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Q: Online Advertising Techniques ( Answered,   0 Comments )
Question  
Subject: Online Advertising Techniques
Category: Business and Money > eCommerce
Asked by: malaka-ga
List Price: $60.00
Posted: 02 Jun 2003 05:01 PDT
Expires: 02 Jul 2003 05:01 PDT
Question ID: 211903
What are the trends, advantages and disadvantages and effectiveness of
the online advertising techniques- banners, interstitials and paid
listings?

Please include web-sites that offer and implement these techniques for
businesses. Please inlude prices/claims for services.
Answer  
Subject: Re: Online Advertising Techniques
Answered By: easterangel-ga on 02 Jun 2003 10:21 PDT
 
Hi! Thanks for the question.

I will provide here a point per point answer to your questions on the
different types of web advertisements you mentioned. I will also cite
snippets from the articles whenever possible to save you time.
However, I highly recommend that you read the articles in their
entirety to get a better understanding of the discussion. Otherwise I
will just provide a link to the resource with a short description of
the article.

BANNER ADS:

1. Trends 

Design:
“Current trends toward increasing banner ad awareness and
effectiveness are the use of animated Graphic Interchange Format (GIF)
image files, electronic forms, and Shockwave-enhanced games designed
to promote user engagement (Cleland & Carmichael, 1997). There has
been research that supports the use of animation for online banner
advertising. ZDNet (1996) reported animated banner ads had higher
click-through rates than static ads. In some instances a 40% increase
was found, suggesting animation increased user awareness.”

“Designing Online Banner Advertisements: Should We Animate?” (2002
article)
http://psychology.wichita.edu/surl/usabilitynews/41/adbanner.htm 

 “Advertisers still cling to 468 X 60 banners, but evolution has led
from half banners to perfect squares to tall rectangular units or
skyscrapers. Experimentation with new, non standardized sizes and
shapes is ongoing…”

“Whether you're reading a magazine or surfing the Net, the larger the
ad, the more likely it is to catch your attention. Bigger ads are
getting better results, but not every advertising budget can afford
them and banner exchanges often accept only the standard 468 X 60.”

New Technologies:

“When users roll a mouse over Point-Roll's ads, the banner enlarges to
reveal additional information. Move your mouse and the banner returns
to a standard size.”

“iLOR's Banner Console adds dynamic HTML (DHTML) to give any existing
banner an interactive boost and includes the possibility of allowing
users to save the ad for future reference.”

“Eyeblaster designs user-initiated ads that feature the advertisers'
choice of rich media from mini-movies to expandable banners.”

“Signs of the Times - Banner Ads Today”
http://www.okec.org/news/signs.html 

News:
The following news shows that major search engines are dropping banner
ads as a form of advertisement.

“Ask Jeeves Bans Banners”
http://www.aspnews.com/news/article/0,,4191_1564281,00.html 

“The End Of Banner Ads?”
http://www.techdirt.com/articles/20030305/0930202.shtml 

2. Advantages  / Disadvantages

Advantages
“First, they may entice users to click on the banner and go to the
advertiser's site. Each time this happens is called a "clickthrough",
and the number of clickthroughs divided by the number of impressions
is called the "clickthrough ratio" or "click rate". This is easy to
measure, and provides a direct measurement of a banner's
effectiveness.”

“The second benefit of ad banners is building brand recognition.”

“Banner Advertising Statistics”
http://www.webdevelopersjournal.com/articles/banner_ads/banner_advertising_statistics.html

“Because of its graphic element, a banner ad is somewhat similar to a
traditional ad you would see in a printed publication such as a
newspaper or magazine, but it has the added ability to bring a
potential customer directly to the advertiser's Web site. This is
something like touching a printed ad and being immediately teleported
to the advertiser's store!”

“How Banner Ads Work”
http://money.howstuffworks.com/banner-ad.htm/printable 

“Among the benefits of banner ads is their immense measurability. When
you place a banner ad on a site, upon its completion you will (or
should) receive a highly detailed report telling you all about your
ad's run.”

“Another benefit is that you can target your ad to exactly the
audience you want. By choosing Web sites, which reach your customers,
you cut down on waste…

“Banner ads are also graphic-based, so you can easily use color, art
and animation to emphasize your message.”

Disadvantages

“The biggest drawback to banner advertising is its cost. Given all the
free methods of promoting your site, it may seem like banner
advertising is not important.”
“There are pros, cons to banner ads”
http://businessjournal.net/stories/020899/ABJ_banner.html 

Banner ads meanwhile are being frowned upon by some websites because
it affects their speed and traffic as well.

“It takes a certain amount of work to get them set up and keep them
running, although with an ad network, this work is minimal.”

“Like any other graphics, banner ads take time to load, thus making
your pages slower and discouraging some visitors.”
 
“Ads clutter up your pages. Who wouldn't rather have a page without
ads?”
 
“Ads send a certain number of visitors away. Many of those who click
on a banner ad won't return to your site.”

“Sell ads on my site?”
http://www.webdevelopersjournal.com/articles/sell_ads_on_my_site.html

3. Effectiveness

“The IAB's own study, which included a survey of 8,750 Web users,
found that the new larger ad units are 25 percent more effective at
raising brand awareness and message association than banner ads.
Advertisements from British Airways, Salon Selectives and
Homestore.com were examined.”

“As for ad shape, so-called skyscraper ads -- long, skinny upright
banners -- proved most effective. Ad placement made a difference as
well, Webster said, with ads displayed during a transition from one
Web page to the next outperforming those placed within or on top of a
page.”

“Studies Say Banner Ads Work, But Bigger Is Better”
http://www.ecommercetimes.com/perl/story/12127.html 

“A clickthrough ratio of 0.5% may seem low, until you compare it to
the industry average, which nowadays is estimated to be around 0.4%.”

“Banner Advertising Statistics”
http://www.webdevelopersjournal.com/articles/banner_ads/banner_advertising_industry_stats.html

“Banner ads that offer incentives have higher CTR than banner ads that
do not offer incentives.”

“Banner ads that use emotional appeals have higher CTR than banner ads
that use no emotional appeals.”

“Banner ads that have an element of interactivity have higher CTR than
banner ads that have no interactive elements.”

“There is an inverse ‘U’ relation between color level employed in a
banner ad and its respective CTR.”

“Banner ads that are animated have higher CTR than banner ads without
animation.”

“Banner Ad Effectiveness: Lessons from 8,725 Ads”
http://ehershberger.tripod.com/papers/SMA0330.pdf 

4. Services & Rates

Banner Ad Designers:

Hey Banners (Price Quote Must be Requested)
http://www.heybannerbanner.com/ 

Interlace Design ($150)
http://www.interlacedesign.com/bnr/ 

Perfect Traffic
http://www.perfecttraffic.com/orderbanner.php 

Link Exchange / Ad Programs:

LinkExchange
http://www.bcentral.com/products/bn/default.asp 

Banner Swap
http://www.bannerswap.com/ 

Excel Banners (Price Range from $249 to $599)
http://www.excellbanners.com/services.html 


------------------------------------ 
INTERSTITIAL ADS

1. Trends & Effectiveness

“According to analysts at Nielsen//NetRatings, online advertisers
generated 11.3 billion impressions with such ads in the first seven
months of this year alone.”

“Nielsen//NetRatings, for instance, reports that only 13% of pop up
adverts were used to build brand awareness, while 58% were used to
drive traffic to a particular web site.”

One type of interstitial ad that is getting popular because of its
notoriety are pop-up ads.

“According to an Advertising.com analysis, pop-up ads generate a
click-through 13 times that of the standard 468 x 60 pixels banner and
a conversion rate more than 14 times better. The unit's performance
dwarfed long banners, 728 x 90, which had a click-through rate
slightly higher than the standard banner and a lower conversion rate.”

“According to Nielsen//NetRatings' AdRelevance unit, publishers served
13.4 billion pop-up ads in the first quarter, a 24 percent increase
from the previous quarter. AdRelevance does not count house ads in its
totals.”

“Study: Pop-Ups Work”
http://216.239.37.100/search?q=cache:i1H8BKjRUp8J:itmanagement.earthweb.com/ecom/article.php/2213101+%22pop-up+ads%22+trends&hl=en&ie=UTF-8

“Media buyers claim that the format delivers a click-through rate of
anywhere from 2.5 percent to 19 percent.”

“That's many times the click-through rate of the banner ad, which
hovers around a negligible 0.3 percent.”

“Noxious pop-up ads are gaining respect”
http://www.medialifemagazine.com/news2001/apr01/apr02/3_wed/news5wednesday.html

“During the first seven months of this year, pop-up and pop-under ads
accounted for just two per cent of all online advertising impressions,
according to a study released yesterday by Nielsen//NetRatings.
However, more than nine per cent of all companies that advertise
online are now using such ads, including household names such as Dell,
Morgan Stanley and Providian Financial.”

“Pop-ups are about to get a lot more offensive”
http://www.silicon.com/news/500008/1/1035428.html 

One of the best case for interstitial ads is the pop-up campaign of
X10.

“The X10 Question: Traffic Without Dollars?
http://www.newsfactor.com/perl/story/11248.html 

2. Advantages / Disadvantages

Advantage
“He found that interstitial click through rates were on average five
times more than banner rates.”

Disadvantages
“The downside is that interstitials are viewed as intrusive and
annoying by a significant number of netizens. Ipsos-ASI, an
advertising research company, has found that 15% of users find
interstitials irritating, compared with 7% for banners.”

“Another negative factor is that you can't purchase interstitials on
many web sites - they are still comparatively rare - but starting to
"pop-up" all over the place.”

“Interstitial ads”
http://www.ultimate-affiliate.com/5%20marketing/5.9-interstitial-ads.htm

Advantages
“Interstitials are more attention grabbing than banners, they offer
more real estate, and they create an incremental inventory source for
publishers. It's been said they're effective for branding, building
traffic and conducting transactions.”

“The advantage is that the ad creative uses "dead time" to show an ad
message, at a time when the site visitor is on hold and attentive to
the message that appears.”

“Another advantage of interstitial ads is their ability to incorporate
sound and video.”

Disadvantages
“Users often don't understand that the interstitial they see on their
screen while they're waiting for a page to load is using "dead time";
instead, there's a tendency to think the interstitial is slowing the
arrival of the page they've requested.”

“A second drawback to consider is that interstitial ads can attract a
lot of attention, but do not always generate a large number of
clicks.”

“Online Advertising Glossary: Interstitials”
http://www.clickz.com/article.php/824321 

 Advantages

“Another pop-up benefit: Web surfers don’t have to leave the web site
they are visiting. Like other formats that use rich media, the pop-up
can function as a mini-site. As such, it can help establish a brand
while offering transactional services and opt-in or contact
opportunities.”

“Noxious pop-up ads are gaining respect”
http://www.medialifemagazine.com/news2001/apr01/apr02/3_wed/news5wednesday.html

Our next link discusses more about the pros and cons of pop-up ads and
banner ads.

“Pros and Cons of Pop-Ups, Pop-Unders, Overlays, and Intrusive Ads”
http://webdesign.about.com/library/weekly/aa021703a.htm 

3. Services

Home Media Kit (Prices shown below the page)
http://homemediakit.com/PopUnder.asp 

Promote Click
http://www.promoteclick.com/ 

Banner Power (Prices shown below the page)
http://bannerpower.com/indexadvertise.html 


---------------------------------
PAID LISTINGS are currently the most respected among web advertisers
and the media alike. Search engines and web directories usually do
paid listings.

1. Trends

Search Engine Landscape:
“Most search engine positions are NOT for sale. According to a May 6th
2002 article by Danny Sullivan of SearchEngineWatch.com, if you were
to buy, via Pay-Per-Click or any other methods, every position
possible in the top search engines, you could buy only 30% to 40% of
the screen real-estate. That makes 60% to 70% dependent on search
engine optimization, also know as "organic SEO."

“Trends in PPC (Pay-Per-Click) vs. SEO Marketing”
http://www.2disc.com/ppc_marketing2.htm 

Our next link provides a current situation of the popularity ratings
of search engines. Placing your paid listings will be crucial
according to the popularity of a search engine.

“Nielsen NetRatings Search Engine Ratings”
http://www.searchenginewatch.com/reports/article.php/2156451 

Design:
“Including your keyword to the title and description of your listing
can increase your click-through rate by 50%, according to Dana Baker,
editor-in-chief for Overture.”

“Google allows advertisers to set up as many different versions of an
ad as they'd like for a given keyword or set of keywords. The AdWords
system then rotates those ads each time the advertiser's keyword is
triggered, allowing advertisers to compare the performance of their
listings and turn off the ones that aren't performing as well as the
others.”

“Writing Effective Search Engine Ads”
http://www.searchenginewatch.com/searchday/article.php/2213421 

2. Advantages / Disadvantages

“Inclusion fees paid to Inktomi, AltaVista and other search engines
are per page URL and are a good way to ensure dynamic URL pages get
indexed (most search engines will not index dynamically generated web
pages unless paid to do so).”

“Another benefit is that pages are re-spidered regularly (every 2 – 7
days), so ensuring any page changes / optimisation tuning is almost
immediately reflected in rankings.”

“Search Engine Pay for Inclusion Fees”
http://www.viz.co.nz/search-engine-fees.htm 

“Paid listings offer many advantages. They make generating large
volumes of site traffic easy. They let you avoid the complexities of
Web pages search engine optimization. They give you immediate,
measurable results. You only pay for listings that get clicked on, so
it's a cost- effective way to do targeted marketing.”

“Buying Your Way to the Top”
http://www.itworld.com/nl/ebiz_ent/09172001/ 

“The biggest advantage that pay for placement search engines have over
the others is that you can manipulate where you rank within the search
engine. If you want to be #1 in a particular pay for placement search
engine, you simply need to out bid the current #1 site for that search
phrase.”

“Another advantage that you can exploit is that several of the
well-known pay for placement engines have formed partnerships with the
major search engines. These partnerships get some of the paid listings
on the major search engines' first results page (for that keyword),
usually called sponsored listings, featured listings, partner search
results, or something similar.”

“Pay for placement search engines”
Disadvantages:

“The obvious disadvantage of pay for placement search engines is that
it's not free.”

“Other people can out bid your #1 or #2 listing. This hurts you in two
areas: the pay for placement search engine results and the regular
search engine results.”

http://www.optimization-for-casinos.com/pay-for-placement.html 
 
“Any type of paid listing is intrinsically less relevant to the
searcher than actual search engine results that were returned by a
search engine's algorithm from its own database.”

“Another disadvantage of the pay-for-placement strategy is that the
home page is most often used as the destination URL - the page that
the visitor is directed to when he or she clicks on the listing. The
home page (not an internal page from the site) is often the least
relevant page to a particular keyword search, requiring the searcher
to then click deeper and deeper into the site in search of the
relevant content they seek.”

“"Pay" Programs vs. Natural Search Engine Optimization”
http://www.iprospect.com/search_engine_optimization/seo_2.htm 

3. Effectiveness

“According to a study done by Jupiter Media Metrix which compared the
performance of paid placement search listings against CPM and CPC
banner advertising and opt in e-mail, search outperformed the
competition in nearly every category. Overall satisfaction with PPC
(pay per click) listings was pegged at 41%, compared to 33% for e-mail
and about 20% for banner advertising. For return on investment, PPC
scored an impressive 29%, compared with 24% for e-mail and 16 and 12%
respectively for CPM and CPC banners.”

“The Price of Being Seen on the Search Engines”
http://www.searchengineposition.com/info/netprofit/priceseen.asp 

“Mills cites a recent campaign on Overture for VivoCom, a provider of
fax server software. The effort increased site traffic 50% in the
first week, with an immediate 35% increase in free downloads and a 25%
increase in conversion. He said this was the only marketing done for
the site and that cost per click varied from 5 cents to $1.78,
depending on current bids.”
 
“Marketers report high ROI with paid listings”
http://www.ribbitt.net/newsroom/pdf/roipaid.pdf 

4. Services

Here meanwhile is the approximate budget you must have in order to
avail of a search engine or directories’ paid listing services.

“Your Search Engine Submission Budget”
http://www.searchenginewatch.com/webmasters/article.php/2167841 

In these types of paid listings you bid for placement rankings in the
major search engines. Prices differ based upon the combination of
keywords you wished to bid on.

Google Adwords
https://adwords.google.com/select/pricing.html 

Overture
http://www.content.overture.com/d/USm/adcenter/index.jhtml 

You can get a list of other search engines which offers paid listing
services in our next page.

“Paid Listings / CPC Search Engines”
http://searchenginewatch.com/links/article.php/2156291 

Search terms used:           
“banner ads” ”interstitial ads” “paid listings” trends effectiveness
advantages disadvantages statistics roi
               
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
               
Thanks for visiting us.                
               
Regards,                
Easterangel-ga                
Google Answers Researcher

Request for Answer Clarification by malaka-ga on 04 Jun 2003 03:23 PDT
What Websites offer a businness a combination of these techniques? How
much do the cost? What do they claim to do?

Clarification of Answer by easterangel-ga on 04 Jun 2003 05:26 PDT
Hi again malaka-ga! Thanks for asking a clarification before providing
a rating.

When you want to avail of companies who makes combinations of banner,
interstitial and paid listing campaigns you must go with Internet
Marketing companies which manages unified campaigns like these. I have
listed below those that specifically have banner, pop-uner and paid
listing campaigns. Since different companies have different needs,
these Internet marketing companies do not give out their prices
readily until they assessed what your needs are. Negotiations play a
crucial role in businesses such as these.

Ad Up
http://www.ad-up.com/adup_ad_s_custom_campaigns.html

Melnychenko
http://www.melnychenko.com/

Multimedia Internet Results
http://www.masresults.com/marketing.htm

DN Promoter
http://www.dnpromoter.com/

Sonic Promotions
http://www.sonicpromotions.com.au/services_internetmarketing.htm

Top Rank Online Marketing
http://www.online-marketing-services.com/internet_marketing_services.htm

iDjinni - Website Consulting Services
http://www.idjinni.com/bannerpopupads/
 
Extralook Communications
http://www.extralook.com/om.html

I hope that these list of services enriches my original answer.

Best Regards,
Easterangel-ga
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