Winning by Sharing

Barely anyone clicks on banner ads anymore

*****Fast Forward to 2013*****

A study by eBay Research Labs economists Thomas Blake, Chris Nosko, and Steve Tadelis — analyzed eBay sales after shutting down purchases of search ads on Google and elsewhere, while maintaining a control set of regions where search ads continued unchanged. Their findings suggest that many paid ads generate virtually no increase in sales, and even for ones that do, the sales benefits are far eclipsed by the cost of the ads themselves.

Natural born clickers

2009: With the recent historic news that the UK's advertising industry now spends more online than on print and TV comes a reasonably authoritative report from Comscore that 'barely anyone clicks on banner ads anymore'.  The findings are breathtaking;

"The number of people online who click display ads has dropped 50% in less than two years, and only 8% of internet users account for 85% of all clicks, according to the most recent "Natural Born Clickers"

Shock horror.

In 2006 academics reached this conclusion a while back, as far back as 2006 but Techcrunch picked it up earlier this year here.  Their research is based on the analysis of large datasets from Youtube, Flickr and others and concluded that the current model is unlikely to survive, principally due to lack of trust. Forrester predicted this scenario as early as 2002.

Isn't it interesting that banner ads are really broadcasts.  They don't speak with a human voice or meet a specific need.   Despite all the warning signs, brands still broadcast while consumers connect and they continue to 'preach' to people whose attention is focused elsewhere.  So the £1.75 billion size of the online ad market is a total waste of money.

So where's it going?  There's a glimpse of the future of advertising here - Pick 'n' mix business.

Related articles

From banner ads to banner apps

General Motors spends $40m a year on Facebook presence

eBay study dismisses value of advertising on Google

General Motors spends $40m a year on Facebook presence

Just as Facebook goes public and raises $16 billion General Motors announces that Facebook Ads don't pay off.   GM is spending a staggering $40m per year on its Facebook presence and although only a mere $10m is spent on ads it's reached the conclusion that they simply don't work.  Shock, horror.  Did anyone at GM read ComScore's 2009 report called Natural Born Clickers?  It concludes after a year of research;

Barely anyone clicks on banner ads anymore.  The number of people online who click display ads has dropped 50% in less than two years, and only 8% of internet users account for 85% of all clicks.

In 2006 academics reached this conclusion as far back as 2006 but Techcrunch picked it this up in 2009 here.  Their research is based on the analysis of large datasets from Youtube, Flickr and others and concluded that the current model is unlikely to survive, principally due to lack of trust. 

Trust is the killer app.

 

It gets better

Image via CrunchBase

Google Chrome promotional video. "Beginning with one inspiring video, Dan Savage used the web to create the It Gets Better project - a global movement that has generated thousands of uplifting videos that give hope to teens".

Featuring Chantal Badjie, my big sister!

 

From banner ads to banner apps

*****Fast Forward to 2013*****

A study by eBay Research Labs economists Thomas Blake, Chris Nosko, and Steve Tadelis — analyzed eBay sales after shutting down purchases of search ads on Google and elsewhere, while maintaining a control set of regions where search ads continued unchanged. Their findings suggest that many paid ads generate virtually no increase in sales, and even for ones that do, the sales benefits are far eclipsed by the cost of the ads themselves.

Barely anyone clicks on banner ads anymore

2009: With the recent historic news that the UK's advertising industry now spends more online than on print and TV comes a reasonably authoritative report from Comscore that 'barely anyone clicks on banner ads anymore'.  The findings are breathtaking;

"The number of people online who click display ads has dropped 50% in less than two years, and only 8% of internet users account for 85% of all clicks, according to the most recent "Natural Born Clickers"

Shock horror.

In 2006 academics reached this conclusion a while back, as far back as 2006 but Techcrunch picked it up earlier this year here.  Their research is based on the analysis of large datasets from Youtube, Flickr and others and concluded that the current model is unlikely to survive, principally due to lack of trust. Forrester predicted this scenario as early as 2002.

Isn't it interesting that banner ads are really broadcasts.  They don't speak with a human voice or meet a specific need.   Despite all the warning signs, brands still broadcast while consumers connect and they continue to 'preach' to people whose attention is focused elsewhere.  So the £1.75 billion size of the online ad market is a total waste of money.

So where's it going?  There's a glimpse of the future of advertising here - Pick 'n' mix business.

A hat tip to video creators

When you really think about it, it's a big ask to get people to make videos.  Even when you're given a fairly open brief, you still have to think of an idea, script it, get some actors, film, edit and upload. The Mornflake Competition I'm working on is starting to generate some very interesting creative video art.

This one for example is shot in the streets (some where in Britain) and dialogue centric;

...and this one uses a clever combination of animation and music;

Got give it to you guys, admire your tenacity and spirit.  Keep 'em coming.

Extreme creativity at work

Superb video written, performed and directed by The LawFirm Group's, Creative Director, Brian Watson, to make a sample video for MornFlake's Video Competition.  At the risk of boasting, this video was scripted the day before and filmed, edited and uploaded to Youtube the next day.

Based on the long running BBC comedy series, Porridge, Brian takes off its lead character, Fletcher, this film was (appropriately) shot at the Court House Hotel in London.  Many thanks to the management team for allowing us to film on location.

Finally, Uvizz has just added a great feature for embedding its videos around the web, so here it again in Uvizz mode.

The most unique internet video competition ever?

I'm working with The Law Firm Group and one of our clients is is a 300 year old cereal company based in Crewe, Cheshire.  Mornflake is the 8th oldest company in Britain handed down over 14 generations. As a company, it epitomises probity, fiscal responsibility and social conscience and has rejected every offer of being acquired in all this time.  Kind of values we want to see in all companies right now, right?

Problem is; few people have heard of Mornflake, although anyone who eats porridge is likely to have eaten their cereals.  Mornflake already supplies most of the major supermarkets’ own label oats based cereal foods and is re-launching its own brand of cereal foods.

Since TV advertising is no longer the default way of creating widespread awareness of a new brand, we’re organising a very different kind of video competition for Mornflake.  Our approach differs in three unique ways;

1.    We’re asking people to make videos about themselves. So lots of good material there!  More specifically, videos about their values.  The Mornflake brand must feature in the video but in a product placement kind of way. We’re not looking for cheesy reasons why people should eat Mornflake oats.  The best video creator will win a cash prize of £15,000.

2.    We’re conducting the competition on Facebook using an application called Uvizz (check out the video on their home page – truly impressive).  Uvizz works in a way that financially rewards video creators and video viewers for spreading video around their personal networks.

3.    We’re adopting an open source approach to engaging online communities and have commissioned a network of independent thinkers called Minciu Sodas.  They are building a directory of online communities in the UK and starting conversations with people in an open, respectful and authentic way.  A way that reflects Mornflake’s values.  This data will be made available to any other organisation that wants to learn how to engage these communities and will help those communities be found by other people.

The competition launched on June 15th and runs through to July19th.  Sign up here.