Collective – The Audience Engine: 2010 Display Advertising Study

Collective – “The Audience Engine” has produced their fourth annual Display Advertising Study.

Collective The Audience Engine

Colllective The Audience Engine

The following were the key takeaways from the Collective study:

Data and the Growth of Audience-Based Buying

For the past four years, Collective’s “Display Advertising Study” has charted the evolution of the ad network and its role in online display. This year’s report offers a comprehensive analysis of the digital display-advertising ecosystem in its most demanding year, and the trends that impact how brand advertisers and agencies address audience selling and buying.

Among the key findings in this year’s study:

• Advertisers and agencies demanding greater audience insights, analytics and optimization. Agencies and advertiser continue to rely on comScore and Neilson (62 percent and 53 percent respectively) to measure online media. However, 37 percent say they rely on publisher and ad network data to measure online media more than Quantcast (27 percent).

• Stronger performance metrics needed to evaluate campaign success. About two-thirds (64 percent) percent continue to use click-thru rates (CTRs) to evaluate ad network performance. The study finds a disparity between senior- and lower-level agency decision makers, with the latter relying heavily on CTRs and the former leaning on other metrics.

• Video continues to gain market share, with “targeting” by far the most important factor in choosing a video ad network partner. Overall, 57 percent of those surveyed say they were likely or extremely likely to shift dollars from TV to online video in 2010. That percentage surges to 67 percent among large spenders. Targeting is the leading reason for selecting a video ad network, preferred by 65 percent, followed by reach at 51 percent and price at 45 percent.

What I found most interesting was that lower level staffers consider CTR the most valuable metric in measuring an online advertising campaigns success while top level staffers don’t consider the CTR as an important performance benchmark.

All advertising should produce results, yet what constitutes results for both advertisers and their agencies continues to remain unclear.

Download Collective’s Display Advertising Study.


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