3 Exponentially Better Alternatives to Banner Advertising


With the average click-through rate at a historic low of 0.06 percent, banner ads are failing to deliver results 99.94 percent of the time. Here are 3 viable alternatives with proven results.

 

BY BILL CARMODY

 

Founder and CEO, Trepoint

Having started my career in 1994 building some of the very first commercial websites, I have more than 22 years of digital marketing game footage to draw upon. I even placed MasterCard’s very first banner ad on Yahoo in early 1995. At that time, we were delivering click through rates north of 10% on a consistent basis.

My how times have changed. What astounds me, however, is just how ineffective banner ads are and yet how prolific they still remain. As the CEO of Trepoint, a digital marketing agency, I am often asked what we think of banner ads. My answer is simple, we don’t recommend them nor do we take on banner advertising business. Betweengrowing ad blocking technologies, massive ad fraud, and banner ad blindness, is it any wonder why the average click through rate is hovering at 0.06%? But because 63% of all digital media is bought programmatically, it’s understandable why banner ads continue to flourish despite all the evidence that they are ineffective. So what are the alternatives?

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Alternative #1: Influencer Marketing
In case you missed it, earlier this month I reported on a groundbreaking Nielsen Catalina Solutions study which highlighted the incredible impact of Influencer Marketing had on WhiteWave Foods. In short the results of the study showed thatInfluencer Marketing delivered 11 times ROI over all other forms of Digital Media. The study further provided a direct attribution between Influencer Marketing and in-store sales lift. Specifically, for every 1,000 impressions delivered through Influencer Marketing, WhiteWave Foods received $285 of incremental in-store sales.

So what is Influencer Marketing and why is it delivering substantially higher ROI? Simply put, Influencer Marketing is about sponsoring and supporting the people who your customers look to as subject matter experts. Whereas digital marketers like me used to hire celebrity spokespeople, today your customers trust well-known bloggers and social media pundits who may only have tens to hundreds of thousands of followers (instead of the millions we used to focus on).


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If you’re looking to learn more about Influencer Marketing, I recently did a keynote speech about it and have posted my presentation online. I’m a big believer in this methodology because it requires that the content come directly from the influencers you engage which, by definition, dramatically reduces the two largest expense areas in effective digital marketing: content creation and distribution.

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