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> Digital marketing performance is increasingly measurable Yes, I believe this is true. But also, I've heard that payouts per impression are going down precipi
by ploxiln 5y ago
> Digital marketing performance is increasingly measurable
Yes, I believe this is true. But also, I've heard that payouts per impression are going down precipitously. Desperate news sites are chock full of heavy ads because each impression pays less and less. Popular Youtube channels increasingly run their own integrated promotional content instead of depending on youtube ad revenue which keeps falling, even as viewership rises.
It's reasonable to suspect that as ad performance becomes perfectly measurable, payouts to content creators will asymptotically approach zero, because most ads don't work. Consumers spend most of their time looking at ads that don't work at all. That the occasional well crafted and placed ad does work isn't much consolation.
- katzgrau 5y agoAd network CPMs are seasonal, but I agree that it's a race to the bottom there. Ad networks (including Google's) are designed to maximize profit for ad-tech, not the publisher. The publisher/creator is always the last on line to get paid. Direct sold digital advertising (OG, cutting ad networks out) is a different story. Imagine, for example, that HN said they would auction off a single ad slot beneath the navbar to the highest bidder for the year. How much do you think that would command? Do you think there could be sincere branding value (and actual performance) for the advertiser? I think it could be worth north of 1MM just to promote open jobs at a company. If it was a clean, tasteful ad, and it was simply to support the cost of running HN, I'm pretty sure most of the audience would put up with it. The common perception of digital advertising is network advertising. But the type of advertising that is the least annoying and most beneficial to both the advertiser and publisher is direct sold.