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 Terminology Page 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 Terminology Click-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 targeting URL 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
Banner Ad Effectiveness Research • 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 FREE • 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 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