The 6% of Internet that can make you rich beyond your wildest dreams
A new research study by SVM Group shows some very interesting statistics regarding the Internet population that generates a big percentage of overall clicks.
According to the study, only 6% of Internet users are responsible for generating 50% of "all display ad clicks." Interestingly enough, this 6% doesn't represent general Internet population. Most of the users represented in this population are from 25-44 age group and have household income of less than $40,000.
Could this be the reason for Google admitting the troubles they are having with being able to monetize on social networks such as MySpace?
What implications does this have as far as the click fraud issue is concerned?
If a majority of 50% of these clicks is made by those with household income of less than $40K, are they just clicking on ads for curiosity? Should the advertisers be paying for their curiosity?
Is Google's smart pricing justified then? Google slaps publishers with smart pricing when it determines that clicks generated on the publisher's site aren't resulting in conversions on the advertiser's site. This is what Google says about Smart Pricing (also see facts about smart pricing):
One site getting hit with smart pricing can affect all sites in the network of the publisher. It seems that if these statistics are in fact true, most sites will run the risk of being smart priced.
According to the study, only 6% of Internet users are responsible for generating 50% of "all display ad clicks." Interestingly enough, this 6% doesn't represent general Internet population. Most of the users represented in this population are from 25-44 age group and have household income of less than $40,000.
Could this be the reason for Google admitting the troubles they are having with being able to monetize on social networks such as MySpace?
What implications does this have as far as the click fraud issue is concerned?
If a majority of 50% of these clicks is made by those with household income of less than $40K, are they just clicking on ads for curiosity? Should the advertisers be paying for their curiosity?
Is Google's smart pricing justified then? Google slaps publishers with smart pricing when it determines that clicks generated on the publisher's site aren't resulting in conversions on the advertiser's site. This is what Google says about Smart Pricing (also see facts about smart pricing):
...if our data shows that a click is less likely to turn into business results (e.g. online sale, registration, phone call, newsletter sign-up), we may reduce the price you pay for that click. You may notice a reduction in the cost of clicks from content sites.
One site getting hit with smart pricing can affect all sites in the network of the publisher. It seems that if these statistics are in fact true, most sites will run the risk of being smart priced.
Labels: adsense, click fraud, contextual advertising, google, research, smart pricing
posted by Frank at 9:39 AM
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