January 29, 2016 Digicraft.NG

Is Paid Advertising Dying?

I have had quite some people ask me about this question – Will people click on my banner ads? While it’s very easy to answer, it’s not that straight forward. Of course what comes to your mind is – if it’s quite attractive and informative, people will click. However there is a massive decline in ad clicking. It almost seems that online users (identified by contextual targeting) are not interesting in clicking on your ads.

I can’t remember seeing anyone who clicked on the first 3 sponsored results on Google search engines and some analyzed heat maps from banner ads reflect this worrisome issue.

The problem with this is that the amount used to bid will increase and you might just be spending more to gain clicks. Most advertisers decide to run CPM (Cost Per Thousand impressions) instead for brands as this is cost effective. By running CPM, you get to pay as soon as your advert appears a thousand times irrespective of whether the users click or not. Also, when you choose to show your ads, how are you sure that your targeted users are online at that time?

With the introduction of Programmatic buying, ad spend has been reduced to the barest minimum and optimum value derived. Programmatic is an automated tool that simply takes over your ad schedule. It shows your ad only when it perceives that users are online and stops showing when they are offline. It basically tells you when your ads should run. With results from Programmatic buying, it’s interesting to note that over 60% of ad spend has been optimized. This signifies good times for Paid Advertising. However, will this last? That’s left for us to see.

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