MediaMind Global Benchmark Report
Who said that Standard Banners mean mediocre results?
Try these 4 simple steps to drive ...
Bigger is better
Larger Standard Banners perform better than smaller ones. Larger
banners increase visibility over the pub...
Content
Maximizing standard banner results
The good news: CTR stopped declining
Not everyone clicks
The four rules of succ...
MediaMind Global Benchmark Report
Standard Banners – Non-Standard Results
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Easy, low cost and gets the job done. These ar...
MediaMind Global Benchmark Report
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When the first display banners appeared in the ...
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One interesting point is that English speaking...
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Not everyone clicks
The popularity of measurin...
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The 4 rules of success
Obviously, great result...
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Chart 6: Standard Banner Ad Size and Performan...
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Chart 7a & 7b: Creative Optimization
CTR
+73%...
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4 Retargeting the underexposed – getting your...
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This problem is exacerbated by the difficulty ...
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Benchmarks Overview
The following benchmark t...
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Chart 11: Regional Rich Media Performance
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Regional benchmark tables
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Country benchmark tables
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Media mind global_benchmark_q4_2010

  1. 1. MediaMind Global Benchmark Report Who said that Standard Banners mean mediocre results? Try these 4 simple steps to drive performance and boost traffic. Non-Standard Results Standard Banners – retweet this
  2. 2. Bigger is better Larger Standard Banners perform better than smaller ones. Larger banners increase visibility over the publisher’s content and yield more clicks and conversions. Get more real estate on the page for better performance. 2 3 Let the algorithms work for you Automatic optimization, a proprietary algorithm by MediaMind that selects and serves the best performing creative, boosts CTR by 73% and Conversion Rate by 40%. Serving the most impactful creative is more likely to push users to take action. Match the media and the message Sites with focused content achieve better CTR and Conversion Rate as compared to more general sites with a diverse audience. Aligning media content with your advertising message may boost response. 1 4 Retarget the underexposed Users are more likely to click on ads that they have already seen, yet the majority of users see a given campaign only once. Make sure to provide users with sufficient exposures by retargeting underexposed users. 4 rules of success with Standard Banners
  3. 3. Content Maximizing standard banner results The good news: CTR stopped declining Not everyone clicks The four rules of success Focused content Larger ads Automatic Creative Optimization Retargeting the underexposed Benchmarks Overview Regional benchmark tables 4 8 10 11 9 8 7 5 13 15 21 59 60 Argentina 21 Australia 22 Austria 23 Belgium 24 Brazil 25 Canada 26 China 27 Denmark 28 UAE 29 Finland 30 North America 15 Europe 16 Australia and New Zealand 17 France 31 Germany 32 Greece 33 Hong Kong 34 India 35 Ireland 36 Israel 37 Italy 38 Japan 39 Malaysia 40 Mexico 41 Netherlands 42 New Zealand 43 Norway 44 Philippines 45 Poland 46 Portugal 47 Romania 48 Singapore 49 South Africa 50 Spain 51 Sweden 52 Switzerland 53 Taiwan 54 Thailand 55 Turkey 56 UK 57 United States 58 Verticals definitions Metrics definitions East Asia 18 South Asia 19 Latin America 20 Country benchmark tables
  4. 4. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 4 Easy, low cost and gets the job done. These are some of the traits that keep Standard Banners as the popular choice for online advertisers. Standard Banners still comprise the majority of online advertising impressions. Standard Banners are easy to create and relatively straightforward to serve. Unlike Rich Media, they lack video or interaction within the banner, so they are used mainly to generate traffic to the advertiser’s website, where users can obtain more information about the brand or make a purchase. Thus, many advertisers use Standard Banners for Direct Response campaigns, where the aim is to drive sales. Typically, Standard Banners generate less clicks and conversions as compared to Rich Media formats. Maximizing Standard Banner results Furthermore, the format cannot deliver a full interactive experience the way Rich Media can. Nevertheless, even with this simple format, there are still ways to improve and entice users to click and browse to the advertiser’s website. A careful analysis of billions of Standard Banner impressions has shown that the following four simple steps may increase the performance of Standard Banners. First, use sites with focused content rather than more general environments. Use larger banners for more visibility. Leverage Automatic Optimization to serve the best performing creative to your audience and get more traffic. Last, get in front of your prospects more often by increasing frequency and retarget them on the exchanges.
  5. 5. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 5 When the first display banners appeared in the 90’s, they were greeted by users with a significantly higher Click Through Rate (CTR) as compared to today’s CTR. Display advertising is the fuel that turns the Internet’s content machine and allows publishers to provide free online content to users. However, as online advertising developed and grew in spending and also in sophistication, CTR declined. Chart 1 indicates that while the trend of decline in CTR began long ago, the greatest decline has been around September 2008. That month, Lehman Brothers collapsed, taking with it the world economy. This had an adverse effect on users’ willingness to click on ads. The good news is that this decline seems to have halted. An Chart 1: 2006-2010 CTR Source: MediaMind Research. Data: 2006-2010, Standard Banners, Worldwide. 0.23% 0.21% 0.19% 0.17% 0.15% 0.13% 0.11% 0.09% 0.07% 0.05% ClickThroughRate Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Apr-09 Jan-08 Jul-09 Apr-08 Oct-09 Jul-08 Jan-10 Oct-08 Apr-10 Jan-09 Jul-10 Global CTR Annual Average CTR analysis of CTR of Standard Banners indicates that average CTR declined from 0.15% in 2006 to 0.09% in 2010. Yet, in 2009 and 2010 this decline seems to have stopped. Both in 2009 and the first eight months of 2010, Average CTR has remained around 0.09%. This indicates that online advertising performance has reached equilibrium. What caused this decline in CTR in the first place? Evidence shows that the success of online advertising has paradoxically been the prime cause for the decline in CTR performance. As more budgets were poured into display, users were exposed to more and more ads. However, the number of ads that a user clicked on did not catch up with the number of ads that a user was exposed to, thus reducing the overall CTR. The good news: CTR stopped declining Imagine that you are exposed to one thousand ads each year, and that you click on five of them. Your CTR is 0.5%. Imagine now that you are exposed to five thousand ads; you are probably not going to keep clicking at the same vigor, so instead of 25 clicks, you only click on 20 ads. Therefore your CTR is now only 0.4%. Thus, as users are exposed to more ads, their CTR drops.
  6. 6. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 6 One interesting point is that English speaking former British colonies, such as Australia, Canada, US and New Zealand, tend to have a lower CTR than what the trend predicts. These are some of the most advanced online advertising markets. Still, users in these countries tend to click on ads less than countries with similar display spending per household. The UK itself, worth noting, is slightly above the trend. 1 This can change according to the cost of media at various countries. Chart 2: Display Spending and CTR Source: MediaMind Research. Data: Q3 2009 to Q3 2010, Standard Banners, Worldwide. PwC. 2010 “Internet Household”, 2010 “Global Internet Display, Classified, Other Advertising’. Global Entertainment and Media Outlook: 2010-2014. Display Spending per Internet Household South Korea Colombia Finland Argentina Romania Thailand Malaysia Mexico RussiaSouth Africa Israel Brazil Singapore Spain China Denmark Portugal Philippines Chile Turkey Taiwan Greece Italy Hong Kong Hungary France Ireland New Zealand Austria Switzerland Belgium Netherlands Germany Canada UK Japan Australia USA Norway Poland 0.22% 0.20% 0.18% 0.16% 0.14% 0.08% 0.12% 0.10% 0.06% 0.04% 0.02% 0.00% $0 $20 $40 $60 $80 $100 $120 $140 ClickThroughRate This phenomenon is best illustrated when examining the link between CTR and average display spending per household in different countries. The average display spending per household serves as a proxy to the number of ads that a person sees over the year1 . The analysis shows that as more money flows into display advertising and as people are exposed to more display ads, CTR declines. Thus, countries like Norway, USA and the UK, with higher online display spend per household tend to have a lower CTR. Countries such as Mexico, Russia and South Africa, with lower display spending per household, tend to have a higher CTR.
  7. 7. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 7 Not everyone clicks The popularity of measuring CTR stems from it being one of the first online metrics as well as it being intuitive and easy to measure. Nonetheless, CTR is only a partial measure of online success. Both industry research and comparison with other online metrics show that CTR does not capture the full effect of online display advertising. Research by comScore has shown that two-thirds of Internet users do not click on any display ads over the course of a month and that only 16% of Internet users account for 80% of all clicks. It also showed that clickers tend to be younger and less affluent than non-clickers. comScore confirmed that there is a latency effect and branding effect to online advertising, in which users arrive at the advertiser’s website even without clicking. However, the research by comScore also indicates that display advertising has an effect on user behavior even at low click through rates. In the research, which included 139 display campaigns from seven verticals, comScore has shown substantial effects on traffic, sales and branding despite a lack of clicks. According to comScore, the display campaigns yielded 46% lift in advertiser websites visits, over a four week period. In addition, exposed users are 38% more likely to conduct an advertiser related branded keyword search, over a four week period and are 27% more likely to make a purchase online. Furthermore, exposed users are 17% more likely to make a purchase at the advertiser’s retail store.2 MediaMind has found similar results to comScore. An analysis of more than 100 million conversions from thousands of campaigns worldwide confirms that only about 20% of conversions are the result of a click, while the vast majority is the result of viewing the banner without clicking. These results, together with comScore’s research show that clicks are only a partial measure of online advertising effectiveness. About 80% of the traffic of users that were exposed to the ads is not accounted for when measuring only clicks. Placing conversion tags on the site is a smart move for better measurement of an online campaign. Chart 3: The Effect of Display Advertising Source: comScore. “How Online Advertising Works: Whither The Click?” LiftExposed/Unexposed 50% 45% 40% 35% 30% 25% 20% 15% 5% 10% 0% Advertiser Website Visits Branded Keyword Search Online Purchase Offline Purchase 2 comScore. “How Online Advertising Works: Whither The Click?” Available at: http://www.mediametrix.com/Press_Events/Presentations_Whitepapers/2008/How_Online_Advertising_Works_Whither_The_Click Chart 4: Post Click and Post Impression Conversions Source: MediaMind Research. Data Q3 2009 to Q2 2010, Standard Banners, worldwide. 20.4% 79.6% Post Click Conversions Post Impression Conversions
  8. 8. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 8 The 4 rules of success Obviously, great results call for exciting and visible creative, eye-catching images, witty copy and a powerful call to action. Getting these things right is the aim of the creative agency. Yet, these are campaign-specific qualities, which are hard to generalize. Nevertheless, there are some other rules of thumb that are likely to enhance the performance of almost any Standard Banner. MediaMind Research has sifted through hundreds of thousands of banners to see what works and what doesn’t. Chart 5: Standard Banner Performance by Environment Conversion Rate ClickThroughRate 0.35% 0.35%0.30%0.25%0.20%0.15%0.10% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% Kids IM Finance Music Sport LifestyleSocial Network Home Page Mail Other News Games Weather Travel Technology Maps Auto Health and Beauty EntertainmentAverage Average Source: MediaMind Research. Data Q3 2009 to Q2 2010, Standard Banners, worldwide. 1 Focused content – superior results Browsing specific content is a powerful indicator of user’s areas of interest. For example, visitors of automotive websites are more likely to be looking for a new vehicle, or visitors of a tech site are more likely to be early adopters of new gadgets. In direct response, serving an ad to users exactly when they show interest in a product may be a powerful way to boost Chart 5 analyzes Conversion Rate, x-axis, and CTR, y-axis, by site groups and environments. Groups at the upper right quarter of the chart are both higher than average Conversion Rate and higher than average CTR. These higher performing sites contain focused content such as automotive, technology and travel. On the other hand, more general environments such as social networks and lifestyle tend to have lower Conversion Rate and CTR.
  9. 9. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 9 Chart 6: Standard Banner Ad Size and Performance Source: MediaMind Research. Data Q3 2009 to Q2 2010, Standard Banners, worldwide. 1.2% 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% CTR/ConversionRate Size(Pixels) 88x31 120x90 234x60 160x90 125x125 300x60 429x43 180x150 468x60 300x100 250x250 728x90 120x600 300x250 336x280 160x600 930x180 300x600 425x600 640x480 Click Through Rate Conversion Rate Size (Pixels) 2 Larger ads – higher traffic In Rich Media, visibility stems from various creative features such as the use of flash and video. For Standard Banners, visibility is largely determined by the size of the banner. Bigger online real estate yields higher visibility and increases the likelihood that users click or convert after seeing an ad. Chart 6 shows that larger Standard Banners tend to achieve both a higher Conversion Rate and a higher CTR.
  10. 10. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 10 Chart 7a & 7b: Creative Optimization CTR +73% CTR 0.14% 0.12% 0.10% 0.08% 0.06% 0.04% 0.02% 0.00% Other Automatic Optimization ConversionRate +40% Conversion Rate 0.18% 0.16% 0.14% 0.12% 0.10% 0.08% 0.06% 0.04% 0.02% 0.00% Other Automatic Optimization 3 Automatic Creative Optimization – improved sales generation Creative Optimization enables advertisers to leverage the wisdom of the crowds to find better creatives that engage users. By constantly comparing the results from each version of the ad, Creative Optimization will serve the most effective ads. It is a learning algorithm that receives constant feedback from actions that users take while interacting with the ad. The algorithm changes the creative depending on the users’ feedback and can display the versions of creatives that are more likely to receive clicks, conversions, interactions or Dwell. Creative Optimization assists advertisers who don’t have to guess which creative is better or which image, copy, or font to consider. Advertisers can upload all of their creative ideas and let the algorithm serve the versions that users respond to the most. Creative Optimization can even differentiate between minute differences among similar versions. Imagine two calls to action: “Click here for a one dollar discount” and “Click here for 10% discount.” Even if the two are financially equivalent, one may be able to generate more clicks. Without Creative Optimization, by the time you choose the right version that works the best, it may be too late to make any significant impact on the campaign’s overall performance. However, with Creative Optimization, the algorithm can select the most effective version in real time. Advertisers can then reduce the risk of running unsuccessful creatives, and take a bolder and more innovative approach to online advertising. Results indicate that Creative Optimization actually works. An analysis of campaigns that used Creative Optimization in the past year indicates that they achieved 73% increase in CTR as compared to other Standard Banners and a 40% increase in Conversion Rate. Source: MediaMind Research. Data Q3 2009 to Q2 2010, Standard Banners, worldwide.
  11. 11. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 11 4 Retargeting the underexposed – getting your message across Effective frequency is the average number of times that the prospect is exposed to the message to maximize the likelihood that he or she takes action. In practice, effective frequency means that users have to be exposed to the marketing message several times before going down the marketing funnel to the intent to purchase and ultimately to a purchase. At the first and second exposure, users are typically still in the awareness phase and only after more exposures do they slide down the funnel to favorability, intent to purchase and finally purchase. At first glance, repetition may seem wasteful – why waste another impression on a user who did not respond the first time? However, it is the underexposure and overexposure that are actually wasteful. Underexposed users remain at the top of the funnel and may not take action following the marketing message, preventing the campaign from realizing its full potential. Overexposed users have seen enough exposures to act on the message and any additional impression may not have incremental effect, or worse, it may actually annoy users. As Chart 8 indicates, users are more likely to click on an ad that they have already seen. In addition, CTR almost does not decline until the fifth exposure. The challenge is that studies by MediaMind Research show over and over again that the majority of online users are underexposed. An analysis of hundreds of airline campaigns served by MediaMind show that an average 61% of users received only one exposure over the campaign’s lifetime, while an overwhelming majority of 82% of users received three impressions or less. Chart 8: Airline CTR by Frequency - Standard Banners Source: MediaMind Reaserch. Data Q4 2008 to Q3 2009, Airlines, Worldwide. 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% ClickThroughRate Frequency of Exposure Average 1 2 3 4 5
  12. 12. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 12 This problem is exacerbated by the difficulty of increasing exposure frequency via traditional media buying. Online users are highly unpredictable, and browsing patterns change constantly. Throwing more impressions at the problem may be wasteful and expensive, as it increases frequency to some, but more likely reaches new users and actually creates more underexposed users. Enter Retargeting. In Retargeting, users who were previously exposed to the campaign, and are now located on a site linked to the exchange can be served another exposure. This is a user specific solution that serves impressions only to those users who are underexposed, to make sure that they have the opportunity to go down the funnel, thus complementing the traditional media buy. Chart 9: Average Frequency in Airline Campaigns by Cookie Data Source: MediaMind Research. Data Q4 2008 to Q3 2009, Airlines, Worldwide. 1 2 3 4 5 or More
  13. 13. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 13 Benchmarks Overview The following benchmark tables provide a summary of the results of campaigns that were served by MediaMind between Q3 2009 and Q2 2010. To produce these benchmarks, MediaMind Research analyzed the results of over 200 billion impressions delivered in six different regions and more than 50 different countries. Overall global CTR is 0.21%. Rich Media tends to be X3.5 higher CTR as compared to Standard Banners—0.32% as compared to 0.09%. As far as regional differences are concerned, there is a clear rule of thumb. If you are a former English speaking British colony, your CTR and Dwell are likely to be lower. Thus, the US, Canada, Australia and New Zealand have lower CTR performance as compared to other regions. This is mainly due to differences in user behavior and market maturity. Chart 10: Standard Banner and Rich Media by Region ClickThroughRate 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Australia and New Zealand North America East Asia South Asia Europe Latin America Rich Media Average Standard Banner AverageRich Media Standard Banner Source: MediaMind Research. Data Q3 2009 to Q2 2010.
  14. 14. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 14 Chart 11: Regional Rich Media Performance 60 55 50 45 40 35 30 0% 2% 4% 6% 8% 10% 12% AverageDwellTime(Sec) Dwell Rate North America East Asia Europe South Asia Latin America Australia and New Zealand Source: MediaMind Research. Data Q3 2009 to Q2 2010. Latin America, South Asia and Europe tend to have the highest Dwell Rate, while Latin America also has the highest Average Dwell Time. Europe tends to have a significantly higher Dwell Rate as compared to North America, Australia and New Zealand, mostly due to differences in user behavior, though in part could be seen in differences in current publisher restrictions. The benchmark tables contain benchmark averages on interactions, Dwell, clicks, expansions and video metrics. Data is broken down by formats, sizes and verticals. The next 46 pages contain information on 6 regions and 38 countries. The last two pages contain a full description of each vertical and a definition for each of the metrics used. One important caveat about using these benchmarks is that they only present the average performance, while the deviation in performance between ads is very large. We have tried to slice the data into as many categories as possible in order to assist users in finding the most relevant benchmarks. Still, the averages contain campaigns that are different in their nature, goals and execution. Therefore, these benchmarks should be used as a reference only, and not with the aim of trying to “beat the benchmark.” retweet this
  15. 15. MediaMind Global Benchmark Report Standard Banners – Non-Standard Results 15 Regional benchmark tables
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