Posted by: Jenny Bachner, Media Specialist

We’ve always known that banner ads provide good overall branding exposure for a company, but what we really need to know is how effective they are in driving click-throughs for lead generation. And it seems in the past year we’ve witnessed a decline in users clicking through on ads intended to drive conversions.

This is due in part to the lack of targeting techniques available in early 2008, and I also think that banner blindness set in when the users’ need for information was not being met by 90% of the ad units served to them. However, with the integration of more useful targeting techniques, such as behavioral and demographic targeting, perhaps we’re seeing the beginning of an upward trend in click-though rates for banner ads. Take a look at these results from the “Search Engine Marketing and Online Display Advertising Study” recently posted to eMarketer.com:

As people begin to find ad units served more relevant and actually find value in them, they’ll begin to pay attention and be more likely to respond again. I have already witnessed an increase in click-through rates on niche websites that are able to contextually target ad units, and I look forward to following this new trend as we progress through 2009.