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Internet Advertising: Is Anybody Watching

Internet Advertising: Is Anybody Watching. Presented by: Chris Njunge Maksim Feofanov. Issue. Click-through rates – (Main measure of internet advertising effectiveness) declining 7% in 1996, 0.7% in 2002 (DoubleClick, 2003) Companies curbed spending on internet advertising. Key Questions.

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Internet Advertising: Is Anybody Watching

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  1. Internet Advertising: Is Anybody Watching Presented by: Chris Njunge Maksim Feofanov

  2. Issue • Click-through rates – (Main measure of internet advertising effectiveness) declining • 7% in 1996, 0.7% in 2002 (DoubleClick, 2003) • Companies curbed spending on internet advertising

  3. Key Questions • Why do banner Ads seem to be ineffective? • What can advertisers do to improve their effectiveness?

  4. Two Studies • Eye-Tracking study to investigate online surfers’ attention to online advertising • Large scale survey of users’ recall, recognition, and awareness of banner advertising

  5. Eye Tracking Study • Internet different from other media because bandwidth is shared during ad • H1: Internet users avoid looking at banner ads • H2: The more time users have spent on the internet, the less they pay attention to banner ads

  6. Study Design • 49 Respondents off street paid 15 euros • Cover study- ergonomic research on the design of French portal (Voila`) • View 8 pages in trying to answer questions • Each page with banner but no reference made to it

  7. Data Collection • Eye tracking device • Written survey after the task, about their internet savvy, the experimental process and their preferences and some questions regarding the banners they saw

  8. Analysis • Every subject looked at one or more banner ad • Average of 3.96 banners viewed • Probability of 49%- ( T.V. 90%, 89%-93% Yellow Pages, per Lohse, 1997) • Screen was divided into zones depicting: location, shape and content • Logit Regression for Zone Attractiveness

  9. Results • Half of banner exposures not attended to • Surfers purposely avoid looking at banners • Surfers processing banner ads at pre attentive level • Experts more efficient at processing web pages • Younger surfers more efficient than older

  10. Findings • Location, size, and zone content are important factors when trying to predict whether a zone is attended

  11. Study 2: Impact of Online Advertising • H3: Advertising effectiveness increases with the frequency of exposure • H4A: Larger banner ads will be more effective than smaller banner ads • H4B: Banner ads that are laid out vertically will be more efficient than banner ads laid out horizontally

  12. Study 2: Impact of Online Advertising • H5A: Banner ads that contrast with their environment will be more effective than ads that do not • H5B: Animated banners will be more effective than static ones • H5C: The effectiveness of a banner ad depends on its message

  13. Study Design • Two part self administered questionnaire sent to 6000 people • First questions on current internet usage and brand awareness • 9 Web pages with specific task or question to answer • 7 of 9 pages contained banner ads relating to 5 different products • 18 different banners used balanced out

  14. Study Design • 24hrs after first survey and 9 web pages, follow up survey sent • Questions about advertising recall and for rating of banner ads seen • 807 respondents filled out second survey (13.5% response rate)

  15. Analysis

  16. Analysis • Banner Advertising has long term impact beyond immediate click through • Effect of repetition tested across all five advertisers • Repetition improves unaided advertising recall, brand recall, and brand awareness but does not improve aided advertising recall

  17. Results • H4A: Banner Size • Small banner ads perform just as well as larger banner ads. Contradicts 1st study • H4B: Banner Orientation • Banner orientation affects aided advertising recall but not unaided recall or brand recall

  18. Results • H5A-C – Graphical content • Weak effect for contrast, but more contrasting performed worse ?? • No effect for animation • Message affects recognition and comprehension • The message is more important than how the message is sent

  19. Conclusion • Surfers fixate on 50% of banners, process banners subconsciously • Awareness is more important than click through rate • What is said and how often its said is more important than how it is said • Bigger animated ads will not compensate for ineffective content

  20. Shortcomings • Searches were goal-directed as opposed to exploratory which is equally common but vastly different • Memory measures and not behavioral measures were examined

  21. Questions

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