This week in a Wednesday Wrap online advertising special, Microsoft battles its recent aQuantive disaster, Richard Sharp at ValueClick Media ponders what consumers actually want from online ads and Yahoo and Facebook solve their differences to develop a digital media superplatform.
Is the online advertising bubble about to burst? Tell us what you think @ActiveIntlUK
Reuters sounds the death knell for a declining format
We'll begin with a bleak look at online advertising from Reuters last week, describing Microsoft’s recent aQuantive loss as an indication of the declining profitability of banner ads.
Facebook advertising, it says, has contributed to the banner ad misery, increasing the inventory of ad space and diminishing its value by almost half since the first dot-com boom.
But it is user behaviour which is the main concern for the industry, as people train themselves to avoid banner ads altogether.
ValueClick Media points to consumer trust as the answer
A report from ValueClick Media appears to contradict Reuters’ claim, finding that 60 per cent of UK consumers understand the value exchange between online advertising and the content it pays for, agreeing that the majority of the internet would ‘disappear’ without it.
52 per cent are ‘happy’ to see online advertising because they accept it supports online services. ValueClick believe that it is trust over privacy holding online ads back and aim to close the gulf through proper education.
Ad tolerance is one thing, ad engagement is quite another, and we’re left wondering if those 60 per cent “don’t mind” banner ads because they simply don’t notice them anymore.
Yahoo and Facebook carry on regardless
Amid all the gloom, Yahoo ploughs on, announcing a partnership with Facebook to create a synergised platform for media planners to place ads across both websites.
Could the integration of social with content media be the answer to online advertising’s woes, or are Facebook and Yahoo still just one step behind the industry?