Scott Karp wrote a nice article called “who is a afraid of on-line advertising“. According to a survey done by McKinsey many advertisers are afraid to spend their dollars on-line, because of the lack of meaningful metrics and adequate capabilities. Scott breaks down the survey conclusion and argues that the companies find the transition difficult, as all transitions usually are.
I still think we need better metrics on the whole. Look at my earlier post on click fraud and on matching user profiles to advertisement. CPM is a metric like rain falling down. Someone is bound to get wet but mostly the results are scattered and pointless. If we can filter out all the click fraud, then the whole system deflates like a balloon. Google Gadgets are already better tooling, as here you might get some meaningful interaction between user and advertiser. But I’m still looking at an advertisement method that lets the consumer decide. As argued in my earlier postings, consumers can predict much better what their needs are than any automated system can do with user profiles. If you can leverage that, then the whole advertisement business may just benefit the consumer as well as the advertiser. What do you think?