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Friday, January 26, 2007

Contextual Search Is Relative

Increasing the click through rate by finding the most relevant ads is a never-ending challenge for ad networks. Entrieva offers ClickSense as an Adsense alternative and claims a two to five times increase in revenue.

But often the ads that might generate the highest volume of clicks are indirectly related to the content or keyword at hand. There have been many studies saying that click rates are lower when they talk about the exact content of the page -- for example, reading about skis may not generate the highest yield for ski boot ads.

With this knowledge in mind, why aren't ad networks doing a better job offering the best performing related categories of ads? If you are reading about skiing, you might be more interested in all wheel drive car rentals or hotel discounts packages.

Publishers sell display ads against their content like this, so why not contextual advertising? Contextual ads could go even broader to find the most likely unrelated items that someone might want to purchase based on demographic information. For example, skiers may also be the most likely people to buy satellite radios or accounting services, so they should be added into the mix.

Relevancy is relative.

By John Gartner at 10:55 AM | Comments (0)

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