Consider the fact that the average click rate of a display ad is around 0.1 percent. Now assume for every clicker there are 10 people who are interested in the ad, but did not click. That still makes 99 percent of the ads either irrelevant or uninteresting to viewers. So, it’s fair to say that the majority of ad inventory traded today is being undersold in value. With more bidders, more data, and better optimization enabled by real-time bidding, we can eventually increase ads relevancy from 1 percent to 10 percent, that’s a 10-times increase in value creation! This means both sellers and buyers can take a larger slice of the pie. Keep in mind that people spend 95 percent of their time online browsing on various pages, and only 5 percent around search engines. Next, consider the fact that display advertising is still only 80 percent the size of search advertising.

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