Formalizing Your Blog’s Online Ad Spend

Filed as Guides on May 16, 2011 10:00 am

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High level strategic preparation should go in to planning where you advertise your blog/website’s services. A major factor in this planning is understanding where others are finding success, and shaping a strategy around external and internal factors. Online advertising is changing dramatically as of late. Display advertising, the second most common form of online advertising, behind search, is experiencing exponential growth in maturity, according an eMarketer report, banner ad spending grew 23.1% in 2010. Banner ads are images placed within a relevant website and are priced on a cost per click basis. The reason why this news is surprising: display advertising has been around for more than 10 years as a mature medium, and some people believe that banner display advertising is a dying breed, as marketers jump ship to social, search and rich media. However, publishing website’s behavioral targeting, audience retargeting and search retargeting technology have shocked banner ads back to life.

Search marketing is always going to have its place in the marketing mix. Its immediacy, trackability and reach, is unrivaled. However, display advertising; another mature medium is making a push as of late, increasing its overall US market share and accounting for 38% of all ad spend in 2010. Even more surprisingly is the fact that rich media isn’t dominating a market that it once was poised to takeover.  We’ve seen this in my point of sale systems work.

A year ago, if I were a betting man, I would have put all my money in rich media which includes flash banners and animations to grow exponentially in 2010. However rich media has lost a significant amount of total market share slipping from 6.6% to 5.9%. Search marketing remained the largest ad spending contributor, but its shares were down slightly t 46% of all US internet advertising dollars. Display advertising, which includes banner ads, rich media, video and sponsorships, increased its share, accounting for 38% of US online ad spending in 2010, up from 35.2% in 2009.

Video is Still Where it’s At

In 2010, video ad spending grew 39.6% in 2010. A viable marketing opportunity for marketers, video is relatively inexpensive and is incredibly engaging, according to Web Pro News, “video advertising increases engagement, doubling Dwell Time (the amount of time users engage with an ad) and increases Dwell Rate (the number of ad impressions leading to users engaging with an ad), by 20 percent.” The best news is, it is still a unique and exciting medium for ad viewers and only 5.5% of the market share is using video currently. Perhaps a very lucrative market for ad differentiation and impact.

This news coupled with the fact that paid search is becoming increasingly competitive is forcing many businesses to either shift their focus to longtail or accept a low ranking position. Display ad networks, offer behavioral targeting by using information collected on an individual’s web-browsing behavior to better focus ads, is attractive to marketers. The ability to target and understand your customer on niche publishing sites has improved ROI, allowing advertisers to buy display ads on performance not impressions.

Whether you are an at home blogger selling and buying ad space, an online marketing agency or a multinational company, ignoring display advertising all together is negating a viable source of revenue for your site.

Guest Bio: Matt Krautstrunk is an expert writer on everything from social media marketing to point of sale systems based in San Diego, California. He writes for Resource Nation an online resource that provides business pos systems advice on purchasing and outsourcing decisions for small business owners and entrepreneurs.

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