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A large advertising agency goes public with AdSense ROI statisitics

It's only a hypothetical of a soon to be real event

         

Webwork

12:11 am on Jan 12, 2005 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



A hypothetical advertiser wants to see ROI, conversion, etc. statistics about contextual advertising campaigns in its market sector.

Google would be the best source for such info. Does Google offer such information? At what level of detail?

If Google doesn't release such info then an alternative source could be a large advertising agency that has tracked a number of AdSense campaigns announces its findings.

What happens if Google doesn't get proactive about releasing ROI data before a few of the bigger players offer to make such data public?

What's to stop an ad agency - or industry news aggregator - from releasing such information?

Is keeping hush about the ROI information a bad move? Would Google be better served by being proactive, not waiting for someone else to do it?

Do you think the release of this information is an idea whose time has come?

Would an advertising agency want to keep mum such data? Why?

What's to keep a news company from doing a field survey about "how well did it work in your sector"?

Is information good? Is making information available bad? What do you think?

Lord Majestic

12:15 am on Jan 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Is information good? Is making information available bad? What do you think?

Google picked on one of the worst habits of the industry -- check license for top tier database and you will see that you can't publish benchmarks without their prior written permission! Can it hold in court? I don't think so, however they are within their rights to kick you out from their program.

I think it should be illegal to have clauses in contracts that are can't be enforced in courts, but still used to pressure those who can't afford legal help. It seems that gagging people's mouths is part of new "don't do evil" after-IPO motto. I suppose people there too busy counting money to burden their conscience with small things like that ;)

Webwork

12:15 am on Jan 12, 2005 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Funny. I just Googled "AdSense R.O.I." and "AdSense ROI".

76 results.

For such cutting edge, up and comming technology as contextual advertising one might believe there would be an abundance of ROI discussions, reviews, analysis, etc.

76. With WW at the top of the list for the search.

What's wrong with this picture?

Webwork

12:23 am on Jan 12, 2005 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



It's hard to image that a large advertising house wouldn't disclose such information to a prospective advertiser. Can you see an advertiser not insisting on evaluating such information before authorizing a 6 figure spend?

So, if the information flows to an advertiser - as part of the ad agency's due diligence to its clients - does the information release stop there?

Let's suppose that Big Ad Agency tells potential advertising client "We can't give you any R.O.I. information because we're bound by agreement not to disclose this" - what then?

Does the advertiser scratch her head and say "Okay, go with it."

I guess they could go with a small test run, eh?

europeforvisitors

2:09 am on Jan 12, 2005 (gmt 0)



Would an advertising agency want to keep mum such data? Why?

Because clients might not be happy if their agencies began revealing proprietary information about their ad campaigns. (And let's face it: If J. Oglivy Burnett releases statistics about the "airline sector" and is the agency of record for Goosewing Airlines, it's going to be pretty obvious whose "airline sector" statistics are being talked about.)

Also, such information would be of limited value, because there are no universally accepted definitions of "ROI" or even "conversion" for PPC campaigns. Even for a given client, definitions might vary, depending on the objectives of each campaign.

Webwork

2:50 am on Jan 12, 2005 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



EFV - in an industry increasingly driven by metrics it's hard to imagine that someone isn't hard at work crafting the analytics to derive ROI arguments relative to the contextual advertising model. I vaguely recall reading about such offerings by SEM firms.

As to what gets measured in order to derive an ROI for online advertising aren't we mostly speaking of just a few broad classes of "what gets measured": from "a sale" to "an action" (fill in form, etc.) to "merely arriving at the site"? Those are the principal online actions. Surely you'd agree they are readily measurable.

I understand that it's harder to measure the ROI of preselling but isn't the relevant metric for contextual ad preselling simply 1. Showing up onsite and 2. Spending some time there, the inference being the longer the visit the more that is ingested? Of course, as to #2 a quick departure could indicate anything from a poorly worded contextual ad to minimal curiousity. Of course, you could attempt to drive down further by asking ultimate consumers of the preselling campaign where they got their start.

As concerns Oglivy and Goosewing, you have me there but there are far broader classes of AdSense advertisers - say ecommerce - where statistical disclosure needn't be a tip-off. Since the SEM firms are likely working with many clients in a sector it's likely they will soon have sufficient stats to make initial arguments about the ROI of contextual advertising.

My thinking here is that if Google fails to get proactive and make a policy decision favoring increased disclsure they could find themselves doing damage control or appearing responsive/defensive rather than "initiative".

novice

3:11 am on Jan 12, 2005 (gmt 0)

10+ Year Member



"I just Googled "AdSense R.O.I." and "AdSense ROI". "

Shouldn't that search be "AdWords ROI"?

europeforvisitors

5:49 am on Jan 12, 2005 (gmt 0)



My thinking here is that if Google fails to get proactive and make a policy decision favoring increased disclsure they could find themselves doing damage control or appearing responsive/defensive rather than "initiative".

I think Google will follow in the media tradition of publishing case studies and research findings that support its marketing message. Pretty soon, you'll be seeing regular two-page spreads in AD AGE, and Google reps will show up at advertising agencies with glossy brochures that are filled with impressive numbers from advertisers who are willing to have their stories told.

wonderboy

11:34 am on Jan 12, 2005 (gmt 0)

10+ Year Member



Shouldn't that search be "AdWords ROI"?

Yer, 1,820 results =)

I'm sure that many of the larger advertisers aren't really phased by lack of figures right now... Too busy counting the returns me thinks. When things start to dry up a little more I am sure people will start to want some more figures, it is always the way.
W.