Yesterday MediaPost published article called “Bigger isn’t always better”.
The article cites a study conducted by web measurement firm Compete that compared standard 300 x 250 with a 300 x 600.. Both ads ran the same content. What the study found is that the bigger format had a higher CTR whilst the smaller format was more effective in driving poeple toward sales. Another of those studies that yields very little.
The inherent problem with display is rooted in 2 issues:
1) The formats: ‘print ads online’ – simply not built for the medium
2) The pricing models: ‘print pricing online’ – circulation morphed into impressions.
I have to almost laugh when pundits suggest the solution is to make the ads bigger. Of course bigger isn’t better. Aside to this, let’s try and remain somewhat pragmatic. Web publishers would need to completely reinvent how their sites and structured and bodies such as the IAB would have to get with it and put their weight behind new formats. Whilst I totally welcome this, and it will happen eventually – it aint happening any time soon. They still put a 40k limit of most rich media!
I think one of the possible solutions, as pointed out in the closing lines of the article, lies with ‘thinking inside the box’.
Here at Open we have created a number of new formats – within existing formats. The biggest demand is for our IMU format. Served as an MPU – that’s where the similarities begin and end. The IMU format delivers multiple utilities, goes full screen, is socially portable, optimises natural and is completely dynamic.
I think advertisers need to stop using display inventory in an effort to drive traffic – click through completely suck. As an industry we reward campaigns that drive a 1% CTR.
Display media should be seen as an opportunity to engage with an audience in an ongoing manner – not a slim chance to drive traffic. People have multiple digital locations and your content – wrapped in utility – should be made available everywhere appropriate.
Publishers need to lead the charge in the development of new formats. This includes new pricing models. Forget about diminishing CPMs. That’s a down spiral and with new technologies emerging daily that allow better targeting at a fraction of the cost, it’s a battle you’ll never win. Change the game and offer performance-based pricing models to your advertisers. You know it makes sense.
Interesting times ahead as online advertising comes of age.
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