It’s referred to by some industry commentators as ‘banner blindness’ – the process whereby website users unconsciously skip or ignore banner ads.
While the first banner ad managed to achieve a 44 per cent CTR, today, this figure sits at around 0.05 per cent. In other words, a marketer can expect five clicks per every 10,000 impressions achieved.
And according to the founders of media technology company WINR Marcelo Ulvert and Perry Lyndon-James, these numbers suggest the industry is in need of change.
That’s why they have created advertiser-funded paywall AdGate, a hybrid between the free ad-funded model and traditional paywalls.
Rather than traditional banner ads or a paywall, readers of the partner sites are presented with an interactive ad – usually a branding question – embedded partway into an article. They are able to unlock and instantly read the remaining content in the article in exchange for one-interaction with the advert.
Early data shows AdGate is achieving between 30 and 45 per cent engagement rates for partner publishers which so far include nextmedia, Interplay, Tribal Football and Dynamic Business.
According to Ulvert, it’s all about “valuing human attention and engagement with brands, rather than just impressions.”
The founders have called it a “win-win-win” for publishers, brands and consumers
“As far as the publisher is concerned, they’re getting better yield,” said Ulvert. “Therefore, they can fund their content more easily.”
“The advertiser is getting higher engagement and higher interaction rates, therefore they’re getting a better bang for their buck and evidence that a consumer or a reader is actually seen, and engaged with their advert.
“And for the reader, they’re one click away from accessing the content they love and it keeps it free for them.”
After trialling the paywall for over a year, Ulvert and Lyndon-James launched the product last month – at a time where many media businesses are fighting for survival.
Although the timing isn’t ideal, Ulvert believes a solution like AdGate can help the media industry navigate this period.
“We didn’t intend to launch right now,” Ulvert said.
“But right now, with budgets smashed in the way that they are, it’s important that we have innovative technology that is providing a better outcome for publishers, advertisers and readers.”
the problem with impressions
With its focus on attention over impressions, AdGate calls into question the current CPM-based model that marketers work with.
The WINR founders don’t expect their technology to eradicate CPMs, but they hope it can change the conversation.
“CPM or impression-based models are the major currency in that respect,” said Lyndon-James.
“We would certainly like to see the industry move more towards a customer engagement or customer interaction model, which values attention slightly more.
“But I think that’s going to be a long process, and we’re certainly excited to be the first ones here sort of advocating this model.”
Famed broadcaster and environmentalist David Attenborough can now add social media sensation to his long list of talents. Yesterday he announced he was signing up for Instagram, telling his followers “the world is in trouble… Saving our planet is now a communications challenge”. View this post on Instagram David Attenborough has spent a lifetime travelling, […]
Frameplay today announced its first global integration with Magnite to provide advertisers with the ability to buy intrinsic in-game advertising programmatically. The combination of Frameplay’s software developed for in-game advertising and Magnite’s scale and experience in programmatic technology across any format and screen provides advertisers with greater access to engaged audiences. Current RTB programmatic capabilities […]
The planet may be hanging out for a long-awaited vaccine to coronavirus with reports we shouldn’t even begin to expect one until the first three months of 2021 at the very earliest. But a new study has asked Australians who they think should be the first in line to get any COVID-19 vaccine if and […]
News Corp Australia, today unveiled a new travel campaign Australia Go and Get It – Safe Escapes 20/21, designed to unite and support all Australians to drive the recovery of local tourism. Launching on Sunday 27 September, the national campaign is led by the company’s leading travel media brand Escape, The Australian and news.com.au, and with support across the […]
Cadbury has launched its National Women in Sport initiative in partnership with the AFLW, Australian Women’s Cricket team, the NRLW and the Westfield Matildas, uniting with leading women’s sporting codes to support the continued growth and equality of women’s sports in Australia. With one in two young girls dropping out from organised sport from the […]
Advertising spend on e-commerce platforms is set to rise sharply this year despite the global recession, reaching a total of $US58.5bn ($83bn). Advertising investment across e-commerce sites such as Amazon, Tmall and Rakuten, omnichannel retailers such as Walmart and Carrefour, and social commerce on platforms such as Pinduoduo and TikTok is set to increase 18.3 […]
Online insurance comparison website, Compare the Market Australia has appointed Emma Alberici as Chief Strategy, Government Relations and Communications Officer. Previously, Alberici was chief economics correspondent at the ABC, one of many senior positions she held during her 18 years with the organisation. Before this, she was a senior journalist at the Nine Network, where […]
VA Media has announced the launch of new YouTube content ID service for producers, production companies and film & television distributors. VA Media owns and manages some of the world’s largest movie and TV-based YouTube channels, including Movie Central– which boasts an impressive 20M views monthly. The newly announced fee-based service is designed to enable […]