents said in May 2013 that in the past three years, they had moved at least some established business previously handled by an external agency to their in-house agency.
Magazine advertising, social media, online display advertising and search engine marketing were the services most commonly handled by an in-house agency, according to the study. The proliferation of digital marketing channels may be convincing companies to move more marketing in-house, so they can be more responsive and create a full breadth of material at lower cost. Still, only small percentages of in-house agencies handled most of these services, indicating that much work still sits squarely with external agencies.
Traditional TV and radio advertising were the least likely formats to be handled in-house.
Marketers cited cost savings as the most significant advantage of bringing agency work in-house in 2008. This year, it remained the top advantage, however one cited by far fewer respondents.
Five years earlier, more than half of marketers saw cost efficiencies as an in-house agency’s primary advantage, whereas in! 2013, that figure had dropped to 35%. Other factors instead took on greater precedence: 19% of marketers cited brand expertise, as well as institutional knowledge and the added benefit of a team dedicated to the company or brand. This indicates that marketers have become more satisfied by the quality of work created by in-house agencies.
But the disadvantages also stacked up. Forty-five percent of the survey respondents said it would not be as easy to stay on top of key trends with an in-house agency. That was more than the percentage of marketers who saw this as a challenge in 2008, and suggests that digital channels amplify the importance of understanding the latest marketing opportunities. Creative innovation was also seen as more lacking when agencies moved in-house, along with limited skill sets among the staff.
The digital marketing age seems to be forcing marketers to navigate between two competing impulses—the need to produce more marketing than ever before across ever-proliferating channels is making in-house agencies particularly attractive. But the skills needed to effectively leverage and communicate via these channels are still often seen as best handled by agencies fully dedicated to the advertising and marketing space.
Global Marketers Say Lead Gen A Bigger Social Ad Objective Than Branding
source: http://www.marketingcharts.com/wp/direct/global-marketers-say-lead-gen-a-bigger-social-ad-objective-than-branding-36489/?utm_campaign=rssfeed&utm_source=mc&utm_medium=textlink
More companies cite lead generation (37%) than branding (27%) as their main social media advertising objective, according to [download page] a new study from Econsultancy in association with Adobe. The survey – of company marketers around the world, but primarily from Europe – indicates that fewer respondents are looking to increase traffic (18%) or drive direct online sales (18%) from their social media advertising efforts.
The results mark somewhat of a departure from recent studies which have suggested more of a branding focus from social media ad buys (see here and here).
Lead generation is also the primary objective for a plurality (37%) of in-house marketers engaged in online display advertising, although direct online sales (26%) is their second-biggest objective. When it comes to paid search, direct online sales (40%) counts as the primary objective, followed closely by lead gen (38%).
The bulk of social advertising dollars are being spent on Facebook, per the report. Client-side respondents indicate that they’re allocating 41% of their social ad budgets to the platform, compared to 18% for LinkedIn, 17% for Twitter, and 24% to other networks. Agency respondents estimate that an even greater 53% of their clients’ social ad budgets are being directed to Facebook.
Effectiveness of B2B Online Display Advertising Questioned
Source: http://www.addon.tv/media-news/effectiveness-of-b2b-online-display-advertising-questioned.html
Effectiveness of B2B Online Display Advertising Questioned
According to a new report from Forrester, summarized by MarketingProfs, only 13% of B2B interactive marketers say they have increased online display budgets in 2011 relative to 2010 levels, in large part due to perceptions of ineffectiveness.
71% of B2B marketers surveyed say they used display advertising during the fourth quarter of 2010, whereas 86% of B2C marketers reported doing so.
Attitudes toward online display are negative, particularly toward ad exchanges, DSPs (demand-side platforms), and ad networks:
- 27% of B2B marketers say they anticipate increased effectiveness of display advertising via exchanges over the next three years
- 21% expect increased effectiveness of display media via DSPs over the next three years
- 16% expect increased effectiveness of display ads via ad networks over the next three years
Given lengthy and complex purchase cycles, says the report, most B2B marketers focus display efforts on increasing brand awareness, lead generation, reaching key target audiences, and driving direct sales.
Only 20% of marketers focus display efforts on increasing site visits (e.g., using campaigns to drive clicks to lead-securing and nurturing opportunities such as webinars, whitepapers, and virtual events). Still fewer marketers focus display efforts on driving brand favorability (17%) and customer lifetime value (14%), observes the report.
Secular Decline Shift Away from Display Advertising
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.
Search and Social Media in Regulated Industries #SESNY
Search and Social Media in Regulated Industries – Pharmaceutical, Healthcare, Financial Services, Insurance.
http://sesconference.com/newyork/agenda-day2.php#search-social-regulated-industries
For more information and the full interview – http://www.youtube.com/watch?v=AXAh5jRVp_w
Search Ads versus Display Ads
UPDATED: April 10, 2012
AdSafe study shows that a quarter of display ads are never in view on publishers’ websites. And it gets worse from there — 41% never in view for content networks and 46% never in view for ad exchanges. Users are there to view content, not ads. And they are conditioned to avoid the top, right side, and bottoms of web pages (see eye tracking at the bottom of this post).
Image Source: http://www.emarketer.com/Article.aspx?id=1008965
ORIGINAL POST: March 25, 2011
Hands down, search ads beat display ads in click through rates (CTRs). In every one of the examples below and the several dozen more that I did not screen shot, search is more effective than display because the ads are brought up when the user types in the search term and are looking for something, vs display which is served up alongside content.
Facebook display advertising click through rates are even sadder (i.e. worse) as you can see from the chart below — like an order of magnitude
lower (0.024%)
digital display vs search ads
Eye tracking studies show that most users are already conditioned to avoid looking at the top and right side of web pages because they know that is where banner ads or display ads go.
Only 40% Of Web Ads Use Adobe Flash (ADBE)
Source: http://www.businessinsider.com/chart-of-the-day-display-advertising-creative-by-format-2010-6
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When the iPad was first announced by Apple, ad people moaned that without Flash many websites would lose a valuable source of revenue.
Ian Schafer, CEO of marketing agency Deep Focus, wrote “ads are almost 100% rendered in Adobe‘s Flash.” Because Apple wouldn’t support Flash, it would be screwing web publishers.
Turns out that’s not exactly true. New data from comScore reveals that just 40% of ads on the web are based on Flash or Rich Media. Plain old images in the form of jpegs are just as popular. And those jpegs show up anywhere.
Follow the Chart Of The Day on Twitter: www.twitter.com/chartoftheday
Join the conversation about this story »
See Also:
Facebook advertising metrics and benchmarks
Update Jan 2014
Summary
Facebook click-through rates of 0.01 – 0.05% (Facebook CTRs)
Facebook effective CPMs turned out to be $0.01 – $0.19 (Facebook eCPMs)
Facebook average CPCs ranged from $0.05 – $0.25 (Facebook CPCs)
Other social media benchmarks from my experiments (Adwords, StumbleUpon, PayPerPost / Izea) can be found here.
Comparison of click-through rates for search ads versus display ads
As a scientist, I like to run experiments. And I like to make stuff. So my team and I made a few Facebook apps that solved needs that we had (a few samples listed below) and shared them publicly on Facebook to see if they were also useful to other people too.
I beta tested some apps with a few friends by inviting them directly. Then to get it out to a larger number of people, we decided to try Facebook advertising, the much-hyped, holy grail of display advertising on one of the largest and most active social networks.
http://apps.facebook.com/netflixr/
– visual discovery, share, and queue management interface for Netflix
http://apps.facebook.com/musicsamplr/
– visual discovery and sampling interface for music (Amazon backend)
http://apps.facebook.com/phreetings/
– create and send photo or video e-cards by drag and drop (Flickr and YouTube backend)
http://apps.facebook.com/visualfriends/
– visual display of your friends (closest ones have the most recent status updates)
http://apps.facebook.com/myfavethings/
– social commerce – I’ll buy what he bought; things I have, things I want
But what I found was eye-opening to say the least. Despite the potential of social ads where the social actions of your circle of friends could make the ads more targeted, none of the anticipated positive effects were observed. Despite the promise of mass reach, there was not the corresponding attention or clicks. And despite the use of demographics-based targeting, there was no statistically significant difference between different targets nor the control sample, running during the same time period.
What we saw were click-through rates of 0.01 – 0.05% — and the 0.01% often seemed like rounding because they did not report more than 2 decimal places. As a result of these click rates the effective CPMs turned out to be $0.01 – $0.19 and average CPCs ranged from $0.05 – $0.25. I’ve been running these Facebook ads for more than 12 months; and millions of impresisons later, there is no observable improvements to CTRs and thus CPMs and CPCs. But since I set up the campaigns to only pay when there is a click (CPC basis), I can let these run indefinitely because I am getting so few clicks, it’s not even making a dent on my credit card (which I use to pay for the ads).
detail of low click through rates of facebook display ads
Ideas for Facebook
In the spirit of openness, as an advertiser who wants to continue using Facebook advertising, perhaps there are a few things they can do to improve the effectiveness of Facebook display ads.
1. reduce the number of ads per page to 1 — displaying multiple ads artificially depresses click-through rates because users can only click on 1 thing at a time, even if they liked more than one of them. Displaying 3 on a page simply increases the denominator while the numerator does not increase — in the click-through rate equation: clicks / impressions.
2. make ads sharable – in the rare instance a user views an ad, it may or may not be relevant to her, but she may know that it is relevant and timely for a friend. By making ads sharable, she can click and send to a friend, who is very likely to find it useful and valuable, especially having been sent by a friend.
3. let users opt-in to ads in specific topic categories – when users are in the market for specific things, they are more likely to subscribe to pertinent news feeds, offers, etc. related to that topic or category. By giving users more power over what they want to see, it will also give advertisers more targeted and engaged prospects to target.
4. expand search-based advertising – when users search they are looking for something and are open to discovering something they didn’t know to ask for. So ads served up in response to a search is usually a lot more effective than ads served up simply when a page is loaded (display advertising). Facebook can serve display ads based on pertinent search queries.
Earth to Facebook… anyone listening?
By Dr. Augustine Fou. Dr. Fou is Group Chief Digital Officer at Healthcare Consultancy Group a group of agencies within the Omnicom family specializing in pharma and healthcare. He helps clients develop digital marketing programs or improve the efficiency and cost-effectiveness existing campaigns via advanced analytics, social marketing, and digital strategy. You can read more of his writing on digital marketing on this blog and follow him on twitter @acfou.
Revision 6/30/2009: Facebook Click Fraud
Excerpt from TechCrunch: “Click fraud is serious business on the big search engine advertising networks because the bad guys can make serious money. Sign up for an Adsense account and put those ads on parked domain names or wherever. Then all you have to do is start clicking those ads like crazy, using bots or cheap labor.” On Facebook, “advertisers are clicking on competitor ads to drive up their costs and drive down their ROI.”
“So the bad guys just create thousands of fake Facebook accounts with a wide variety of demographic information. This sounds like a lot of work, but it’s highly automated. the going rate was just $10 per 100 accounts if you supply the unique email accounts. Once the accounts are created, they use software to fill out the varied demographic information, and that software also manages all these accounts. The fraudster then logs in to Facebook via these accounts and views the ads that are displayed. The right competitive ads come up and Bingo, the software then clicks them. Facebook rules allow an account to click any advertisement up to six times in a 24 hour period, and all those clicks are charged. All you need is a few accounts to view the ads and then click to the max.”
http://www.techcrunch.com/2009/06/26/facebook-click-fraud-101/
http://www.techcrunch.com/2009/06/21/facebook-admit-click-fraud-problem-says-fix-coming-today/
Despite click fraud, the click through rates are still incredibly low. So if you subtract all the click fraud, is ANY advertiser making ANY money from facebook advertising?
Others have found similarly dismal click through rates from Facebook advertising
Source: http://www.friendswithbenefitsbook.com/2008/04/07/facebook-ad-click-through-rates-are-really-pitiful/
Facebook Ad Click-Through Rates Are Really Pitiful
April 7, 2008 – 5:03 pm
Quite by coincidence, I’ve encountered a few statistics on Facebook’s advertising platform. I thought I’d post links to the results I’ve uncovered, in case anybody is wondering about average CTR rates for Facebook.
First up, Rod Boothby got a click-through rate of 0.01%:
This week, I ran $105 worth of Facebook Fliers. That bought me 52,500 impressions. It looks like the flier bought me about an extra 500 site visits. That’s about $0.21 per hit.
Michael Ferguson ran a bunch of Facebook ads for Kinzin:
Click-through rates are abysmal. I was running the identical ad in about 15 different regions (you need to run them as separate ads to get the stats broken out), getting just over 10M views. Our average clickthrough rate was 0.06% (that’s 1 in 1513, for those counting at home). The best we did anywhere was 0.14%.
He later reports that the conversion rate was “at a pretty reasonable clip” at about 5%. By ‘conversion’, I think he’s meaning people who actually signed up for Kinzin’s free service. All of this stuff is contextual, but if visitors had to lay down money, the conversion rate would be considerably lower.
The folks at Valleywag report similarly dismal numbers:
Media buyers — the agency people who book campaigns — report that the college social network is a truly terrible target. They’re mainly students, with low disposable income, of course; but, beyond that, the users appear to be too busy leaving messages for eachother to show much interest in advertising. Facebook’s members appear indifferent even to movie advertising aimed at their demographic. Clickthrough rates, the percentage of time users click on an ad, average 0.04% — just 400 clicks in every 1m views — according to one report seen by Valleywag.
From AllFacebook:
Fred Wilson has been updating the world about his venture in Facebook advertising over the past week. Today, Fred posted and updated screenshot of his ad campaign’s performance and it doesn’t appear to be too stellar. For one of his campaigns, out of 10,080 impressions there were only 8 clicks. The average cost-per-click for Fred was $0.08 and the average CPM was $0.06. This is a less than stellar performance. This is nothing new though.
And lastly, from a digital student marketing blog in the UK. This would seem like a natural fit for Facebook’s audience:
Our most recent campaign saw 1.4 million page impressions delivered at specific universities – and only a 0.04% clickthrough rate. Ouch.
Click-through rates seem to sit around 0.04%, which is profoundly lame if you ask me. I’m no online advertising expert–it’s not really our thing–but I’ve run a bunch of Google AdWords and other contextual advertising campaigns. We regularly get click-through rates of 3%, and I gather that’s nothing special.
Here’s my theory on Facebook: it’s a silo. People visit the Fun House of Facebook, and conceptually treat it slightly different than the rest of the web. They’re in Facebook, interacting with friends, playing games, sending messages and now chatting on IM. As such, they’re really unmotivated to leave. Who wants to leave the Fun House?
We’ve seen similar results across Facebook. It’s really difficult to drive visitors out of the app and to your own website.
Digital Consigliere
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
http://twitter.com/acfou
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