Yesterday evening, I sat through a technical seminar on online ad optimization. It was a very enlightening talk, reasonably technical, that help me get started on this subject. I learnt how online ad optimization involves so systematic gathering of data, slicing and dicing, analysis based on demographic strata such as age, gender, ethnicity, wage groups, etc. They also collect data on unique visitors, and are doing real cool work like frequency capping (i.e., don’t show the high-priced ad more than a certain number of times to the user who doesn’t click on it in that many number of times – the logic being he is most likely not interested in it), and so on. After the talk, I had a few questions. The answers left much to be desired, and hence I thought of posting those questions in a blog post. So, here we go.
Just a small caveat: I am a die-hard supporter of “no-irritating-online-ads-please” policy. Yes, yes, I understand the economics of how ad revenues help in cross-subsidizing the magazines or newspapers or the websites, but I think there is a fine line between what is done and what is not done, and every customer knows where is that fine line ! So, let’s get going…
1. Why does online ad optimization include ‘unique visitors’ as a data for analysis and not ‘repeat visitors’ ? I read long back that it takes up to 6 times the time, money and effort to attract a new customer as compared to retain an existing one. Why not focus efforts on people who are coming to your site twice, thrice…ten times a month as compared to the unique visitors. A frequent visitor likes the user experience on your site (that’s why he is coming to your site so many times !), and might be more open to what you advertize on it than a vagabond visitor.
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