Will 2017 be the end of Banner Ads?
Love them or hate them, banner ads have continued to hang around for the past decade and it doesn’t look like they’ll be stopping any time soon. The fact that they still exist is a conundrum to some who wonder why it is that we continue to carry around this dead weight of an ad, when there are other less intrusive and more user-friendly advertising options that statistics show consumers prefer and that receive higher CTR (click-through rate).
Superior forms of advertising
The results of a recent brand study conducted by Slate Group Studios in partnership with Prudential Financial Inc., is just one example that shows the effectiveness factor of other forms of advertising over banner ads. The study revealed that podcast advertising was more than two times successful compared to banner ads when it came to driving statistically significant lifts in Brand Awareness and Ad Recall. That’s quite the significant difference that might make you think twice about investing in banner advertising.
In addition to podcast advertising, another form of marketing that has proven to be more effective on the whole when compared to banner ads is native advertising. The beneficial factor of native ads is one that continues to increase with time. The reason is that native ads have better CTR and higher leads. Why? They do not take the obvious and in-your-face approach like banner ads and instead are far more subtle by appearing naturally within content without disrupting the experience of the user. Instead of standing out, these ads blend into the visual environment and appear as a part of it. In fact, it is the common belief among many industry experts that 2017 will be the year when native advertising will go further than it ever has before. According to data from BI Intelligence, spending on native ads is expected to grow to $21 billion by next year.
Native ads are arguably the ad that will widely overtake the banner ad both on the web and in mobile ad technology. This is because these ads put publishers in control while making customers feel empowered. In many cases, native ads are presented to customers in a natural way that leaves the customer feeling that they are being offered a solution or a benefit that seems practical and isn’t forced. These ads also offer higher engagement compared to traditional display advertising. For instance, according to an Ad Effectiveness Study conducted by IPG & Sharethrough, native ads are viewed 53% more frequently than display ads, leading to a higher CTR (60%). Additionally, in another Sharethrough study, it was determined that native ads generated 82% brand lift among users who viewed the ads.
Finally, another major reason that native advertising could be king before the year is out is it tends to get more shares. Due to the fact that the ads are woven into informative content, there is a good chance that it can go viral. The vast majority of people are far more hesitant about sharing content that looks promotional (especially without the right – and often rewarding – incentive), but have no problem sharing informational content. Naturally, this could benefit both advertisers and publishers.
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Why the banner ad is still around
In spite of growing competition, the banner ad remains one of the top marketing options. Why? The simple fact of the matter is that banner ads are one of the easiest ads to implement and, when done correctly, the can be highly effective. They complement web, mobile web and in-app platforms and these ads can easily be implemented across multiple platforms, resulting in an identical ad experience on every device, be it mobile or desktop.
Banner ads can also remain throughout an entire in-app navigation, starting from the menu until the user exits the app. Other ad units do not have this ability and may only appear at a certain place (native ads), at a certain time (interstitials), or at a certain place and time (rewarded video advertising).
Another aspect about this form of advertising that people like is it’s a highly effective tool for creating brand recognition. If you want to show your brand to as many people as possible, this is the ad that will get the job done the best.
So, even though new and smarter forms of advertising that are less intrusive are getting better results, the banner ad will likely stick around for a while, even though it’s certainly nowhere near as popular today as it once was a few years ago.