From within an article at AdExchanger (Digital Media: The Odd Man Out), Matt Shanahan - - SVP of Strategy for Scout Analytics writes about the sciencification of advertising being on a clear, steady march toward greater & greater efficiencies. Whether that be optimized cost for advertisers, agencies, networks, or publishers ......
He then asks a great question.
"How did scale become so important and why doesn’t digital media scale?"
He says that the problem for digital media is, that the media publisher revenue models don’t scale in the same way that other publishers like social, gaming, entertainment and software do. - - Matt goes on to says, Producing media is expensive; has little network effect; and has little reuse.
In a comment reply Matt advises that for some publishers, upwards of 80% of their revenue capacity (i.e., page views) is [coming in] from the loyal audience. Saying that one possible answer to overcome this, is to create two different sets of advertisers for the two inventories.
But I'm not so sure that this will be a right-way to consider going. And certainly when taking into consideration the (like it or, not) predicted 'revolutionary effect' that display advertising has in store.
Where its not so much about content/the known % of loyal visitors, etc But will be more about each and every 'single' user that may visit any site, all over the web. (Is how I see it evolving). - This same thought, is best summed up by Andrew Goodman, here : Display Advertising’s Sea Change: It’s About Audiences, Not Publications
Andrew closes by saying that ... "we’re hurtling quickly into the era of the audience … not audience as a publisher defines it, but rather, how advertisers & users (more precisely) define it in a tighter (but mediated) ecosystem."
That "Sprat to Catch a Mackerel"?
Whilst there are major concerns for publishers about cheap 'branding' type display ads lowering their revenues (plus, the fear that the RTB Exchanges are to be avoided because of such), there could just be a certain conundrum that will surely have a need to be addressed by publishers?
Coca Cola is a Global brand that needs no introduction and may well choose to have it's image (Logo, etc) sprayed all over the web, in using 'cheap' banner representation. - For "Coke", this can be done so easily through the Exchanges with low-costing RON (run of network) buys.Yet hardly measurable (many may say), with few (if any?), of such banners being 'clicked on'. (The Sprat?)
Now enter (down to Geographical/Country, City, suburb, even zip/post code) direct "targeting of audiences" or, even 'retargeting' down to an "individual" user. (The Mackerel?)
.........(A banner ad that was used on NBC's Olympic site).............
Should Coca-Cola (or, any other popular global brand) then decide to advertise a huge FREE Entry global competition (and, with substantial rewards to be won by users - - simply for entering), those banners then become much more meaningful. Especially when only a subtle change made to their initial RON cheaper costing 'run of network' banner, is all that's required.
These Coke 'banners' (all of a sudden), then become of real 'interest' to consumers and are suddenly somewhat similar to the success of the 'free bottle of coke' campaigns - as was printed for 'winners' to find under the cork insert of their bottle tops, from past times!
Consumers then start to take notice and will look at "both" kinds of banners, no matter where they land (meaning Coke or, the consumer), across the entire web.
Coke (et al) can have their targeted banner 'messages' personalised (like the above & NBC), for social sites - where users state their proper name and locality. Expandable banners (that include videos within - like that of dBaseMedia - the eg; shown here once again), are surely the future, no doubt. www.dbasemedia.com/portfolio.html
(Just run your mouse over that top banner in the link above, to then see it 'expand' & offer you a video option to view -- Video marketing on Facebook and elsewhere in the social-media universe - is poised to explode.- tinyurl.com/65tx4w5)
For publishers, these type "audience" impression "sells" (& in being a lot similar to 're-targeting') could well then be of, the higher costing CPA/CPV (a cost per action/view) bidded type, that return much more meaningful revenues to publishers - - and off visitors coming to them from across the entire web. (Providing a 'win-win-win' for all?)
Back to Matt Shanahan who tells us his wife is a fan of Coastal Living because she likes the new products, design and entertainment ideas & he say that ---- she actually reads the advertising and makes purchase decisions from it because the advertising is linked to her interest and intent...
Just wondering...Does your wife drink Coca-Cola Matt?
Q? - Is this something that publishers can afford to miss out on?
Just my opinion, as always.
ps; From Twitter:
AndreeChao Andree Chao
Disclosure: Long LOOK and happy to be so...