Search Ads Perform Better Than Display
ADOTAS – Display ads may be pretty (pricey) vehicles with bells and whistles that dazzle the eyes, but it seems that cheap but effective search ads get better results, according to a report in The New York Times.
While online advertising is still much stronger than other forms of advertising, there are signs of weakness.
The evidence, per the Times:
Online publishers are (at least right now) getting less money for the ad space they sell. (The prices paid through online advertising networks plummeted 23% from March to April).
Display ad revenues declined at AOL by 18%, according to Time Warner.
Yahoo recently reported revenues that spiked by 9% (beating analysts’ expectations), but the company didn’t say how much of the revenue was garnered by search and display.
Google – which makes most of its money from search – posted profits of $1.31 billion (revenue was up domestically for 30%).
Despite the mixed results, the recession will probably be good for the online advertising industry because it gets better results than traditional advertising – but clearly, some sectors will fare better than others.
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