Why (and how) the online ad model needs to change


Photo: DWS
Why are click through rates so low? Because the ads don’t matter to people. They aren’t relevant. They don’t help people identify products or brands that matter to them. They don’t help people locate the right deal at the right time. #

8 thoughts on “Why (and how) the online ad model needs to change”

  1. And if they offered nice adds (choose your color-set-border-picture-etc), all the better. How about being able to ask a brand which you particularly like to advertise a product you like even more on your blog/site? I know nothing about on line ads, I don’t carry them on my blog, but this is what I would like.

  2. I think you may be overestimating the abysmal stats behind conventional advertising. Online, the 1% of people clicking into an advertiser’s site is very good. If, for example, you advertise a website prominently in a print publication you should expect perhaps 1/100th that level of performance (1 in 10,000 readers) clicking to the site.

    Context ads have redefined the relationship between content and advertising, and until a LOT more money flows from absurdly overpriced offline media to online, and thus starts to close the ROI gap, I think it is unreasonable to expect online ad models to change much, although I’d suggest they will tend to move away from PPC and towards pay per action models which make performance measures somewhat more straightforward.

  3. What Joseph said. What advertising are comparing web ads to that has a higher response rate? How many people call the phone number in a TV or print ad when they see it? I’d expect much less than 1 percent. I think you’re being unrealistic to hope for more.

    Only a few of the people reading a blog at any time are going to be interested in buying (or just finding out more about) *any* product being advertised there. That’s just not what they came to your site for. Improved targeting isn’t going to help that much.

  4. Google adsense is contextual ad.. Then we can may be say that of the ad is not “good” and not interesting for the readers, it seems that the CONTENT of the site/blog is not interesting … for the readers ;-))
    A large% of readers come to one site/blog trough search engine (and google for example).. They click on ONE result, come..; and see than the content is not very interesting.. and go back to search ..
    Have a look about the % of readers who stay on your site/blog LESS THAN 5 seconds !! it’s amazing.. Then Google adsnese will have more than 1% when google search will be .. better ;-))

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