Paying CPMs is Bad for Your Ad Budget by Augustine Fou

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Paying CPMs is Bad for Your Ad Budget by Augustine Fou

  1. 1. Why Paying CPMs isBad for Your OnlineAd Budget Dr. Augustine Fou http://www.linkedin.com/in/augustinefou November 27, 2012.November 27, 2012 1
  2. 2. Paying CPM … “If you’re paying on a CPM basis hoping that a ton of people see your beautifully designed ad … … better think again.”November 27, 2012 2
  3. 3. Your ad is lost in a crowd…Do advertisers know their ads are shown next to so many others? Top half Bottom half NYTimes 25 ads per page!November 27, 2012
  4. 4. Your ad is lost in a crowd…Up to 9 ads per pageview; advertisers should not pay by CPM 1 2 3 4 Facebook 5 6 9 ads 7 per pageview 8 9November 27, 2012
  5. 5. Many/Most ads are off targetMost display ads don’t reach the intended target audience November 27, 2012
  6. 6. If users don’t look... Source: Banner Blindness“The ads to the right are only noticed by 23%of the respondents, and they spend only half asecond on the ads.” Source: Mashable 12/29/2011 … even “branding” doesn’t happen.May 24, 2012 6
  7. 7. Pay for impressions vs... Display Ads Pay for impressions Search Ads Pay for clicks … pay only for results (clicks).May 24, 2012 7
  8. 8. So What? “Advertisers can still achieve branding when display ads are seen. But for maximum cost effectiveness, they should pay on CPC basis where possible – to only pay when they get the desired customer action.” - Dr. Augustine FouNovember 27, 2012 8
  9. 9. Dr. Augustine Fou – Chief Digital Strategist “I help clients optimize their use of digital tools and techniques to maximize business impact.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefouNovember 27, 2012 acfou@mktsci.com 9

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