Ben Kunz is vice president of strategic planning at Mediassociates, a media planning and buying agency. Follow him on Twitter @benkunz.
Consumers ignore display banners, a columnist wrote here recently — except for the banner at the top of this page, which funds Digiday, and the $15 billion spent on U.S. digital display last year. While ad gurus moan the banner is dying and we need to go native, Facebook’s ad revenues shot up 80 percent in 2012 from ads that have little to do with the native content in your feed.
In fact, the forecast for U.S. online display spending is 18 percent growth in 2013. So let’s revisit some “alarming” stats about banner ads and clarify why advertisers are still spending money on them:
1. Over 5.3 trillion display ads were served to U.S. users last year. (Comscore) Horrors! Except … 23.5 trillion TV commercials were “served” in the U.S. last year, if you add up 314 million American adults and children, each watching on average 1,560 hours of TV annually. If you think banners are wasted, have you seen the Super Bowl?
2. The typical lnternet user is served 1,707 banners each month. (Comscore) And … the typical U.S. consumer watches 3,200 minutes of TV commercials each month, or about 6,000 TV ads. Still think banners are oversaturating the market?
3. The 468 x 60 banner has a 0.04 percent click-through rate. OMG! Except … TV spots have a 0.05 percent response rate if you consider that the average U.S. adult sees 6,000 commercials each month and responds to 3. Billboards have a lower, 0.03 percent response rate. Radio fares best at about 0.13 percent, but the truth is, responses to all advertising are low.
4. You’re more likely to survive a plane crash than click on a banner ad. Save me! This is a bit of nonsense dreamed up by Solve Media, which has a misleading premise — once the plane has crashed, yes, you are more likely than 4 out of 10,000 to survive (vs. a comparable banner click rate of 0.04 percent). But your odds of being on a plane crash in the first place, in which at least one person dies, is 1 in 3.4 million. Nice logical mistake, Solve.
5. Thirty-four percent of people don’t trust banner ads at all. Well, 35 percent of Americans think dinosaurs roamed the Earth at the same time as humans. And, hey, did you know 50 percent of people have an IQ below 100? What am I to make of this?
I could go one, but you get the picture. Banners, like all advertising, flood the market and have low response rates — but if the response generates positive ROI, that is called advertising success. Advertising is a game of what you catch, not what you spill. CMOs appear to be catching a lot of results because they’re spending more on digital every year.
Why do so many ad gurus despise banners? I could surmise they may be upset it’s hard to charge billable creative fees from little boxes so small or perhaps their anti-banner loathing is a projection of their personal guilt for going into marketing instead of Hollywood film production.
But I can’t win this type of argument. So here’s my solution: If you still believe banners don’t work, have your digital clients give me a call.
Image via Shutterstock
WPP’s Rob Reilly on the power of creative excellence
Under Rob Reilly's creative lead, WPP won most creative company at the 2022 Cannes Lions Festival of Creativity. He talks about that and more in this Q&A.
Member ExclusiveMedia Briefing: What Axios’ sale says about the valuation of digital media companies
In this week’s Media Briefing, senior media reporter Sara Guaglione looks at what Axios's sale to Cox Enterprises signals about the current investment market for media companies.
Amid gloomy forecasts can ad tech weather the storm?
The recent Q2 results suggest there is more resilience and runway in the ad tech sector. But how long before push comes to shove?
SponsoredWhat gaming habits reveal about media consumption
Jordan Shlachter, head of research, Activision Blizzard Media Entertainment choices have never been more abundant, and gaming has emerged as one of the biggest winners in the battle for audiences’ attention. While gaming’s exponential growth has been well documented — there are currently nearly 3 billion gamers worldwide spanning a diverse set of demographics, interests […]
Member ExclusiveDigiday+ Research deep dive: Twitter’s strength holds among publishers
There is perhaps no social media platform that is more appropriate for publishers than Twitter. In this Digiday+ Research deep dive, we look at why this is.
La razón por la que Google y Samsung se asociaron con la personalidad de TikTok Addison Rae para una campaña nostálgica de los años 90
Este verano, Google y Samsung han lanzado su último esfuerzo de marketing conjunto, en el que los gigantes de la tecnología y el hardware aprovechan la nostalgia de principios de los años 90 y utilizan a la TikToker Addison Rae como musa de la generación Z. En su nueva campaña publicitaria con Rae, Google cuenta […]