One of the major problems with Online Marketing today is the lack of Unity. Two of the best examples of this are:
1. The lack of consensus in what rates are appropriate in Banner Advertising.
2. The lack of non-biased scientific studies that provide a blue print for effective banner placement.
I am aware that many studies are carried out on banner advertising, but the area is still very young and there is no clear understanding yet of what constitutes an optimal banner placement or campaign.
Also, there is no unity in regards of what a fair price is for a marketing campaign; being CPM, CPC, CPA or any other price model that is being used today. CPM prices vary from a few cents to 30-50 Euros; surely the quality of traffic cannot differ that much? It’s hard to imagine that one impression is worth up to a thousand times more on one site than the other, if seen by the same person.
The problems that arise from this should be of highest interest to both publishers as well as advertisers. Publishers are oftentimes being paid less than they should, because of lack of knowledge, and advertisers are oftentimes paying too much of their budget for certain campaigns. It could perhaps be argued that the advertisers can even this out by mixing low and high CPM’s, but it’s hard to tell if this is true in the long run. Some advertisers are concerned with their brand and its association, hence, they cannot buy as many “low quality” impressions as other advertisers.
I personally think that the industry is in need of more unity, especially in the field of banner advertising. There’s also a need for a more fair type of pricing model, that actually makes sense for both publishers and advertisers. Once there is scientific backup for why placements look like they do, and why prices are at the level they are, then we can also see the real power of Online advertising, as it should be.
Soheil Amorpour
CEO @ CPerspective Online Marketing
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