Groupon says its focus is on the bottom line, rather than top-line growth.
Despite a soft ad online market, nearly two-thirds of advertisers will pay higher rates for the 30% of online ad space regarded as premium, Jupiter reports.
Despite a generally softer online advertising market, retailers and others who advertise online are still paying top dollar for premium ad space, according to a new report by New York-based researchers Jupiter Media Metrix Inc. Nearly two-thirds of online advertising buyers – 64% -- will pay higher rates for placements they perceive as premium. Generally, premium inventory is placement that combines the best reach, branding and targeting opportunities, says Jupiter. Advertisers expect performance from higher-priced premium placements, with 47% seeking higher ROI when using premium positions and 27% seeking exposure to a targeted audience. Nine percent of advertisers using premium placements said the ability to capture e-mail addresses and provide contextual content were priorities.
Other findings from Jupiter show that while creative opportunities such as large-sized ad formats are expanding rapidly online, publishers eager to sell ad space are confusing advertisers with too many choices. “Splashy creative and fat bandwidth will not solve the industry’s problems,” says Patrick Keane, vice president and senior analyst at Jupiter. “Premium inventory today is largely a function of creative unit size and placement, but only the latter makes sense.”