Some Interesting Data on Online Advertising
I have been collecting some data on online advertising that are relatively unknown and I think, put into perspective, should encourage us all tog continue investin in this sector. The most important of all I think is that the CPM (what you pay for every 1,000 ad impressions through your website) in videos is 10 euros, very high compared to what is normal Internet pages.
But there’s more:
- The first banner, which was included in Wired magazine back in 1994, got a CTR (Click Through Rate or ratio of people who have seen and clicked on it) 78%. To get an idea, now get 0.2% is a relative success on Facebook and the average is 0.08%. That is, that for every 10,000 people who see an ad on Facebook just click on it 8. The problem is that people does not look at the ads, her eyes mechanically exclude. Therefore there is a tendency to sneak through the advertising content. More or less what happens to the jerseys of the football players.
- At the time, these ads sought the click. More or less the case today with Google, with the advantage that the measurement is easy. The problem is that many people see them and do not click or does it just hours later by Google, which charges no support for it. This explains why today it makes more sense to sell the banners (which incorporate images) per CPM (impressions) and not CTR. But this requires that the advertiser gets the notoriety valued printing, regardless of the number of people carrying their website.
- Banners only generate 16% of brand recall, which is the same as saying that 84 of every $ 100 invested in pay impressions are throwing away. However, this same phenomenon has occurred in the Advetising always and only now, when you can measure every click, is beginning to consider seriously.