With the prominence of the internet and social media in our daily lives, many companies think direct mail’s importance has dwindled over the years. However, an increasing number of marketers are actually adding mail back into their marketing toolbox once again. According to the Data & Marketing Association, customer response rates have increased year-over-year by 43 percent, and prospect response rates have more than doubled, reporting a 190 percent increase. Even more surprising is where the growing interest comes from: millennials (i.e., the “digital generation”). The United States Postal Service (USPS) found that 47 percent of millennials actually check their physical mailbox each day, and spend nearly twice as much time sorting and reading their mail compared to any other age group. When it comes to the effectiveness of direct mail, USPS found millennials to be the most receptive among all age groups. Direct mail remains a relevant and powerful marketing channel for both business-to-business (B-to-B) and business-to-consumer (B-to-C) companies. Click Read More below for additional information.
Publishers get roughly 4% more revenue for an ad impression that is cookie-enabled – or personalized – versus one that isn’t, according to a recent study by researchers at Carnegie Mellon University, University of Minnesota, and University of California, Irvine. That’s not much. And while the sample was limited – they only reviewed ads for one “large U.S. media company over the course of one week” – it highlights a question publishers have been grappling with for a long time: Is cookie-based ad targeting worth it?
Given the mounting costs of investing in data technology, reputation issues (the “creepy factor”), and regulations like GDPR and CCPA that challenge behavioral ad targeting, the study’s findings suggest that the benefit is minimal. However, as I see it, publishers are focusing on the wrong issue.
The Truth about Display
The problem isn’t necessarily the ad targeting itself; rather, it’s the ad format that’s inherently flawed. According to Smart Insights, the average display ad click-through rate (CTR) across all formats is a measly 0.05% — or 5 clicks per every 10,000 impressions. These “performance” ad units simply aren’t performing, which undercuts publisher revenue while taking up valuable website real estate.
After being bombarded with them for years, consumers just don’t like display ads. This is why a majority (51%) believe publisher sites should feature fewer ads. As a result, more are tuning out the ads or blocking them completely. And while making ads more targeted may increase their effectiveness, it does so only marginally.
more at: https://www.pubexec.com/post/ad-format-problem/