Banner ads failing to make impression

Elizabeth Clifford-Marsh, revolutionmagazine.com, 06 July 2009, 12:00pm

LONDON - Marketers are failing to grab the attention of consumers online, with new research showing half of internet users ignore banner ads.

Traditional media holds more sway then banner ads research shows

According to research by Harris Interactive, 46 per cent of US internet users say they ignore banner ads, and 17 per cent ignore search engine ads.

Just 1 per cent find banner ads helpful in making a purchase decision, and just 14 per cent claim to be influenced by paid search results.

Despite widespread belief that traditional media is dying, it still holds sway over the majority of US consumers, with 37 per cent admitting to being influenced by TV ads, and 17 per cent turning to newspaper ads.

Hoping to tap in to the popularity of TV ads, 87 per cent of brands have increased spending on online video ads, particularly pre-roll formats.

Reflecting the perceived ineffectiveness of display, the average rate card CPM across premium sites has dropped from £60 last year to around £20 this year as publishers scramble to hold on to brands shifting their spend to search and affiliate marketing.

Industry experts estimate that the average CPM for banner campaigns has fallen by approximately 25 per cent to £1.50.

Tags: display, Digital Advertising, Media / Entertainment, Banner, Search, Web, United States, North America, Search marketing

You must log in to use Clip & Save

All Comments

video poet - 06 July 2009

I think a new model is emerging where tv content is randomly edited to music. Into this mash advertising is also mashed...

Maryland Parker - 06 July 2009

kind of agree with video poet. I think we are going into an integretated market where digital is the key. Digital TV, connected to online mobile, connected to online TV...I believe in the near future everything will be integreted as one, as we will be able to have TV services integrated with computers and mobiles, and the other way around, but as i said, the key will be Digital. If you also add the possibilities of online segmentation then the perspective its even better.

ANGRYMAN!21 - 06 July 2009

Oh BOO HOO.... Everyone panic! Or not, let's face it the research method will be flawed; the point is that online is still more TRACKABLE and thus ACCOUNTABLE. A classic BR article full of non sequiturs and reportage confused with commentary. Still what can we expect of people who couldn't get a job in real journalism. Grow up and serve the industry you claim to be a journal for by providing some decent journalism: Why not interrogate the facts? Or at the very least casually question them!

Gareth Jones - 07 July 2009

This poll was conducted By Harris Interactive, a highly reputable research company, in partnership with AdweekMedia among 2,552 adults aged 18 and over, which I think you'll agree is a pretty decent sample size. No one is suggesting that traditional media is more trackable or accountable than digital, simply that among US consumers, TV ads have more influence on purchasing decisions. Please explain how you think the research method, and the journalism, is flawed.

amanda searle - 07 July 2009

Aside from the bitching, I am not surprised by the findings of the report.

Matthew Drury - 07 July 2009

Has the price gone down because online ads are less effective ? or has it gone down because the market has matured significantly in the last 5 years due to a massive increase in ad spend. More money invested make clients to want more from their media, thus more pressure on buyers to make the most of their clients cash. I don't think this research is linked to a drop in ratecard.

I do however agree that online will never be able to compete with t.v when it comes to impact. The role of online formats and search is simply to provide that choice architecture at the time of purchase as effectively as possible. Something that clients will never want to do away with as its so close to the point of purchase \(we can track it too)

Onlines real strength will continue to be the interactive part, something t.v is still struggling to deal with.. for the time being my TVs' red button is still reserved for the page down section on the tv guide.