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Throwing Up Online Ads to See Which Ones Will Stick? Not For Long

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.

Online Ad Spend a Sign of a U.S. Recession?

I’d like to ask you a question.

Does the growth of online advertising spend in the U.K. versus the U.S. confirm that our economy is in/heading for a recession?

According to a new study (via ClickZ) internet ad spend in the U.K. grew by 39% in 2007. In contrast, internet ad spend in the U.S. grew by just 25%–still impressive, but way behind our English cousins.

I know what you’re thinking. The online advertising channel in the U.K. must be immature compared to America–after all, they only spent $5.5 billion compared to our country’s $21.1 billion.

In reply, I’d point out the spending on a per capita basis (I know Jordan will be proud of me):

  • U.K. online ad spend = $90 per capita (total U.K. population approx. 61 million)

Attention Website Owners: If You Aren’t on Google’s First Page, You’re Dead to Us

Needle in a HaystackBy Michelle Greer.

You can have the most attractive website of all your competitors. You can hire usability experts, professional photographers, and the greatest PHP developers money can buy. If you aren’t on the first page of Google, you might as well be from Mars. Sorry.

Why? It’s not that we don’t value what you have to offer. It’s that we, the search engine using public, are too hard-pressed for time and/or lazy to bother to look for you. According to a study done by iProspect, 49% of us change our search terms and/or search engine after not finding our desired result on the first page. This compares with 40% in 2007, 42% in 2005 and just 28% in 2004. Only 8% of us actually bother going past the third page.

Mobile Advertising Response Up

Good news from many quarters for mobile marketing. Not only are Yahoo and Microsoft announcing enhanced mobile features, but mobile advertising response rates are up.

In a survey conducted last quarter, Nielsen reports that mobile advertising exposure and response rates are up in the US. Fifty-eight million mobile subscribers reported seeing ads on their mobile phones in the month before the survey—that’s 23% of all mobile subscribers. Of those 58M, over half of them (51%, 28M) responded to the ads in some way during that period.

The survey of 22,000 “active mobile data users” in the US monitors the recall and response of all types of mobile ads, including “banner ads on mobile web pages, SMS text-message advertising, sponsored applications, [and] video advertising.”

I Believe the Children Are Our (Social Media) Future

Image Credit: BBCPssst. Hey kid! Want to earn a quarter? Tell your friends about this cool new video game, and it’s yours.

Silly? Not really. Not when you consider a new survey out of the UK that suggests 49% of kids aged between 8 and 17 have a social media profile.

The Ofcom report looks into the impact of social networks on people’s lives in the UK as part of a wider media literacy campaign and surveyed 5,000 adults and more than 3,000 children.

“Social networks are clearly a very important part of people’s lives and are having an impact on how people live their lives,” said James Thickett, director of market research at Ofcom.

Gambling Google Betting Short-Term Clicks Against Long-Term Growth?

As we reported yesterday, Google’s paid click growth is down 3% in February compared to January, according to comScore. While a slow down in growth shouldn’t be a trigger for GOOG stockholders to sell the farm, it’s the dramatic decrease that’s causing investors to dump the stock.

After seeing months of 25% to 40% growth (comparing to the same month in the previous year), February’s click-through numbers were up only 3% compared to February 2007. It’s this apparent stalling (who knows if comScore is accurate or not) that has Wall Street doing its Chicken Little dance.

Of course, Google is being “Google” and isn’t saying anything about comScore’s numbers. (Sidenote: Which is probably a good thing for Google. The first time it makes a public statement to counter any third-party growth numbers, it will set a dangerous precedent. Wall Street would then expect Google to weigh in, and if it didn’t, would assume the numbers were accurate).

News Flash: February Shorter than January

wheel of media misfortuneYep, it’s that time again. The sky is falling. Today, we’ll figure out who it’s supposed to be falling on by spinning the wheel of companies that the media feels great, true ambivalence towards and come up with . . . Facebook—no, at the last second, it’s Google. Okay, so let’s dump on Google today.

comScore’s data says that Google’s click growth on paid listings has slowed again:

  • January’s clicks were off from December’s by 7.5% (January clicks = 532 M)
  • February’s clicks were off January’s by 3% (February clicks = 515 M)
  • February’s clicks were up over last February’s clicks by 3%

Can you hear the sarcasm when I say, “Well, geez, if that’s not a sure sign of a recession, I don’t know what is!”?