The effectiveness of display banner ads has come into question in recent years after a decline in the number of clicks these ads generate. Despite a low click rate, the ads have a proven positive impact on website traffic, search queries, and purchase rates for weeks beyond consumer exposure to the ad.
A white paper developed by comScore for the Empirical Generalizations in Advertising Conference held at the University of Pennsylvania’s Wharton School last December details the findings of a significant study on the matter. A copy of the white paper is available online.
The study found that the use of display advertising produced a positive impact in each of the following areas:
46 percent increase in advertiser’s website traffic over a four week period
38 percent increase in likelihood of consumers using branded terms in a search query over a four week period
27 percent greater likelihood of consumers buying the advertised brand online
17 percent greater likelihood of consumer making a purchase at the advertiser’s retail store
Display advertising may not typically result in an immediate click, but that does not mean that it is ineffective. Instead, banner ads create an interest in the product or service which is realized at a later time. The benefits of banner advertising will likely materialize in the form of a site visit, a search query, and possibly on online or offline purchase in the weeks to come. Further information can be found a blogger and former comScore board member Fred Wilson’s website.
Tags: banner advertising, display advertising stats