On the other hand, sales of banner ads are having a banner year. Analyst eMarketer this month had to double its online ad spending projections for 2011 because banners, a.k.a. display ads, are selling so well. By 2015, eMarketer predicts, display will overtake search ads as the top online ad segment. Facebook is girding for a $100 billion IPO and its business is mostly based on banner ads.
Clearly, the world has gone mad.
The other explanation is that most advertisers are able to see past click-through rates. They also understand that banners work like most advertising, which is to say in a fairly complex manner.
For instance, click-through is actually a poor measure of performance. It's impossible to click through a billboard ad, for instance, but that doesn't mean it’s not effective. If you drive the same way to work every day for a month and see that same billboard for the new Adam Sandler movie, I'd bet you a Happy Gilmore DVD that you remember the name of the movie, know a bit about the premise and have already decided whether you want to see it or not. Yet, if that same ad appeared online, chances are you'd be among the 999 out of 1,000 who didn't click through to learn more.
The same is true for TV ads. Only a fraction of the commercials you see on TV are so-called “direct response” ads, which include an 800 number or website. The majority don't have any notable call to action.
For instance, there's a well-known Skittles ad that goes like this: An older man is sad because everything he touches turns to Skittles. While this sounds great to a young observer,...
