In AdLemons we work with display (video, banners, widgets) and also mentions in blogs. In display, one of the most popular barriers that we face with some clients is banner blindness or invisibility of the banner.
There is a widespread theory that has deepened, especially in some certain Internet circles that says advanced users to surf the internet avoid banners, passing his o her gaze over them unattended. Therefore, it is said that advertising, particularly on banners display does not work.
Well, since there are banners CTR (ratio of click/impressions) usual round average 0.10%-0.30%. This partly explains the theory that we do not click every time we see a banner, but we do so only very occasionally. In numbers, namely a CTR of 0.10% means that for every 1,000 impressions (times the banner is displayed) has only one click it.
It is true that at first sight appear devastating data, but the reality is quite different.
If we compare with traditional display advertising, I would say that the difference is huge. Or do you think that in 1,000 times that people spend in front of a billboard or see an ad on TV, one will buy the store? In that case probably much less than 0.01% of CTR compared.
But still, large companies and brands continue to invest billions in traditional display advertising, including major Internet companies in Spain, such as: trivago, Kayak, Idealista, Rastreator, SegundaMano, etc. because they know that have a purchase, it takes more than just impact. Create a strong brand and reinforce it with a constant reminder is key to tip the balance in the final purchase decision.
But we’re on the internet, and it turns out that 1 click per 1,000 medium banner displays, goes a long way. For example, it allows one of the largest companies in the world, which bases its business model on advertising clicks (ie, you earn money for each click), bill over 50 billion a year, largely on advertising concept, which display advertising to third-party websites is also an important part. Recently it wanted to promote the use of this advertising with heavy investment in campaigns to encourage their use because clearly knows his potential.
So what exactly is going on here? Because on one hand it does not work and on the other it seems that it does? Where is the secret?
One point to understand is that there is an important part of statistics. That is, to run a campaign banner advertising on the Internet, there are two key factors: the volume and CTR, and furthermore, these can be improved by different strategies.
Speaking of volume, I mean it takes from a certain number of impressions for equally relevant results, since the average CTR is usually the one that we have seen.
So: Does this mean that only large companies can advertise with banners? No. With modest investments are available equally interesting results but, as always when we reduce investment, we must increase efforts in other respects. Matters such as creativity, where one of the winners is the rich media sometimes getting double the CTR rate. Target optimization, segmenting properly, so we appear on websites and blogs which really are relevant to us. The position on the page, choosing the exact position where you want to appear, size, creativity, etc. Sometimes as has happened to us with our clients, tripling the result clicks, without changing or ridiculous variations in price, only choosing the best position in one site.
Thus, knowing that not only “performance” is this game, though we are in difficult times, it is important to look at our business long-term, and invest in our greatest asset in the company, which is a recognizable brand. And that CTR even though help us to understand the returns obtained, we have other ways to optimize and improve their figures greatly to achieve our business objectives and make the myth of the banner, just be that, a myth.