eCPM Ad Rates for Remnant Inventory

Small sites (less than 1M page views/month) earn 3x better on their remnant ad inventory than medium (>1M page views/month) and large Web sites (>100M page views/month). Interesting data from the PubMatic AdPrice Index which shows average eCPM ad rates for Web site publishers in Jan-Mar 2008:

Month/eCPM Large
Medium
Small
Jan-08 $.31 $.34 $1.00
Feb-08 $.33 $.33 $1.15
Mar-08 $.38 $.34 $1.18

This pricing data reflects text and banner inventory sold to ad networks (remnant), not any inventory sold directly, and is net to publisher (excluding the ad network commission). Nothing was said on whether the eCPM calculation (which is net revenues per thousand impressions, regardless of pricing model - CPM, CPC, CPA, etc.) included or excluded the display of unpaid (unsold) "default ads". I would expect it does include defaults in the calculations.

In my opinion, the reason for the large delta between "small" sites and medium/large is that small sites are often much more focused in their content and incur fewer page views per user visit. Large sites have more challenges segmenting/optimizing their inventory, because their content is frequently more generalized and broad in nature.

CPM Ad Rates for Facebook Apps

Andrew Chen links to some data from Facebook app developers on the CPM advertising rates they're making. I was surprised to see that it's a little higher than I expected, but he noted the issues with sell-thru ("fill rates") -- the % of ad inventory that gets filled with an ad vs. remaining unsold.

If your eCPM with one network is $.50 and your sell-thru (or fill) rate is 50%, then you're no better off than the network making you $.25 eCPM with 100% sell-thru.

Social Media Research

Great stuff on social media usage, activities, trends, numbers, etc.

Increasing Social Network Ad Revenues

Ever since I heard about the MySpace HyperTargeting program last December, I've been looking for information about how it's been performing.

The theory, which we're proving to Others Online partners and which HyperTargeting is testing, is that ads in social network situations are better targeted not by the context of the page you're on, but on the content you write within your own profile/pages.

Looks like they're reporting 300% increase in clicks in initial tests.

UPDATE: Found a little more information on how MySpace HyperTargeting works and how they're charging. Looks like they are segmenting users into proprietary categories based on the information in their profiles, then selling those categories on a CPM basis at a 50% premium.

Adify Acquisition: Ad Network or Data Play?

So how is it that Adify, with reportedly about $7M in revenues, gets acquired by Cox for $300M?

Just shooting from the hip, because I don't know much about Cox other than they are a diversified media company (cable, television, radio, newspapers) but I expect this valuation was derived from:

  • Value of ad network  to them -- seems there is value in deploying this technology across all their existing properties.
  • Value of behavioral data to them -- I suspect of even more value to them is the data they're gathering across the many properties served by Adify already, which they don't currently have access to.

Smart media companies know that "it's the data".

Affinity vs. Engagement in Advertising

Others Online has been working on some interesting reports for our partners to summarize in aggregate form what their users care about. As a matter of labeling, we've discussed the term "affinity" vs "engagement". The latter has been thrown around the online advertising space quite a bit recently, so I did some poking around the Web to get a better feel for how it's being used. Usually, going with some convention in labeling in more advantageous, rather than creating your own definitions (which markets get annoyed with IMO).

Stumbled upon an interesting and intelligent blog post on How the New Engagement Metrics Can Impact Advertising Decisions. In it, "engagement" was defined as the nature of visitors’ relationship with a site and how that is expressed in the full range of user interaction, involvement and connection. Kevin then went on to describe categories of engagement that effectively describe the kinds of engagement illuminating and differentiating Web sites for advertisers: loyalty, recency, click depth, interactivity, duration, and subscription. I should also point out that Kevin's work leveraged the work of Eric Peterson. Kevin then wrote:

How  can publishers collaborate with advertisers to yield actionable intelligence?

“We’ve developed Web technology to the point where we have an astounding wealth of data about audiences. Publishers can tell us what content audiences are consuming and the share of content downloads among competing advertisers. All this has been great. But what does it all mean? How can we turn that information into something we can act on?”

Brandon Starkoff, Vice President/Global Director at Starcom Worldwide

Starkoff’s point is critical to the whole point of seeking to establish a definition and a set of metrics for engagement. What does it matter if, as far as media companies are concerned, it doesn’t produce better insights into what will make advertisers successful with even the most “engaged” audiences? The kind of audience knowledge Starkoff says he is seeking is “predictive intelligence-advice on what kinds of advertising will work with a particular audience or audience segment.”

Advertisers right now think about engagement as a way to distinguish sites from each other.

It was in the last sentence that I realized what I felt was wrong with their line of thinking. It's not that advertisers need to distinguish sites from each other, but rather people from each other. Engagement is a term being applied as an attribute of a site, not a person. That's just wrong IMO. That's online advertising 1.0, not 2.0. As long as the industry continues to think in terms of targeting sites and not people, there will only be small incremental improvements to online advertising performance.

Affinity is a term which we feel best describes attributes of people, and what we actually care about. Since Others Online is all about targeting people and not sites/pages (based on our understanding of what they care about), that's clearly the label we need to use.

Widget Advertising

We're doing some experimentation with targeted advertising within widgets, and got a big kick out of one of the demos. Think this falls into the "humorous advertising" category.
Burger
The ad is "How I Lost 55 Pounds" above the simple proof-of-concept widget (which in this case is a picture of a big fat greasy hamburger).

21" Rainbow Trout at Rocky Ford Creek

21" Rainbow Trout at Rocky Ford Creek
Had a good day Thursday at Rocky Ford Creek. Had a strike on my second cast, but couldn't set the hook. Ended up with many strikes, three fish on, and two lost -- one was so big and fought so hard that he broke the 4.5 lb test line!

The one I landed ended up about 21". It was a quick measure, mind you -- it was a tough fight and I wanted to get him back in the water quickly. Just a beautiful trout though, caught on a size 18 olive scud.

Where We Slept Last Night

Where We Slept Last Night
Skye and I slept at Umtanum along the Yakima River last night, less than 10' away actually, at my favorite spot. Two trains came through the canyon in the night, which is always fun (so eerie sounding).

Tempurature dropped to about 30 degrees. That's traces of snow you see in the photo. Skye seemed fine but I got just a tad chilled -- not uncomfortable though. Slept extremely well.

Heading to Rocky Ford Creek near Euphrata today for sight-fishing monster Rainbow Trout. Should be warmer today, reaching 60 degrees and then above freezing tonight. This should result in much more active bug hatches and feeding trout tomorrow when I'm back at the Yak.

Badly Placed Advertising (Humor)

Sometimes advertising gets it all wrong -- funny examples of inappropriate offline advertising, and also examples of when contextual online advertising uses the wrong context.


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