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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%
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
 Tracking Software analyzes the
effectiveness of Banner Ads
 The yield of a banner ad = total # of clickthroughs ÷ total impressions
Banner Ad Measurement
 Side by side of banner ads can be made to
gauge effectiveness
Banner Ad Measurement
 Graphical
representations
of banner ad
can help
determine
serving
schedules
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
 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 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 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
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