Truer words, Mr. President.
Let’s think for a moment about the deep connection we feel to mobile phones. We store family photos on them. We go to sleep next to them. We feel practically naked leaving the house without our phones near our bodies.
The protection we feel over these devices is a big reason why display ads don’t work. Most of us click on the ads to swat them away. But those clicks end up being used as a measurement tool for ad reach – which is precisely the problem. Click-through-rates are not reflective of real customer intent, Christothoulou said.
“The (display ad) business model, as a result, is very flawed,” Christothoulou told Jack Marshall, staff writer at Digiday, during his talk.
Citing data that showed performance advertisers are effectively overpaying by 10X when they use mobile display, Christothoulou called on mobile display businesses and ad networks to overhaul their pricing models and charge per outcome. Either that – or “reduce their rates dramatically.”
“Something has to change,” he said.
Watch his entire talk below and hear his recommendations on how to make mobile perform.