Ads are back, sort of...

Serious Business 145 replies 3,757 views
C
Con_Alma
Posts: 12,198
Oct 2, 2012 12:56pm
justincredible;1285316 wrote:If advertising didn't work companies wouldn't do it.
Most likely true but "work" and what that means is different for different companies and advertisements. There are advertisements that are not specifically intended to attract revenue but rather solidify the experience of those who have already purchased. In addition, branding is also common goal of advertising.
sleeper's avatar
sleeper
Posts: 27,879
Oct 2, 2012 1:00pm
justincredible;1285316 wrote:If advertising didn't work companies wouldn't do it.
It actually doesn't work. Companies do it because other companies do it. If no one did it, then it wouldn't work.
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Gblock
Oct 2, 2012 1:04pm
are these ads hidden or subliminal?? or did i win a free trial of adblock?
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:07pm
Gblock;1285337 wrote:are these ads hidden or subliminal?? or did i win a free trial of adblock?
They don't show up 100% of the time. The fill rate is right around 50% so far. It took me a while before I noticed them showing up at first.
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:08pm
sleeper;1285336 wrote:It actually doesn't work. Companies do it because other companies do it. If no one did it, then it wouldn't work.
You should write them a letter.
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:09pm
Con_Alma;1285334 wrote:Most likely true but "work" and what that means is different for different companies and advertisements. There are advertisements that are not specifically intended to attract revenue but rather solidify the experience of those who have already purchased. In addition, branding is also common goal of advertising.
You're over thinking it. It the biggest, most common way websites make money. It's been going on for years. It works.
FatHobbit's avatar
FatHobbit
Posts: 8,651
Oct 2, 2012 1:14pm
justincredible;1285343 wrote:You're over thinking it. It the biggest, most common way websites make money. It's been going on for years. It works.
I kind of understand what Con Alma is saying. I can understand why websites do it. Why do companies pay for that advertising? I probably would not buy something from an add I found on the internet. I want to know more about a company before I hand over my credit card number. I would be willing to check out a local company, but I just don't feel comfortable with a random company from the internet. (Like if I am looking for something on the internet. If it comes back in my search from two different companies and one of them is amazon, I'm going with amazon even if it's a little bit more expensive because they are a company I've heard of.)
O-Trap's avatar
O-Trap
Posts: 14,994
Oct 2, 2012 1:15pm
sleeper;1285336 wrote:It actually doesn't work. Companies do it because other companies do it. If no one did it, then it wouldn't work.
It definitely does work. I would have made $0 without advertising online.

You have to consider the model, though. A lot of these companies are not built on the basic model below:

Quality traffic + volume = buyers
Buyers = Gross profit
Gross profit - Traffic price = Net

It's arguably the most basic model. You get people to come to you. If enough of them do, someone will buy something. If they're targeted, the rate of buyers to visitors will be higher than if it's cold traffic. As long as your traffic expenses don't outweigh your income from the buyers, you win.

A lot of these companies do something different, though. They don't sell on the ad page. They give something away in exchange for you filling out a form with your personal information. They then market to you through multi-contact marketing. The numbers tell us that more people buy under this model. Then, they take the exhausted data and the non-converting data and resell it to others looking for "targeted" leads.

Hell, Publisher's Clearinghouse has been using a model similar to this for quite some time. In short, they make money by giving things away to people, and then selling those people's information to other companies based on targeting what free things the people selected.
Raw Dawgin' it's avatar
Raw Dawgin' it
Posts: 11,466
Oct 2, 2012 1:15pm
Con_Alma;1285331 wrote:?????

What I don't understand is the desire to investigate products and services when coming to a chat forum. Keep in mind I concede that I am definitely out of touch in this area.
you probably don't understand billboards either.
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:19pm
FatHobbit;1285346 wrote:I kind of understand what Con Alma is saying. I can understand why websites do it. Why do companies pay for that advertising? I probably would not buy something from an add I found on the internet. I want to know more about a company before I hand over my credit card number. I would be willing to check out a local company, but I just don't feel comfortable with a random company from the internet. (Like if I am looking for something on the internet. If it comes back in my search from two different companies and one of them is amazon, I'm going with amazon even if it's a little bit more expensive because they are a company I've heard of.)
That's a fair point. Not all companies that run ads are unknown companies, though. Also, not all ads are pushing a product.
O-Trap's avatar
O-Trap
Posts: 14,994
Oct 2, 2012 1:20pm
FatHobbit;1285346 wrote:I kind of understand what Con Alma is saying. I can understand why websites do it. Why do companies pay for that advertising? I probably would not buy something from an add I found on the internet. I want to know more about a company before I hand over my credit card number. I would be willing to check out a local company, but I just don't feel comfortable with a random company from the internet. (Like if I am looking for something on the internet. If it comes back in my search from two different companies and one of them is amazon, I'm going with amazon even if it's a little bit more expensive because they are a company I've heard of.)
This may be you, but again, this is a numbers game. If an ad sees 2% of its impressions turn into clicks, and 10% of its clicks turn into buyers, that still means that 0.2% of people who view their ad become buyers in the short order, which doesn't count the potential for additional purchases (through the subsequent multi-touch contact). So long as the price of an impression is 0.2% or less of the average purchase price, you get leads and possible profits. If you'd never buy from an ad, that just puts you in the 99.8% of people who think the same way. Still doesn't mean it cannot be a profitable venture.

With enough traffic, you've gotta know that 100% of people don't think like you do. One of the biggest mistakes I made early on when I got into Internet marketing was basing my decisions on what made sense if I was a buyer. What I've learned since is that that doesn't work. Basing every decision on split test data is FAR more accurate with predicting results.

And the data says that display ads still do work.
G
Gblock
Oct 2, 2012 1:22pm
i dont mind ads and mostly dont pay attention to them but when an ad blares out with volume and video and blows out my eardrums because i may have been playing music or movies and had the sound turned up, i automatically boycott that product. current boycotts to name a few are glade plugins, any car by toyota, mysonex, to name a few.

however by remebering who annoyed me i guess they win because i remembered their product
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:22pm
O-Trap;1285354 wrote:This may be you, but again, this is a numbers game. If an ad sees 2% of its impressions turn into clicks, and 10% of its clicks turn into buyers, that still means that 0.2% of people who view their ad become buyers in the short order, which doesn't count the potential for additional purchases (through the subsequent multi-touch contact). So long as the price of an impression is 0.2% or less of the average purchase price, you get leads and possible profits. If you'd never buy from an ad, that just puts you in the 99.8% of people who think the same way. Still doesn't mean it cannot be a profitable venture.

With enough traffic, you've gotta know that 100% of people don't think like you do. One of the biggest mistakes I made early on when I got into Internet marketing was basing my decisions on what made sense if I was a buyer. What I've learned since is that that doesn't work. Basing every decision on split test data is FAR more accurate with predicting results.

And the data says that display ads still do work.
O-Trap is a guy whose opinion I trust 100% in this field. His entire income (I think) is based on it.
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:23pm
More good news. Just got this from my contact on the adsense forums:
I've heard ad serving to your site should be restored within 48 hours.
O-Trap's avatar
O-Trap
Posts: 14,994
Oct 2, 2012 1:25pm
justincredible;1285356 wrote:O-Trap is a guy whose opinion I trust 100% in this field. His entire income (I think) is based on it.

Both my day job and my home business are Internet marketing, so yes, 100% of my income is indeed in this field.

There are things I have no clue on in IM, but sales funnels and marketing models were always my thing. "Cheats" and "shortcuts" from traditional models are always fun to find.
justincredible;1285358 wrote:More good news. Just got this from my contact on the adsense forums:
Boss.
Curly J's avatar
Curly J
Posts: 7,282
Oct 2, 2012 1:28pm
justincredible;1285358 wrote:More good news. Just got this from my contact on the adsense forums:
Screw this small banner type ads Justin. Put the Big Movie Screen ads that you see on that Major League Website. Then about 12 more banner ads around them. That should work as it makes me want to visit that site...Oh wait I was banned from there a few times. Carry On.
sleeper's avatar
sleeper
Posts: 27,879
Oct 2, 2012 1:32pm
O-Trap;1285347 wrote:It definitely does work. I would have made $0 without advertising online.

You have to consider the model, though. A lot of these companies are not built on the basic model below:

Quality traffic + volume = buyers
Buyers = Gross profit
Gross profit - Traffic price = Net

It's arguably the most basic model. You get people to come to you. If enough of them do, someone will buy something. If they're targeted, the rate of buyers to visitors will be higher than if it's cold traffic. As long as your traffic expenses don't outweigh your income from the buyers, you win.

A lot of these companies do something different, though. They don't sell on the ad page. They give something away in exchange for you filling out a form with your personal information. They then market to you through multi-contact marketing. The numbers tell us that more people buy under this model. Then, they take the exhausted data and the non-converting data and resell it to others looking for "targeted" leads.

Hell, Publisher's Clearinghouse has been using a model similar to this for quite some time. In short, they make money by giving things away to people, and then selling those people's information to other companies based on targeting what free things the people selected.
Opportunity cost o-trap. All about opportunity cost.
FatHobbit's avatar
FatHobbit
Posts: 8,651
Oct 2, 2012 1:39pm
justincredible;1285352 wrote:That's a fair point. Not all companies that run ads are unknown companies, though. Also, not all ads are pushing a product.
O-Trap;1285354 wrote:This may be you, but again, this is a numbers game.
I wasn't trying to argue against adds. Only saying that I can understand where Con Alma is coming from. :)
O-Trap's avatar
O-Trap
Posts: 14,994
Oct 2, 2012 1:44pm
sleeper;1285365 wrote:Opportunity cost o-trap. All about opportunity cost.

Ah, this is where the sales copy comes into play. Creative writing such that the visitor sees the product/service/system/etc. as unique. At such a point, you then create a dichotomy: to buy A or not to buy A. B-Z are no longer in the equation, theoretically. The opportunity cost then is whether A is worth the money or not. It's no longer between A and B.
mcburg93's avatar
mcburg93
Posts: 3,167
Oct 2, 2012 1:48pm
Since adsense and this new ads are here will you rewrite the rules so everyone understands them better? The gray areas is a real problem.
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:50pm
mcburg93;1285377 wrote:Since adsense and this new ads are here will you rewrite the rules so everyone understands them better? The gray areas is a real problem.
Will you rewrite this post so I can understand it better? :)
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:51pm
Seriously, though, can you explain more what you mean? We tend to give people slack unless they absolutely post something outside of the gray area. We aren't handing out infractions left and right like some people seem to believe.
O-Trap's avatar
O-Trap
Posts: 14,994
Oct 2, 2012 1:53pm
justincredible;1285382 wrote:Seriously, though, can you explain more what you mean? We tend to give people slack unless they absolutely post something outside of the gray area. We aren't handing out infractions left and right like some people seem to believe.
Shh ... they can't handle the truth. :D
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Oct 2, 2012 1:58pm
justincredible's avatar
justincredible
Posts: 32,056
Oct 2, 2012 1:59pm
ernest_t_bass;1285391 wrote:
lol. I'd donate.