Tuesday, October 04, 2011

Online Ads

I have never clicked an Online Advertisement. While I have waited impatiently for any pop-ups or ads to disappear so that I can continue my browsing, I usually never read those advertisements.

When I ask other people if they've ever clicked online advertisements - I usually hear a resounding 'no'. Actually, I have never met a person who clicked an ad-word or some sort of an online advertisement. I wonder who clicks these ads and how it came to be a multi-billion dollar business.

To illustrate my point. What is the market cap of iPhone & how many people you know have an iPhone; What is the market cap of Kindle & how many people you know have a Kindle; Compare that to market cap of Online Ads and how many people you know have clicked an online advt.

7 comments:

thepsychologic said...

I remember clicking on Ads when looking to buy mobiles and when searching for web hosting services.

Alan Smithee said...

There are two things here -

1. Search/adwords based ads. These are usually effective and form bulk of google's business. I myself have clicked these ads and I know a lot who have. (For instance if you wanted waterman pens, and search so in google, you get an office depot ad which is what most people will click).

2. Ads in websites - Now, that is different and I have never clicked on them. I don't know how much money they generate for the website in question, but I think those are also managed by google. Right after I search for BMW in google, almost all the websites that I visit will have BMW ads.

Alan Smithee said...

Oh, and btw, you need not click the ads. In the BMW example that I gave you, it is sufficient for you to see the info on the ad - something like "2.9% APR through November".

I don't recall clearly, but the industry metrics changed from "clicks" to "eyeballs" or vice versa.

Babs said...

I agree with Alan Smithee, many click adword ads on google and some I know click website ads or utube ads too...ppl u know r mostly like u hence ur stats will be skewed quite a bit....u need to talk to many demographic before u can understand the ad potential..

Alan, GA store almost every event when a user is on a page, his mouse movements, page stay, scrolls, etc....hence this users metrics help determine which ad works for you....I clear my cookies every now and then, infact using chrome u can clear every past hour, so u dont get same ads when u visit diff sites, I also delete google cookies when I click adwords so they dont get the attribution if I end up buying it :-)

Anonymous said...

@Babs

Appadi ennapa google mela kola veri?

-KP

Hawkeye said...

babs/alan,

i ask random people if they click ads. i actually have never met a person who has clicked an an ad on a non-search result web page. for example if this blog had some conextual ads - i have never met people who click such type of contextual ads. I have also not heard of someone who clicks ads that are delivered in their gmail inbox (you know based on context of email).

when i search for products - i usually ignore the first 3 or 4 advts that appear above the actual search results. even if they are directly related to product. i also dont even see what advts appear on the right hand side in search results page.

i can see why people may click an advt that appears on top of product search results page - but i always thought quantity of such people was very negligible.

Naren said...

Clickthrough rate for online ads is 0.2 or 0.3 percent!

http://en.wikipedia.org/wiki/Clickthrough_rate