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Subject: UKNM: Mo' Banner Blues
From: Sajid Mohammed
Date: Thu, 4 Mar 1999 07:12:32 GMT

Ray Taylor was absolutely on the money when he asserted that banners
are a ludicrously expensive way of building traffic. Take this real
world case study:

Mr. X has a client who want to shift 30,000 units of Brand Y online.
Mr X. researches/punts and concludes that only 1% on visitors to a
site will buy online (which is in all fairness realistic). He also
thinks that the banner creative will get 2% clickthrough rate. So...

30,000 buyers means
3,000,000 visitors means
150,000,000 banner deliveries

Assume a CPM of �20 and you're talking a whopping �300,000 if my brain
is working properly. Which is cheap compared to TV, I know...but even
Tom Loosemore can't persuade his clients easily of the virtues of
spending a few grand on banners.

Brand is all well and good - but brand recall is no guarantee that the
advertising is effective. I have strong brand recall for Tampax,
Stannah Stairlifts & Woman magazine - doesn't mean I'm necessarily
going to buy them. Advertising effectiveness is hard to judge
accurately. The old adage about not knowing *which* 10% of advertising
is effective still holds true. Brand advertising IMHO is really a
great way for agencies to get more money from the client ("Your
mindshare amongst CEOs & CTOs is down 17% in Q3...we must place more
brand!")

The future is probably the intertwining of advertising and editorial.
I got a case study from Pat Connolly at AEP which looked at a custom
content section on This Is London that was created for IBM. This
managed to achieve a 7% banner clickthrough and no doubt had
additional knock-on benefits.

Also, better tracking would help i.e. you may see a banner, not
clickthough and then two weeks later decide that you really do need an
ethernet hub for your kitchen and go off to visit Inmac or similar.
But then there are the inevitable issues around privacy and data
protection. But these issues will have to be addressed sooner or
later, especially if the commercial exploitation of the Internet is to
continue apace.

I'm off to buy some Sta-Prest clothes now - dontchajustlove Flat Eric?


Sajid Mohammed
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Replies
  Re: UKNM: Mo' Banner Blues, Tomski
  Re: UKNM: Mo' Banner Blues, Ben Thompson

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