Archive for the ‘Display Advertising’ Category

Top 10 Drug Brand Name Websites

October 13, 2008

comScore has released a study which shows the top 10 pharmaceutical brand web sites by unique visitors.

Their study compares website traffic changes from Q2 2007 to Q2 2008.

Nexium was marketed more heavily during the quarter – running twice as much display advertising over its two closest competitors.

This tactic appeared to vault Nexium (purplepill.com) into the top most visited drug brand name web site position during the second quarter of 2008.

Collectively, the top 10 most visited drug brand name websites during the second quarter of 2008 received 6,394,000 unique visitors compared to the second quarter of 2007 where the same group of drug brands received 5,294,000 unique visitors.

Top 10 Brand Name Drug Websites

Top 10 Brand Name Drug Websites

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Web Display and Search Advertising Combined; Their Sum Greater Than Parts

August 22, 2008

Gian Fulgoni chairman of comScore, recently wrote about his firm’s research on the impact online display and search advertising have on in-store retail sales.

How does comScore measure the impact online advertising has on retail offline sales? According to Fulgoni, “using the comScore panel, off line sales impact can be measured by linking panelists’ exposure to online ads with their in-store buying (through the use of retailers’ loyalty card data).’

Fulgoni draws two interesting conclusions from comScore’s
research:

1. “Search advertising provides higher sales lift than display advertising, but when combined, the synergy provides the highest lift…”

comScore Shoplocal.com Lift

comScore Shoplocal.com Lift

Search and Display Ads Lift

2. “While search advertising results in a higher sales lift than display advertising among the people exposed to the ads, the number of people reached by display advertising is typically markedly higher than the number of people reached by search advertising …

comscore shoplocal.com reach

comscore shoplocal.com reach

Online Advertising Reach

For media buyers planning to increase their brand message reach and lift consider the following;

1. An online display advertising campaign often reaches further than a search advertising campaign but online display ads will have less lift than search ads.

2. Search advertising will have more lift than online display ads but search ads may not reach as far as online display advertising.

Brand managers buying either online display advertising or search advertising but not both online display advertising and search advertising are likely diluting their brand’s message power – and along with it the ability to maximize their return on either form of online advertising they may have invested in.

Microsoft and Yahoo vs. Google: The Battle for Audience and Keystrokes

February 7, 2008

The Redmond giant has sprung to its feet from its long and comfortable slumber.

Much like the browser business before it, Microsoft has realized it had better get into the search advertising business before its too late.

I think we all know who won the browser war. We also know how they did it.

Even with its proposed acquisition of Yahoo!, Microsoft may have already overslept and thus lost this battle.

On the surface this acquisition looks like a grab for a piece of the search advertising business.

However, just below the surface lie its real targets: the Internet audience and their keystrokes.

Internet Audience?

Keystrokes?

Both beachheads Microsoft has or has had control of nearly since their inception, keystrokes via the personal computer desktop and the Internet audience via browsers – not from birth but before the web’s infancy ended.

Like their importance to Microsoft’s franchise before, both have an equally and even greater importance going forward. Audience begets keystrokes and vice versa. However, It’s hard to control one if you don’t control the other.

Microsoft’s $44 billion offer to acquire Yahoo and its audience is an admission by Microsoft that if they aren’t able to augment their present audience now with an acquisition the size of Yahoo, they won’t ever be able to stem the audience gains being made by Google and their control of the largest and most valuable part of the internet audience – the search audience.

At this point, Microsoft’s not getting control of Yahoo’s audience is the single greatest risk facing their business – hence their offer price and the need to get the deal done. Maybe not today or tomorrow, but let unabated Microsoft faces continued losses in both audience and keystrokes.

Its not a market position Microsoft is familiar with or comfortable.

Why search is the most valuable audience on the Internet.

There are two types of audiences on the Internet. The old and familiar audience type, which is the one served and supported by display advertising.

Advertisers buy ads to reach an audience based on what content a publisher assembles to attract a particular audience. Ads are then priced and sold based on the desirability advertisers have in reaching that particular audience.

At any one time, a large percentage of the publisher’s audience is inactive – not interested in what the advertiser is selling.

Advertisers still have to pay to reach the publishers entire audience regardless of how many people may or may not be interested in the advertiser’s ads or products. Because display advertising is inefficient i.e., reaches more disinterested audience than audience of potential buyers – it sells for less and thus generates less income for publishers.

The other type of audience available to advertisers on the web is search advertising.

Unlike display advertising, search advertising reaches only an active audience – people who have explicitly requested advertisers information about their products or services – by their clicking on ads.

Search advertisers only incur costs to reach their audience when consumers click on their ads. Thus search advertising is significantly more efficient in delivering advertising messages to the exclusively active segment of the Internet audience – people who are actively searching for information.

By definition, search advertising only delivers advertisements to people actively seeking what the advertiser is advertising and selling. Because of this efficiency in targeting and delivery, search advertisers are able to reach more qualified prospects for less than through traditional media.

In turn, search advertising providers like Google are able to charge advertisers commensurate with the value the advertisers receive from reaching a efficiently targeted and active audience.

The result?

By my calculations, Google’s annualized gross revenue from advertising per visitor is roughly twice that of Yahoo’s and nearly four times Microsoft’s (gross advertising revenues divided by web property visits)

At a minimum, a search driven visit is worth at least twice – up to four times more than a non-search driven visit.

This is why Microsoft desperately needs Yahoo’s audience.

Although there are wide discrepancies over what percentage of search each company gets, Google receives between four to twenty times more search traffic than Microsoft and three to five times more search traffic than Yahoo, combined and assuming no market disruption – the two companies would still only generate one fourth to one half the search business of Google.

This acquisition also assumes Yahoo’s ad platform can continue to harvest one half the value Google does whether through Yahoo! or Microsoft’s search product without cultural distraction or interruption from the merger.

Even with their proposed clean room assembly, Microsoft’s acquisition of Yahoo! does not answer how they will make up difference (search volume + gross revenue per visitor).

By doubling their performance (revenue per visit) post merger to meet Google’s present level of performance, a MicroHoo search advertising business gross revenues per visitor would be half of Google’s.

In order for Microsoft to retain Yahoo’s audience, publishers and advertisers- the combined company will also need to produce:

Highly relevant search results for its audience, a functional ad platform for its advertisers, profitable ad distribution for its publishing partners and most importantly: a greater return on its advertisers’ investments.

Without which any new ad platform and search product may grab the attention of a larger audience and gain its keystrokes only to see it lost after they are unable to deliver what the internet audience has already come to expect, find and get from Google.

Of course, this also assumes Microsoft is somehow precluded from using its expanded platform and footprint to reroute ancillary chunks of audience to its new web properties acquired through the proposed acquisition along with their accompanying keystrokes.

In the absence thereof, there may be no stopping Google’s march.