Forum Moderators: skibum
U.S. online advertising revenue surged to a new high of nearly $10 billion in the first half of the year, rising 27% from a year before, according to data released Thursday.The top 50 sites accounted for more than 90% of the revenue from online advertising spending in the first half of the year, and the top 10 sites accounted for 70%, according to the study.
Search ads, led by Google, remained the most popular form of online marketing and at $4.1 billion were 41% of the money spent in the first half of 2007.
Online Ad Sales Nearly $10 Billion, Up 27% [latimes.com]
the top 10 sites accounted for 70%, according to the study
Wait a minute... where's my LONG TAIL? 70/10 is really really close to 80/20!
Rats.
Display advertising is mainstream advertising (and vice versa), so it's fair to say that the search-ad market --large though it may be--is just the tip of an emerging iceberg.
with 90% of the PPC revenue being paid by the top 50 sites....i'm I the only one that thinks one day the PPC engines won't give a crap about the other 10% or am I just being paranoid?
I don't know if this comment will be relevant to this thread..but with 90% of the PPC revenue being paid by the top 50 sites....i'm I the only one that thinks one day the PPC engines won't give a crap about the other 10% or am I just being paranoid?
Is it saying the top 50 sites are paying 90% of the revenue or is it saying the top 50 sites are receiving 90% of the revenue?
FarmBoy
BTW, in one vertical that I'm familiar with, display-advertising growth has been huge over the past year or two, and nearly all of the ads are coming from big-name corporate advertisers who are looking for prospects with a demonstrated interest in that vertical. I think there's a real opportunity for specialty ad networks and rep firms that know industries well and can offer one-stop shopping for advertisers who want cooking enthusiasts, car buffs, photo hobbyists, outdoor-sports participants, Bible readers, or whatever. (That's already happened in one important vertical and maybe in others as well.)
"i can't imagine that only 50 advertisers generate 90% of their search advertising revenues. "
If it's any reassurance, that isn't what the article said.
so it's fair to say that the search-ad market --large though it may be--is just the tip of an emerging iceberg.
Where are all the display advertising affiliate programs hiding? I want in. Once upon a long time ago I applied to doubleclick...I was promptly rejected.
don't forget the Dollar has depreciated more than 20% this year!
Are you basing your 20% figure on how much the dollar has fallen against other currencies?
Try harder. Those brand advertisers can spend XX million a year each. Your mom and pops will spend maybe a few hundred bucks.
That's silly. I'm a one-man show and I spend 5-10k a day on AdWords alone. And there are plenty others like me. In fact, I personally know more than 50 of them.
I think there's a real opportunity for specialty ad networks and rep firms that know industries well and can offer one-stop shopping for advertisers who want cooking enthusiasts, car buffs, photo hobbyists, outdoor-sports participants, Bible readers, or whatever.
What's wrong with Adsense to do this with keyword-targeted advertising? It cuts out the need for a new network. You can be as specific and specialized as you want to be.
I'm following one new specialty network and it's hardly convincing it will last. It uses graphic ads almost exclusively which often have a lower CTR than text links. The ads aren't anything special.
I really don't see what it does better than AdWords and none of the companies using it so far are online storefronts that can measure conversion rates and do ad cost v. sale math to test value and see profit margins.
p/g
However, if I were a single product category e commerce site owner, the value of a particular advertising network focusing on my niche could be apparent, and a valuable addition to the meat and potatoes of mainstream advertising networks.
From experience I can say that most smaller advertising networks, niche or otherwise have proven to deliver much lower quality traffic, but I said most, not all.
What's wrong with Adsense to do this with keyword-targeted advertising? It cuts out the need for a new network. You can be as specific and specialized as you want to be.
Direct-response advertisements (such as AdSense contextual ads) fill a need, but they represent only a small percentage of overall advertising expenditures. They're like mail-order ads in the back of a camera or car magazine: Those mail-order ads are great for camera dealers and vendors of car accessories, but Nikon, Canon, Mercedes, Ford, and other name-brand, multimillion-dollar advertisers want to buy display ads in the main editorial section or on the inside and outside covers.
We aren't allowed to be specific here, but in one sector that I know well, the growth in display ads by name-brand advertisers has been huge over the last year or two. Such advertisers might find a contextual network like AdSense useful for short-term promotions, but they--and their Madison Avenue agencies--are mostly interested in display ads and in audience targeting (not keyword targeting).
but they--and their Madison Avenue agencies--are mostly interested in display ads and in audience targeting (not keyword targeting).
So basically what you are saying, is they don't want to only show ads to people that are looking for their "brand name camera" they want to show their ads to anyone in the photography industry, and thereby expanding their brand, not just putting it in front of eyes that were already looking for their brand. Okay so that makes enough sense to me, but isn't that what AdWords broad match, or site targeting with image ads is all about, or are you actually talking about display advertising in paper magazines?
isn't that what AdWords broad match, or site targeting with image ads is all about, or are you actually talking about display advertising in paper magazines?
I'm talking about display advertising on Web sites. Display ads are where the fastest growth in Web advertising is said to be, and that makes sense, because most of the money that's being shifted from "old media" to the Web isn't currently being spent on direct-response advertising.
Some of that money will go to places like YouTube (click-to-see TV), but a lot of it will go to online editions of newspapers, enthusiast publications, etc. And some of it will go to moderately small and medium-sized sites that are having their impressions aggregated by vertical display-ad networks.
In fact, that's already happening. When National Doughnut Corp. can buy 10 million impressions a month on a dozen established, credible doughnut sites in one fell swoop (and with one phone call from a rep who knows the doughnut industry intimately), it's a win-win-win situation for National Doughnut Corp., the ad network or rep firm, and the dozen aggregated doughnut sites.
