Advertisers Want ROI, Lower CPMs

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No proof of return on investment is still the main reason advertisers aren't spending more on the Net, but cost-per thousand impression rates also is beginning to be a major barrier, according to a recent report from the Association of National Advertisers, New York.


"No proof of return on investment has been the No. 1 issue for the past three years," said Robin Webster, senior vice president of the ANA. "A lack of reliable measurement information has also been the No. 2 reason for the last three years and the cost of CPMs is the third biggest barrier to Net advertising according to our members. This is a newer problem."


While technology is available to measure the effectiveness of advertising in terms of the number of click-throughs and whether an ad is cached or not, many people are simply not using the technology.


"If those measurement problems were solved, we would see a lot more ad spending on the Net," Webster said.


The survey, based on interviews with 121 ANA members, revealed that the percentage of companies advertising online has decreased from 68 percent one year ago to 61 percent.


The most important post-audit measurement criteria were click rates, 56 percent; clicks, 53 percent; CPMs, 33 percent; and ads delivered, 27 percent.


"Advertisers need one simple thing: to know what their money bought and how many ads were delivered or displayed," Webster said. "The Internet has always over-promised results, but the technology is now out there to measure those results."
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