Thursday, October 9, 2008

Text Ads Get More Clicks Than Video Ads

Young favor video ads

Online video ads are not as popular as perceived with only 11 percent of consumers saying they were likely to click on video ads, according to a new study from iPerceptions.

Simple text ads were found to be the most likely to receive clicks with 25 percent of consumers doing so, followed by display ads at 20 percent and banner ads at 12 percent.

The only people who seem to be engaged by video ads are young people under the age of 25, a group that accounts for nearly one-third of the video-ad viewing audience.

"Retail groups are predicting the toughest holiday season since 1991, so marketers need to make sure every dollar spent on advertising delivers an end result," said Jonathan Levitt, vice president of marketing at iPerceptions.

"Our research shows that inexpensive banner and text ads are still preferred among web consumers. By having a direct dialog with consumers, we are able to know - with certainty - what consumers want and expect from their online experience."

The study also found that the likelihood that a person will click on an ad goes down as their income increases. On average, 40 percent of consumers are likely to click on any ad make less than $50K a year- and only 15 percent make over $150K.

The income gap is the most significant with video ads, with 49 percent of consumers likely to click video ads making less than $50K a year- and only 13 percent making over $150K.

Overall, 65 percent of consumers are likely to click on online ads and they are weekly or daily browsers, while only 15 percent are first time visitors and 6 percent are sporadic visitors.

"Our research clearly shows that media sites that offer consumers compelling content and features - encouraging repeat visits - generate much better ad clickthrough rates than less engaging sites," said Levitt.

"Marketers that want to reach high quality audiences should focus ad placement on sites that deliver the highest customer loyalty and repeat visitor traffic."

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