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Guest Voices

Why Publishers Need To Serve Fewer Ads

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imageBill Day is the chief executive officer of ScanScout. Prior to joining ScanScout, he was the chief media officer of Marchex and before that was CEO of MeMedia. Bill co-founded About.com, and held the titles of CEO and president.

Call me crazy, but when I think about furthering online advertising, it always starts from a user perspective—and the current model needs some work.

Since the introduction of internet advertising, the relationship between advertisers and consumers has been a somewhat discordant one. Publishers intent on making money from site traffic clutter pages with ineffective, run-of-network and downright unsightly ads (think dancing hamsters and free IQ tests) just to make a few hundredths of a penny per ad. All the while, they are collecting valuable information from the audience through the use of cookies. There simply hasn’t been enough incentive for publishers to eliminate the billions (trillions?) of ineffective ads that users wade through each month.

The development of new technologies, the publishing of effectiveness studies, and the growing influence of social media—these are among the dynamics that are hopefully changing the way brands interact with consumers online. And quite frankly, it’s about time.

Consumers understand that the ads support the content, and I am not a believer in models reliant on users paying for content. Consumers are willing to “rent out their eyeballs and data” to a certain extent, but a more reasonable quid pro quo needs to exist. Bombarding users with distracting and irrelevant ads should not be part of this tacit agreement. Much to the chagrin of targeting companies (of which ScanScout is one), a more targeted ad is not, in my opinion, alone enough of a reward for consumers. Yes, we need to use technology and data to improve targeting, but we also need to demonstrably reduce the clutter of worthless ads. In doing so, we’ll improve the effectiveness of the remaining ads.

The first steps to creating a more reciprocal relationship:

—Fewer ads: It’s not hard to imagine the effectiveness of ads increasing as the saturation level decreases. Think of it as a Boyle’s Law for the digital era. Publishers need to make the first move here, and its needs to be a noticeable difference to consumers. Not necessarily a uniform percentage decrease in ads across the entire internet, but enough for the consumer to perceive a better online environment. 

—Smarter ads: Advanced targeting is a great start, and it’s time to build on what works through ad-unit innovation and optimization information gleaned from campaign data. Ads delivered to sites have to become more than just flashing banners. It’s about putting ads in the right place, at the right time, to the right audience regardless of the content.

—Better call to actions: Were flashing lights and the siren song of “click here to claim a prize” ever really effective? Think of engagement on the same level as search advertising, delivered in a more visually charming format. 

—Advertisers need to start thinking beyond a simple CTR metric as the only measure of success; it can be one measure, but they need to also think about time spent and ad-interaction rates, both of which can be measured now.

This initiative could be very quickly introduced with some leadership by the internet’s largest publishers (Google (NSDQ: GOOG), Yahoo (NSDQ: YHOO), AOL) and the large ad networks. Perhaps the threat of action by the Federal Trade Commission regarding collection of consumer data through cookies can serve as a catalyst. The government very simply isn’t seeing the quid pro quo and is looking for action, not just better disclosure and opt-out functionality, as a response from the industry.

I would guess that shortly after a consortium of the largest publishers offered their users a choice—-a choice between fewer number of ads but opt-in for cookie data vs. a larger number of less-targeted ads and no use of cookie data—the issue would be ended. Users would vote with their feet (or clicks) and a quid pro quo would essentially be reached. Not to mention a truly better internet. 

Jun 4, 2009 1:21 PM ET

Posted In: Advertising, Features, Guest Voices

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