Measuring the value of online ads and networks
As discussed in our most recent podcast, the value of online ad networks is a hotly debated topic in the blogosphere. Some recent work in this area includes:
- A recent report from Northwestern University’s Media Management Center in Chicago, which combines the resources of one of the US’ top MBA programs with its top-ranked journalism school. Online Ad Networks: Disruption – and Opportunity – for Media Businesses is aimed primarily at publishers, but has lots of good general info about the value of online ad networks.
“A thousand online ad impressions could be worth 50 cents – or they could be worth 50 dollars. For a publisher, the difference may well lie in how well you manage your relationship with advertising networks.”
- Former Wired editor and author of The Search John Batelle asks the question, “What’s this fascination with ad networks? “ He writes:
“How do we truly create value in the media business? Do we sell inventory to the highest bidder via algorithms, automated processes, and platforms? Or do we partner with marketers and creators of media to build brands - both media brands, and consumer marketing brands? …. It seems the future, according to AOL, Yahoo, and Microsoft, is in ad networks.”
Also, here are a couple of places to learn more about the effectiveness of online advertising in general:
- This case study looks at how the retailer Target measured the ROI of online advertising spend impact on offline sales: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=4000001057 . Interesting quote from the study:
“Given the strong ROI impact and the favorable cost efficiency of Target’s online campaign, the recommended percentage of online spend should be 10 percent of the total advertising budget.”
- Here’s a good list of studies on measuring Internet advertising effectiveness and organisations working in this area, compiled by the Web Center for Social Research Methods: http://www.socialresearchmethods.net/Gallery/Cho2/measure1.htm
Tags: online ad networks, ROI
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