Advertisers Pay to Make Ads More Expensive
- July 4, 2021
The rise of online advertising, in which brands can pay to make advertisements more expensive, is creating an ever-more complex relationship between advertisers and online ad networks, according to a new report by research firm IHS Markit.
The relationship is complicated by the growing importance of digital platforms like Facebook and Twitter, and by the rise of niche advertising that is targeted to consumers.
For example, some of the most popular online ads are being created on niche Facebook and LinkedIn sites that aren’t available to traditional advertisers.
The rise in these online ads, which are usually delivered via text, video, or a combination of both, means that brands need to make sure they’re paying for their ads on a per-click basis, according a new study by IHS.
The researchers analyzed 2.5 billion clicks on ads for brands that make them available to advertisers on Facebook and Instagram.
That translates to nearly $7 billion in ad revenue.
For these sites, ads will be priced according to clicks, the researchers found.
That’s a significant increase over the $2.3 billion in advertising revenue generated by traditional outlets.
This increase in ad spending also means that the number of online ads made available to ad buyers is on the rise, the study found.
“The ad industry is in a position where we need to be paying a premium to make ads more relevant and more relevant to our audiences,” said Mark Karpinski, an analyst at IHSMarkit.
“We are paying for them to be more relevant, to be relevant to the brands they are promoting.”
A few years ago, the internet was largely an ad-free space, with sites like Facebook that offered just a few ads a month or a few hundred.
As more and more sites were offering more and better advertising options, and as brands found ways to sell products, services, and services through social media, the demand for advertising increased.
But the rise in online ad spending means that even those sites that have traditionally paid for their content to be displayed in ads are paying a higher price to make those ads more expensive.
Advertiser-supported content, for example, is a term that refers to content that is free of advertisements and has a low cost to deliver, the IHS report found.
Facebook’s new algorithm, which is meant to improve the performance of its platform, has also resulted in ads being made more expensive for advertisers, and those ads will have to be paid for on a daily basis, the report found, which means that advertisers are paying to make their ads more costly.
It also means advertisers are spending more on their own ads, the research found.
In other words, the online ads that are available to brands now are making them more expensive to advertise.
The number of ads being shown in search results has also increased significantly, the paper found, leading to advertisers feeling pressure to increase the cost of their ads.
The IHS study, which was published Monday, also found that brands are making more than double the number and size of their own online ads available to them.
It said this trend is likely to continue for years to come.
The authors of the report said that for the first time, the amount of ad time spent on online advertising is more than doubling over the last decade.
It was the largest percentage increase in online advertising ever seen, according the study, although the trend was more pronounced for brands than for consumers.
