Is adgator no longer serving paid ads?

2009 July 23
by Ismail Dhorat

Adgator-blog-ads

Adgator-blog-ads

There is an interesting discussion over at Integral Web solutions on adgator. Robert claims that he has not served any paid ads since the 11 of July.

I had a look at my Adgator stats, and since 11 July I have not earned one cent from serving ads. Probably because I am not serving paid ad campaigns, even though I have physically served thousands of ads, but got next to nothing, in fact nothing for it.

Where the problem is, according to advertisers, is not with serving ads but it seems that nobody is clicking on the ads that should send you to the advertisers website. Apparently Adgator says that this is due to bloggers placing the ads below the page fold (where the website ends at the bottom of the screen).

Also a warning that one major brand and a major media agency have warned that they will stop advertising with Adgator if the click ratio doesn’t improve. Exactly who the two companies are, are not known at this time.

I have checked my stats, and from the 11 to the 22nd there have been no paid ads served except for a few on the 15 and 16. I then took a look at the total amount of ad’s served vs the number of paid ads served: Only 9% of ads were paid ads.

Justin however has responded,

The truth is we are a new model and we’re working very hard on trying to make this work. I want to assure all of you we are very committed to making this work, not only for bloggers but also advertisers.
….
Robert – I’d like to clarify a few points that I don’t really agree with.

“Have you noticed, as of this writing, that Adgator is no longer serving paid campaign ads, but only serving their own in-house ads. I thought it was only me until I did some digging and it turns out that the Adgator service is not as successful as the advertisers would like it to be.”

While this may be true on your blog it’s not on others. We have multiple campaigns running at the moment with one starting tomorrow and another two next week. In fact, July, August & September are going to be massive months for everyone.

I am personally concerned about advertisers ROI and that’s why I sent that email explaining the situation. I know that advertisers need to see ROI and if they do we’ll be sorted as they’ll keep coming back.

CPC vs. CPM

In South Africa CPC campaigns are not more expensive that CPM. This is partly true in countries like the US but certainly not here. In fact, SA is one of the most expensive CPM countries in the world so while your theory on CPC is mostly accurate for countries outside of SA – it isn’t for here.

FPR (or sponsorships)

I agree mostly with what you’re saying except advertisers are still measuring the effectiveness of their campaign be it by clicks or acquisitions. Afrigator is about to launch a sponsored links section on the site but we’ll be measured on acquisitions – not clicks or impressions. If the acquisitions don’t come in then bye-bye FPR.

I can assure you that on all these models we have in fact done the math. There are simple reasons why we chose not to go CPC and that was to not compete directly with Google Adsense and we also knew CPC doesn’t make small bloggers any money. We wanted a unique offering that bloggers hadn’t seen before.

My Thoughts
If you consider each impression as ‘Stock for sale’, like in a warehouse only 9% of paid ads means there is a huge amount jus sitting there unsold. However this also means there is a huge opportunity for growth.

Measuing CPM avertising on Click-Through ratio is not ideal, and wont work,since CPM is ideally suited for Brand awarness style campaigns and not customer acquisition campaigns. Maybe advertisers need to understand this difference, the ads need to be designed for this and thats how it should be pitched.

Update on the Afrigator blog on the IBM campaign

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