What is a Banner Ad?
Wikipedia defines a banner ad as “a form of advertising on the World Wide Web delivered by an ad server. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser.”
Banner ads are a web-based interruption advertising method, much like an ad in a magazine or TV commercials. Year after year companies keep forking over cash to buy TV ad time so it must be working.
Type of Ads:
There are several types of banner ads and sizes and they can be static, animated or even flash. If you can think it and fit it into the banner size then you can do it.
Display: Banner or Graphic
Rich Media: Animated, Flash, video or any type of enhanced display
Search: Text or keyword driven.
Research completed by the Journal of Promotions Management showed that rich media and enhances interactivity ads capture the attention of consumers better than statics ads.
Future Outlook of Banner Ads:
Some people are saying that banner ads are coming to the end of their usefulness and with social media having such a big impact on they way consumers view companies it is understandable. Consumers are more likely to seek information from social contacts rather than company websites direct, thus banner ads are in question. In a post on Social Media Today by Rohit Onkar, he talks about banner ads and social media he address this question and see banner ads becoming more integrated with social media. He closes his post by saying “In my opinion, this seems the way forward for display advertising – being social. The winners will be platforms with authentic data and the ones which can strike a balance between user privacy and brand integration.” Let’s be honest–people said that TV commercials were losing a step but they are effective enough to still be big business so I would not count out Banner ads just yet.
Banner Ad Effectiveness:
It is reported that 16% of Internet users click on banner ads as reported on Econsultancy in a post by Meghan Keane. Even though that number is less than the prior year 16% can still add up to a lot of traffic.
In an infographic published by Prestige Marketing shard on AnsonAlex.com, the number for 2012 has been outlined. It showed that the average Click Through Rate was .2% and that users over 55 are more likely to click on banner adds.
F.U.N. – Fundamental Understanding of Numbers:
Looking at the data it would seem that cost is a major determining factor on whether or not banner ads are effective. Banner ad rates for corporate ads as posted by The Chronicle go from $63 CPM (cost per thousand impressions) for between 20,000 and 199,999 impressions (a single exposure or view of a single user of a display or text ad) and as low as $50 CPM for 400,000 impressions on the high end. Rates can go as low as $9.99 for 5000 impressions. So if you pay $10 for 5000 impressions and .2% click through, how many out of that 100 need to spend money on your site in order to make money? Or in other words: what is your CPC/CPA (the cost per click/conversion/acquisition)—the cost to get results. If the answer is 1 to 2, then Banner ads can be a cost effective way to drive traffic to your offerings.
In addition to tracking your CPC/CPA, another thing to look at is RFI, RFP, IO. Also known as the request for information/proposal, insertion order—the user taking some kind of action. The whole reason to use banner ads is to see results. These are standard methods the industry is using to measure the results from banner ads.
Click-Through Rate – CTR:
While banner ads can be used for many purposes such as brand building or ecommerce, knowing how the banner performs is a key factor in gauging success. It does not matter what your goal is if you don’t know your click through rate then you don’t know if you are getting the expected ROI the banner was being used to achieve. The bottom line is; banner ads should be used to drive results and the banner ads job is to get the user to take action. Knowing and managing your CTR will help lead to success.
Its been said that a penny saved is a penny earned so why not add banner ads to your marketing campaign and start earning more money today.
“Maximizing User Interactivity Through Banner Ad Design”, by Ginger Rosnkrans of Pepperdine University dated July 1, 2010, published in the Journal of Promotion Management of the Taylor & Francis Group, LLC
What Does the Future Hold for Display Advertising? Posted December 17, 2012 by Rohit Onkar, on Socialmedia Today (http://socialmediatoday.com/rohit-onkar/1086086/what-does-future-hold-display-advertising)
“16% of web users click on banner ads. Are display ads dead?” Posted 01 October 2009 22:54pm by Meghan Keane on Econsultancy (http://econsultancy.com/us/blog/4720-16-of-users-click-on-banners-are-display-ads-dead)
“Effectiveness of Banner Ads 2012 [Infographic]” posted June 10, 2012 by Anson Alexander on AnsonAlex (http://ansonalex.com/infographics/effectiveness-of-banner-ads-2012-infographic/#infographic)
Online Banner Advertising Rates, posted February 11,2013 on The Chronicle (http://chronicle.com/page/General-Online-Banner-Rates/23/)