For Ads the More Targeted May Mean Less Profitable

admin — Tue, 12 Jan 2010 14:31:09 +0000

Maybe you can have too much of a good thing. As the Internet allows advertisers to slice and dice large segments of desirable markets into thinner, more defined slices it also creates something that is much less desirable: smaller profits. How is that you say? How is it possible to make less on my advertising spend when I am advertising directly to the group that most needs or wants my products? Well, it’s simple supply and demand. While you are targeting a much more defined market you are not going to be alone in that quest to advertiser to just the people that will buy. Remember those pesky competitors? They want those people too because their claim is that they are better than you. Now you are going to find a price war that drives up costs for advertising and makes customer acquisition costs rise which in turn hurt the bottom line. So maybe there is too much of a good thing after all. MediaPost tells about a study performed by the MIT School of Management that has looked at this in detail Professor Alessandro Bonatti, working with Yale University economics professor Dirk Bergemann on this research, says “… newspapers have a very limited ability to target audiences… specialized magazines can do better… Google has a very good ability to target who’s browsing each page… (though) online advertising has the potential to drive out traditional advertising, it does not necessarily follow that online advertisers will make more money… ” Bonatti continues, “…as technology keeps improving, more and more web sites can sell very narrow products to very specialized audiences… with lots of people targeting the same audience the profits to be made through specialized advertising become more and more spread out… instead of competing for one large pool… you will have price war in each targeted segment as the slice gets more and more narrow.” Bonatti concludes that, “… the better the technology, the lower the profits for advertisers… “ Not the news that advertisers want to hear but it sure is music to the ears of the niche ad networks that attract these more narrowly defined groups. Advertising price war? We’re in! Woo-hoo! Different verticals are responding more rapidly and it also is dependent on just how far CPM’s fell during this downturn / recession / economic morass. Real estate is seeing an increase in CPM’s jumping 17% from Q2 to Q3 of last year while foodies are driving that category up almost 91% in the same period. Here is a chart from Adify Vertical Gauge for you to gloss over and wonder what it really means. So be careful what you wish for advertisers. Sure it’s great to advertise as close to the buyer as you can but you’re not the only one with that strategy. Let’s hope you are the one with the deeper pockets at least.

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For Ads the More Targeted May Mean Less Profitable

Making ‘real’ money online for dummies

admin — Wed, 02 Dec 2009 06:11:23 +0000

Many people read the online ads about how to make millions online and sign up for any offer they can find only to discover later that they have paid into scams that do not pay off and find themselves with substantially less money than they started out with when they first attempted to make millions. Obviously, this can lead to the general line of thought that there is no ‘real’ way to make money online. However, nothing can be farther than the truth since there are plenty of legitimate ways to make money online, the only thing is you have to have preservance and dedication in order to make them work for you. The simple truth of how to start making ‘real’ money online for dummies is that you must be prepared to work hard with a skill that you can finetune and market. Jobs that actually pay online just as they would in the real world have the same set of criteria: day to day tasks that need completed with clients that demand excellent work in return for a suitable paycheck. The main difference of course is that in the online world you can make your own schedule of working hours and your own investment so what the amount of ‘real’ money that you make is relative to the amount of ‘real’ effort that you want to put into your projects. There are several ways to make money online and they all require that you are willing to dedicate yourself to the tasks at hand. At the simplest level of tasks are jobs that require you have certain skills such as the ability to keep records, accounting, web design, copywriting, coding, etc. If any of these sound like skills that you already possess then you are half way there to making money online. The next step is to find a freelancing portal that you can use to bid on projects and start to get some jobs. Once you start to build up your initial client base you will realize that the internet is filled with entrepreneurs who need your help and are willing to pay well for it. Thus, you will be well on our way to making some ‘real’ money. You should keep your expectations reasonable however, as these jobs will never make you a millionaire unless you branch out and use the experience you gain from clients to learn how to build your own online business. For those who enjoy the marketing side of the business world, affiliate marketing is another excellent way to earn money as your job is to collect other consumers on the internet and encourage them to sign up for a product or a service. For each referral that you make or affiliate that you encourage join a company’s customer list you will get a share of the profits so the more effective at marketing you are the higher you can watch your profits grow! Finally, if your ambitions aim at owning a successful business in the internet you can make the giant leap of faith if you are willing to deal with the fact that it may take some time to see the financial gains. However, by delegating your tasks and continually working on your business you can make quite a nice sum of money if you find an unexplored niche or product that you can offer a new twist on. On the bright side, while you are waiting to see your ‘real’ money appear the startup costs of an online business is not as much as an actual business in the ‘real’ world so you can start at a basic level and work your way towards your goal.

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Making ‘real’ money online for dummies

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For Ads the More Targeted May Mean Less Profitable

Making ‘real’ money online for dummies