Economic Benefits
Many advertisers have limited budgets and may not understand the most effective method of advertising. With performance-based advertising plans, they avoid the risk of paying large amounts for advertisements that are ineffective. They pay only for results.
The advertising agency, distributor or publisher assumes the risk, and is therefore motivated to ensure that the advertisement is well-targeted, making best use of the available inventory of advertising space. Electronic media publishers may choose advertisements based on location, time of day, day of week, demographics and performance history, ensuring that they maximize revenue earned from each advertising slot.
The close attention to targeting is intended to minimize the number of irrelevant advertisements presented to consumers. They see advertisements for products and services that are likely to interest them. Although consumers often state that advertisements are irritating, in many situations they find the advertisement useful if they are relevant.
Read more about this topic: Performance-based Advertising
Famous quotes containing the words economic and/or benefits:
“But I would emphasize again that social and economic solutions, as such, will not avail to satisfy the aspirations of the people unless they conform with the traditions of our race, deeply grooved in their sentiments through a century and a half of struggle for ideals of life that are rooted in religion and fed from purely spiritual springs.”
—Herbert Hoover (1874–1964)
“One of your biggest jobs as a parent of multiples is no bigger than simply talking to your children individually and requiring that they respond to you individually as well. The benefits of this kind of communication can be enormous, in terms of the relationship you develop with each child, in terms of their language development, and eventually in terms of their sense of individuality, too.”
—Pamela Patrick Novotny (20th century)