MyAdvertisingMarket.com

June 6, 2009

Cost-Per-Click Advertising

Publishers and Advertisers Reach Consensus on Critical Online Measurement

NEW YORK, NEW YORK — To an Internet user, a click is a simple action. Accurately counting those clicks, however, is a complex operational task. The Interactive Advertising Bureau (IAB) today announced the release of its Click Measurement Guidelines, which establish parameters for the accurate buying and selling of cost-per-click advertising. The guidelines, agreed upon by key industry stakeholders, provide a strong framework for identifying and discarding invalid or fraudulent clicks, helping ensure that only legitimate clicks are counted.

The Click Measurement Guidelines:

* Define the technical life-cycle of a “click” and outline standard methodologies by which clicks should be measured and counted, including provisions for identifying invalid and/or fraudulent clicks.
* Establish standard terms that will help streamline the buying and selling of click-based media.
* Increase transparency and consistency in click measurements for media companies, ad-serving organizations, advertisers, and third-party click auditors.

“The fact that we’ve obtained agreement within the online industry on the precise definition and measurement of a click and a procedure for identifying and eliminating fraudulent clicks is a huge win for the industry,” said Joe Laszlo, research director of the IAB. “These guidelines help assure marketers that the clicks they are paying for are generated by real people with a real interest in the product or service being advertised.”

The guidelines are the latest addition to the IAB’s ongoing efforts to harmonize interactive measurement. They complement IAB guidelines for general ad impressions, digital video commercials and audience reach measurement.

“The ability to measure consumer interactions with ads has been one of the hallmarks of the interactive advertising industry,” said George Ivie, Executive Director and CEO of the Media Rating Council (MRC). “The IAB has taken a leadership role in bringing this important work on Click Measurement to fruition and marketers and agencies will benefit enormously from it.”

“The work of the IAB and member companies has produced an excellent document that is a solid first step in this process,” said Tom Cuthbert, President, Click Forensics. “We are proud to have been a part of the process every step of the way and will continue to support the efforts of the IAB and other organizations that work to improve traffic quality.”

To view the complete document, please go to www.iab.net/clickmeasurementguidelines

About the IAB’s Click Measurement Working Group:
The Click Measurement Working Group includes representatives from 38 IAB member companies, including sellers, measurers, and auditors of online media. Initiated in late 2005, the working group, together with the Media Rating Council, has spent the last three years developing these important guidelines and achieving consensus around them.

About the IAB:
The Interactive Advertising Bureau (IAB) is comprised of more than 375 leading media and technology companies who are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C.

March 24, 2009

The Problem With Pay Per Click

Filed under: marketing and advertising — Tags: , , — admin @ 7:29 pm

by MyAdvertisingMarket.com

Actually, the title of this article should probably be The Problems With Pay Per Click for there are many problems with paying for click-through advertising.

Ad Placement
Do you know where your ads will appear?

  • Do you know what type of content your ads will appear with? If a consumer sees your name associated with inappropriate material, it may do you more harm than good. Not only won’t the potential customer click on your ad, they may also attach a negative connotation with your brand, name or image.
  • What position on the page will your ad be placed? The effectiveness of an ad often depends on its placement within the content. Sometimes it is best at the top of the page. Other times, it is best at the bottom of the page. However, most often, it is most effective when placed within relevant content. Usually, it takes a trained professional to make this critical decision.
  • Will your ad be placed along with your competitors? Having your unique ad placement gives you a competitive advantage.

Variable Pricing Vs. Fixed Pricing
In most business decisions, a known expense is preferable to a variable expense. With pay per click advertising, the variable pricing creates an unknown expense. More than one company has found out the hard way by blowing their annual marketing budget on just one month’s worth of paying for click-throughs — a fixed expense is preferable.

Click Fraud
A recent study found that over 30% of clicks on pay per click ads were fraudulent. There is an inherent conflict of interest in paying publishers based on click-throughs.

“Each time a (believed to be) valid Web user clicks on an ad, the advertiser pays the advertising network, who in turn pays the publisher a share of this money. This revenue-sharing system is seen as an incentive for click fraud.

The largest of the advertising networks, Google’s AdWords/AdSense and Yahoo! Search Marketing, act in a dual role, since they are also publishers themselves (on their search engines). According to critics, this complex relationship may create a conflict of interest. For instance, Google loses money to undetected click fraud when it pays out to the publisher, but it makes more money when it collects fees from the advertiser. Because of the spread between what Google collects and what Google pays out, click fraud directly and invisibly profits Google.”

– Wikipedia

A Consumer’s Privacy
To date, there are no known ways to track pay per click ads without violating the viewer’s privacy. Is that the image your business wants to promote — unethical business practices? At the same time consumers are becoming more educated about their privacy on the Internet, pay per click advertising networks are becoming more invasive. In the name of achieving more relevant ad delivery, the networks are increasingly tracking individual’s consumer behavior. One marketing blog recently became so upset over Google’s ever increasing privacy violations that they developed and distributed software to automatically click on all Google AdSense ads that a web browser loads.

The Right Ad Delivery
You can find companies that can deliver your advertising without any of flaws associated with pay per click ads. Some companies specialize in optimizing your ad placement at a fixed price without the risk of click fraud nor privacy violations. Do your business and your customers a favor by conducting the right advertising campaign.

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