online advertising

Bots Drive 16% of U.S. Web Traffic [INFOGRAPHIC]

Automated clicks on ads and other web content drive down value, diminish investments and hurt integrity. And the bot problem only seems to be getting worse as technology advances.

This summer, for example, a Long Island start-up gained widespread attention after claiming that 80% of the clicks it paid for in Facebook ads came from bots and not humans.But just how bad is the bot epidemic?

The online advertising company Solve Media recently ran some analytics on the issue, and came up with a number of interesting results, which are presented in the following infographic.

Among Solve’s more interesting findings is that, while the United States may have the most bots in terms of sheer numbers, it actually has a lower rate of non-consumer traffic than some other countries. Some 16% of U.S. traffic is bot-based, according to Solve, but in Singapore that number is an astonishing 56%. In Taiwan, it’s 54%, and 43% in the Philippines.That can mean a potential major loss of money for advertisers.

Online display advertising will reach $15.3 billion this year, according to some estimates, so all that bot traffic means an overall potential spending waste by advertisers that reaches into the hundreds of millions of dollars at a minimum.

bots

via Bots Drive 16% of U.S. Web Traffic [INFOGRAPHIC].

Digital Natives More Receptive To Online Advertising, But Tougher To Please

63% of 16-24s agreed with the statement “I would rather see advertising online that is relevant to my interests”.

These findings suggest that [tweetherder]tomorrow’s advertising audience will be smarter, more likely to engage, but tougher to please[/tweetherder].

(ValueClick & IAB report)

via How the natives will shape the future of digital marketing

Online advertising’s effect on purchase intent and sales

Millward Brown have been in the business of measuring changes in brand metrics from exposure to online advertising for quite a few years. They emphasise that marketers should be measuring (brand) online advertising not by the humble click through rate, but by a change in brand metrics.

Clicks & Purchase Intent

This isn’t a new argument and one that I do agree with.

Purchase Intent is a metric that I use on a daily basis when working on digital strategy and planning for FMCG (CPG) brands. However, how many of those people that said they intended to purchase went on to actually do so?

50-70% of people follow through on their purchase intent after seeing online advertising.

Millward Brown Purchase Intent Online Advertising
I was pretty pleased that I found this stat, it’s one that I’d looking for for years! This informs and supports my estimates in ROI models.

However, my joy was short lived. Millward Brown go on to say that over the last three years, 39% of online advertising has in fact had a negative effect on purchase intent:
Clicks don't equal purchase intent

This is pretty bad! 39% of online advertising isn’t having little or no effect….it’s having a NEGATIVE effect!  We, as an industry, need to change that. We need to start producing better ads. Helpfully, Millward Brown give some tips for doing this:

Golden rules for online advertising

Oh, and consider using video ads…

Video ads and purchase intent

Full Slideshare from Millward Brown.