Wednesday, May 30, 2012

Banner ads are undergoing an evolution


With more and more digital media innovation on the horizon, many have gone so far to say that banner ads are dead. Sure, we’re becoming more creative with social ad formats and video content but let’s take a step back.
The first banner ad ran in 1994 on Hotwired.com and had a click-thru rate (CTR) of 78%. In the 1990s CTRs  for banner ads dropped to 3% and most recently it is at a mere .1%. There is no denying that display advertising is on the decline but I wouldn’t venture so far to say that banner ads are dead. They are merely getting a facelift to address the burnout. In fact, I think they will be around far into the future but the way that we buy them, serve them and engage with them will change dramatically. Today, display ads are more creatively appealing, better targeted and more intricately measured than ever before. A recent DigiDay article (http://bit.ly/KeHoqC) reinforces this perspective, stating that Google continues to invest heavily in its range of display ad products and technologies. The article states that user consumption has changed as small ad sizes (468x60) now only account for 3% of ad impressions while the three dominating ad sizes (rectangle, leaderboard and skyscraper) account for 80% of ad impressions.  To demonstrate the change in media buying and consumption patterns, ad exchanges and technology companies with advanced targeting and innovative creative abilities are gaining traction with double-digit growth. Before you draw your own opinion about the future of banner ads, check out this video which highlights 10 insanely clickable, amazingly engaging banner ads: http://on.mash.to/KdPgtc

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