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Why do we keep on using banners?
Despite of the of its low CTRs across the board ...

10+ Year Member

Msg#: 3733 posted 6:09 pm on Jan 19, 2005 (gmt 0)

What is the real deal about banners?

By now most internet users hate banners and overall ctrs are on a downward trend. But almost all big websites use them (Yahoo! and the rest) and so do most AMs. Why?



10+ Year Member

Msg#: 3733 posted 7:28 pm on Jan 19, 2005 (gmt 0)

coz average people click 'em every day .. and newbie internet users log on every day and click 'em too.

if you've been on and around the Internet for a long time .. and/or if you're a webby/techie of some sort, you're still in the tiny minority and the banners aren't being displayed for you anyway .. they're for your not so web savvy husband or wife, the neighbor who just got his first PC etc.


10+ Year Member

Msg#: 3733 posted 11:29 pm on Jan 19, 2005 (gmt 0)

If what you say is true then across the board banner ctrs shouldn't be dropping. In the early days of the internet, when techies have a higher share of the online population demographics banner ctrs are way much higher. Now when there are more ordinary people online, banner ctrs are way down. Its not as effective as it used to be. And it doesn't have anything to do with whether the one doing the clicking is a techie or not in the overall analysis.


10+ Year Member

Msg#: 3733 posted 12:26 am on Jan 20, 2005 (gmt 0)

Cause even if no one clicks, ever, impressions still make you money. It might not be a lot, but it's something. And as you say, it's so "there" now that no one cares about them anymore, so only the really easily annoyed will be annoyed by their presence.


10+ Year Member

Msg#: 3733 posted 12:27 am on Jan 20, 2005 (gmt 0)

I believe that banners are an excellent branding tool. We just have focused it the wrong way. A banner is like any other advertisement that you see elsewhere. Open a magazine, what do you see? Ads. drive your car and you see... Ads.

It's about the power of branding, forget CTR. When your banner is up there, people see it, people remember your brand.


10+ Year Member

Msg#: 3733 posted 1:01 pm on Jan 20, 2005 (gmt 0)

yep, it's all about branding, not as a direct marketing tool to get the clicks directly but in the early stage of the conversion proces...


WebmasterWorld Senior Member 10+ Year Member

Msg#: 3733 posted 1:49 pm on Jan 20, 2005 (gmt 0)

I found that framing my content in banners actually helped increase my CTR on my contextual ads. I think they (banner ads) made my other ads look much more appealing.. ;-)


10+ Year Member

Msg#: 3733 posted 2:28 pm on Jan 20, 2005 (gmt 0)

The branding analysis makes sense.

But what makes merchants move away from CPM, or even CPC, in favor of CPA? There are less and less advertisers today going the CPM route, its so much harder to get revenue this way even if you have a very good website.


10+ Year Member

Msg#: 3733 posted 2:49 pm on Jan 20, 2005 (gmt 0)

Well, the move on CPA and CPC, IMO, is a smart strategy from the merchants to tie the publisher into a performance deal.

See, instead of just selling your advertising space, like the banner ads in the street, now they are forcing you to become their first line of sellers. Now you are obligated to optimize, identify creative placements, and aggressively promote their products in order to make a buck.

With CPM, they just have the branding benefit. With CPA, on the other hand, they still have the branding benefit and perhaps with even stronger branding due to your aggressiveness in selling their product, plus they get a guarantee that this marketing effort won't cost a cent unless they make money.

CPA is just a magnificent marketing strategy for the business with the product. They changed the relationship of Advertiser/Publisher, to one of Company/Independent Salesman.


10+ Year Member

Msg#: 3733 posted 10:42 pm on Jan 20, 2005 (gmt 0)

No one is forcing the use of banners.
If one did not want to use a banner they could simply change the image code. However,
sometimes a banner contains an image that people do associate with branding.
It has been my personal experience that when trying to make the most revenue nothing beats a CPA. For conversion purposes alone this is the best way a business can make money through affiliate programs.


10+ Year Member

Msg#: 3733 posted 11:02 pm on Jan 20, 2005 (gmt 0)

Some banner designs are getting smarter.

Have you guys seen the one where spider man has to shoot down the green goblin? A mouse over creates a cross hair & bang! you fell for it- at least I did the 1st time.

There are always ways to improve the design & concept but I still see banner CTR lower than ever before.


10+ Year Member

Msg#: 3733 posted 2:00 am on Jan 21, 2005 (gmt 0)

CTRs really aren't all that interesting for very many types of businesses. Retailers face less risk with CPA arrangements, and everyone else is just as well off with CPM as any of the others.

I use two ad networks, Burst! and Google AdSense. AdSense is PPC only, but CPC campaigns have been on a sharp decline lately at Burst!... CPC is risky for both sides, because publishers have no way of accurately predicting what they'll be paid for their ad inventory and advertisers have no idea how much they'll be paying or what percentage of those clicks will be fraudulent.

There's still money to be made on CPM banners, and it's low-risk, low-maintenance income. CPA can make me more money, but only if I do it well and put a lot of time and effort into it.

And it won't be going away any time soon. The overwhelming majority of advertising dollars still go to offline CPM deals in TV, radio, magazines, etc, and that'll continue to shift to the Internet over the next several years.


10+ Year Member

Msg#: 3733 posted 11:32 am on Jan 21, 2005 (gmt 0)

I use banners because they add color to my site.

I'm assuming some users think a site without some banner ads is unprofessional.

Users don't hate ads per se. Users hate popups, obviously misleading ads and ads that float across their screen.

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