How Effective Are Online Banner Ads?

Banner Ads ROI
In terms of ROI, marketers tend to view banner ads (aka “display ads”) as low on the list of online marketing tactics, but as a recent study shows, their ROI may be higher than supposed.

Of those surveyed by iProspect 37% said they ignored display ads, 9% said they did not recall seeing any display ads in the last six months, and 2% said the only banner ads they saw were for the site they were already visiting. The interesting part, however, is how the remaining 52% responded to display ads they saw.

Of the 52% that responded 31% clicked on the ad, 27% went to a search engine and searched for the product or company they saw displayed, 21% typed the company’s URL into their browser, and 9% investigated the product or company through social media platforms. This shows that the effectiveness of banner ads cannot be measured merely in terms of clicks received.

Marketing Implications
The implication here is that banner ads create demand, which then needs to be met through SEO efforts. If consumers are turning to search engines in response to seeing a company’s display ads, SEO is even more important than originally thought because it is converting paid display ad interest into visitors as well as impacting organic exposure.

Marketers had always assumed that online banner ads were more easily tracked than other forms of media because the ad was either clicked on or ignored, but these findings turn that assumption on its head. The likeliness of consumers to do further research on the company or product shown in the banner ad and then return at a later date to make a purchase means that even display ads are subject to the same challenges of measuring ROI as traditional forms of media.

Further Information
Data also showed that of those that conducted an online search for a product or company they saw in a display ad, 14% visited the company’s website and purchased the advertised product. Findings revealed that responders who were better acquainted with the product or company were more likely to purchase after searching.

Marketing Advice
This study demonstrates that display ads are powerful marketing tools when used as a part of a larger online marketing campaign that includes SEO techniques. The most prudent way of doing this is to first work on your SEO and then develop and place banner ads online.

Remember, the message of your display ads should be geared toward consumers that already knowledgeable about your company or what you are selling, as they have a higher rate of conversion.

How to Create Google Display Ads
Display Ads Best Practices

-Kate Pierce eCommerce Specialist

One Response to “How Effective Are Online Banner Ads?”

  1. Michael Duong

    Banner Ads are very important. at we rely on banner ads to remind customers to visit our url or search for us on all social media sites.


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