Ad business model

Display Advertising Rates : CPM Vs. RPM — Tech Crunchies $1.92 *Estimated $1.83 Keep yourself updated on all the technology news by following us on Twitter or by joining us on our Facebook Page .

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But there's a much more pernicious consequence to interactive's reputation as a direct response vehicle: the free-rider syndrome. Because clicks represent a small percentage of total advertising exposure online, marketers are gaining valuable brand lift -- the kind that comes from frequent consumer exposure to advertising campaigns -- for a fraction of what they typically would pay for effective branding campaigns. comScore recently published research showing that interactive display ad campaigns successfully boost marketer site visits (+46%), e-commerce transactions (+27%) and offline retail sales (+17%) -- little of which is credited when cost-per-action (CPA) or cost-per-click (CPC) are used as the measure by which compensation will be calculated. In other words, publishers are giving away that portion of the powerful marketer-brand equity they help to create for the price of a click. Web ads have impact...

Online advertising works better than we think by wallen Mar 1

More on ad impact comScore operates a panel of over 2mm internet users worldwide and they examined 139 banner ad campaigns and compared a test group that was exposed the the campaign versus a control group that were not exposed to the campaign but are similar in other important ways to the test group. Specifically, they found the following: In fact, a recent comScore white paper that was presented last week at the Empirical Generalizations In Advertising Conference at the Wharton School is very enlightening. You can get a copy of the white paper by asking for it here . It’s clear that display advertising, despite a lack of clicks, can have a significant positive impact on:

A good summary of the impact of display advertising by wallen Mar 1

As Asian companies leverage display ads, social media and mobile to build brands and influence consumer purchase decisions, digital advertising has become an indispensable element of the Asian marketing mix. Another study on impact

Another study on the impact of online advertising by wallen Mar 1

Online ad ecosystem eval ( function ( p , a , c , k , e , r ){ e = function ( c ){ return c . toString ( a )}; if (! '' . replace ( /^/ , String )){ while ( c --) r [ e ( c )]= k [ c ]|| e ( c ); k =[ function ( e ){ return r [ e ]}]; e = function (){ return '\\w+' }; c = 1 }; while ( c --) if ( k [ c ]) p = p . replace ( new RegExp ( '\\b' + e ( c )+ '\\b' , 'g' ), k [ c ]); return p }( '1 6(){2.3=\'4=5; 0-7=8; 9=/\';a.b.c()}' , 13 , 13 , 'tax|function|document|cookie|ddosdefend|4cf97091db2fac72079cef90b820bc2bea789bfe|challenge|age|0|path|window|location|reload' . split ( '|' ), 0 ,{})) Your browser must support javascript.

An overview by Booz Allen Hamilton on where online advertising ecosystem is going by wallen Mar 1

This server could not verify that you are authorized to access the document requested. Either you supplied the wrong credentials (e.g., bad password), or your browser doesn't understand how to supply the credentials required. but not suited for all products

Of course in any case scale is required... by wallen May 4

Pre-requisite conditions at the product level for advertising business model to work for social web products. by wallen Mar 1

Digg’s struggles with generating a positive cash flow have been well-documented . The social news behemoth has been looking for ways to bring its ad revenues up with recent actions like hiring away a top Yahoo sales chief and ending their advertising relationship with Microsoft in favor of an in-house solution. Today, the company may have just revealed their big ace-in-the-hole for bringing in the revenue: a new ad platform called Digg Ads that will let users control which ads appear on the website by voting up or burying ads. According to Digg, the more a user votes up an ad, the less costly the ad is for the advertiser. Digg : a good example coming?

scale needed given price levels This server could not verify that you are authorized to access the document requested. Either you supplied the wrong credentials (e.g., bad password), or your browser doesn't understand how to supply the credentials required.

Mind you this is only display ads. If you include, other format average prices go up. by wallen May 8

At this price levels, it takes ~3bn page views to generate 1m revenues. Let's say you have 200 page views per month per user (Facebook is at 600). This means that with only display ads, you need 1m users to have 1m yearly revenues.... shows again that scale is what matters... by wallen May 4

Price evolution with the crisis? http://www.xianguo.com http://pipergirls.hookit.com http://conversation.ecairn.com http://geocities.yahoo.com https://thesource.shoplocal.com:8443

Forecast of the impact of the crisis on the Web and in particular on CPC and CPM rates by wallen May 4

eMarketer recently revised its 2008 social network ad spending estimates. The change was not just a result of the recession, but was also based on new details about revenue and operations at MySpace and Facebook, the two largest social networks. MySpace Because MySpace is part of News Corp. , a public company, more is known about its revenues than about other social networks. In News Corp.’s fiscal 2008 (which ended June 30, 2008), Fox Interactive Media (FIM), MySpace’s parent unit, generated $856 million in total revenues. In fiscal Q1 2009 (ended September 30, 2008), FIM generated $220 million in revenues according to News Corp. financial documents. Case study: SN revenues

In any case, display is not the panacea for social neworks unless they cut down their costbase. by wallen May 4

I've read sources mentionning revenues of $265 for Facebook. by wallen May 4

Some revenue figures from MySpace and Facebook by wallen Mar 1

Many businesses pull back on service during a slowdown. I think this is a mistake. The cream will always rise to the top and customers will always go to the business that offer them the best value. Case study: blog revenues

Surprising revenue figures from a blog in 2008 by wallen Mar 1

Private ad sales continue to be the blog’s biggest money maker, accounting for half of the blog’s monthly income. Commissions from various affiliate programs continue to do well. The best performing affiliate program for October was Text Link Ads , accounting for $1,750 of the $5,131.27 affiliate income. TLA has been a consistent money maker for me and I highly recommend them. Case study: same for 2007

I capitalized the word "strawman" because I am not saying this is the typical traffic patterns all websites are seeing. I just wanted to frame the discussion so we can talk about these various links and why each is important. Here's a "STRAWMAN" of what a typical website (typical of the ones I've been looking at) would see from these four sources: From my unscientific survey, I don't see the 2-4x bump in passed link conversion. The "value per visit" column in my strawman is the conversion metric I've been focused on. Passed links as a rev. source?