Internet Advertising: Is Internet Advertising: Is Anybody WatchingAnybody Watching

Presented by:Presented by:

Chris NjungeChris Njunge

Maksim FeofanovMaksim Feofanov

IssueIssue

Click-through rates – (Main Click-through rates – (Main measure of internet advertising measure of internet advertising effectiveness) decliningeffectiveness) declining

7% in 1996, 0.7% in 2002 7% in 1996, 0.7% in 2002 (DoubleClick, 2003)(DoubleClick, 2003)

Companies curbed spending on Companies curbed spending on internet advertisinginternet advertising

Key QuestionsKey Questions

1.1. Why do banner Ads seem to Why do banner Ads seem to be ineffective?be ineffective?

2.2. What can advertisers do to What can advertisers do to improve their effectiveness?improve their effectiveness?

Two StudiesTwo Studies

Eye-Tracking study to Eye-Tracking study to investigate online surfers’ investigate online surfers’ attention to online advertisingattention to online advertising

Large scale survey of users’ Large scale survey of users’ recall, recognition, and recall, recognition, and awareness of banner advertisingawareness of banner advertising

Eye Tracking StudyEye Tracking Study

Internet different from other Internet different from other media because bandwidth is media because bandwidth is shared during adshared during ad

H1: Internet users avoid looking H1: Internet users avoid looking at banner adsat banner ads

H2: The more time users have H2: The more time users have spent on the internet, the less spent on the internet, the less they pay attention to banner adsthey pay attention to banner ads

Study DesignStudy Design

49 Respondents off street paid 49 Respondents off street paid 15 euros15 euros

Cover study- ergonomic Cover study- ergonomic research on the design of research on the design of French portal (Voila`)French portal (Voila`)

View 8 pages in trying to answer View 8 pages in trying to answer questionsquestions

Each page with banner but no Each page with banner but no reference made to itreference made to it

Data CollectionData Collection

Eye tracking deviceEye tracking device Written survey after the task, Written survey after the task,

about their internet savvy, the about their internet savvy, the experimental process and their experimental process and their preferences and some preferences and some questions regarding the banners questions regarding the banners they sawthey saw

AnalysisAnalysis

Every subject looked at one or more Every subject looked at one or more banner adbanner ad

Average of 3.96 banners viewedAverage of 3.96 banners viewed Probability of 49%- ( T.V. 90%, 89%-Probability of 49%- ( T.V. 90%, 89%-

93% Yellow Pages, per Lohse, 1997)93% Yellow Pages, per Lohse, 1997) Screen was divided into zones Screen was divided into zones

depicting: location, shape and depicting: location, shape and contentcontent

Logit Regression for Zone Logit Regression for Zone AttractivenessAttractiveness

ResultsResults

Half of banner exposures not Half of banner exposures not attended toattended to

Surfers purposely avoid looking at Surfers purposely avoid looking at bannersbanners

Surfers processing banner ads at pre Surfers processing banner ads at pre attentive levelattentive level

Experts more efficient at processing Experts more efficient at processing web pagesweb pages

Younger surfers more efficient than Younger surfers more efficient than olderolder

FindingsFindings

Location, size, and zone content Location, size, and zone content are important factors when are important factors when trying to predict whether a zone trying to predict whether a zone is attendedis attended

Study 2: Impact of Online Study 2: Impact of Online AdvertisingAdvertising H3: Advertising effectiveness H3: Advertising effectiveness

increases with the frequency of increases with the frequency of exposureexposure

H4A: Larger banner ads will be more H4A: Larger banner ads will be more effective than smaller banner adseffective than smaller banner ads

H4B: Banner ads that are laid out H4B: Banner ads that are laid out vertically will be more efficient than vertically will be more efficient than banner ads laid out horizontallybanner ads laid out horizontally

Study 2: Impact of Online Study 2: Impact of Online AdvertisingAdvertising H5A: Banner ads that contrast H5A: Banner ads that contrast

with their environment will be with their environment will be more effective than ads that do more effective than ads that do notnot

H5B: Animated banners will be H5B: Animated banners will be more effective than static onesmore effective than static ones

H5C: The effectiveness of a H5C: The effectiveness of a banner ad depends on its banner ad depends on its messagemessage

Study DesignStudy Design

Two part self administered Two part self administered questionnaire sent to 6000 peoplequestionnaire sent to 6000 people

First questions on current internet First questions on current internet usage and brand awarenessusage and brand awareness

9 Web pages with specific task or 9 Web pages with specific task or question to answerquestion to answer

7 of 9 pages contained banner ads 7 of 9 pages contained banner ads relating to 5 different productsrelating to 5 different products

18 different banners used balanced 18 different banners used balanced outout

Study DesignStudy Design

24hrs after first survey and 9 24hrs after first survey and 9 web pages, follow up survey web pages, follow up survey sentsent

Questions about advertising Questions about advertising recall and for rating of banner recall and for rating of banner ads seenads seen

807 respondents filled out 807 respondents filled out second survey (13.5% second survey (13.5% response rate)response rate)

AnalysisAnalysis

Advertising ConstructAdvertising Construct EffectEffect ComparisonComparison

ExposureExposure 100.0%100.0%

Aided Advertising RecallAided Advertising Recall 30.1%30.1% 17%(P.A)17%(P.A)

Aided Brand RecognitionAided Brand Recognition 18.5%18.5%

Unaided Advertising RecallUnaided Advertising Recall 11.4%11.4% 2.47%(U.B)2.47%(U.B)

Increased Brand AwarenessIncreased Brand Awareness 2.8%2.8%

Click-throughClick-through 0.7%0.7%

AnalysisAnalysis

Banner Advertising has long term Banner Advertising has long term impact beyond immediate click impact beyond immediate click throughthrough

Effect of repetition tested across all Effect of repetition tested across all five advertisersfive advertisers

Repetition improves unaided Repetition improves unaided advertising recall, brand recall, and advertising recall, brand recall, and brand awareness but does not brand awareness but does not improve aided advertising recallimprove aided advertising recall

ResultsResults

H4A: Banner SizeH4A: Banner Size Small banner ads perform just Small banner ads perform just

as well as larger banner ads. as well as larger banner ads. Contradicts 1Contradicts 1stst study study

H4B: Banner OrientationH4B: Banner Orientation Banner orientation affects aided Banner orientation affects aided

advertising recall but not advertising recall but not unaided recall or brand recallunaided recall or brand recall

ResultsResults

H5A-C – Graphical contentH5A-C – Graphical content Weak effect for contrast, but Weak effect for contrast, but

more contrasting performed more contrasting performed worse ??worse ??

No effect for animationNo effect for animation Message affects recognition and Message affects recognition and

comprehensioncomprehension The message is more important The message is more important

than how the message is sentthan how the message is sent

ConclusionConclusion

Surfers fixate on 50% of banners, Surfers fixate on 50% of banners, process banners subconsciouslyprocess banners subconsciously

Awareness is more important than Awareness is more important than click through rateclick through rate

What is said and how often its said is What is said and how often its said is more important than how it is saidmore important than how it is said

Bigger animated ads will not Bigger animated ads will not compensate for ineffective contentcompensate for ineffective content

ShortcomingsShortcomings

Searches were goal-directed as Searches were goal-directed as opposed to exploratory which is opposed to exploratory which is equally common but vastly equally common but vastly differentdifferent

Memory measures and not Memory measures and not behavioral measures were behavioral measures were examinedexamined

QuestionsQuestions