What Is The Value Of Online Display Ads?: "Now that Google, Yahoo, Microsoft, and WPP have spent collectively $10.4 billion to acquire the largest online display ad platform companies (DoubleClick, Right Media, aQuantive, and 24/7 Real Media) on the bet that display ads will be a key driver of growth for online ad spending, it’s fair to ask exactly what the value of an online display ad is."
The answer? Pretty bleak: display banners can "foster familiarity" but since the advertisers themselves obsess over clicks, the ROI is pretty low.
Google AdSense, on the other hand, is sucking away larger and larger chunks of the online budgets every month. Why? Because GoogleAds "use the format of the universal call to action on the web — the text link."
Interesting to see what happens when (or rather, if) Google buys Feedburner, "the leading provider of media distribution and audience engagement services for blogs and RSS feeds". RSS advertising is coming our way and my bet is, that it's going to be mainly text-based too.
Who'll serve the ads? "GoogleBurner" will. Who'll buy them? The same advertisers who are happy with GoogleAds' ROI. But who will be the media? The usual suspects (portal sites and other online media), but also the bloggers. I know some of the bloggers love reading RSS feeds for its ad-lessness, but when they can make money by inserting AdSense (or DoubleClick) ads in their own blog's feed, believe me: they will.
UPDATE (May 23 2007): $100 Million Payday For Feedburner - This Deal Is Confirmed.