Banner Advertisement on internet is annoying

Another myth / hypothesis of the RadicalMarketer is backed with data. Thanks for Mc Kinsey for the UK survey.

Banner Advertisement

The reason why the “Radical Marketer” advises his brands to spend more on Paid Search, instead of the internet banners are proven with data now.

However, where the McKinsey study lacks is; this chart doesn’t get into detail of which banners are annoying. We advise companies to use banners only to selected, targeted consumers with a respect for their interest (this translates to good media planning and targeted banner creation for each specific media).

Margin Google is charging for Adsense use is 23.8%

Based on Google’s Q4 financials, Google is getting a commission of 23.8% from our Adsense advertisements. I have seen other numbers mentioned, therefore, I am including my understanding and calculations below.

Google 2008 Q4
Total Rev $ 5.700.904
Adver. Rev $ 5.504.571
TAC % 27%
TAC $ 1.486.234
Adsense Partner Payments $ 1.290.000
Rev from Network (Adsense) $ 1.693.405
Margin $ 403.405
Margin % 23,8%