Search
Related Links




    

Informative Articles

10 Effective Advertising Tips!
10 Effective Advertising Tips! by BB Lee (c)2002 (500 words) Writing a classified ad to sell your product isn't as hard as you might think, if you spend time researching effective copy writing strategies. Here are a few to try NOW! 1. Never try...

5 Unique Ways To Get FREE Advertising
1. Give Testimonials When you purchase a product or service and it exceeds your expectations e-mail the business a testimonial. Tell them in the testimonial the benefits you got from the product or service. Give them permission to...

Cross Cultural Advertising
Culture is a like dropping an Alka-seltzer into a glass – you don’t see it, but somehow it does something. Hans Magnus Enzensberger Culture affects everything we do. This applies to all areas of human life from personal relationships to...

Discover the Paid Advertising Strategies -- Without Blowing Your Budget!
What are your visitors worth to you? Once you know how to calculate the value of a visitor to your site, you'll be able to figure out how much you can afford to spend on advertising without draining your wallet. There are a few simple...

s Pay-Per-Click Advertising Still The Only Alternative?
Is Pay-Per-Click The Only Way to Get Traffic? Not long ago, I relied on pay-per-click advertising to sell my products. It was very effective then because the bidding wars that have rocketed the cost of campaigns hadn't happened. When I came...

 
The Case for Overture to Enter the Mass Contextual Advertising Market

Contextual Advertising is, by definition, text-based advertising. As opposed to search engine results which show up when a user types in a specific request, contextual ads appear alongside text on all websites that opt to show them.

The market leader in contextual advertising is Google. Through its AdWords™ program, advertisers can choose to syndicate their ads on relevant websites. On the other side of the equation, website owners can join Google’s AdSense™ program to serve these ads.

Google is not the only company that allows website owners to serve contextual ads. There are a host of others such as Searchfeed.com and Revenue Pilot that also do this. The problem with using these other firms is that the price-per-click you receive will most likely be less than the price that Google pays you. This is because advertisers generally bid/pay on an auction basis. Since Google has so many bidders, the price that the advertiser pays is greater than they pay on lesser search engines (classic supply/demand economics).

There is one search engine, Overture, which also serves large volumes of advertisers, and as such, has keyword bid prices that are as high as, and often higher than Google’s. While Overture does offer contextual advertising, it has strict limitations which prevent the vast majority of websites from enrolling. Specifically, Overture limits its contextual advertising program to websites generating more than 1 million web searches a month.

Overture clearly is missing out on a huge revenue source by limiting program participants. The


rational behind its selectivity is most likely the fact that its contextual advertising program relies heavily on Overture's editorial team to avoid poor matches that a technology-dependant approach inevitably produces. As an example, according to statements released at the time of the program’s launch by Bill Demas, Overture's Senior Vice President, without editorial intervention a story about a person stabbed to death could easily carry knife advertisements.

While Overture is missing out on significant revenues, web publishers are also missing out by Overture’s non-participation. This is because, if more web publishers were able to choose between AdSense and Overture’s programs, Google would be forced to become more aggressive with the percentage split that it gives AdSense publishers. While it has been reported that big Google partners such as AOL.com receive 80% of the revenue per click generated by Google ads, AdSense publishers report figures in the 10% to 50% range.

So, web publishers should really begin pushing Overture to open up its contextual advertising program as web publishers, and potentially Overture/Yahoo!’s shareholders, could reap significant financial benefits.


About the Author
As President of Growthink, Dave Lavinsky has helped the company become one of the premier business plan development firms. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. For more information please visit http://www.growthink.com