The internet has evolved over the years. It has been a similar case for online advertising. Previously, online users used to see irrelevant information in the side bars, footer and other places of particular websites, search engines and e-mail accounts. As this information was irrelevant to what they were browsing in a particular session, this irritated them. The publishers and advertisers started to see a decline in visitors who clicked these irrelevant links, and this lead to a decline in revenue.
All of this changed with the introduction of PPC advertising. Yahoo was the first major company to introduce it, and Google followed later on with a PPC model of their own. The Pay Per Click model allows advertisers to pay for each click made on a particular ad unit. PPC also increased the relevancy of online advertising.
Other technologies took a step further in personalizing the browsing experience of online users. By reading a few examples, such as an article about Phorm technology company, you can get an idea of how new technologies are trying to display more relevant information while the user is browsing through web pages.
There are many benefits for all parties (advertisers, publishers etc) in tailoring the web experience to the specific needs of the users. Here are a few
1. Higher CTR
For those who are unaware, CTR is the acronym for click through rate. With relevant information, users are likely to click more on the links they see. For example, if a user is searching for NBA gear, he/she is likely to click an ad unit displaying highlights of last night’s game. Higher click through rate will benefit both the advertiser and the publisher. The user will also be more satisfied and may stick with the browsing session for longer.
2. Better ROI
More relevant experience for online users gives a better return on investment to advertisers. If a user who is browsing for expensive handbags sees an advertisement of a Gucci handbag and clicks, there’s a high chance of a sale. This means that advertisers would increase the chances of making sales, and it would be a better return on investment.
3. More referrals
If a particular website or blog is displaying relevant information, online users are going to refer it to their friends and family compared to other websites that display irrelevant information. This would increase the traffic, which would benefit the advertisers and the website owner.
4. Content improvement
New technologies are now using the quality of the content to tailor the web experience to specific needs of online users. If the content isn’t of high quality on a particular, the users wouldn’t stay there, and the website would be losing a potential visitor that could have clicked on the displayed ad. Similarly, advertisers would not be willing to advertise on a web page that displays low quality content. Content would be improved in order to gain higher revenue.
Therefore, companies and other parties can get an edge by approaching business on a more personal level.