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Banner advertising on life support | November 3, 2008

The New York Post reports that ” The once-hot market for Web banners is not only cooling, it’s in danger of going subzero.” Looking at online ad companies earnings reports show the sharp decline. Marketers are rapidly pulling back on online display advertising, particularly “flashy” campaigns. Analysts are predicting that if the past few months are any indication, banner advertising will not even remain on the decline, it will go negative by 2009.

It is understandable. With click-through rates at .1% it’s hard to justify the ROI. Even though people argue (myself included) you can’t grade a banner on it’s click-through rate, proving the value is still difficult. But I don’t know that banners are dead. They need a makeover for sure, but they can still pull through.

It’s like TV. TV is not dead, bad TV is dead. Infomercials and “I’ve fallen and can’t get up.” There are so many bad banner campaigns out there. Just go to Myspace. Bad banner advertising is what is dead. Hopefully this will force people to be more diligent, creative and strategic when creating a banner campaign. Also, maybe it’s time to change the standard sizes IAB? I mean there is nothing uglier than a 160×600.

One last note in online paid media: search advertising continues to grow at an astounding pace. Thanks Google.


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