Can more targeted pitches on Facebook and other sites reverse the shrinking response to online ads? The truth about online ads is that precious few people actually click on them. And the percentage of people who respond to common "banner ads," the ubiquitous interactive posters that run in fixed places on sites, is shrinking steadily. The so-called click-through rate for those ads on major Web destinations such as Yahoo! (YHOO ), Microsoft (MSFT ), and AOL (TWX ) declined from 0.75% to 0.27% during 2006, according to Eyeblaster, a New York-based online ad serving and monitoring firm.
Thoughts// A compelling but not so surprising article from Business Week about the realities of online advertising, and frankly any mass advertising program. The article chronicles the decline of click through rates of general "mass" banners ads through the story of an online parcel delivery service and their efforts to reach out to the "me 2.0" generation of Facebook users which received a woeful 0.04% click through rate.
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