18/12: Importance of Contextual Placement
The rapid decline of traditional online advertising circa 2000 and after that year only has technical and very limited relation to the failed economy of dotcoms. Online advertising has been declining because the Internet users were getting more educated and annoyed. Finally, the ubiquitous banners got banished by ad blindness to the realm of extremely low click-through rates.
A new form of advertising came in the place of plain banners – contextual advertising. Tying products and services to context in which these products and services have the highest probability of being purchased isn't really new, so bringing the technique onto the Internet's playground was only natural. The most successful example of implementing contextual advertising, in terms of profits made, is Google with its AdSense and AdWords.
Contextual advertising is more profitable out of the box; it has inherently higher click-through rates and a longer-lasting impression. Because of the way it is channeled to consumers, contextual advertising helps overcome the unfortunate effects of ad blindness.
Although there are cases when the medium and the format does not matter (such as grand brands' commercials throughout Super Bowl and other sports events), for many large, midsize and small businesses contextual advertising is the most efficient way to reach potential customers. For instance, you can just be there when they search for your services on Google.
There is one problem, though. Ad blindness. Ad resentment. Ad hate. A miniscule mismatch, such as a person being in the wrong mood to accept your wording, is more than enough to filter out your ad from the conscience of the potential customer. The awareness of contextual advertising techniques will continue to build over time within the Internet audience, so the efficiency of the approach will not grow.
The focus of advertising now starts to shift more into the interactive stuff. Microsoft's acquisition of Massive, Inc wasn't accidental ("hey, this interactive advertising thingy seems to have taken off, lets buy it!"), in fact, Microsoft has opened a facility in Beijing early this year to research targeted, contextual, interactive advertising in its deepest. Interactive television, computer games, mobile games, are not just another media. These are the media that can channel information about your products and services through visual, textual, and audio cues in a carefully crafted context that makes such information not only tolerable, but welcome.
You can read the rest of the article at V-Lodge. Click.
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A new form of advertising came in the place of plain banners – contextual advertising. Tying products and services to context in which these products and services have the highest probability of being purchased isn't really new, so bringing the technique onto the Internet's playground was only natural. The most successful example of implementing contextual advertising, in terms of profits made, is Google with its AdSense and AdWords.
Contextual advertising is more profitable out of the box; it has inherently higher click-through rates and a longer-lasting impression. Because of the way it is channeled to consumers, contextual advertising helps overcome the unfortunate effects of ad blindness.
Although there are cases when the medium and the format does not matter (such as grand brands' commercials throughout Super Bowl and other sports events), for many large, midsize and small businesses contextual advertising is the most efficient way to reach potential customers. For instance, you can just be there when they search for your services on Google.
There is one problem, though. Ad blindness. Ad resentment. Ad hate. A miniscule mismatch, such as a person being in the wrong mood to accept your wording, is more than enough to filter out your ad from the conscience of the potential customer. The awareness of contextual advertising techniques will continue to build over time within the Internet audience, so the efficiency of the approach will not grow.
The focus of advertising now starts to shift more into the interactive stuff. Microsoft's acquisition of Massive, Inc wasn't accidental ("hey, this interactive advertising thingy seems to have taken off, lets buy it!"), in fact, Microsoft has opened a facility in Beijing early this year to research targeted, contextual, interactive advertising in its deepest. Interactive television, computer games, mobile games, are not just another media. These are the media that can channel information about your products and services through visual, textual, and audio cues in a carefully crafted context that makes such information not only tolerable, but welcome.
You can read the rest of the article at V-Lodge. Click.
