Display Ads Still Get the Job Done

MARCH 16, 2007 Static ads remain an important arrow in the online marketing quiver. onage has brought the high tech of VoIP to the masses, but when it comes to online ads, it still believes in the basics, according to new data from TNS Media Intelligence. The Internet phone company spent over $185 million on display ads in 2006, outspending both rival Verizon Communications and display ad giant Netflix. eMarketer senior analyst and online ad specialist David Hallerman estimates that budget share for display and classified ads will remain relatively flat through 2011, with paid search inching up and rich media and video gaining sharply. Despite display ads' humble stature, Vonage and its fellow big spenders are onto something. A December 2006 study by Datran Media revealed that display ads remain an important tactic for US marketers, behind only e-mail and search marketing. In fact, display ads were named as important by more than twice as many respondents as online video. Plus, Vonage, AT&T and Verizon all run their share of TV ads, and multimedia campaigns tend to be more effective than those using one media type exclusively. A Yahoo! study released by comScore Networks in December 2006 found that campaigns that use both search and display advertising are far more engaging and effective than those viewed individually. Online users who were exposed to both the search and display advertising campaigns increased their share of page views relative to competing sites by 68% and time spent by 66%. More importantly, among those exposed to both the search and display ads, purchases of the advertiser's products and services increased by 244% online and 89% offline compared to online users with similar behavior who were not exposed to these ads. Find out what's going on in online advertising abroad. Read eMarketer's Europe Online Advertising: Spend, Trends and Audience report. Get More from eMarketer eMarketer subscribers have access to thousands of reports, articles and charts related to topics like this one. To learn more, visit: www.emarketer.com ©2007 eMarketer Inc. All rights reserved