Joe Hall says that while advertisers may want to know how efficient their ad spend is, these internet ad tools are cutting waste -- and publications' profits.
With Internet marketing we can use analysts tools, sophisticated tracking techniques and even user behavior analysis to nail down conversion rates to exact numbers. Couple this data with PPC and CPM ad models and we can calculate ROI to the penny–in real time–and make adjustments to ad spending instantly. All of these exact measurements can enable the advertisers to only spend the bare minimum needed on ads.
And this is why online publishers are failing at making a profit. Traditional media companies make huge profits on wasted ad spending. In an attempt to lure big money to the Internet, companies like Google pushed tools and ad platforms that enabled advertisers to spend less. In the end the only way a company can make substantial profits in this radically transparent environment, is to monopolize the flow of information.
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