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
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