UKNM: Banner Ad Prices Take a Dip

[Phil Gyford]

>BANNER AD PRICES TAKE A DIP

>The cost of placing banner ads on Web sites is finally falling, with the

>average price per 1,000 online "impressions" down 5.6% in December 1998 from

>a year earlier.  "It's a simple example of supply and demand," says the

>marketing director at AdKnowledge.  "Many more sites are seeking

>advertising, so there's a lot more to choose from."  Meanwhile, the

>

>click-through rate (the percentage of viewers who actually click on a banner

>ad to find out more information) is down as well.  According to the CEO at

>Agency.com, the current rate is 0.5%, down from 1% a year ago and 2.5% two

>years ago.  "People are more focused about the use of the Internet.  They

>want to do what they came to do and they don't want to click on a banner."

>(Wall Street Journal 24 Feb 99)


 Phil Gyford

 http://www.gyford.com /

philgyford [dot] com

 w:0171.766.6491 / h:0171.622.9058 / m:0850.958.299

 Deputy Editor, Capital Interactive / http://capitalinteractive.com


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