Monday, April 21, 2008

The Increasing Value of the Ad Network

Interesting article about the shift in advertising to the web and how its Return On Investment (ROI) is becoming ever more important. I think I told the guys from Google about this prediction in 2003. The time has come Cost Per Acquisition (CPA) is the way to go, not Cost Per Click (CPC) will eventually become less and less relevant.

The reasons ad networks are thriving are price and improved technology. Ad networks charge much lower cost per thousand ads served (known as CPMs), as low as $4 on an ad network with some targeting, compared with $40 and up for some ads on premium sites like MSN or Yahoo.

No comments:

Post a Comment