Banner ads are booming, against all probability — the click through rate for banner ads is down to 1 in 1000. And a lot of the time, that stat is made up of people that have clicked on a banner by mistake. Yet, companies seem adamant about pouring their marketing budget into something that has been proven not to work. So much so that eMarketer has predicted that the banner ads market will increase by 20.2% by the end of 2011.

The banner ads pricing scheme is based on a “pay-per-impression” system. This takes into account the space in which the ad appears and the opportunity a person will have to see it. (I imagine they have to use this rather vague system because the “pay-per-click” system would sink them.)  

My question is why would someone choose a method that has proven to be ineffective? People are sick of ads; I know, because I am a person. Yet, the old school marketers insist on using these strategies. Creating brand affinity and awareness for your product is fine. These things have their place. But for pure, measurable efficacy, banner ads are dismal.

So what is happening? Why are banner ads experiencing an uber-boom?

This is what I think. I think that marketers know that an online presence is incredibly important. I think that they are at home with billboards, radio and TV ads and magazine spreads. And I think that banner ads are warmly familiar; a tactic so similar to the traditional, old school marketing strategies that it must work, right? 

Consumers want information. They are no longer distracted by bright, flashy things that threaten to bring on a migraine. I can say unequivocally that I have never clicked on a banner ad (even the ones that offer green cards) on purpose. 

I hang out on the internet looking for this and that. The other day I looked up whether it was bad to eat too many carrots (its ok but you may turn orange). I was looking for information. Any ads, banner or otherwise, were irrelevant to me. But the site that provided me with the info I needed was the one I stayed on. If it happened to come from, say, the site for a health food store, I might be more inclined, when looking for health food stores, to go to that one because it gave me the info I needed. 

Basically people want information. The more knowledge through content your company can provide the more successful they will be in the long run. I think that is how you create brand affinity and product awareness. I am more inclined to go to the health food store that helped answer my question than to buy, say “carrots-r-us”, who have a grand banner, billboard and TV ad campaign. 

Banner ads have a terrible efficacy track-record; but the most effective banner ads are ones that advertise content (eBooks, white-papers or YouTube videos).  

Did you agree that banner ads lack efficacy? How do you feel about the old school/new school advertisers debate?

Sound Idea Digital specialises in Digital Marketing. For more information, contact

012 66 44 227 or email to info@soundidea.co.za

 

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