Sponsored Links vs. Static Banners
Only the WP, USA Today, and LA Times use sponsored links more than static banner ads; http://eicker.at/NewsAdvertising
Only the WP, USA Today, and LA Times use sponsored links more than static banner ads; http://eicker.at/NewsAdvertising
Static banner ads make up nearly half (46%) of all the ads on news websites; http://eicker.at/NewsAdvertising
eMarketer predicts that banner ads will increase from $7.6 billion in 2011 to $11.7B by 2015; http://eicker.at/NewsAdvertising
Well, first of all any advertising interferes. But what I really can’t second is your opinion regarding contextual advertising: if done correctly (talking about quality targeting, not quantity spamming!) you still see very high CTRs and following conversions. – With a share of 24% of all online advertising, classic banners still come second – and still grow in overall volume. In my opinion this has several, pretty simple reasons: 1. the production of banners is fast and easily done compared to rich media ads etc. 2. Being produced fast they can be iterated fast as well to get good CTRs and conversions. 3. Banners still “make an impression” compared to pure text links (SEM etc.). Branding works and still needs lots of impressions – besides all other methods of course.
Banners make up the 2nd largest percentage of ads online: 24% of total online ads revenue; http://eicker.at/NewsAdvertising
Banners, classifieds, video, rich media are the 4 kinds of ads news sites offer advertisers; http://eicker.at/NewsAdvertising
Display ads will continue to see strong growth, thanks to the healthy appetite for banner ads; http://eicker.at/NewsMedia2012
PEJ: Online advertising on news sites is still not targeted, neither by context nor behavior; http://eicker.at/NewsAdvertising
PEJ, Who Advertises on News Sites and How Much Those Ads are Targeted: “A new study of advertising in news by the Pew Research Center’s Project for Excellence in Journalism finds that, currently, even the top news websites in the country have had little success getting advertisers from traditional platforms to move online. The digital advertising they do get appears to be standard ads that are available across many websites. And with only a handful of exceptions, the ads on news sites tend not to be targeted based on the interests of users, the strategy that many experts consider key to the future of digital revenue. – Of the 22 news operations studied for this report, only three showed significant levels of targeting. A follow-up evaluation six months later found that two more sites had shown some movement in this direction, but only some, from virtually no targeting to a limited amount on inside pages. By contrast, highly targeted advertising is already a key component of the business model of operations such as Google and Facebook.”
PEJ, Who is Placing Ads? – “Who is buying ads on news sites? The answer reveals part of the trouble the news industry is having findings its way in the new marketplace. Across these 22 news sites, the biggest single advertiser is the news organization itself or its parent. Ads promoting the organization’s own products, known as ‘in-house ads’ in industry terms, accounted for 21% of the online ads studied – more than any category. … The magazine websites studied here (time.com, newsweek.com, economist.com and theatlantic.com) ran the largest percentage of in-house ads, fully 50% overall, from economist.com at 40.1% on the low end to time.com at 56% at the high end. In the print version of these magazines, by contrast, 10% of the ads were promoting the magazine or its company (Time magazine 11%, The Economist 13%, Newsweek 4%, and The Atlantic’s print edition contained no self-promoting ads). – Newspapers contained the second-highest level of self-referencing advertising, 21% of the Web-based ads versus 9% of their print ads. … For these print-related outlets, though, the heavy reliance on self-promoted ads could reflect two different factors. First, the newspaper industry still relies on its print product for the vast majority of its ad revenues. At the end of 2010 (the latest data available) fully 88% of overall newspaper revenue came from the print product versus just 12% from the Web. … Another phenomenon could be the inability of the industry to draw advertisers-and thereby ad revenue-to their online space.”
PEJ, The Financial Industry: “The second biggest category of advertising online was one that played a fairly small role for news in legacy platforms, the financial industry. Ads for financial products or services accounted for 18% of all Web ads captured, more than triple that of the next biggest category, toiletries and cosmetics (5%). And on more than half of the sites, 12 out of 22, financial ads ranked first-above self-promotion. … These numbers stand in contrast with the small role financial advertising plays in most of the legacy platforms studied. Only magazines contained more financial industry advertising in their original platform than online.”
PEJ, Targeting: “The customization or targeting of ads based on audience data is one of the newer ways to serve advertisers interests-helping those selling goods to reach consumers perceived to be the most likely to be interested in and thus to act on their ads. In targeted advertising, in other words, the ads one person gets will differ from what another person receives, depending on their online purchase history, location and/or personal habits, even if they click on the same website at essentially the same time. … Overall, only a handful of sites exhibited high levels of targeting. A few more had a moderate level of targeting. Most showed no signs of targeting at all. … Overall, just three of the 22 sites exhibited high levels of targeting, defined here as at least 45% of the ads were different from one user to the next. … One question that emerges is whether targeting has more or less natural appeal on some websites than others. In other words, do national sites with their larger and more diverse audience pools lend themselves more naturally than smaller sites to the benefits of ad targeting? … Finally, on a few sites, there was evidence of another method of targeting-not according to users but according to news story. On a number of occasions, there was a close relationship between the content of the story and the ads displayed.”
PEJ, Use of Discount Sites/Coupons: “About half of the sites studied, 16 of the 22, carried some discount/coupon advertising. But on only five did discount ads make up more than 10% of all the ads studied. For the most part, sites that created their own discount programs tended to rely on these ads more. … Among nationally oriented sites, Yahoo News carried the greatest percentage of discount/coupon advertising, 15% of the ads studied. The majority of these were from the national services Groupon and LivingSocial. – The other two sites with the highest use of discount advertising, the Toledo Blade and Los Angeles Times, have created their own daily deal operations to compete with the national companies. … These were the only two sites in our sample that had tried their own daily deal style business, but they are certainly not alone. Various papers now have their own Groupon-like services…”
PEJ, Format: “That leaves banner ads, classifieds, video and rich media as the four main kinds of ads news sites can offer advertisers. – Banner ads, the oldest form of advertising on the internet, make up the second largest percentage of ads on the internet (24% of total online advertising revenue). Going forward, most market analysts expect banner ads will represent a smaller portion of online advertising than search, but the category is still expected to grow. For instance, eMarketer predicts that banner ads will increase from $7.6 billion in 2011 to $11.7 by 2015, a bright spot for the news online. … Across these 22 news sites, that same tendency toward banner ads emerged; static banner ads made up nearly half (46%) of all the ads on news websites. Some differences in the style of ads used did emerge-mostly according to the legacy media genre, though individual sites did at times stand apart from their media brethren. … The Washington Post, on the other hand, relied on banner ads for just 18% of the ads studied. Instead, the site used sponsored links far more than others, 66%. Two other national papers, USA Today and the Los Angeles Times, also used sponsored links more than static banner ads.”
Twitter’s relaunch includes Twitter Brand Pages: an eye tracking study predicts hard work; http://eicker.at/TwitterBrandPages
SimpleUsability [PDF]: “Users were drawn to different sections of the branded pages depending on the features each employed. All pages received initial attention on the section of the page that contained imagery. Generally this was the promoted tweet, but on the Staples page the promoted tweet did not contain any visual elements so the header image initially received more attention. … 1. Header images need to work hard – Header images can communicate how users can interact with the page. … Advertising can lead to too much of a corporate feel. … Competitions and promotions can entice users and encourage exploration. … 2. Promoted tweets need to take advantage of embedded visuals – A promoted tweet featuring an image draws users in. – This can quickly convey and affect the brand values of a company. Users made assumptions about the company on whether they were either corporate or approachable from the content of the image. … Promotional tweets can reinforce other featured content. – The promoted tweet on Staples featured a link to the competition referenced in the header. The promoted tweet and the header image supported each other as they were relaying the same message to the users in two different forms, one predominantly pictorial and the other completely text based. – Embedding video in the promoted tweet instantly engages the user. … 3. Users make brand decisions based on tweets – A range of tweets on the page communicates to users the level of interaction between the company and the user. The HP page featured tweets for different types of interaction including general replies, retweets and complaints. This gave the feeling that the company was being honest and that the tweets were genuine interactions with their followers. … So while Twitter shifts to incorporating the new features to the brand pages in order to engage those who see the page, the likelihood is that many of the brand’s followers may never see the page at all. This means that the strength of a company’s following will be based on what they tweet. … Also, with regards to the header, companies should keep in mind that due to its size and position on the page, users might assume that it is a clickable banner. … When they were unable to interact with the header they were annoyed and lost interest in page. … If a brand page comes across as either too sales-heavy, it will not hold the user’s attention. Users preferred when they could see the more ‘human’ side to the brand…”
RWW: “While some initially heralded Twitter brand pages as a ‘game changer,’ that scenario may not play out. One of the major problems facing brand pages, as noted in the SimpleUsability study, is that once someone starts following a Twitter account or brand page, there is usually no reason for them to return to the page as all of the new and relevant information will show up as tweets in the followers own timeline. … Users ultimately want brand pages to show a ‘more human side’ to the company, the study said. The HP site, for example, scored well because it did not emphasize sales and advertising, and even made an effort to respond to individual followers. Some of the tweets on the page responded to customer complaints, which improved transparency and credibility as viewed by page visitors.”
SEL: How search conversions are driven by display impression frequency; http://eicker.at/DisplayDrivesSearch
Joel: The future of display advertising is bigger than you think, a $200B business; http://eicker.at/DisplayAdvertising
Banner ads, according to the latest research from couponmarketing, are the least effective media. Even if they are placed in the right context, they often negatively interfere with the target’s online behavior which is quite unique in response. The liquidity of surfing meets the concrete slab of invasive, unsexy ads. It’s an offline culture crammed into a digital one. It can’t work properly, unless reinvented from scratch. I’m thus surprised to read about such increase. May be new mkt strategies will be deployed in the future, with richer media and really interactive banners whcih go beyond the click me stage.