Posted April 10, 2008 7:17 am by with 4 comments

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By Michelle Greer.

33% of consumer time is spent online, and yet internet advertising only accounts for 7% of advertising spending. Unfortunately, these users often have the attention span of a three month old golden retriever when it comes to online advertising. Advertisers have to think smarter to capitalize on this untapped market.

How are ad networks making sure that ads actually connect to the products and services they want to buy? Here are just a few highlights from the Rubicon Project’s report “Q1: Ad Network Landscape, Trends and Outlook”:

  • Ad networks are shifting to cost-per-action and cost-per-engagement model rather than charging for impressions.
  • Behavioral targeting methods are being deployed, which can modify what ads show up based on previous click and browsing behavior.
  • Ad exchanges, such as RightMedia and DoubleClick will differentiate themselves with better reporting, workflow, pricing, and inventory quality.
  • More ads on U.S. based sites will be directed towards the 30-50% of visitors who are from outside the country.

The report also explains four factors behind the 7% decrease in Google ad revenues in January. Perhaps the most obvious reason? Seasonality, i.e. nobody has money to spend after the holidays, so they click on less ads. Business-to-business ads were not affected.

You can find more strategies and trends for online advertising by downloading the Rubicon Project’s report.

About Michelle Greer

Michelle Greer is an internet marketer/geek out of Austin, Texas. You can find her writings about ecommerce at and her social networking blog at

  • As a business owner, I prefer Cost Per Action as everyone knows, people are actually hired to sit at the computer and click on their competitors. Many of my colleagues despise the quick depletion of advertising funds from these PPC campaigns. The worse is finding your PPC Ad on some site that has nothing to do with your business.

  • PS3

    I never knew that Paul, can Google do anything to protect you from abuse like that (I’m guessing not, or at least not where the clicks come from different I.P. addresses) ?

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  • Anecdotally, the point about business ads seems very true. I run a number of personal websites, and the sites that deal with business topics are flourishing right now. The others, while doing well, have definitely dipped since the holidays.