Your Guide to Display Advertising Metrics

Display marketing refers to visual advertisements seen online, typically in the form of banner ads, which use visuals, compelling images, text, logos and animation to place a message on the internet. We’ve discussed banner advertising and its effectiveness on the blog and would like to follow up now by discussing the metrics that can be used to measure this effectiveness. These are the tools used to measure the success of your display advertising campaign.

  • Reach: Reach refers to the number of potential eyeballs that your ad will be placed in front of. This is your ad’s reach, usually the number of visitors to the site where you will be placing your ad.
  • Click-through Rate: Also referred to as CTR, this metric refers to the percentage of users that click on your banner versus the total amount that are exposed to it. It’s a strong measure of effectiveness because typically the goal of a banner ad is to get users to click on it and onto the website, allowing marketers to gauge how well an ad is being received by an audience.
  • Bounce Rate: The bounce rate refers to the amount of clicks through to the website that then only visited one page before exiting the site. What does this means for you? This means that the user was intrigued enough by the display ad to click on your banner but once they visited your site they were not intrigued enough, or did not find it relevant enough, to stay on the page and so they left. Although this seems like a negative factor, think of it as an opportunity to understand exactly what is not working for your consumer—the good news is your campaign may be effective, the next step is to work on your website.
  • Conversion Rate: This is the percentage of users that actually click through your ad to the website and end up performing the action or goal you desired, such as a purchase or a sign-up to an e-mail.
  • Return On Investment: Your return on investment (ROI) is the value you receive from launching your online campaign. It measures the cost of creating and launching your ad vs the revenue generated by the campaign. Ideally, your campaigns have a high ROI and bring money to your business!

Understanding these metrics is not difficult and can be essential to measuring the success of your campaigns. We invite you to familiarize yourself with them and see which of these are the necessary tool for your business!

Is Banner Advertising Effective?

Is Banner Advertising Effective? - banner advertising

The debate for banner ad effectiveness is a toss-up. There are those who say it is obsolete and others who are searching for new ways to design and place the ads in such a way to maintain their effectiveness.

Although there is a general decrease in the use of banner ads (Is Banner Advertising Dead?), there are some statistics that show that banner ads aren’t dead.

There was a study that found that users who ended up on a website redirected from a banner ad were 70% more likely to complete a desired action than those who visited the page via any other medium.

Another study showed that banner ads have a 33% higher response rate than billboards, which are mostly use to promote brand awareness and top of mind.

Banner ads today don’t have to be the tacky ads they once were, banner ads today are smarter than before and placed in more effective ways than they once were.

So, how can I make sure my banner is effective?

The good thing about banner ads, like online campaigning in general, is that click-through rates and responsiveness can be precisely measured and you can understand exactly what is working and what isn’t and how much. Here are three ways to make sure your banner ad is effective:

  1. Incorporate branded content: remember that users typically look at a brand for just a split second and it’s your job to pique their interest enough to keep looking. Make sure that with just one glance, they know who is advertising to them. Your brand or logo should be clear.
  2. Create an eye-catching ad: This is obvious for any ad in any medium, but with online banner ads you can use animation or large text and bright colors to draw user’s attention away from where they are looking. Remember though, that users are smarter now and don’t like to be bothered anymore, flashing ads and purposely distracting content is now more bothersome than it is eye-catching. Be concise with your design, make sure the words and images you use are well thought out. Provoke your consumer but don’t annoy them.
  3. Call to action: Give your user a next step. If you’re promoting a sale or a free trial, make it clear. “Start your free trial now” “30% Off Your Entire Purchase Now”, etc. A compelling message is an easy way to get your consumer to the next step.


Is Banner Advertising Dead?

Is Banner Advertising Dead - online advertising

This question has long been in debate. After an initial boom for banner ads in the late 90’s and early 2000’s there are plenty of statistics that prove that banner ads may not be relevant anymore…but is it true? Let’s present the arguments.

Why banner ads are a thing of the past:

  1. They are an annoyance: it is quite possible that if I were to ask you what comes to mind when you think of a banner ad, you may describe to me those glaring, flash rectangular ads at the top of a page that are distracting you from what you really want to see, the content you searched for. Many people have remained with the fixated idea that banner ads are a disturbance and therefore to be ignored entirely.
  2. Banner Blindness: Banner blindness is a phenomenon that refers to users conscious or unconscious pattern of ignoring web banners. Try to recall the last banner ad you saw, you may not be able to and it’s exactly because of this. Banner ads annoyed us so much we began to shut them out directly.
  3. Cellular Technology: Another argument for when banner advertising may be obsolete is cell phones. Banner blindness is particularly high on mobile phones and given that these ads live more naturally on the web

Why banner ads are still relevant:

  1. Easy to Measure Effectiveness: Banner ads are fundamentally easy to manage. It’s effectiveness can be easily measured via click-through rates that show what percentage of users are clicking through, therefore measuring what works and what doesn’t and making adjustments.
  2. Native Advertising: Banner advertising is still relevant because it’s evolving. Banner ad placement is now more subtle than it was before and can be found within the editorial content. This is exactly where your eyes are looking as you consume content. The company Infolinks has found that native banner ads are viewed 47% more quickly and 451% more people than banner ads.
  3. Graphic Content is King: In such an image-heavy digital world, viewers are still more attracted to a smartly designed graphic or video than to text only. 70% of internet consumers would rather learn about a company or a product through content rather than traditional advertising. This makes the previous point of native advertising especially attractive.

In conclusion, our opinion is that banner advertising isn’t dead. It is alive and well, and like any part of a rapidly changing digital market it, what it needs is to adapt and change in order to thrive.