Regulators in the U.S. and the U.K. are cracking down on so-called
native advertising -- essentially ads that masquerade as content. This
creates problems for marketers who have embraced the deceptive format as
a replacement for increasingly useless banner ads.
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Click-through rates started falling almost immediately after banner ads
emerged. Last year, the average CTR for all display ad formats was 0.06 percent --
less than one click per 1,000 views. It has hovered around this
extremely low level for years now. Given such inefficiency, only
companies with enormous audiences such as Google and Facebook can make
any serious money showing display ads.
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