Search, performance-based advertising are future (for now)
ADOTAS — In a downturn, science trumps art.
So it’s no surprise that marketers are shifting to direct-response ads, search and performance-based advertising and away from less measurable display and branding campaigns, according to Imran Khan, who runs the global Internet research at JP Morgan Chase, who spoke at the OMMA Global Hollywood
“Historically, ecommerce drives online advertising,” he said. “Roughly 4% of total retail sales in the U.S. are from ecommerce. Amazon’s recent revenue results came in at about 8% during a time when consumer consumption was down.”
Overall, roughly 8 percent of the total ad dollars in the U.S. is spent online, while many consumers spend about 30 percent of their time surfing the Web, according to MediaPost. About 85 percent of total ad dollars spent online in the U.K. is performance-driven, compared with 50 percent in the U.S., Khan said.
Brands want more effective ways to reach consumers and efficient tools and processes to buy advertising online. But as observers of social media marketers have noted, brand awareness trumps intent for purchase. If more and more people are interacting on social networks, is the performance-driven models a short term phase because of a terrible economy?
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Reader Comments.
We’re finding a shift to performance-based advertising in print as well. Our per-inquiry print advertising program has grown by leaps and bounds over the past year, as direct-response advertisers have wanted to apply the performance-based payment model they prefer in online advertising to other mediums. Many marketers are finding there’s no room for risk in their budgets – each advertising dollar must yield results.
Caliber provides true performance-based online advertising for brick and mortar stores by linking a customer’s click on an ad to their in-store purchase and charging the advertiser a commission rather than an up-front fee. We call is Pay Per Transaction….pay for a sale transaction linked directly to an online ad. This eliminates any questions on the ad’s ROI.
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