Banner advertising: a $62B industry based on a product nobody likes

I find it fascinating that even though research continues to show that banner advertising effectiveness is declining, projected spend is rising.  EMarketer projects that US brands will spend $62 Billion on online advertising by the year 2016 (click image to see full Mashable article).

If you think about it, success in the online advertising world is based on one thing – distracting you from engaging with the content you came to a site to read. This means it is an advertiser’s goal to interrupt you about a topic you probably care nothing about and likely doesn’t have anything do to with why you came to that site.

According to Performance Marketing Insider (see their banner ad Infographic here), the top reasons people don’t click on banner ads are:

  • 31% only want to click ads when they’re in the mood or interested in looking at them
  • 31% are worried that their internet behavior will be tracked
  • 46% worry pop-ups will take over their screen
  • 54% don’t trust most online banner ads they see
  • 55% are worried about getting a virus
  • 57% are afraid of receiving spam from advertisers
  • 58% say online banner ads are not that relevant to them
  • 61% don’t want to be distracted

If people don’t like banner ads, why do advertisers continue to spend money on them?

In the defense of smart brand marketers everywhere, it’s not because advertisers adore shouting at you from the sidebar.  When investment is increasing in a technology that is dying, it’s a sign the industry lacks alternatives. Brands know the best place to reach target consumers at scale is to engage with them online. While it might not be perfect, online advertising is still more cost-effective, measureable, and scalable than print or television. It’s reluctant spending.

Well, the cavalry is here and it’s called Influencer Marketing.

Influencer marketing is the notion of de-segregating brands from content.  You’ve probably seen it in action without even realizing it.  If you’ve enjoyed watching any of the Tour De France seasons the past few years, you owe part of your enjoyment to brands like Gatorade, T-Mobile, Chipotle and Discovery Channel.  By sponsoring athletes, they have added value to your experience and helped bring you the very content you wanted to see.

In the online space, bloggers and social media content creators are the new influencers.  They have loyal followers on their blogs, Facebook, Twitter and other social platforms and their peer-targeted content is more trusted than brand messaging alone.  Smart brands are embracing this and partnering with niche-based bloggers to help create large-scale awareness online.

It’s an exciting time to be in the social space and helping brands partner with relevant influencers is what my company, BlogFrog, is all about.  If you are a blogger or brand looking to learn more about influencer marketing, come check us out!

This entry was posted in Social media. Bookmark the permalink.

One Response to Banner advertising: a $62B industry based on a product nobody likes

  1. Pingback: BlogFrog doubles down on influence marketing and Colorado startups | |

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>