Where To Spend Your Ad Dollars
Wednesday, April 7th, 2010The simple answer is where it will garner you the most measurable sales. Not necessarily the most sales, but the most measurable. An unmeasured sale might not as well have happened. We learned that in 1998. Or started to.
And Chris Dixon, my new hero, recently mentions that the place to advertise is on the sites with the highest purchasing intent and then made some half-hearted suggestions around that without touching on the next real source of advertising revenue: The e-tailer.
Lets face it. Conversion has never been anywhere near where we think it should be. For politeness we’ll say that across the web 95% of browsers don’t convert. So we pay for 100% of visitors and get 5% of sales. That’s a mighty hard business to run. But if you begin both the habit of advertising where your customer is almost ready to buy, a competing etailer in your category, and you sell advertising to your competitors in the same way, it may happen that we create a layer of places that convert better for both sides. The vendors would do well to buy traffic from their retailers and yet still send or sell them as much traffic as they can. Our customers need whatever content they need in order to be comfortable to buy. Your site may have it for one type of customer but not for another.
We don’t know why people don’t buy the way they do in the offline world. But we can get one beat closer by selling and buying advertising nearest the heart of the purchase. It isn’t insane if it converts, both ways.
We may well find a new gold mine of advertising that goes many directions and yet raises nice high margin dollars. And even learn why we don’t convert at the rate we’d like.
Eventually the etailer, with its superior and unbiase customer content may find itself more as the central traffic source for quality traffic than as conversion vehicle. Wouldn’t that be funny.
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