inventory

Not 1, Not 2, Not 3, But 4 Display Ads Per Pageview – Shame on You Facebook

Updated May 12, 2012. Freddy Nager, Prof of Integrated Marketing at UCLA sent me a screen shot showing 9 display ads per page. The unscupulosity of Facebook is at an all time high – right up to their IPO.

THANKS Freddy Nager @AtomicTango, Prof of Integrated Marketing, UCLA for the screen grab of 9 and 10 ads per page.

http://atomictango.com/2012/04/20/myspace-facebook-continued/

Updated February 3, 2012.  This is how Facebook is growing ad revenues – SEVEN DISPLAY ADS PER PAGE – EVIL!

facebook ads

 

 

But despite this kind of “cheating” their revenues are decelerating. And there is the “danger” of advertisers getting smart and changing from paying on a CPM basis to paying only on a CPC basis — paying only when they get the click. That would mean Facebook’s revenue could drop off a cliff.

Source: http://www.businessinsider.com/chart-of-the-day-facebook-revenues-are-decelerating-2012-2

Facebook revenues decelerating

 

Updated:  FIVE (count ’em) 5 ads per page – SHAME on you Facebook – the highway robbery gets worse.  Advertisers, quick, go to CPC (don’t pay CPMs any more).

Multiple ads on the same page run up the impression numbers, but artificially depress click-throughs because even if they wanted to, users can only click on one ad at a time. Shame on your Facebook for overtly and systematically robbing advertisers who pay on a CPM basis.

But then again shame on you advertisers who still pay CPMs when you can easily click a radio button to select CPC — Facebook even suggests a range for you automatically (see inset below).

What is the advantage of paying by CPC (cost per click) instead of CPM (cost per thousand impressions)?  Well, remember the old ad industry joke “I know I am wasting half my ad dollars, I just don’t know which half” — well, now you know.  In fact, you now know you are wasting 99% of your ad dollars to wasted impressions that get no action/clicks from users AND you know which 99%.  See infographic below. So stop paying CPMs and start paying CPCs TODAY. Your ad budget will thank you!

Just how DISMAL are  Facebook advertising metrics and benchmarks (click to see )?

According to data from comScore, in Q3 2010, Facebook served 297 billion display ad impressions giving it 23% of the U.S. market for display ads. In digital channels, since there is no longer the physical limitation of time (airtime on TV) or space (area to put ads on dead-tree pulp) companies can create “inventory”  out of thin air and magically increase revenue on the backs of advertisers still willing to pay for impressions. I guess it really is caveat emptor.

chart of the day, share of online ad impressions, nov 2010

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Thursday, November 11th, 2010 analytics, digital, display advertising, marketing 1 Comment

What do I see? Utter, Unfathomable Inefficiency – that is retail as we know it

Have a look at the 2 pictures below taken at a mall-attached large chain retailer.  Not a SINGLE customer in the store.  Practically every rack had a red and white sale sign on it.  Look at the multiple sizes of each item that have to be made available.

Now consider this.

What is the probability of someone walking through the store to this location, finding an article of clothing that is subjectively pleasing and desirable enough for the person to pick it up and consider the price. Consider if this is a nice to have or need to have item. Further consider the price and whether it is higher or lower than the clearing price — the price at which the user (in that particular user’s mind) thinks it is a good deal and decides to buy it. What is known is the quantity of work needed to inventory, merchandise, display all the products. What is not known very well is the probability of a sale for any or all of the items in the store.

Further consider the redundant inventory of similar (or the same) generic products — redundant because multiple stores attached to the same mall carry pretty much the same generic stuff. Even brand names provide little differentiation or value add. And celebrity designers and endorsers such as Kimora, Cindy, Kathy, or even Jaclyn Smith don’t help. The entire Kimora section was just as deserted as the second photo in this bunch.

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Thursday, July 1st, 2010 integrated marketing 1 Comment

RTB – real-time bidding may make ad exchanges more efficient, but it still won’t save display (ads)

in response to this mediapost article
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=113621

While RTB will make ad exchanges even more efficient, it may not be that necessary.

RTB depends on 3 things: 1) inventory, which depends on how many people hit the page to generate an impression, 2) clicks, which depend on people clicking something, and 3) bidders, the more niche you get, the fewer bidders there will be.  Inventory does not change rapidly. Clicks take time to accumulate (to yield click rates, which are a necessary ingredient in the RTB calculation). And if there are too few bidders the price of the auction “item” won’t appreciate or depreciate much or rapidly. Because of these 3 things, making bidding real-time versus non-real-time (i.e. overnight) may not make it significantly better or move the needle much on efficiency and ROI.

And RTB will still not save “display” ads. The golden age of display was in the mid 90s when people tolerated ads when they read content. They are now trained to avoid looking at the top and right of web pages So while RTB may increase the ROI of display ads by increasing click rates from a percentage with too many zeros to count to something sligtly higher, display ads are still ignored by users and will still not generate measurable business impact for advertisers.

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Saturday, September 19th, 2009 display advertising 1 Comment

Interesting Search Observations – chocolate covered cherries vs chocolate covered strawberries

Chocolate covered cherries are more popular (more searched) at Christmas; but chocolate covered strawberries are more popular at Valentines.  By observing what people pull for, we can derive insights that are useful in business strategy, inventory planning, and marketing (by ads around chocolate covered strawberries for valentines but cherries for christmas)

chocolate-cherries-strawberries

Source:  Google External Keyword Tool – Search Volume Trends

via Niall McKinney, uTalk Marketing. At Valentines, women need more help picking gifts (search volume for “gifts for guys” consistently higher every February for the past 5 years). But “gifts for girls” shows dramatically higher volume every Christmas.

gift-for-guys-for-girls

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Monday, August 3rd, 2009 analytics, trends No Comments

Best Buy / Circuit City stores physically touching each other

IMG_6482-bestbuy-circuitcit

this is on Fifth Avenue between 43rd and 44th streets in New York City.

In thinking about retail … this helps illustrate the tremendous challenges they face.

– online switching costs are pretty much zero — just type another URL; these two stores are physically touching — just walk next door

– they carry much of the same inventory from plasma TVs to computers to home stereo equipment to software, CDs, DVDs, etc.

– they both sell Apple iPods; consumers have already decided to buy an iPod for Christmas (for some reason), which store do they walk into? what differentiates the store with the blue awning from the one with silver letters? they both have “black friday” discounts but the price ended up to be about $1 from each other; both have geeks on staff, one called Geek Squad and the other Fire Dog

– and then there’s Amazon.com which is tax free and offers free 2nd day shipping.

THIS is a challenging marketing problem for retailers such as the ones pictured!

 

UPDATED:  December 2013

best buy circuit city search volume

 

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Monday, November 12th, 2007 digital No Comments

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.

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