Commentary

Banner Ads Still Lead Monetization Strategies

by Erik Sass , Staff Writer @eriksass1, August 21, 2015

While there is no shortage of people ready to declare display ads obsolete in light of their low click-through rates, they still dominate monetization strategies for online publishers, according to a new survey of publishing execs conducted by Hubspot.

The results, summarized in its “Digital Publishing Benchmarks Report,” show that alternative strategies like paid subscriptions have been embraced by a small minority of publishers.

Currently, Web site banner ads are employed by around 80% of the publishers surveyed by HubSpot, while email banner ads and native content are the next most popular, at around 70% each.

Further down the totem pole were event sponsorship, lead generation services for advertisers, and classified listings and directories, all employed by less than half the publishers surveyed.

One in five publishers has moved into e-commerce, and just 10.9% of respondents said paid subscriptions were their main revenue producer. Publishers identified sponsored content and native advertising as one of their main future growth areas, with respondents predicting its value will jump by 55% over the next six months, making it a bigger chunk of their business than traditional banner ads.

Events are another promising area for future growth, with their value to publishers expected to increase around 40%.

Most publishers think print advertising revenue will decrease in value; classified listings and directories are also expected to decline.

The full report, with more detailed statistics, is available for download from the HubSpot Web site here.

ecommerce, publishing, revenue

4 comments about "Banner Ads Still Lead Monetization Strategies".

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Corey Elliott from Borrell Associates, August 21, 2015 at 4:35 p.m.
Link?
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Ed Papazian from Media Dynamics Inc, August 21, 2015 at 6:29 p.m.

Assuming this is correct, it's not at all surprising as the vast majority of digital ads are not branding ads. Banners aren't going to cut it for most branding campaigns.

Juliana Nicholson from HubSpot, August 24, 2015 at 10:09 a.m.

Hey guys, you can download the full report here: http://offers.hubspot.com/hubspot-digital-publishing-benchmarks-snapshot-monetization

Mike Greco from Indy App Systems, September 1, 2015 at 7:16 p.m.

Banners, sadly, just don't work very well. But I'm in the camp that doesn't blame banners but the makers of banners. When you look at a few pockets of innovation that have made banners more attractive and engaging (You can see this to some degree with Apple's iAd resources and moreso with Airpush's Abstract Banners -- http://www.airpush.com/developers/#abstract-banners), clearly, there are opportunities for banners to work with some TLC. But you have to do your homework. Look for creative and aesthetically pleasing options, not just bland and uninspired banners. There are a lot of options out there for advertisers to be seen and engage. But most options available don't work. Why are they still picked? Because they have name recognition. You don't have to go with the "big guy" every time to get results. There are a ton of bootstrapped ad companies, platforms, and startups that can do more for you and your advertising than Google ever could. Do some homework and, depending on your situation, you'll find one that works for you!