Here are some interesting statistics for you.
- Number of people who click on display ads in a month has fallen from 32% of Internet users in July 2007 to only 16% in March 2009.
- 8% of Internet users account for 85% of all ad clicks.
(Source: comScore)
- Almost half (48%) of Twitter users who saw a brand’s name mentioned would go on to use a search engine to investigate further.
- 34% have used a search engine to find information on a product/service/brand after seeing an advertisement on a social networking site.
(Source: Performics and ROI Research. Summary article.)
- In the 15+ years I’ve been online, I have never consciously clicked on a banner ad.
- In the 15+ years I’ve been online, I have never consciously clicked on a Google ad.
- In the 15+ years I’ve been online, I have responded to recommendations, articles, and advice I see from friends via email and on social networks.
(Source: me, and possibly you.)
Note to all brands that only advertise with banner ads. You will NEVER reach someone like me who ignores and never clicks on a banner ad.
If it’s true that display advertising is decreasing and has horrible reach, and that people use social media to effectively learn more about brands, then why do brands still spend so much money in search engine marketing and display advertising?
Answering my own question, I believe the reason is because SEM and display advertising is a known quantity and easy to purchase. And while the response may be poor, it may be far more costly trying to tackle the unknown beast that is social media.
I believe brands are finally starting to come around and realize that standard display advertising is a waste of money and effort. Over the past two weeks I was reporting at the ad:tech conference in NYC and The CMO Club Summit in San Francisco. And for both conferences, the subject of brands in social media was the buzz all over the floor and repeated in probably every single session. Those companies that were afraid to get into social media are no longer fearful. Their concern now is how to engage in social media effectively.
While I think it’s time to put an end to all banner ads, it’s not the end of the ad network. Ad networks are extremely valuable as they have relationships and placement in key media outlets that brands and advertisers want to be. While social media may be difficult for some, it’s easy to buy access to the network. But instead of putting a static non-relevant advertisement in that rectangular space, why not bring in an RSS feed of some content from your company blog or some other relevant timely information. With timeliness and relevancy, you’re sure to get more attention and click-through than a simple banner ad. Banner ads are a dead communications medium. It’s time for us to put them out of their misery.
