SmartMoney has come to the conclusion that less online ads can boost click-throughs.  In October, SmartMoney cut the number of units on their page from three to two, by getting rid of their below-the-fold skyscraper ads. The site noticed a 21% increase in aggregate click-through rates through the 4th quarter.

The company believes that they are not just limiting supply because they can, but they are doing it where it makes sense.  After cutting the bottom skyscraper, SmartMoney added a second ad to the home page and used some of the space to promote its own content and offers.  This redesign not only created a better user experience but users stayed on the site longer and visited more pages.

Not all advertisers agree with this model though, critics argue that cutting supply only decreases revenue.  For both sides of this argument, go to: http://adage.com/digital/article?article_id=134941

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