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If you must do display ads, then shift dollars from large media buys on portals to ad networks and even to Facebook, where CPMs are orders of magnitude lower.
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Dr. Augustine Fouhttp://www.linkedin.com/in/augustinefouJuly 18, 2012.
Optimizing Display Ad Budgets
Display Advertising
July 18, 2012 2
Big Portals Ad Networks Facebook
10’s of dollars 1’s of dollars 10’s of cents
Shift allocation to get more impressions or lower cost
Large audience
Publisher/portal has more power
Lots of long-tail small websites
Advertiser has more power
Massive number of impressions
“Junk” quality and super-low prices
CPM
0.1% 0.01% 0.001%CTR
Budgets Shifting to Social
July 18, 2012 3
As more budget shifts to lower CPM social networks, it has the effect of depressing industry-wide CPMs for display ads.
Display Ad Ecosystem
July 18, 2012 4
Source: http://www.iabuk.net/video/the-evolution-of-online-display-advertising
Bad Guys Rob Display Advertisers
July 18, 2012 5
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23
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8910
• Pages are auto generated by script to optimize for high value search keywords and content
• 10 – 15 display ads per page plus text ads and videos ads, in rotation
• Advertisers should minimize ad dollars spent on impression (CPM) basis and focus on paying only when they get the click (CPC)
• They also auto-refresh pages to load another 10 – 15 ads
• Many other examples of display ads shown next to unsavory content
Source: http://www.satelliteguys.us/archive/t-232266.html
Dr. Augustine Fou – Agency Czar
July 18, 2012 6
“I advise clients on optimizing their digital spend and integrating across channels.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://www.clickz.com/author/1151/augustine-fouSlideshares: http://www.slideshare.net/augustinefouLinkedIn: http://www.linkedin.com/in/augustinefou
