JPMorgan On Ad Performance, Online Video and Bankruptcy ECommerce Boost
ADOTAS — The Internet has moved toward a performance-driven advertising model and hasn’t solved video ad performance. But it could see a boost in commerce because of retail bankruptcies.
A study by JPMorgan says performance-based advertising is replacing the CPM-based model. Looking at the United Kingdom, which spends more ad dollars online, about 15 perent, than the US, about 8 percent, the reports says about 85 percent of online ad spending is with performance-based models.
JPMorgan doesn’t view online video ads as the answer in the near future. (Though some think differently) . Its belief is that performance-based marketers who want a measurable ROI have been alienated by the CPM model. It also says even brand advertisers are wary because of the inability to guarantee viewership for a specific video.
But with the recession claiming brick and mortar victims, the research group believes that online retailers could find it easier to win and keep marketplace shares in a less competitive field.
– Express your opinion, comment below.
Reader Comments.
Second sentence, first paragraph makes no sense at all. Spelling mistakes. Link to study is to section on China, not UK. This would be an interesting statistic if I could verify it.
AC,
Remember the song, conjunction, junction what’s your function?
and
“This trend is most clearly seen in the U.K., where the online
ad market is more mature (~15% of ad dollars are spent online compared to only
~8% in the U.S.). In the U.K. market, we think roughly 85% of total online ad dollars
are spent on the performance-based model.”
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