Why Non-Standard Ads Should Be The Exception Not the Rule

Thursday, April 2nd, 2009

ipod-touch
Earlier this month, the Online Publishers Association announced that a broad set of its members would be adopting new larger ad units. The initial list of participants is fairly impressive, including more than 2 dozen top tier publishers such as CNN, The NY Times, WSJ Network and ESPN. The full list of publishers reaches over 66% of the total Internet audience, or roughly 108 million  visitors. These heavy hitters are adding some truly massive units to their arsenal of ad units.

  • The “Fixed Panel” – a 336×860 pixel banner. It’s wider than standard skyscraper and follows users as they scroll down the page.
  • The “XXL” – a 468×648 pixel box with expandable video capability.
  • The “Pushdown” – a 970×418 pixel unit that takes up over half of a page before rolling up.

There’s little doubt that these ads performed in tests leading to rollout. On a limited basis I’m sure they resulted in a lift in CTR, engagement, and possibly even conversions or transactions. It’s hard to disagree with the OPA’s intent to foster innovation and efficacy in the online space, but this particular move is a dangerous one that could easily backfire in the long term.

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Product Strategies to Stem the Erosion of Ad Rates

Wednesday, February 18th, 2009

supply-demandDuring News Corp’s quarterly earnings call earlier this month, global media mogul Rupert Murdoch explained his long-term position on Internet advertising. He states that the almost infinite increase in ad inventory is putting a constant downward pressure in prices, making it difficult to monetize audiences, especially with ad spending on the decline.

A large chunk of my responsibilities at Yahoo! deal with this exact problem. In an environment where online advertising is becoming a commodity, how do you maximize the selling of premium inventory while using networks and exchanges to monetize the gaps? All while achieving the highest possible rates the market will bear. In an ideal world, exchanges and adservers would maximize network traffic to monetize each impression to its fullest. The truth is that the imbalance between supply and demand, as well as the relative immaturity of exchanges is causing a huge gap, and impressions are selling for bargain bin prices.

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