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Study Shows Ad Hover Is More Effective Than Ad Clicks

posted on April 25, 2012

All hail the mighty click-through. It’s the holy grail of display marketing. The action for which we are willing to pay a handsome sum every time it happens. Why? Because a click is just a step away from a conversion. Yes?

A click on a book ad leads to my buying the book. A click on a restaurant coupon ad means I’m headed out to lunch. Or not?

A new study by Pretarget and comScore says that click-throughs have one of the lowest conversion rates of all the trackable metrics for display ads. What’s more effective? The ad hover.

I’d like to stop here a moment to clarify a point. I read the results of the Pretarget report three times and each time felt like I was listening to a lecture by Dr. Sheldon Cooper. So bear with me while I try to work this out.

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Consumers Say No to High Volume of Digital Ads

posted on April 19, 2012

66% of consumers say they’re on the receiving end of too many digital ads and they’re not happy about it. After you file this one under, ‘not surprised,’ take a closer look at this graphic from eMarketer.

I’d like to have the email addresses for the 2% of US consumers who said they aren’t getting enough ads. Those are my kind of people.

As for those who said they were overwhelmed, they also said that they routinely ignore and / or delete messaging from frequent promoters. Even worse, 28% of US respondents said excessive marketing made them less likely to ever see the brand in a positive light.

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Facebook Advertising: Rates Go Up as Clicks Come Down

posted on April 17, 2012

If you’re on a see-saw, you expect one side to go up while the other goes down. But when you’re paying for advertising. . . not so much. Still, that’s exactly what’s happening on Facebook says a new report from TBG Digital.

In the simplest terms, the average CPM rates on Facebook ads have risen 41% year over year. There was an initial, corresponding rise in click-throughs through Q3 of last year, but since then clicks have dropped off. In the US, the decline was 8%. France got hit the hardest with a 13% decline.

The reason for the drop? TBG blames it on the change in number of ads displayed per page. Facebook now shows up to 7 ads at a time, but statistically we know that only one will get clicked. Even I can do that math. Only 4 ads per page equals 1 in 4 chance of getting a click. 7 ads drops to 1 in 7.

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Ad Spending on Digital Shows Q4 Decline

posted on March 14, 2012

The good news is, total advertising expenditures rose in 2011. The bad news is that the rise was only 0.8% and the internet didn’t make out all that well.

The numbers come from Kantar Media’s final 2011 report and it could be worse, right?

Looking at the Internet section, you can see that Q4 was a tough sell. Display still did okay for the year but paid search is down 2.8% over last year. Newspapers and magazines continued to take the hit in Q4 and in spite of a boost from their Spanish language options, ended the year down compared to 2010.

Ad Spending by Category

Automotive folks continue to be the biggest spenders with Retail coming in second. Insurance had the largest growth rate with Food and Candy and Telcom the only losers for the year.

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New Study: Social Ads Provide Much Needed Lift

posted on March 8, 2012

You know those Facebook ads that say how many of your friends like the product (or is it the ad they liked. . . )? Turns out, they work.

Nielsen dissected the results from 79 Facebook campaigns and the graphic shows you what they found.

People who saw social ads had 55% greater recall than those who saw regular display ads.

And suddenly I feel like I’m in a fifties toothpaste commercial — 55% fewer cavities with Crest!

Joking aside, that’s a nice lift, much better than I would have thought. Of course, Nielsen warns that your mileage might vary but they’re pretty confident in their results.

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Firefox Add-on Tracks Who Is Tracking You

posted on February 29, 2012

Ok, this one comes from the “I know, that you know, that I know” file. We are all pretty much aware that we are being tracked online. What we don’t fully know is just how much information different online and offline entities have and what their intentions are with that data. I believe that in the vast majority of cases the tracking is INTENDED to be completely harmless and is used for marketing purposes. I say intended only because all of that personal data could end up in the wrong hands as well if it is not being guarded well etc etc.

That said the folks at Mozilla have created a Firefox browser add-on called Collusion. Nice job naming it something that immediately conjures up a negative feeling. But hey, negativity sells in the online world.

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Mobile Ad Dollars Versus Time Spent: The Great Divide

posted on February 22, 2012

There’s a certain logic to the concept of spending the most ad dollars in places where people spend the most time. But then, bus shelter ads are effective. People don’t spend a lot of time there, but when they are there, they’re bored and probably more likely to examine the ad than an ad on a flipping magazine page.

Flurry took a look at the Time vs Dollars ratio and here’s what they found:

TV is looking nice and even. Web dollars are catching up to time spent and Radio is balancing out. But look at print and mobile. Talk about out of whack.

It’s interesting, because mobile is slowly becoming print’s replacement. Instead of buying the Wall Street Journal, people read it on their iPad. Instead of reading the TV Guide magazine, they let their smartphones remind them when their favorite shows are on.