Banners on the Decline

The future face of Web advertising, specifically the banner ad, is one of the may topics addressed in the eAdvertising Report published by eMarketer and Advertising Age.

[IC_ARTICLE_OBJECT [SHOW IC_Article_ID] “table1”] Banners accounted for 52 percent of all online ads placed in 1998, the report found, with sponsorships taking 40 percent, and interstitials taking 3 percent.

The eAdvertising Report predicts a shift of advertising dollars away from banners toward sponsorships. By year-end 2001, sponsorships will overtake banners as the top online advertising vehicle by a 58 to 26 percent margin (see table).

Exclusive site partnerships offer better targeting capabilities by allowing sponsors to integrate themselves within the content and services a site offers, the report found.

As further proof that companies will move away from banner ads, the report also found that by 2001, 10 percent of Web advertising dollars will be spent on a new format or technology that doesn’t exist yet. The new model may arrive in the next 6-18 months, the report found, and will probably cut into the dollars currently spent on banners and interstitials.