1. Internet Advertising: Is Anybody Watching Presented by: Chris Njunge Maksim Feofanov

2. Issue Click-through rates – (Main measure of internet advertising effectiveness) declining Click-through rates – (Main measure of internet advertising effectiveness) declining 7% in 1996, 0.7% in 2002 (DoubleClick, 2003) 7% in 1996, 0.7% in 2002 (DoubleClick, 2003) Companies curbed spending on internet advertising Companies curbed spending on internet advertising

3. Key Questions 1. Why do banner Ads seem to be ineffective? 2. What can advertisers do to improve their effectiveness?

4. Two Studies Eye-Tracking study to investigate online surfers’ attention to online advertising Eye-Tracking study to investigate online surfers’ attention to online advertising Large scale survey of users’ recall, recognition, and awareness of banner advertising Large scale survey of users’ recall, recognition, and awareness of banner advertising

5. Eye Tracking Study Internet different from other media because bandwidth is shared during ad Internet different from other media because bandwidth is shared during ad H1: Internet users avoid looking at banner ads H1: Internet users avoid looking at banner ads H2: The more time users have spent on the internet, the less they pay attention to banner ads H2: The more time users have spent on the internet, the less they pay attention to banner ads

6. Study Design 49 Respondents off street paid 15 euros 49 Respondents off street paid 15 euros Cover study- ergonomic research on the design of French portal (Voila`) Cover study- ergonomic research on the design of French portal (Voila`) View 8 pages in trying to answer questions View 8 pages in trying to answer questions Each page with banner but no reference made to it Each page with banner but no reference made to it

7. Data Collection Eye tracking device Eye tracking device Written survey after the task, about their internet savvy, the experimental process and their preferences and some questions regarding the banners they saw Written survey after the task, about their internet savvy, the experimental process and their preferences and some questions regarding the banners they saw

8. Analysis Every subject looked at one or more banner ad Every subject looked at one or more banner ad Average of 3.96 banners viewed Average of 3.96 banners viewed Probability of 49%- ( T.V. 90%, 89%- 93% Yellow Pages, per Lohse, 1997) Probability of 49%- ( T.V. 90%, 89%- 93% Yellow Pages, per Lohse, 1997) Screen was divided into zones depicting: location, shape and content Screen was divided into zones depicting: location, shape and content Logit Regression for Zone Attractiveness Logit Regression for Zone Attractiveness

9. Results Half of banner exposures not attended to Half of banner exposures not attended to Surfers purposely avoid looking at banners Surfers purposely avoid looking at banners Surfers processing banner ads at pre attentive level Surfers processing banner ads at pre attentive level Experts more efficient at processing web pages Experts more efficient at processing web pages Younger surfers more efficient than older Younger surfers more efficient than older

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

11. Study 2: Impact of Online Advertising H3: Advertising effectiveness increases with the frequency of exposure H3: Advertising effectiveness increases with the frequency of exposure H4A: Larger banner ads will be more effective than smaller banner ads H4A: Larger banner ads will be more effective than smaller banner ads H4B: Banner ads that are laid out vertically will be more efficient than banner ads laid out horizontally H4B: Banner ads that are laid out vertically will be more efficient than banner ads laid out horizontally

12. Study 2: Impact of Online Advertising H5A: Banner ads that contrast with their environment will be more effective than ads that do not H5A: Banner ads that contrast with their environment will be more effective than ads that do not H5B: Animated banners will be more effective than static ones H5B: Animated banners will be more effective than static ones H5C: The effectiveness of a banner ad depends on its message H5C: The effectiveness of a banner ad depends on its message

13. Study Design Two part self administered questionnaire sent to 6000 people Two part self administered questionnaire sent to 6000 people First questions on current internet usage and brand awareness First questions on current internet usage and brand awareness 9 Web pages with specific task or question to answer 9 Web pages with specific task or question to answer 7 of 9 pages contained banner ads relating to 5 different products 7 of 9 pages contained banner ads relating to 5 different products 18 different banners used balanced out 18 different banners used balanced out

14. Study Design 24hrs after first survey and 9 web pages, follow up survey sent 24hrs after first survey and 9 web pages, follow up survey sent Questions about advertising recall and for rating of banner ads seen Questions about advertising recall and for rating of banner ads seen 807 respondents filled out second survey (13.5% response rate) 807 respondents filled out second survey (13.5% response rate)

15. Analysis Advertising Construct EffectComparison Exposure100.0% Aided Advertising Recall 30.1%17%(P.A) Aided Brand Recognition 18.5% Unaided Advertising Recall 11.4%2.47%(U.B) Increased Brand Awareness 2.8% Click-through0.7%

16. Analysis Banner Advertising has long term impact beyond immediate click through Banner Advertising has long term impact beyond immediate click through Effect of repetition tested across all five advertisers Effect of repetition tested across all five advertisers Repetition improves unaided advertising recall, brand recall, and brand awareness but does not improve aided advertising recall Repetition improves unaided advertising recall, brand recall, and brand awareness but does not improve aided advertising recall

17. Results H4A: Banner Size H4A: Banner Size Small banner ads perform just as well as larger banner ads. Contradicts 1 st study Small banner ads perform just as well as larger banner ads. Contradicts 1 st study H4B: Banner Orientation H4B: Banner Orientation Banner orientation affects aided advertising recall but not unaided recall or brand recall Banner orientation affects aided advertising recall but not unaided recall or brand recall

18. Results H5A-C – Graphical content H5A-C – Graphical content Weak effect for contrast, but more contrasting performed worse ?? Weak effect for contrast, but more contrasting performed worse ?? No effect for animation No effect for animation Message affects recognition and comprehension Message affects recognition and comprehension The message is more important than how the message is sent The message is more important than how the message is sent

19. Conclusion Surfers fixate on 50% of banners, process banners subconsciously Surfers fixate on 50% of banners, process banners subconsciously Awareness is more important than click through rate Awareness is more important than click through rate What is said and how often its said is more important than how it is said What is said and how often its said is more important than how it is said Bigger animated ads will not compensate for ineffective content Bigger animated ads will not compensate for ineffective content

20. Shortcomings Searches were goal-directed as opposed to exploratory which is equally common but vastly different Searches were goal-directed as opposed to exploratory which is equally common but vastly different Memory measures and not behavioral measures were examined Memory measures and not behavioral measures were examined

21. Questions