Tuesday, September 16, 2008

Average CTR for Banner Ads - New Data

MarketingSherpa just published a short article, Banner Ad Size and Click Rate: Bigger a Bit Better, But It’s Clicks that Count, that includes this chart:

Three observations stand out:

1) The data haven't changed much since last year, when it was reported here that "The average CTR for banner ads is roughly 0.25%, with a reported range of 0.17% to 0.40%."

2) Click-through rates are pathetic regardless of ad size, so don't use CTR as the primary metric for evaluating banner advertising. In the words of MarketingSherpa, "Online ads are branding tools. Direct clicks are simply a happy byproduct." Banner advertising is most commonly sold on a CPM basis (and with CTR's like that, it's no wonder). CPMs on B2B publisher sites typically range anywhere from $30 t0 $120, meaning that a banner advertiser is paying $15-$60 per click based on the average CTR of 0.21%.

3) The best response rates come from 300x250 ads, which are typically positioned in the top right corner of a web page—no suprise, as that is generally considered the most prime real estate on any web page. Both the 728x90 and 468x60 horizontal banners are typically used at the top of a web page, but notice the significant discrepancy in CTR; when buying real estate at the top of a page, size clearly matters. The remaining ad sizes shown in the chart are skyscraper ads, most commonly positioned on the right and left sides of page content well below the top of page, often below the fold. Interestingly, size doesn't seem to matter much on skyscrapers.

Conversion rates for B2B ads continue to average about 2.8%. That means, on average, you'd need 17,000 impressions to generate one lead—at an average cost of $1,258! So again: banner ads are branding, not revenue or lead generation. They may very well have a role to play in your marketing mix, but it's important to understand what that role is.


Contact Tom Pick: tomATwebmarketcentralDOTcom


KudoSurf Me!
Add to Technorati Favorites
AddThis Social Bookmark Button
AddThis Feed Button

eXTReMe Tracker