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I'll say here what I said on reddit: CPC is actually only smallish percentage of the online ad marketplace. The real dollars are in CPM ads - display / brand

by joshwa 19y ago

I'll say here what I said on reddit: CPC is actually only smallish percentage of the online ad marketplace. The real dollars are in CPM ads - display / brand advertising, the stuff you see in the big skyscrapers and 300x400s on high-traffic pages. It's about brand awareness, not clicks or conversions. Those placements run at pre-negotiated rates, and represent the bulk of ad revenue.

mynameishere 19y ago
The problem is that, if I see a 40-foot advertisement on a city bus, "Drink Buzz Cola", I know that the Buzz corporation has elected to spend serious dollars and the risk of public exposure on their brand. Internet advertising still has a smarmy one-on-one private feel to it: "How do I trust this 'Buzz Cola' who have spent .01 cents for a 4 inch ad on MY facebook page?" ...people don't get a sense that the ad campaign is city-wide, nation-wide, international, whatever, and is being shown to millions of people...even when it is. And so the brand-building ("everybody's doing it!") doesn't work the same at a psychological level.
- jraines 19y ago
  Most people don't go through this mental process. Brand awareness happens beneath the level of cognition anyway. You can show people unfamiliar brands repetitively in an unobtrusive context and then when you put them all together and deliberately show the person and ask, "how many of these have you seen before?", the answer will usually be "none". But if, before this, you ask them to rate a group of brands, including the ones they've been shown along with some truly new ones -- they will rate the shown group higher on various metrics even though they think they've never seen them before.
  - mynameishere 19y ago
    don't go through this mental process. I'm not suggesting that there is actual ratiocination going on when people look at ads. But a large, public, showy ad argues from authority much more than a little flickering thing on a website (that only I can see).
ntoshev 19y ago
Do you have any hard data on CPC vs CPM market share?
- joshwa 19y ago
  I don't remember exactly where I read this, but here area a few good ad blogs to read: http://mikeonads.com http://mikeonads.com http://ecpm.typepad.com http://ecpm.typepad.com http://clickz.com/experts http://clickz.com/experts http://andrewchen.typepad.com http://andrewchen.typepad.com
  - andrew_null 19y ago
    actually direct response and branding are about 50/50 these days online because search has been kicking so much ass. You cab find these numbers on the iab.net site
    - joshwa 19y ago
      Yeah, I should have indicated that I was excluding search from this. The original article was more about "display" / contextual ads, be they text or images, on content/community sites.

by joshwa 19y ago

mynameishere 19y ago

The problem is that, if I see a 40-foot advertisement on a city bus, "Drink Buzz Cola", I know that the Buzz corporation has elected to spend serious dollars and the risk of public exposure on their brand. Internet advertising still has a smarmy one-on-one private feel to it: "How do I trust this 'Buzz Cola' who have spent .01 cents for a 4 inch ad on MY facebook page?" ...people don't get a sense that the ad campaign is city-wide, nation-wide, international, whatever, and is being shown to millions of people...even when it is. And so the brand-building ("everybody's doing it!") doesn't work the same at a psychological level.

jraines 19y ago
Most people don't go through this mental process. Brand awareness happens beneath the level of cognition anyway. You can show people unfamiliar brands repetitively in an unobtrusive context and then when you put them all together and deliberately show the person and ask, "how many of these have you seen before?", the answer will usually be "none". But if, before this, you ask them to rate a group of brands, including the ones they've been shown along with some truly new ones -- they will rate the shown group higher on various metrics even though they think they've never seen them before.
- mynameishere 19y ago
  don't go through this mental process. I'm not suggesting that there is actual ratiocination going on when people look at ads. But a large, public, showy ad argues from authority much more than a little flickering thing on a website (that only I can see).

ntoshev 19y ago

Do you have any hard data on CPC vs CPM market share?

joshwa 19y ago
I don't remember exactly where I read this, but here area a few good ad blogs to read: http://mikeonads.com http://mikeonads.com http://ecpm.typepad.com http://ecpm.typepad.com http://clickz.com/experts http://clickz.com/experts http://andrewchen.typepad.com http://andrewchen.typepad.com
- andrew_null 19y ago
  actually direct response and branding are about 50/50 these days online because search has been kicking so much ass. You cab find these numbers on the iab.net site
  - joshwa 19y ago
    Yeah, I should have indicated that I was excluding search from this. The original article was more about "display" / contextual ads, be they text or images, on content/community sites.