Improving ad targeting

The question that most new media companies with commercial websites ask themselves is ‘How do we improve our yield from advertising?’ Usually this question is followed by ‘How do we provide more targeted advertising opportunities for our customers?’. Because the two are seen as going hand in hand.

To some extend they are. But there are so many challenges to real effective, high-yield targeted advertising that it may in fact make sense to look in another and quite different direction.

This direction would be the one, where the owner of the website decide to focus on a more niche target audience instead of trying to provide an opportunity for advertisers to target whoever they want from a blanket audience. Yes, it would probably mean settling for some smaller websites in terms of the number of end users and traffic, but if the yield is bigger, what’s the harm in that?

The problem with targeted advertising is many fold. Not good enough or too complex technology, not enough critical mass and too many alternatives for cheap advertising seem to hold both targeting and the higher yields down. Don Dodge have a more exhaustive post on the matter.

Instead of looking towards fixing something that’s too big and complex to fix for most new media companies, I would drop it and look towards carving out a niche for my site. I would sit down and contemplate and develop a thorough content strategy that gives me a complete overview, sense of purpose and direction. And I would execute in the trust that a clean, clearly communicate profile appealing to a very specific demographic is just about the best type of targeting - and thus hope for high-yield rates - you can possibly get.

Vad NU! is a consultancy company owned by Mads Kristensen and specialized in helping clients take advantage of the business opportunities created by new media. Click to learn how I can help you and your company.