Friday, 19 December 2008

Display Ads are a Waste of Time - Aren't They?

Data from several sources indicate that click through rates on display ads (including rich media) have fallen dramatically in recent years. For static ads, a marketer can now expect to get a 0.1% CTR...

But it's not all bad news, a recent study by ComScore presented at the Empirical Generalizations In Advertising Conference (What a great name for a conference), demonstrates that while not generating immediate clicks (logical, since exposure to the ad - unlike search ads - does not correspond with a moment of intent) - the medium does have provide positive impact on:

  • Visitation to the advertiser’s Web site (lift of at least 46% over a four week period)
  • The likelihood of consumers conducting a search query using the advertiser’s branded terms (a lift of at least 38% over a four week period)
  • Consumers’ likelihood of buying the advertised brand online (an average 27% lift in online sales)
  • Consumers’ likelihood of buying at the advertiser’s retail store (an average lift of 17%)

Search & Display
In one category (retail), ComScore found that, due to the broader reach of display, it will often outperform a search only campaign. The synergies between the two types of advertising are such that, when used together, they deliver more sales than the sum of the components. And, we all know that conversion counts more than clicks...

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