Commercials
are a way of life. How many times have you seen a commercial, maybe even
asked someone else if they’ve seen that clever ad, yet you’ve never
purchased that item. You might not even know what product is being sold.
Unfortunately, the same phenomenon can happen with banner ads on Web
sites. Many Internet advertisers are asking themselves:
“When
should my ad be visible?”
“How
do I track if my ad is successful?”
“What’s
a fair price?”
AdKnowledge, a Web marketing management service for advertising buyers,
released its first quarter Online Advertising Report (OAR) earlier this
year. AdKnowledge has been tracking Web advertising data in its OAR for
three years. The report revealed four major findings about Web
advertising.
1.
ROI of Internet Advertising Greater Than Thought.
According to the report, on average there are 33% more conversion events
(such as purchases or registrations) from users who only viewed an ad, but
did not click on it, than from users who clicked on an ad. This means
clicking on an ad does not guarantee a purchase. Conversely, not clicking
on an ad does not prohibit a purchase. Steve Findley, V.P. AdKnowledge
Analytic Services said, “This data yields two important conclusions.
First, the potential ROI impact of Internet advertising is much greater
than previously thought. Second, advertisers that focus only on clicks or
even post-click conversions may miss vitally important effects of their
advertising campaigns.”
2.
Ad Conversion Peaks Mid-Week.
The Internet is constantly referred to as the 24/7 medium but, did you
ever stop to think about the Internet’s prime
time? The OAR found that ad deliveries,
click throughs, and customer conversion events peak during the lunch hour
mid-week, and the lowest activity took place on weekends. In fact, 38%
more activity takes place at noon Mondays through Wednesdays, than noon on
Saturdays.
3.
Web Advertising Continues to Grow.
According to the report, the number of ad-supported sites and networks
continues to grow rapidly. In the first quarter of this year, the number
of sites and networks grew by 723—an increase of 22%.
4.
CPMs Continue To Stabilize.
The report also found that while the number of sites is increasing, the
cost of online ads continued to stabilize. Average cost-per-thousand
impressions (CPM) rates remained nearly the same, falling to $33.59 from
the fourth quarter of 1999 rate of $33.75.
The full OAR is available online at www.adknowledge.com/update/
oar_1stqtr00.pdf. The OAR is a compilation of Web advertising statistics
analyzed by AdKnowledge eAnalytics. According to Nielsen/NetRatings, the
Web-wide reach of U.S. sites and networks tracked by AdKnowledge is 95.85%
of the home audience and 98.42% of the work audience. For more information
about AdKnowledge, call (650) 842-6500 or visit www.adknowledge.com.
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