Banner Advertising

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Banner Advertising
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Banner Ads

• The oldest, most common online advertising tool.
• The first Banner Ads appeared at wired.com
• first advertisers (14) included
• IBM, ATT, Sprint, MCI, Volvo, Club Med,
• 12 weeks of display for 30,000
• click-through rates average 0.39 to 10

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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

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Banner Terminology

• Click-Through
• a viewer clicking on an ad to go to advertisers
  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.

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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

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Banner Ad Usefulness

• How are banner ads targeted?
• IP targeting
• URL targeting
• Profile Targeting
• Behavioral Targeting

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Banner Ad Measurement

• Tracking Software analyzes the effectiveness of
  Banner Ads
• The yield of a banner ad total of
  click-throughs total impressions

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Banner Ad Measurement

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

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Banner Ad Measurement

• Graphical representations of banner ad can help
  determine serving schedules

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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
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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 . . .

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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

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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)

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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