Are Banners Still a Viable Option for Direct Marketers?

By Todd Geller

Not so long ago, in a place with which we are all familiar, there lurked a profitable inventory of skyscrapers, boxes, 468s (468 x 60 ads), super banners and pops.

What happened to this inventory? From 2000 to '04, not only was it easy to convert DR campaigns to banner advertising, but it was also the most profitable inventory on the 'Net.

Yet, sales reps today know that banner inventory is not for conversions such as lead generation, sales, direct response or click-through rates. The banner inventory is being sold as simply an impression, a view or even targeted traffic. It used to be that a banner impression could be seen and interacted with, and that's what made banner advertising a great place to spend ad dollars. So, how did this all change?

BANNER AD TIPS
The diminished value may lie in the sites or networks where these ads are now running. Here are some tips on key variables within sites or networks that impact their efficacy. This is valuable information that will let you spend your ad dollars more wisely:

• Refresh rates. Certain networks and sites run refresh rates on their pages. That means the page refreshes without the user refreshing it, thus making more inventory for the network or site. The typical refresh rate is 30 seconds so you have 30 seconds or less to capture the user.
• Unique caps. Most networks will try to run on a raw basis, which means the same user can see the same ad multiple times on numerous pages.
• Click-through rates. Be cautious of duplicate IP clicks and make sure your click-through rate is in line with your conversion rate.
• Inventory on sites above the fold versus below the fold. Each user's screen has different variations in what is above the fold (which is where the user will see the ad without scrolling) and below the fold (the user needs to scroll down to see the ad). It is a good practice to make sure your buy is above the fold since most users don't look below the fold.
• Targeted inventory - U.S. Traffic vs. Unknown Traffic. When buying inventory, make sure you are not paying for the "Country of Unknown." Some IP addresses come in as "Unknown." While some of this inventory might be considered U.S. traffic, the reality is that the vast majority is not.
• Long-term contracts. Beware of this "locking in" strategy used by many networks and sites. When you're locked in, you're stuck for the month--whether the campaign works or not. Most sites or networks have modest outs in inventory. Before you sign on the dotted line, make sure that if it doesn't work, you have a way to get out.

Are banners still a viable option for marketers? The answers is yes, but with a few caveats: read the contract (make sure you are getting what you order and have a good "out clause"), get daily reports (real-time is better), have a good ad server and a knowledgeable staff to compile reports, buy on a cost-per-click or obtain traffic on a cost-per-acquisition basis, set daily caps and lastly, make sure your ad runs where the network or site tells you it's going to run.

Todd Geller is senior vice president at Inter/Media Interactive". He can be reached at (800) TIME-BUY, or via e-mail at todd@intermedia-advertising.com.