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Looksmart's Retargeted Display Ads - How much Scale are Advertisers Able to Get?

Apr. 06, 2011 7:54 PM ET
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"Yes, retargeting is effective. - - But just as with search there are only so many people at that point in the funnel. - And a more interesting analysis would be [to then determine] how much scale advertisers are able to get through just retargeting."

It's a more than reasonable comment made by a LIZA HAUSMAN to an article behind a silly 'pay-wall' @ AdAge.

[Search for: "What's the Best Strategy for Targeting Your Display Ads?", where it is said that ..'a retargeted display ad will encourage 1,000% more people to search for a product than a standard ad'."]

The short article is supported by a graph that explains just how "hot" re-targeting really is. - - Being so effective, when "scale" is readily available.

********

What the Numbers Say chart
Based on 100 campaigns running July 2009 through March 2010, which were delivered by Value Click Media. Source: comScore

********

Looksmart have told of its adding some 30 new publishers to it's marketplace. - From within the Q4 2010 CC, we were told....

But when Microsoft, Yahoo etc get to 'join in', there will be untold or, an ubundance of inventory (from sites where 'users' go to &/or, visit daily) that WILL then become available for such type 're-targeting' or, re-marketing on a global scale.

In the same CC, we were also told by Looksmart, that:

< In 2011, we plan on expanding our direct publisher relationships by signing up significant publishers in the major types of traffic that we are targeting. - - We would also improve our publisher onboarding process in order to accelerate revenue generation from new traffic added to the network. >

I suspect that these "significant publishers" & the resulting "major type of traffic" will then get to include inventory from the likes of a Yahoo, Microsoft and yes, even Technorati, too! - - - Then there's Facebook, but that another story on it's own, I feel.

(Having such a 'unified' marketplace that then provides consistently rich data and absolutely zero over-lap for DSP's, in-house (big) brand marketers along with all 'private' exchanges, to operate within.)

[And, not before time it clearly seems: .. More than six in 10 media buyers had used real-time bidding in the past, while just one in five publishers currently offered inventory via real-time bidding.   - - - eMarketer: Advertisers Demand More Audience Targeting Capabilities]

...Looksmart then have a very "unique" edge with "re-targeting" eventually being made available at scale - for all marketers using the Looksmart 'management' & independent OPEN (global) Marketplace.

Looksmart's AdCenter platform (we've been told), operates in the middle of a large online search advertising ecosystem serving ads, that target user queries on partner sites.

Looksmart should then say (& soon), they're 'serving "RE-TARGETED" ads and at massive scale' when compared to what - currently exists from 'across' any Exchange at this point of time, these days.

It's ALL about scale, Folkz. - (Just an opinion, as always.)

LOOK: At 3:57PM EDT: $1.90 Up 0.11 (+6.11%) 

http://www.traderscreener.com/stocks/nasdaq-LOOK.aspx

LC

ps; Here's a reminder from a former Looksmart
CEO in Ted West, who had made it quite clear (within a CC), to all that may have listened:

 * - "We also believe that a scalable keyword auction platform, such as LookSmart's Ad Center platform will be critical to driving growth and value through the non-proprietary segments."
 
 * - "Today we believe LookSmart is the only non-proprietary keyword search platform that has the scalability and return on investment performance features needed - - - to serve the entire non-proprietary segment".

(b) - [So,].."This positions LookSmart to deliver greater value to search advertisers as we increase the volume being run across our Ad Center platform." 

.............."We believe that these performance features are comparable to those - - from each of the leading propriety search advertising platforms, but also that they are unique at scale among competing non-propriety search advertising networks....

................We fully understand that to replicate these performance features of scale would represent a significant engineering undertaking for any keyword search advertising provider".


HMMMmm? - And (unique - for), "re-targeting" at scale?
 
Re: Retargeting is a fairly straightforward concept..

Disclosure: Long LOOK and happy to be so, too....
.

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