Banner Advertising

Banner Ads The oldest, most common online advertising

tool. The first Banner Ads appeared at wired.com

– first advertisers (14) included:• IBM, AT&T, Sprint, MCI, Volvo, Club Med, …

– 12 weeks of display for $30,000 click-through rates average 0.39% to 10%

Banner TerminologyPage Impressions or Page Views

– number of times a page is served

Banner Views– number of times a page is served with the banner fully

loading

CPM - cost per thousand– the price of the ad for every thousand times its displayed

Creative– “ad-speak” for the actual banner ad graphic

Banner TerminologyClick-Through

– a viewer clicking on an ad to go to advertiser’s site

Click- Through Rate - or Yield– the percentage of click-throughs to banner views

Unique Users– net reach/non-duplicated visitor

Conversion Rate– the percentage of shoppers that make a purchase (1-5%)

Run of Site (RoS)– Banner ad is displayed at a website or network without

the use of a keyword or categorization.

Banner Ad Usefulness What can banner ads do?

build brand awareness 5% increase compared to control

a positioning tool increase advertising awareness

30% increase compared to control direct response

to information to purchase

Banner Ad Usefulness How are banner ads targeted?

IP targetingURL targeting

Profile Targeting Behavioral Targeting

Banner Ad Measurement

Tracking Software analyzes the effectiveness of Banner Ads

The yield of a banner ad = total # of click-throughs ÷ total impressions

Banner Ad Measurement

Side by side of banner ads can be made to gauge effectiveness

Banner Ad Measurement Graphical

representations of banner ad can help determine serving schedules

On-line advertising has value for building awareness and brand positioning as well.

AOL.com study: TV recall, 1 viewing: 41% Banner ad, 1 viewing: 40%* Impacts TV shopping,

direct mail purchases and store traffic. **

*Ipsos-ASI, AOL Study/**Cyber Dialogue

Banner Ad Effectiveness Research

Internet users expect to save money or time, so ads must be creative and promise benefits to create clicks.

discounts, contests & giveaways help What works the best?

The Word . . .

Banner Ad Effectiveness

Banner Ad Effectiveness Research

animated ads generated click-through rates at least 15% higher than static ads, and in some cases as much as 40% higher.

Ads next to the right scroll bar (in the lower right-hand corner of the first screen) generated a 228% higher click-through rate than ads at the top of the page.

Ads placed 1/3 down page, as opposed to the top, generated 77% higher click-through rates

Banner Ad Effectiveness Research

Phrases such as "Click Here" tend to improve response 15%.

Using questions can raise click-through by 16%.

after the fourth impression, response rates dropped from 2.7% to under 1% (banner burnout)

The Future of Online Advertising

Small base, but a healthy rate of growth

Internet advertising revenues increased 141% from $1.92 to $4.62 billion in 1999 (IAB).

> 55% of online ad expenditures goes for banner ads

$1.58 billion spent on outdoor advertising