Banner Ads
Banner ads are just small digital billboards that one website pays (in one way or another) to be placed on another website. When potential customers click on a banner placed within another website, they are sent to your website.
Various studies have shown that the most powerful word in a banner ad is “free,” that simplicity sells, and graphics enhance a message.
If a banner is designed correctly, it doesn’t distract from the message. Other elements you need for a good banner design include:
• An attention-getting element, but not one that is antagonistic.
• A call to action.
• A reason to click through.
• Content that ignites clicks, i.e., it tells them to give the banner a click.
• Placement of your website’s logo somewhere within the ad.
When a potential customer clicks on your banner ad to visit your website, it is called a “click-through.” The ratio of impressions to click-throughs is called the CTR (click-through ratio).
An effective banner ad design and astute placement on a compatible high traffic site contributes to the obtainment of a high CTR, which can double the click-through rate of your ad, thereby doubling your return on investment (ROI). A study by Doubleclick.com found that:
• After the fourth impression, response rates dropped from 2.7% to under 1% (banner burnout).
• You need to focus on four important issues (creativity, targeting, frequency, and content).
• The use of simple animation can increase response rates 25% — just be sure that the animation doesn’t slow downloading of the ad.
• The use of cryptic messages can increase CRT by 18%, but probably do not attract potential customers or reinforce branding.
• The use of humor is very effective.
• Using a question within the ad can raise CRT by 16%.
• Using phrases such as “Click Here” tend to improve response by 15%.
• Offering free goods or services generally improves CRT.
• Using bright colors in the design is more effective.
• The use of a message that gives a sense of urgency actually decreases the CRT.
If you aren’t careful, banner ads often fade into the digital woodwork — even if you use animation and other special effects. If not managed right, banner advertising can be expensive and ineffective.
Be very careful with your ad placement and make certain that you do not overpay for ad placement on websites that do not produce real customers to your site. Place banner ads on websites that you know your target customers visit. Targeting equates to better-qualified customers, or potential customers that are more likely to complete the sale. How can you know — via your online surveys.
Note that a study by ZDNet found that animated ads generated CTR at least 15% higher than static ads, and in some cases as much as 40% higher. However, animation does not take the place of response-driven copy and a creative idea. Avoid animation that takes a long time to download and offers poor copy. But with simple, creative animation more potential customers notice and pay attention, even if they don’t click on it.
Also, potential customers are more likely to click for more information if the animation effectively emphasizes what product is about. However, the animated ad must have a strong, well-crafted message and a clear call to action.
Frequency (the number of times a viewer sees an ad) is an important factor when planning a banner campaign to build your brand awareness. In addition to maximizing your ad dollar, controlling ad frequency can open up new creative doors by allowing you to create a custom banner package for your branding campaign.
The correct delivery frequency is necessary for banner ad success and will help determine how successful your branding campaign will be. The right frequency is usually crucial for getting your message across since too few impressions and your message just isn’t seen by enough potential customers, and with too many your banners begin to fade into the woodwork.
This is referred to as “banner burnout,” i.e., a banner no longer offers a good ROI. Several companies offer help in managing your banner ad frequency rate. One such company is the previously mentioned DoubleClick.com whose services allow you to control a sequence of banners that can be served to viewers in a specific order.
Banner ads on popular websites (especially those that service the same niche market) can run as low as $249 for 250,000 impressions. An “impression” is the number of times surfers see a page that your banner is situated on.
Ad placement services such as BannerCell.com, Insidewire.com, Internet Advertising Solution (IAS) (http://iaswww.com), NarrowcastMedia.com, and ValueClick.com can assist you with specific, targeted placement of your banner ads.
The industry average of CTRs is between 1.5 and 2.5%. If you purchased 50,000 impressions and received a 2% CTR, your website would receive 1000 potential customers.
It is possible that with a well-designed and effectively targeted banner ad campaign you could receive a higher CTR, which is why a good banner design is important. When using services such as the ones listed in the previous paragraph, you can easily rotate two or three banners during a campaign, which keeps a single banner from going stale.
However, to receive the 1000 potential customers requires a substantial investment on your part. Therefore, for small websites, it would probably be more cost effective to use alternative marketing methods and then supplement that with a few well-placed banner ads.
Don’t forget to factor in the costs of an agency to create the banner ad and another agency or consultant to place the banner ad and to plot your online strategy.
An economical approach is to develop reciprocal relationships with other websites that will cost you only your time (plus the cost of the banner itself). If you do pursue this method, follow these three rules:
1. Create a banner ad with the criteria set out above.
2. Partner with websites that complement your site.
3. Keep your expectations low.
Almost all e-commerce websites can benefit from an effective banner advertising campaign. Here is how:
Stretches your ad budget. Banner ads cost less to create and place than other forms of advertising and they also often deliver a more targeted audience than more expensive advertising venues such as television, print ads, radio spots, and direct mail.
Gets your e-commerce’s brand where you want it to be seen. It is easier to build a higher traffic volume by strategically placing banner ads on websites that relate to your product/service offerings.
For example, an e-commerce site that offers trendy sunglasses can place ads on fashion sites, or a software vendor can advertise on tech sites such as ZDNet.com and Cnet.com. Online ads give users immediate satisfaction by allowing them to just “click” and they are at your website — instant gratification.
Provides quality traffic. When a person clicks on a banner, they are interested in what the banner has to say, and thus what your website offers. Since banners tend to deliver highly targeted sales leads, even ads with low response rates can be very effective.
Helps to establish your brand. If you use the same theme (look and feel) for your banners that you use for your website, the ad can serve to reinforce your brand.
Even if a potential customer doesn’t click on the banner, they have been exposed to your message, logo, and image. By consistently applying your business’s colors, trademarks, and products in your banner ads, you help your brand’s image stick in potential customers’ minds.
Banner ads are just small digital billboards that one website pays (in one way or another) to be placed on another website. When potential customers click on a banner placed within another website, they are sent to your website.
Various studies have shown that the most powerful word in a banner ad is “free,” that simplicity sells, and graphics enhance a message.
If a banner is designed correctly, it doesn’t distract from the message. Other elements you need for a good banner design include:
• An attention-getting element, but not one that is antagonistic.
• A call to action.
• A reason to click through.
• Content that ignites clicks, i.e., it tells them to give the banner a click.
• Placement of your website’s logo somewhere within the ad.
When a potential customer clicks on your banner ad to visit your website, it is called a “click-through.” The ratio of impressions to click-throughs is called the CTR (click-through ratio).
An effective banner ad design and astute placement on a compatible high traffic site contributes to the obtainment of a high CTR, which can double the click-through rate of your ad, thereby doubling your return on investment (ROI). A study by Doubleclick.com found that:
• After the fourth impression, response rates dropped from 2.7% to under 1% (banner burnout).
• You need to focus on four important issues (creativity, targeting, frequency, and content).
• The use of simple animation can increase response rates 25% — just be sure that the animation doesn’t slow downloading of the ad.
• The use of cryptic messages can increase CRT by 18%, but probably do not attract potential customers or reinforce branding.
• The use of humor is very effective.
• Using a question within the ad can raise CRT by 16%.
• Using phrases such as “Click Here” tend to improve response by 15%.
• Offering free goods or services generally improves CRT.
• Using bright colors in the design is more effective.
• The use of a message that gives a sense of urgency actually decreases the CRT.
If you aren’t careful, banner ads often fade into the digital woodwork — even if you use animation and other special effects. If not managed right, banner advertising can be expensive and ineffective.
Be very careful with your ad placement and make certain that you do not overpay for ad placement on websites that do not produce real customers to your site. Place banner ads on websites that you know your target customers visit. Targeting equates to better-qualified customers, or potential customers that are more likely to complete the sale. How can you know — via your online surveys.
Note that a study by ZDNet found that animated ads generated CTR at least 15% higher than static ads, and in some cases as much as 40% higher. However, animation does not take the place of response-driven copy and a creative idea. Avoid animation that takes a long time to download and offers poor copy. But with simple, creative animation more potential customers notice and pay attention, even if they don’t click on it.
Also, potential customers are more likely to click for more information if the animation effectively emphasizes what product is about. However, the animated ad must have a strong, well-crafted message and a clear call to action.
Frequency (the number of times a viewer sees an ad) is an important factor when planning a banner campaign to build your brand awareness. In addition to maximizing your ad dollar, controlling ad frequency can open up new creative doors by allowing you to create a custom banner package for your branding campaign.
The correct delivery frequency is necessary for banner ad success and will help determine how successful your branding campaign will be. The right frequency is usually crucial for getting your message across since too few impressions and your message just isn’t seen by enough potential customers, and with too many your banners begin to fade into the woodwork.
This is referred to as “banner burnout,” i.e., a banner no longer offers a good ROI. Several companies offer help in managing your banner ad frequency rate. One such company is the previously mentioned DoubleClick.com whose services allow you to control a sequence of banners that can be served to viewers in a specific order.
Banner ads on popular websites (especially those that service the same niche market) can run as low as $249 for 250,000 impressions. An “impression” is the number of times surfers see a page that your banner is situated on.
Ad placement services such as BannerCell.com, Insidewire.com, Internet Advertising Solution (IAS) (http://iaswww.com), NarrowcastMedia.com, and ValueClick.com can assist you with specific, targeted placement of your banner ads.
The industry average of CTRs is between 1.5 and 2.5%. If you purchased 50,000 impressions and received a 2% CTR, your website would receive 1000 potential customers.
It is possible that with a well-designed and effectively targeted banner ad campaign you could receive a higher CTR, which is why a good banner design is important. When using services such as the ones listed in the previous paragraph, you can easily rotate two or three banners during a campaign, which keeps a single banner from going stale.
However, to receive the 1000 potential customers requires a substantial investment on your part. Therefore, for small websites, it would probably be more cost effective to use alternative marketing methods and then supplement that with a few well-placed banner ads.
Don’t forget to factor in the costs of an agency to create the banner ad and another agency or consultant to place the banner ad and to plot your online strategy.
An economical approach is to develop reciprocal relationships with other websites that will cost you only your time (plus the cost of the banner itself). If you do pursue this method, follow these three rules:
1. Create a banner ad with the criteria set out above.
2. Partner with websites that complement your site.
3. Keep your expectations low.
Almost all e-commerce websites can benefit from an effective banner advertising campaign. Here is how:
Stretches your ad budget. Banner ads cost less to create and place than other forms of advertising and they also often deliver a more targeted audience than more expensive advertising venues such as television, print ads, radio spots, and direct mail.
Gets your e-commerce’s brand where you want it to be seen. It is easier to build a higher traffic volume by strategically placing banner ads on websites that relate to your product/service offerings.
For example, an e-commerce site that offers trendy sunglasses can place ads on fashion sites, or a software vendor can advertise on tech sites such as ZDNet.com and Cnet.com. Online ads give users immediate satisfaction by allowing them to just “click” and they are at your website — instant gratification.
Provides quality traffic. When a person clicks on a banner, they are interested in what the banner has to say, and thus what your website offers. Since banners tend to deliver highly targeted sales leads, even ads with low response rates can be very effective.
Helps to establish your brand. If you use the same theme (look and feel) for your banners that you use for your website, the ad can serve to reinforce your brand.
Even if a potential customer doesn’t click on the banner, they have been exposed to your message, logo, and image. By consistently applying your business’s colors, trademarks, and products in your banner ads, you help your brand’s image stick in potential customers’ minds.