Web Advertising

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Among many ways of the measurement of advertising effectiveness for a banner advertisement on the Web, the currently favored Web measures are Page Views and Click Through rates (the percentage of those exposed to the ad banner who click on the banner to connect to the advertiser's Web site). However, to ensure comparability with standard media, the following standard measures need to be defined and measured for banner ads on the Web (Dreze and Zufryden 1998):

Reach: The net unduplicated number or percentage, of a target audience that have had opportunity to see a banner ad one or more times.

Frequency: The average number of times an individual has had the opportunity to see a banner ad (conditional on the fact that he or she has been exposed to the banner ad at least once).

Gross Rating Points: This measure, also called impressions, is the sum of all potential exposures to a banner ad with out accounting for audience duplication. GRP may also be defined as the product of Reach and Frequency (i.e., GRP=Reach * Frequency).

On the other hand, recent empirical evidence has suggested that the use of click-through rates is likely to undervalue the Web as an advertising medium (Briggs and Hollis, 1997). Although many people have argued that the best measure of advertising response on the Web is the click-through rate that indicates an immediate interest in the advertised brand, many other factors are also likely to influence the click-through response, and these factors may have more to do with the original predisposition of the audience than with the advertising itself.

Indeed, most advertising does not evoke an immediate behavioral response. Thus, there are two reasons for this assumption: first, the lower click-through rates than the rates of exposure to an ad banner alone underestimates the effectiveness of banner advertising on the Web. Secondly, it could make a mistake to inform to advertisers about lower ad cost efficiency and lower effectiveness of banner advertising.

Considering the above limitations, Page Views is considered more effective measure of Web advertising than Click Through. A study has revealed that banner advertisements themselves have the potential to build brands, by creating awareness and image, the possibility that an individual will choose a particular brand for their next purchase (Consumer Loyalty) and the name recognition had increased following the increase of the exposure to the banner advertisement (Briggs and Hollis, 1997).

In addition, according to the IAB online advertising effectiveness study (1997), brand enhancement can happen as a result of exposure to an ad banner alone. While additional powerful messaging may await the consumer on the other side of an ad banner, the ad banner itself does a significant amount of brand enhancement communication. In fact, among the twelve ad banners they tested, the value of the ad exposure is significantly greater than the value of the click-through.

Finally, they concluded that many brands have a straightforward message that can be conveyed in a Web ad banner advertisement. In general, the message can be communicated within a Web ad banner and doesn't need the consumer to transfer over to a Web site for additional elucidation.

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Last updated: November 29, 2000 | WebMaster and Author: Wonpyo Kang
; copyright 2000 Wonpyo Kang | wpkang@ufl.edu