Are Branded Content Sites King?
ADOTAS EXCLUSIVE — Online advertising has evolved to the point where every single impression, click, or registration carries with it a world of meaning. From the very basic information it relays, to the leads it generates — they are key to bringing advertisers and publishers closer to their ROI objectives.
A current study by the Online Publishers Association (OPA) — “Improving Ad Performance Online: The Impact of Advertising on Branded Content Sites,” determined that ads on branded-content Web sites are more effective than non-branded sites and have greater attraction and influence on audiences.
With regards to the question of advertising on branded sites, it would appear that there has been little discussion of the key criteria used to judge success. This is the ROI.
Context in this debate is critical. Branded related benefits such as favorability and purchase intent are important, but, at the end of the day, they need to contribute, or be translated into actual purchases to realize their value to the advertiser.
A Results-Based approach to online advertising would suggest that if dollars spent on advertising are not directly translated into clear and measurable sales, then nothing useful is being done. Sales and profitability is and always will be the only criteria for success, so getting the best possible ROI should be at the forefront of any business decision.
The focus on measurement, and understanding that everything is, and should be, measured, makes the results-based approach so much more powerful than conventional online advertising models - starting with clicks, leads, registrations and even offline upgrades and up sell opportunities. This way, every advertising dollar is optimized intelligently. So before, during and, of course, after the campaign, advertisers have a real handle on the value of every conversion and know how much revenue in specific market segments can be attributed to the campaign.
Armed with that, ROI objectives are clearly in sight.
This approach is based on the fundamental understanding and definition of the real value that a customer, lead or click represents, that means setting a realistic “price tag” on the desired result. At the same time, we must bear in mind that this price tag, derived from the true customer value, varies across geographical regions, market segments, media types and even promotional offers.
In this regard, the metrics for campaign success are:
1. Actual Cost (CPM / CPC rates)
2. Conversion rates (and cost of conversion)
3. Customer’s value – from the said media
Higher advertising costs on branded content sites/channels are acceptable, but only if the added value they bring is relatively or substantially higher, either in conversion rates for the same acquisition cost, or in customer value, justifying higher customer acquisition cost.
Branded related metrics such as brand favorability, affinity and a like; at the most they go is to the buying intentions of customers –- which are difficult to be tied up to measurable results.
What is absent from this debate is the data that proves how smaller amounts of investment can realize high profits when allocating them effectively to running on non-branded site, ad networks and portals. Alternatively, we need supporting data that shows spending larger amounts on branded Web properties yield higher ROI.
Reader Comments.
Very good article!
Where can I find Mr. Peles or his company DMG?
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