Issue: SME-GS Shifts
to Pay-for-Performance on Geotargeted Banner Ads
News: It wasn't
very long ago that analysts were predicting a sea change in which businesses
were going to shift significant amounts of money to Internet banner advertising.
Of course it hasn't quite worked out that way.
Findings from Wave
V of The Kelsey Group and CONSTAT Inc.'s Local Commerce Monitor research
indicate that just 4 percent of small businesses use banner advertising
as part of their advertising mix. By contrast, nearly 70 percent of small
businesses that advertise say they use a "telco Yellow Pages." The fact
that so few small businesses have utilized banner advertising is tied
to the fact that banners have typically not met the needs of small-business
In the past, banners
were expensive, carrying a significant cost per thousand (CPM) rate. They
were also generally unable to reach highly targeted local geographies.
But SME Global Solutions (SME-GS), a reincarnation of CMGI's Flycast and
Engage businesses, is now working aggressively to solve both of these