wasting

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

I know I am wasting my ad dollars…

I know I am wasting half of my ad dollars; I just don’t know which half — is more like “I know I am wasting 99% of my ad dollars and I know which 99%”  — banner ad click through rates are generously at 1%, which means the other 99% is known to be wasted — no more guessing necessary.

Digital advertising is more efficient than traditional advertising and is more measurable (despite being called “unmeasured” media by traditional measurement purveyors — you know who you are). In traditional advertising the advertiser pays for 100% of the media costs (e.g. pay to air the ad on TV, pay to print the ad in magazines, pay for banner ad impressions). If banner ad click through rates are an indication of what percent of targeted users actually like the ad, then only 1% like the ad or the message. So the other 99% either didn’t like it, didn’t see it, or didn’t think it was relevant at the time.

Google changed the game by charging advertisers only for the 1% that clicked (pay per click) not for how many times the ad was aired (impressions, pay per thousand). If advertisers are paying only for the click and not for the 99% other impressions that did not get any clicks, then the 99% of waste is eliminated — making the entire system more efficient.

Now that advertisers have a way to pay for ONLY the “audience” that wants what they are advertising (they show this interest by clicking) there is no need to re-aggregate audiences. When a user searches for something, that is when they are interested or are researching. That is the only time advertisers need to show ads. Any other time, it would be wasted. Large audiences were useful in the “olden ages” of television, print, radio, and banner ad advertising. Large audiences are no longer necessary because advertisers should only care about the 1% that may be interested anyway. Advertisers can save the 99% of media cost that is known to be wasted — good for the advertiser, bad for the media companies.

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Monday, July 13th, 2009 digital No Comments

Notes from the Field: Made Up Words; Digital Jargonisms

web potato – the new couch potato

digital natives – the kids who dont know what newspapers are or what linear TV is

digital immigrants – old(er) ad execs who arrived on the island of digital, praying someone would save them from it help them figure it out

professional malpractice – preaching about digital when you’ve never tweeted or facebooked

obd – obsessive branding disorder

twinterns – interns who were hired to twitter

timeshifting – watching TV at whatever-the-hell-time they want

placeshifting – watching TV at whatever-the-hell-place they want

addressable audience – old(er) ad execs thinking digital gives them more tools to target (address) individual consumers with unwanted ad messages

niche-busters – blockbusters but for smaller (niche) audiences

analog dollars for digital dimes – with the greater efficiency and measurability of advertising in digital mediums, for every dollar taken out of analog mediums, only dimes need to be put back into digital to achieve similar or greater effect

I know I am wasting half of my ad dollars; I just don’t know which half — is more like “I know I am wasting 99% of my ad dollars” (banner ad click through rates are generously at 1%, which means the other 99% is known to be, for sure, wasted — no more guessing necessary).

measured media = TV, print, radio — which equals not really measurable at all

(old) branding – the process of systematically duping customers into buying inferior products by mis-information, dis-information, and lying

(new) branding – consistently delivering on the promise of superior products through rapid, customer-driven innovation

re-intermediation – re-insertion of a digital middleman whose job it is to filter, prioritize, and deliver only what is relevant and timely

click farms – banks of low-wage workers who click google ads to earn a living rather than do farming

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Saturday, June 27th, 2009 digital 1 Comment

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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