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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%.

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Presentation Transcript
banner ads
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
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 terminology4
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
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 usefulness6
Banner Ad Usefulness
  • How are banner ads targeted?
    • IP targeting

URL targeting

    • Profile Targeting
    • Behavioral Targeting
banner ad measurement
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 measurement8
Banner Ad Measurement
  • Side by side of banner ads can be made to gauge effectiveness
banner ad measurement9
Banner Ad Measurement
  • Graphical representations of banner ad can help determine serving schedules
banner ad effectiveness research
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
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 research12
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 research13
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
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
ad