Sunday, May 25, 2008

Internet advertising effectiveness

The effect of design on click-through rates

for banner ads

Helen Robinson, Anna Wysocka and Chris Hand
Kingston University

RESOURCE : INTERNATIONAL JOURNAL OF ADVERTISING, 2007, 26(4)

SUMMARY

This empirical research examines the impact of seven creative characteristics of banner ads on the effectiveness of online advertising using a multiple regression model. A random sample of 209 banner ads was drawn from a sampling frame of advertisers, provided by an advertising agency specialising in internet advertising for the gaming industry. The reason for choosing this industry is because online gambling is an example of an industry where those who participate online may not have considered participating offline. This contrasts with most other examples of e-commerce (e.g. purchasing groceries, clothes, books).Hence, an online casino has to build credibility from its banner ads and website alone. This study uses ‘Click Through Rates: CTR’’ to evaluate the effectiveness of banner ads. According to this research creative characteristics of effective banner ads in online gaming arena are; a larger size, absence of promotional incentives and the presence of information about casino games. Contrary to expectations, banner features established as being ineffective in attracting a direct response include: animation, stereotypical action phrases and the company brand/logo. It’s also unexpected that banner ads carrying a shorter message are not more effective than those with a lengthy message, long messages on banners were associated with higher click-through rates. The largest banner ads are more effective in generating click-through than the smaller-sized banners. Animation, on the other hand, demonstrated an insignificant effect on users’ direct response, since they are already more costly to produce. The explanation for ineffectiveness of a ‘wordy’ animated banner is about increased complexity of the ad.

ÖZGE ÖZEKE / 107604195

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