Good old banner ads are not going away. The Interactive Advertising Bureau reports that spending on such ads has increased significantly.
Display ads (banner ads, rich media, video and sponsorships) increased their share of US online advertising spending in 2010 to 38% from 35.2% in 2009. The largest share of online spending remains search marketing, which accounted for 46% internet spending.
While 2010 saw an explosion in video ad spending, (+39.6% in 2010) and is anticipated to increase by a similar amount this year, it accounted for only 5.5% of all online ad spending in 2010.
To the surprise of many advertising professionals, banner advertising remains popular. Spending on banner ads increased by 23.1% in 2010, accounting for 23.9% of all online advertising and 62.9% of display ad spending.
Those marketers who thought of display advertising as a branding-only ad format are going to have to reconsider, as opportunities increase to buy inventory through performance-based pricing instead of bulk impression buys.
Only four years ago ad revenues for performance-based and CPM-based pricing models were virtually the same. Now performance-based pricing ad revenues have surpassed CPM-based pricing ad revenues by 29 percentage points, indicating a clear shift in ad spending and strategy among marketers.
It remains to be seen whether the old-fashioned banner ad can continue to survive and flourish in the face of newer ad formats, such as online video, and rising privacy concerns.
To learn more about banner ads and other forms of online advertising, contact Stream Companies.