vrijdag 5 januari 2007

Less ads is more revenues

Something that really annoys me are websites that place too many ads, not realizing the fact that the value of each new ad is rapidly decreasing. Social networking services have certainly been a leading example of this. Serving less ads could generate more revenues however….

“Given the extreme pressure to monetize with low CPMs, many of today’s social networks are way too cluttered with ads. Virtually every pageview that is generated carries an ad. This is highly wasteful and counterproductive, for both users and advertisers. Instead, improved methods of monetization yielding higher CPMs, must correspond with a reduction in the volume of ads. To some extent, old-fashioned artificial scarcity must be imposed on available ad inventory in order to achieve improved performance and satisfaction for all parties involved.”

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