Facts – Online Advertising

 

Web Site Ads

Search Engine Ads

Other Online advertising

WEB SITE ADS

FACT: Only 6% of those who make a purchase because of a display ad do so via an immediate click, while the balance of those conversions (94%) occur online and off-line in the days and weeks after being exposed to the online ad (Direct Marketing Association study of two billion online display impressions; USPS Deliver Magazine, October, 2012).

FACT: “Marketers who buy ads on Facebook are more focused on building brand awareness than accumulating fans, according to a new survey of Ad Age subscribers by Ad Age and Citigroup. Asked to identify their primary goal in Facebook ads, 45.9% of respondents put building awareness and sentiment for their brands at the top. Driving traffic to brand websites was the second most-cited goal, with 17.6% of respondents saying it is their most important objective, followed by building fans or likes, staying in touch with customers, generating sales leads and social commerce” (Ad Age survey 658 subscribers; Advertising Age, 7/9/12).

FACT: According to the Direct Marketing Association’s latest annual response rate report, online display ads direct-action-per-click rates averaged 2.51% and clickthrough rates ranged between 0.033% and 0.018%. The average ROI was 10% (Direct Marketing Association’s annual response rate report, based on responses from 481 companies and conducted in April 2012; Chief Marketer, 6/22/12).

FACT: "One of the not-so-secret realities of the display-ad world is that a decent chunk of online ads are never viewed by Web visitors. They either appear below the dreaded fold, or a user scrolls past them before they load. ... on campaigns for 12 big brands, including Kraft, Ford and Sprint, 31% of the 1.7 billion ad impressions were never in view" (Advertising Age, 1/18/12).

FACT: The average cost per thousand times a display ad was served on a finance-related site during the first half of the year was $19 and was $17.50 for automotive sites, according to SQAD (Wall St. Journal, 9/21/11).

FACT: Four out of five Americans say they “never or hardly ever” click on online ads (2009 eMarketer survey; AP 3/15/10).

FACT: The content of an online ad (the writing and design) is responsible for 50% to 75% of its success, according to a Dynamic Logic analysis of 170,000 online ads. "Other factors like ad size, technology features, choice of Web site and targeting make up the rest," said Ken Mallon, dynamic Logic's senior VP, custom solutions (Ad Age magazine, 10/20/09).

FACT: When it comes to display ads, the best-performing format (when measured for brand awareness, recall and purchase intent) is the humble 180-pixel-by-150-pixel rectangle (Dynamic Logic study of 4,800 online ad campaigns, 8/20/09, Ad Age magazine).

FACT: Consumers are 21% more likely to recall ads they see displayed on content sites than ads diplayed on portals (like AOL and Yahoo), and 50% more likely than ads placed by bulk ad brokers (Dynamic Logic study of 4,800 online marketing campaigns; Wall St. Journal, 8/14/09).

FACT: New research from ComScore (based on collaboration with loyalty-card marketing firm Dunnhumby), finds online search ads generate a higher lift in off-line sales per consumer exposure than only display ads. However, online display ads, with their larger reach, likely produce a higher overall lift in off-line sales. The research also finds display and search used together produce a higher lift than the combined effects of using either separately (Ad Age magazine, 6/1/09).

FACT: A ComScore study of 139 online ad campaigns (which married data from its panel of U.S. internet users with shopper data) found online ads, even when they didn't result in a click, increased a consumer's likelihood of making a purchase at an advertiser's retail store by 17%, and increased visits to a marketer's Web site by an average of 40% (ComScroe report "Wither the Click;" Ad Age magazine, 2/23/09).

FACT: Click-through rates for online display ads have now fallen to 0.1% (Ad Age magazine, 1/26/09).

FACT: Advertising next to videos on TV network Web sites (ABC, CBS, NBC) costs around $40 per thousand views, which can be more expensive than buying ads on conventional TV (Wall St. Journal, 12/16/08).

FACT: While only a tiny fraction of online display ads are clicked, two recent studies (one by Atlas Research, the other by Commscore) point to evidence that the ads do much to build brand awareness (National Business Review, 9/23/08).

FACT: Consumers are able to recall an ad shown via an online TV broadcast 60% to 90% of the time. But they can only recall ads shown with traditional TV shows nine to 25% of the time (Starcom study; Wall St. Journal, 5/20/08).

FACT: Last year, local advertisers spent 44% of their online marketing budget on search engines and e-commerce Web sites, 33% advertising on newspaper Web sites, 10% on yellow pages Web sites, and 9.3% on Web sites for local television stations (Borrell Associates study; Wall St. Journal, 1/28/08).

FACT: Advertising on social networking sites (like FaceBook and MySpace) is comparatively cheap: only a few dollars — at most — per 1,000 displays of an ad (compared with $50 or $60 per thousand charged by some niche Web sites). Wall St. Journal, 8/4/08.

FACT: Unique visits to the Web sites of large packaged goods companies soared 10% (compared to a year ago) in the third quarter of 2007, thanks to online display advertising (ComScore survey; Ad Age magazine, 12/10/07).

FACT: Uncle Ben's banner ads on Oprah.com and FoodNetwork.com generated two million of the 3.6 million visits the site received in the third quarter of 2007 (ComScore survey, Ad Age magazine, 12/10/07).

FACT: Eye-track studies show that Internet users have trained themselves to scan Web sites in an F-shaped pattern — scanning the top before honing in on the content in the middle. That's why banner ads (horizontal at the top of a Web page and vertical along the right side) have lost their power. Even important content that looks like banner ads is getting overlooked (Wall St. Journal, 6/20/07).

FACT: The Wall St. Journal Web site is able to charge higher advertising rates because it's a subscription-only Web site. Therefore, the site's users are considered to be more committed, which is attractive to advertisers (Wall St. Journal, 4/23/07).

SEARCH ENGINE ADS

FACT: According to the Direct Marketing Association’s latest annual response rate report, paid search ads averaged a 3.88% click rate and a conversion per click rate of 5.8%. The cost per click on average was $3.05; 50% of respondents used paid search for direct sales and 46% for lead generation. The ROI was 6.8%. (Direct Marketing Association’s annual response rate report, based on responses from 481 companies and conducted in April 2012; Chief Marketer, 6/22/12.)

FACT: Four out of five Americans say they “never or hardly ever” click on online ads (2009 eMarketer survey; AP 3/15/10).

FACT: New research from ComScore (based on collaboration with loyalty-card marketing firm Dunnhumby), finds online search ads generate a higher lift in off-line sales per consumer exposure than only display ads. However, online display ads, with their larger reach, likely produce a higher overall lift in off-line sales. The research also finds display and search used together produce a higher lift than the combined effects of using either separately (Ad Age magazine, 6/1/09).

FACT: A ComScore study of 139 online ad campaigns (which married data from its panel of U.S. internet users with shopper data) found online ads, even when they didn't result in a click, increased a consumer's likelihood of making a purchase at an advertiser's retail store by 17%, and increased visits to a marketer's Web site by an average of 40% (ComScroe report "Wither the Click;" Ad Age magazine, 2/23/09).

FACT: Studies continue to show that Internet users trust and favor organic listings over paid search listings — unless the paid search listing is at the top of the page (Wall St. Journal, 5/1/07).

FACT: Brand names typically account for just 5% of a marketer's total search advertising budget, yet those names typically account for 80% of the search-advertising profit. Half of all searches on Google and Yahoo are comprised of just 100 terms — and half of those are for brand names (360i report, Ad Age magazine, 3/15/07).

FACT: When searching for products and services online, consumers click on non-sponsored search-results almost 80% of the time (Jupiter Research; Wall St. Journal, 3/13/07).

FACT: The average conversion rate for paid-search advertising is 3.6% (Marketing Sherpa survey; Ad Age magazine, 1/1/07).

FACT: 45% of companies that advertise on search engines use search engine marketing agencies to place and manage the ads (Jupiter Research report, 8/10/06).

FACT: Wyndham Hotels and Resorts calculates that it earns $14 in revenue for every $1 it spends advertising on search engines (Wall St. Journal, 7/10/06).

OTHER ONLINE ADVERTISING

FACT: Baynote’s (2011) annual holiday shopping survey of 1,000 shoppers found (Tech Crunch, 1/12/12):

  • 62.5% of respondents said email was the most useful way to receive retail promotions.
  • 16.7% said direct mail was best for promotions.
  • 11.8% said engine results were the best for promotions.
  • 4.9% said daily deals were best for promotions.
  • 2.5% said Facebook was the most useful promotion channel.

FACT: 22% of consumers have a “positive attitude” towards ads on social media Web sites. Some 40% of consumers have a positive attitude towards ads on TV and in print (magazines and newspapers); Dynamic Logic Ad Reactions 2009 study; Ad Age magazine, 1/27/10.

FACT: Non-e-mail Internet marketing returned $20.67 in sales for every dollar spent in 2007. That's down from $21.10 in 2006 (Direct magazine, 10/23/07).

FACT: Percentage of marketers who said the following online advertising tactics performed "great" (Marketing Sherpa survey, Ad Age magazine, 1/1/07):

  • Paid-search ads: 52%.
  • Marketing e-mails to house list: 47%.
  • Rich-media ads: 38%.
  • Behavioral targeting: 36%.
  • Search-engine optimization of Web site: 33%.
  • Contextual targeting: 31%.
  • Affiliate marketing: 29%.
  • Text-link ads: 23%.
  • Pop-ups; pop-unders: 22%.
  • Ads in e-mail newsletters: 16%.
  • Banner ads: 14%.
  • Marketing e-mails to rented lists: 10%.

FACT: Google's research found that a whopping 70% of viewers closed video content when they encountered a pre-roll ad (an ad that must be viewed before watching the video). Direct magazine, 10/07.

 

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