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Banner Advertising - PowerPoint PPT Presentation

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Banner Advertising. Banner Ads. The oldest, most common online advertising tool. The first Banner Ads appeared at 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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Banner Ads

  • The oldest, most common online advertising tool.

  • The first Banner Ads appeared at

    • 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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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


  • “ad-speak” for the actual banner ad graphic

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Banner Terminology


  • 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.

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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. 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


  • 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