Monday, February 25, 2008

Microsoft to Test New Web Ad Measure

Microsoft said Monday it would test a new way to measure the effectiveness of Internet advertising in a beta program that is due to begin on March 1.

Microsoft's "Engagement Mapping" departs from an industry standard that ties sales, leads and traffic to the last ad that a user clicked on online. Instead, it attempts to take into account all the Internet interactions that lead a consumer to buy a product. This is presumably based at least in part on Microsoft's purchase last year of aQuantive.

Microsoft advertising clients and partner agencies such as Citi Cards and Initiative Media have signed on for the program.

In related news, fresh numbers from the Interactive Advertising Bureau, which is holding its annual meeting this week: The U.S. online ad market hit a record $21.1 billion last year, a 25% increase over 2006.

But that year-on-year growth is a decline from 2005-2006, when Internet ads jumped 35%. 2007 Q4 results show a similar pattern: They're up 24% y/y from 2006, to $5.9 billion. But that's a slower increase than the previous year, when they grew 33% y/y.

1 comment:

Ernie Schell said...

Overall advertising revenues worldwide are projected to reach $707 billion by 2012, with much of the growth coming from interactive advertising formats, according to latest forecast from the Kelsey Group market research firm. That’s up from just over $600 billion last year.

Excluding mobile advertising, interactive advertising is expected to increase from $45 billion in 2007 to $147 billion by 2012. This represents more than a 23% growth in ad revenues globally.

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