AOL Advertising integrated ad serving platform ADTECH is trying to answer the display ad revenue question. Vice President, Commercial for Europe Paul Wright was interviewed by eMarketer Friday about the current landscape for onlin
Online publishing and advertising were growing rapidly back in 2005, says Wright, and publishers built their business models around a continuing shift of money from other media to online. Online inventory and social networking growth slowed down the online display market more than expected.
Since the publishers that survive on display revenue are trying to find their model now, the difficulty lies in a slightly declining ad market but mostly in the drop of CPMs (cost-per-thousands) and yields are therefore lower.
Since not all display ad inventory is high value, as was previously assumed, pricing is reaching a more mature level. With a focus on justifying brands' time spent online, they have more of a shot at generating online transactions rather than just having a pointless Web presence.
"Things like video are helping a lot, because they bring in advertisers who are less concerned with response and more concerned with buying reach," says Wright. Focusing on click numbers means that other metrics get ignored, but video has a positive effect.
With so many new platforms, the process gets even more complicated. Because marketers can lose the larger picture when they focus on one device, its more effective to think of it as just another way of delivering content. Content-centric planning, rather than platform-centric, is how to get impact to reach as wide as possible. Because so many industry people have iPhones, its impact is far greater than its penetration. But Wright is interested to see the effect of the iPad, despite its current zero penetration.
But ADTECH's principle is to deliver advertising wherever publishers want it. That means keeping it simple, employing new technology while still getting value.