Innovation in online advertising
Mad Men are watching you
How real-time bidding will affect media companies
YOU are browsing for lampshades on a department stores website. You grow bored, and surf across to the website of your favourite daily newspaper. Mysteriously, the lampshades follow you: an advertisement for the same brand appears next to the article you are reading. Welcome to the world of real-time bidding, a cleverer and nosier way of selling advertising that is beginning to shake up the online media business.
A decade ago online display advertisements, or banners as they were often known, were booming. Companies paid huge sums to appear on news websites. But, as the number of ads increased, people stopped noticing them. Now, for every 1,000 display ads that pop up, less than two are clicked on. Prices have slumped. Some media firms, notably News Corporation, have concluded that online ads will never bring in enough money to support a newspaper. Meanwhile search advertising, which reaches people when they seem to be interested in something, has grown from 1% of American online ad spending in 2000 to almost half, turning Google into a $172 billion company.
Conventional display ads are simply wasteful, says Jakob Nielsen of GroupM, a large media buyer. Say a company wants to reach young men. It might buy ads on the sports section of a large portal such as Yahoo!. But it will also be paying for the women who visit that page. If it also buys ads on the sports section of another large portal, such as Microsofts MSN.com, it will pay twice for the people who frequent both web pages.
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2016-02-26
2016-02-26
2016-02-26
2016-02-26
2016-02-26
2016-02-26