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Would you pay for …            A vacuum            cleaner that            doesn’t work            99% of the time?10/3/20...
If you pay CPM for …                                                       Search CTR: 0.19%                              ...
Users don’t look at banner ads            Image credit: http://www.useit.com/alertbox/banner-blindness.html10/3/2012      ...
“If users don’t see your      ads, even branding      doesn’t occur.”10/3/2012                        4
Don’t pay for impressions…  Pay for impressions                           Pay for clicks   … pay only for results (clicks)...
Dr. Augustine Fou – Chief Digital Strategist   Dr. Augustine Fou is an industry-recognized thought   leader with over 16 y...
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The myth of cpm based display advertising

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would you pay for ANY product that doesn't work 99% of the time?

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The myth of cpm based display advertising

  1. 1. Would you pay for … A vacuum cleaner that doesn’t work 99% of the time?10/3/2012 1
  2. 2. If you pay CPM for … Search CTR: 0.19% Display CTR: 0.05% That even Search CTR: 0.25% Display CTR: 0.03% assumes a Search CTR: 0.13% generous 1% Display CTR: 0.07% click through Search CTR: 0.24% rate! Display CTR: 0.07% Source: http://go-digital.net/blog/2011/03/search-ads-versus-display-ads/… display ads, you ARE!2/15/2012 2
  3. 3. Users don’t look at banner ads Image credit: http://www.useit.com/alertbox/banner-blindness.html10/3/2012 3
  4. 4. “If users don’t see your ads, even branding doesn’t occur.”10/3/2012 4
  5. 5. Don’t pay for impressions… Pay for impressions Pay for clicks … pay only for results (clicks).10/3/2012 5
  6. 6. Dr. Augustine Fou – Chief Digital Strategist Dr. Augustine Fou is an industry-recognized thought leader with over 16 years of management consulting and digital strategy consulting experience, advising marketing executives in digital strategy, search and social media marketing. Dr. Fou is the former Group Chief Digital Officer of Omnicoms Healthcare Consultancy Group. Dr. Fou completed his PhD at MIT at the age of 23. He started his career with McKinsey & Company. 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/profile/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefou10/3/2012 6 acfou@mktsci.com

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