More NewsStudy: Online Ads Focus on Building Brand, Not Clickthroughs

Study: Online Ads Focus on Building Brand, Not Clickthroughs

Research indicates that most online banner ads serve corporate orproduct awareness or positioning, rather than to push a sale.

The majority of online ads are geared toward building a corporate or product brand, as opposed to generating immediate click-throughs, according to a study conducted by AdRelevance, a Jupiter Media Metrix company.

The study found that ads solidifying a corporate positioning, building awareness, or spotlighting a product feature or benefit accounted for 63 percent of all online ads, and about 54 percent of all impressions.

Of branding-oriented ads, creatives generating awareness garnered 33 percent of all impressions, followed by positioning ads with 20 percent. Creatives that promoted a feature or benefit of a brand made up about one percent of total impressions.

Hardware and electronics firms were the most likely to use branding ads, with more than three-quarters of their impressions devoted to building or shaping corporate or product identity. Entertainment companies, retail, Web media, automotive and travel also used a majority of their online ads for branding.

The telecom, financial services, consumer goods and B2B industries, on the other hand, focused a majority of their impressions on click-through generation to drive site traffic or sales.

One reason that this might be the case is that online ad inventory is predominantly sold on a CPM basis, rather than CPC or CPA; therefore, there is a comparatively lesser need for creatives geared to generate click-throughs.

And with lingering questions about the effectiveness of impression-based advertising — based in part on click-through rates’ lurking below the one percent mark — the study’s findings seem to indicate that advertisers might be shifting to using Web ads in a way more consistent with how users are interacting with them: that is to say, by creating ads meant to be seen but not necessarily clicked.

“Online advertising is no longer just about click-through. Although industry and financial analysts have relied on click-through rates to gauge the effectiveness of online ad campaigns, the market has finally realized that clickthrough is not an appropriate metric for brand-oriented ads,” said Charlie Buchwalter, vice president of media research for AdRelevance. “Leading advertisers have already drifted away from the clickthrough mentality of pure direct-response marketing.”

The study came as a demonstration of AdRelevance’s new product, AdStrategy, which segments advertisers by ad type — e.g., awareness, positioning, etc. — and on which sites they advertise.

Related Articles

GDPR: The role of technology in data compliance

Data & Analytics GDPR: The role of technology in data compliance

3w Clark Boyd
What companies can learn from the We-Vibe lawsuit about the Internet of Things

Legal & Regulatory What companies can learn from the We-Vibe lawsuit about the Internet of Things

8m Al Roberts
Has advertising arrived on Google Home?

Media Has advertising arrived on Google Home?

8m Al Roberts
Is Twitter slowly dying?

More News Is Twitter slowly dying?

9m Al Roberts
FedEx launches fulfillment service to take on Amazon

Ecommerce FedEx launches fulfillment service to take on Amazon

9m Al Roberts
Target is the top retail digital marketer, so why is it struggling?

Ecommerce Target is the top retail digital marketer, so why is it struggling?

8m Al Roberts
YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

More News YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

9m Al Roberts
YouTube is getting rid of 30-second unskippable pre-roll ads

Ad Industry Metrics YouTube is getting rid of 30-second unskippable pre-roll ads

9m Al Roberts