New Study on Effectiveness of Banner Ads

A recently completed study on the effectiveness of banner ads provides some interesting data for advertisers.

Condé Nast and McPheters & Company have jointly released additional results from the recently completed study conducted in collaboration with CBS Vision using McPheters & Company’s Media - BioAdWorks™ methodology. More detailed analysis explored the relative effectiveness of Internet banner ads that were aligned with the content of the Web sites in which they appeared – for example, food ads running on food sites, entertainment ads on entertainment sites, etc. – vs. those that were not. The new analysis found that:

  • Ads running on sites with related content were 61% more likely to be recalled than ads running on sites with unrelated content.
  • Recall of ads varied by site type.
    • Social network, shopping, and food sites generated the highest recall levels (29% to 39%).
    • Search and portal sites generated the lowest recall levels.
  • There were large differences in recall by type of product advertised.

According to Scott McDonald, Condé Nast SVP/Research, “the magnitude of the differences we found offers compelling evidence that targeting by site yields important benefits for advertisers.” Drew Schutte, SVP and Chief Revenue Officer for Condé Nast Digital, added “while we have long known that context is important for print advertisers, we welcome proof that the same is true online. These results reinforce the importance of a marketer being associated with category-specific Web sites with established brands.”

In the analysis, each of the 400 ads for which recall was measured was associated with the Web sites in which they appeared. Ads were segmented by whether they appeared on Web sites with related content. Recall of ads was measured among Internet users who were directed to surf the Internet at will for 30 minutes. McPheters & Company fielded the survey at CBS Vision’s Television City lab facilities in Las Vegas. Rebecca McPheters, CEO of McPheters & Company, noted that “while AdWorks™ excels in providing comparable measures of ad effectiveness across multiple media, it also provides a unique opportunity to explore and better understand what works online. It can be used to successfully identify best practices not only for capturing the attention of online audiences but for placing ads where they will have the maximum impact.”

In a review by OnLine Media Daily they reported that from data released earlier in the year by Condé Nast and McPheters & Co., nearly two-thirds — 63% — of banner ads were not seen by Web users. Respondents’ eyes “passed over” 37% of the Internet ads and “stopped” on slightly less than a third, McPheters found.

In contrast to online ads, TV and magazine ads generated a strong propensity to be seen and recalled, according to the research.

Full-page, four-color magazine ads were determined to have 83% of the value of a 30-second television commercial, while a typical Internet banner ad has 16% of the value.

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2 Responses to New Study on Effectiveness of Banner Ads

  1. Cody says:

    Very interesting article! It was nice to see some stats rather than speculation.

  2. Joey says:

    Makes you a little angry if you put some of your advertising budget into these. Hope there is more defined information on this in the near future.

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