Search's >2%/30% Rule

by , Jul 25, 2012, 3:39 PM
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You know that old saw about certain media not getting their fair share of ad dollars relative to the amount of time consumers spend with the medium – you know the kind Wall Street’s Mary Meeker likes to present? Well, it cuts to other way too,  Dan Salmon, equity research analyst at BMO Capital Markets pointed out to OMMA Data & Targeting in Los Angeles.

Specifically, Salmon pointed out that consumers spend “a little less than 2%” of their time online using search engines. But search commands about 30% of all spending on online advertising.

“And that in a nutshell is why In advertising it’s really not about amassing a large audience and waiting for the dollars to come in,” Salmon said, adding that the reason why is that not all time spent with media is created equal. If it’s intent-based time spent, like say search queries, it commands a significantly higher value in the advertising marketplace than impressions-based time spent with things that may or may not have anything to do with engaging with a brand.

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