INSIGHT blog

Posts Tagged ‘Display Ads’

Benefits of Display Advertising

21
May
2009

Banner ads effectiveness ensures future use of this format.

Stefanie Berliant
Media Coordinator

To all the haters who say that banner ads are an ineffective form of online marketing or to not invest as much into this format of online advertising: you better check yourself.

After attending AdTech San Francisco last month and listening to the dialog from industry thought leaders, my own thoughts regarding online media buying were reaffirmed. Banner ads are to online marketing as posters, flyers, billboards, print ads, etc. are to traditional marketing. These tactics are an integral part of marketing, creating a holistic approach to grabbing the attention of a specific audience. Furthermore, the results of running an online advertising campaign are better tracked and measured than traditional advertising methods.

My opinion of display advertising was further codified by the recent report released by iProspect.  A third of internet users surveyed reported that they clicked on display ads. But wait! It doesn’t end there: 27% reported that they did an online search for the product, brand or company, and 21% directly entered the company Web address. Nine percent used social media tools to gather more information as well.

Surprised? You shouldn’t be.  As stated in my previous blog, display ads drive emotion which manifests into people searching online as well as offline. Again, the creativity of the display ads are a huge component of what drives emotion, so I must give kudos to Apple’s "Get a Mac" banner ads.  Apple’s creative team has taken banner advertising to the next level, making it interactive, entertaining but not intrusive. These 30 second rich media ads have the Mac and PC characters interacting in the leaderboard and large rectangle ads. The ad currently running on the NY Times homepage even includes commentary from a fake hair growth ad in the ad space on the opposite side of the webpage. Brilliant AND hilarious!

Online media buys are still well worth the investment, just make sure to run A/B tests with good creative and track the metrics the campaign. So don’t worry about the future of display advertising, it’s far from dead- more like alive and kicking. 

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Paid Search Spending On Rise, Despite Economic Turbulence

21
October
2008

A high majority of marketers plan to either maintain or increase spending on paid search within the next year

Christine Pepin
Media Coordinator

A study conducted by JupiterResearch revealed that over 80% of marketers spending at least $50,000 per month on paid search advertising will maintain or increase this spending by next year.  With hard hits to the stock market and the country in economic crisis, budgeting for future marketing efforts is a challenge.  However, paid search advertising is a tactic marketers are unwilling to do without.  This year, marketers spent the majority of their budgets on search, followed by display ads, then classifieds.  Although significantly less was spent on lead generation this year, eMarketer predicts this ad format will see a 46% increase in spending, compared to search’s rise of 44% by 2013.

Between 2009 and 2013, eMarketer estimates that paid search advertising will double, approaching $23 billion.  Senior analyst at eMarketer, David Hallerman, states “Even if the economic crisis levels off this prediction, made in August 2008, the accountability of paid search makes it more valuable than most other forms of advertising, online or offline.”

Change in Paid Search Spending

US Online Ad Spending

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Hard Times for Online Display Ads

23
September
2008

Display ads have fallen on hard times. The graphic ads that border a Web page are among the slowest-growing formats in the online-ad marketplace, and they are seen by many marketers as stodgy and ineffective.

George Assimakopoulos
Principal Manager

By the time consumers search for a product or service, they’ve often already made up their minds to buy it. Display ads are often an important factor in their reaching that conclusion. However, part of the reason display has fallen out of favor is that it’s been hard to prove that the ads work. Skeptics point to low click-through rates – a fraction of a percent (at best) – and scientists have coined the term "banner blindness" to refer to the way Web surfers ignore display ads.

According to Emily Steel of The Wall Street Journal, Nielsen Online reported in mid-September a 6% year-over-year decrease in display advertising during the first half of 2008, including a 27% decline in spending by financial-services companies. Meanwhile, spending on so-called rich-media ads increased 60% overall in the first half of the year, and overall online ad spending – including search-ad dollars – increased 11% during the first half of the year, Nielsen says.

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Economic Struggles Won’t Stunt The Growth Of Online Advertising

26
March
2008

Despite the current state of the economy, eMarketer predicts that spending on online advertising in the U.S. will continue to grow.

Ryan Moss
Research Analyst

The struggling economy has been affecting many different areas in the marketing/advertising world, however online advertising is not expected to be significantly affected by the economic downturn. According to eMarketer, online advertising spending will increase by 23% during 2008. If eMarketer’s predictions are correct, online advertising will remain as the fastest-growing media in terms of ad spending. Experts attribute online advertising’s continued growth to the fact that it is very easy to measure online ad success, and to target ads to any desired market. These two qualities are what matters most to marketers.

In the online advertising industry, search is expected to account for the highest percentage of spending (40%) during 2008. However during the next four years experts believe that percentage will decrease, losing share of ad spend to rich media/video which is expected to grow significantly between now and 2012. See the chart below for a complete breakdown of U.S. online advertising spending by format.

US Online Advertising Spending By Format 2007-2012 eMarketer

 

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