Banner Advertising

Banner Ads 4 The oldest, most common online advertising tool. 4 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 4 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 4 Tracking Software analyzes the effectiveness of Banner Ads 4 The yield of a banner ad = total # of click- throughs ÷ total impressions

Banner Ad Measurement 4 Side by side of banner ads can be made to gauge effectiveness

Banner Ad Measurement 4 Graphical representations of banner ad can help determine serving schedules

4 On-line advertising has value for building awareness and brand positioning as well. AOL.com study: 4 TV recall, 1 viewing: 41% 4 Banner ad, 1 viewing: 40%* 4 Impacts TV shopping, direct mail purchases and store traffic. ** *Ipsos-ASI, AOL Study/**Cyber Dialogue Banner Ad Effectiveness Research

4 Internet users expect to save money or time, so ads must be creative and promise benefits to create clicks. 4 discounts, contests & giveaways help 4 What works the best? 4 The Word... Banner Ad Effectiveness

Banner Ad Effectiveness Research 4 animated ads generated click-through rates at least 15% higher than static ads, and in some cases as much as 40% higher. 4 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. 4 Ads placed 1/3 down page, as opposed to the top, generated 77% higher click-through rates

Banner Ad Effectiveness Research 4 Phrases such as "Click Here" tend to improve response 15%. 4 Using questions can raise click-through by 16%. 4 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 è $1.58 billion spent on outdoor advertising