Showing posts with label ad networks. Show all posts
Showing posts with label ad networks. Show all posts

Tuesday, July 8, 2008

Forget privacy. Your IQ told us it needs help.


Consumer privacy groups are upset that ISPs (such as your local cable company) are designing tools to track web viewing habits and to sell this information to advertisers. Web tracking has been around for a decade by individual sites, and then by collections of hundreds of sites known as ad networks. But Internet Service Providers give you the modem by the wall and thus see everything you do. If they could mine all that data, think of the targeting potential ... and privacy risks.

Except all these concerns have a single flaw: You now actually need people to track things for you.

Think of it. What would happen if your computer crashed, you lost all your bookmarks, all your contacts, all those emails with distant relatives or colleagues cc'd? Memorization has become an obsolete skill set; most U.S. consumers now have cell phones, and so the number of phone numbers in our heads has fallen from hundreds to perhaps a handful.

If you protest, please answer two questions:

1. Who was the second president of the United States?
2. What is your mother's cell phone number?

You don't know. You don't need to know. The answers are lodged in Google and your smart phone.

We hit the memory brick wall ourselves this week, while on vacation in Maine, when we realized the friends' computers we borrowed didn't have all our saved passwords and bookmarks. Suddenly pulling information from the web was hard -- so many breadcrumbs were stocked in our home Mac computer, the trail to knowledge was now fogged.

Do humans now need others to remember things on their behalf? New Zealand professor James Flynn has found that human IQs are rising, but our newfound intelligence is now focused on abstract reasoning. Old pragmatic knowledge skill sets such as rote memorization are falling away, as we learn to search and make cognitive leaps but require information tools to fill in the gaps.

So perhaps the ad targeting privacy people have it all backwards. We are all leaving click-streams in almost any device or store we touch today, so thinking we have privacy is a myth anyway. We all use Google, which invades other content sites, scans their knowledge and posts results without a please or thank-you. We all pay bills; skip a few and then apply for a loan, and you'll see how carefully organizations are tracking you. And it is all a good thing ... because after all, someone else has to remember what we want.

Photo: Tokyo Lunch

Tuesday, March 25, 2008

Forbes: When chasing long tail of blogs, be careful what you bite


Forbes is the latest big-brand content player to try to compete with ad networks by getting in the game itself. The risk in this move is it may erode the Forbes' brand.

We've noted that the problem with big brands online is their advertising results -- you know, the number of people who actually click through the banner ads, the thing that marketers pay for -- tend to pale compared to ad networks. Online ad networks are groups of hundreds of web sites that provide incredible targeting, by tracking your behavior across each site and then tailoring ads based on what you've been reading. If you make $150k per year and just perused a series of car reviews, an ad network will begin serving up Jaguar banners. Because you're in the market for a car, you may bite.

Big sites can't watch this online behavior at other web sites, so when you walk into their world, they have difficulty personalizing ads. This in turn hampers ad results, and advertisers suddenly don't find a big brand site very attractive. Now, Forbes has launched Business and Finance Blog Network, a group of 400+ blogs that extends its tracking reach online.

The irony of all this is it may erode the Forbes brand. If users get comfortable obtaining expert financial advice and news from hundreds of blogs, traffic at Forbes.com may start to spiral downward.

As Forbes follows the dynamic that makes online advertising work -- users surfing around sites -- it may point readers away. Good luck chasing that tail.

Monday, March 24, 2008

Why ESPN knocked down Specific Media


There's an interesting battle brewing online between big brands and ad networks, and it holds lessons in how to make online marketing work better.

ESPN.com this week said online ad network Specific Media could no longer sell ESPN banner ad inventory. The people who run major brand sites, such as Wenda Harris Millard over at Martha Stewart, explain in Mediaweek that this is about price ... claiming online ad networks despoil the brands of premium sites by selling ad slots at cut-rate discounts.

What the big boys aren't saying is that ad networks such as Specific Media, which are collections of hundreds or thousands of sites, threaten the big players because the advertising results from ad networks are often better. It's pretty simple, really. Ad networks can track one user across multiple sites and chase them with personalized ads, based on extremely sophisticated demographic and behavioral targeting, while single web sites can't.

This is the deep irony in internet marketing -- that the biggest brands may make the lousiest advertising channels. Think of what the dynamic is within a WebMD, iVillage or ESPN.com:

Lots of different users, all with varied interests (ESPN has 197 different sports links from its home page navigation menus alone), all hitting one site. Your ad appears, and many of the users won't be in the market. An ad network, by comparison, works like this:

Ad networks allow marketers to track a single individual across multiple web sites, track their past behavior or click stream, and then serve up personalized ads in response. We've seen clients with click-through rates on ads five times higher from ad networks than the same ads that appear on brand sites.

In the advertising world, it's not the price of the ads that really matters -- it's the cold, hard results of what it costs to acquire consumers. We typically recommend that clients do A-B testing to run major sites and ad networks against each other. By all means, set up a horse race and include ESPN. But remember: you're not buying a brand -- you're buying a customer.

Wednesday, February 20, 2008

The trouble with ad networks


Don't miss Bill Green's series on contextual madness. The hot trend in online advertising is putting display ads across vast networks of web sites, targeting users based on their clickstream. Unfortunately, this means your beautiful ad may appear on a site -- or next to content -- that isn't quite in sync with your brand. Or in sync, depending on your politics.