Monday, March 8, 2010

Understanding Pay Per Click and Subscribers

The reach metric, which is the count of spectators exposed to an advertisement is a critical metric to advertisers to help in planning and measuring the success of online advertising marketing campaigns. In the world of normal advertising, advertisers know that when they buy time on sequential TV shows, they are probably going to reach many of the same folks on both. That is, the advertisers are probably going to experience overlap of reach across shows considering both are on the same network and same general time slot.

In the web world overlap of reach across sites isn’t as straightforward to envision. While many web sites have the same users, to what extent are those users exposed to the same promotional campaign across those sites? Given that most advertisers have a tendency to buy sites in similar genres, many expect to experience significant amounts of overlap. For instance, if an advertiser buys adverts on ESPN.com and FoxSports.com, does the same internet site visitors see the adverts on both sites?

To help marketers know how much overlap there’s across sites in a marketing campaign, Microsoft Advertising Institute set out to answer the question,’To what extent do advertisers today reach the same folk via different web sites in a marketing campaign?’ the answer is significant, because it helps marketers mitigate media bucks wasted by reaching the same users on multiple sites.

As expected, the study shows that as an advertiser has bigger reach, more people see the adverts on more than one site. Shockingly, though, the same person infrequently sees an advertiser’s ads on more than one site-even in large marketing programs. In other words, it is a myth that advertisers reach a major overlap of the same folk among the sites in each marketing program. In truth, advertisers do not experience serious overlap across sites in a stated marketing campaign.

In most cases today, advertisers are purchasing little percentages of any particular site’s inventory and, as a consequence, most advertisers observe very little overlap. Unlike broadcast television advertising or print media, for advertisers to reach bigger numbers of their target audience online cost-effectively, it’s a safe strategy to extend the quantity of sites they publicize on, without fear of excess overlap.

[Via http://markettarget.wordpress.com]

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