June 14, 2011 Michael Bickerton
Many feel that display (banner) ads do not provide enough value, the click through rate (CTR) is low, and in general the public consensus is that display ads do not provide any value.
The facts are different. As I’ve written previously display ads provide lift. eMarketer published an article “Display Ads Lift Branding Metrics” with further evidence provided by research from Latame with the research provided by KN Dimestore.
This research was based on the likelihood to recommend a product and the evidence was clear, there was a lift of 24% in the likelihood to recommend a product to those exposed to display ads. Our entertainment clients should note that the lift for that industry was 3 times higher than other campaigns with a whopping 31.8% lift. These are big numbers!
The article also notes that Rich media ads out performed static banner ads 3 to 1, with a total lift of 34.4%. Naturally, it’s time for you to revisit video ads. The article closes with the statement “Ad recall, clickthrough rate and interaction rate also rose with the likelihood to recommend”.
As your digital agency, we strongly urge you to consider adding display ads to your PPC campaigns. Clearly with A/B testing you can expect a lift when using display ads. There are many out there suggesting you should save your money, but research suggests that you are further ahead embracing display ads, as we will continue to point out.
Michael Bickerton, Raven5 Ltd, Toronto, June 2011