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Research brief




The link between
ad placement &
performance
In this paper, Casale Media demonstrates with the support of
hard data captured on its own network, MediaNet, that
advertisers need to carefully scrutinize where exactly their ads get
displayed to maximize the efficiency of their media spending
online.


Executive summary
To advertisers disconcerted by the abundance of channels available to deliver online display campaigns,
this study offers simple pointers based on the hypothesis that not all impressions are created equal.

Three criteria relating to the serving of online banner ads were examined: placement relative to the page
fold, moment of delivery within a user’s session and frequency of exposure.

Significant performance lift was observed for delivery above-the-fold, early session placement and repeat
exposure of at least five times, leading to the suggestion that careful review of a supplier’s offering in this
light may provide an effective way for advertisers to minimize media waste and improve their campaign
ROI.




Click or call to learn more: casalemedia.com | 1.888.227.2539
Research brief


Introduction
Few would argue with the premise that advertising is all about capturing the attention of one’s audience.
Yet online, some advertisers tolerate the distribution of their ads to places where they have virtually no
chance of ever being seen, let alone clicked, remembered or even subconsciously noticed.

This waste of media not only costs in terms of the time and budget devoted to creative production, but it
also impacts raw campaign ROI. And in these times of intense competition and economic stress, where
the motto “do more with less” increasingly guides spending on everything from corporate entertainment
to energy consumption, marketing can not afford to buck the trend.

In an attempt to provide some guidance as to how to avoid such waste, we set out to test the hypothesis
that not all impressions are created equal, by evaluating the effect of three ad placement variables (page
positioning, view order and frequency) on campaign performance (quantified in terms of click and action
rates).



Methodology
The study findings were compiled using a random sample of almost two billion impressions generated
during the first quarter of 2011. All impressions sampled went to performance-based campaigns running
Flash-based creative. All creative clicked through to simple, one-step actions (e.g. newsletter sign-ups).
Click and action counts were recorded by Optimax, Casale Media’s proprietary ad serving technology.

Three ad delivery parameters were examined in an attempt to evaluate their influence on the number of
resulting clicks and actions:

       Page positioning (above/below-the-fold): advertising delivered above the website fold is visible
        as soon as the page is loaded, i.e. scrolling is not required. We endeavoured to establish whether
        or not placement of an ad above the fold resulted in any significant performance lift for
        advertisers.

       View order: ads are assigned a ranking according to their order of delivery within a user’s session,
        e.g. the very first ad to be delivered is considered to be in “first impression” position. View order
        relates to where in the “tail” inventory is positioned, e.g. early impressions are considered to be
        “short tail”, while impressions delivered late in a user’s site browsing session would be considered
        “long tail”.

       Frequency: this refers to the number of times an ad is shown to a user over a fixed period of time.
        We examined the data to establish the effect of repeated ad exposure on campaign performance.




Click or call to learn more: casalemedia.com | 1.888.227.2539
Research brief


Results & interpretation
Above-the-fold is a must for branding
Our analysis revealed that when displayed above-the-fold, ads are almost 7 times more effective at
generating a click than ads delivered below the fold. The ratio is virtually identical when considering
whether an action was completed. These results support the findings of numerous studies based on eye
tracking data, according to which users spend the vast majority of their time looking at information
positioned within a page’s initially viewable area.



                     Do ads delivered above-fold get better traction?


                     Above
                                                                                17.9
                                                  9.5


                    Below
                                 2.6                                         Click index1
                           1.4                                              Action index2

                    Page position      Impressions                 Clicks              Actions
                    Above fold         1,728,347,297            3,094,349              164,169
                    Below fold            54,087,739               14,264                  742
                    Unknown              120,402,698               17,705                  772
                    Total              1,902,837,734




Click or call to learn more: casalemedia.com | 1.888.227.2539
Research brief


The early bird catches the worm
We segmented the view order of the impressions sampled for this study into eight different tiers ranging
from 1st-2nd position to 255th and beyond. The data corresponding to each tier shows that both click-
through and action rates decrease rapidly as users progress through their online journeys: ads ranking in
3rd to 6th position see their click and action rates plummet compared with ads showing as 1st/2nd
impressions (almost 3-fold and more than 4-fold respectively).


                     Do ads shown early on perform better?


                     1st – 2nd
                                                                                         32
                                                           20.3


                    3rd – 6th
                                                 12
                                     4.7


                    7th – 14th                                                Click index1
                                    9.5
                          2.6                                                Action index2

                    View order             Impressions              Clicks               Actions
                    1st – 2nd                 655313282           2095995                 133175
                    3rd – 6th                 398362243            479545                  18841
                    7th – 14th                286068413            271858                   7468
                    15th – 30th               202354583            162232                   3305
                    31st – 62nd               123788168             67707                   1124
                    63rd – 126th               47171268             14327                    216
                    127th – 254th              10865305              2231                     36
                    255th +                     4424035                454                     4
                    Total                  1,728,347,297



This data suggests quite clearly that as users are exposed to more and more ads within their browsing
session, those ads become less and less effective at capturing the user’s attention, to the point of oblivion
(a.k.a. banner blindness). The earlier an ad is shown to a user, the more likely it is to be noticed and
therefore, effective.
This echoes a common practice in print advertising, where “early” pages, situated near the main editorial
content, carry a higher advertising rate. Interestingly, the data above shows that there is still value to




Click or call to learn more: casalemedia.com | 1.888.227.2539
Research brief

extract even from very low ranking impressions. Although these will makeup some proportion of any
inventory, they should be excluded from cases where an advertiser buys and values campaigns based on
exposure alone.

Repetition pays
It has been said that it takes nine times for a marketing message to move a prospect from a state of total
apathy to purchasing readiness. The results of this study certainly lean in the same direction, as both click
and action rates dramatically increase, almost 12- and 14- fold respectively, for ads that have been shown
5 times and over.


                     What is the effect of repetition?                             2095995



                     ≥5
                                                                           174.4
                                                 92.5


                    ≤4                                                         Click index
                                14.7
                          6.4                                                Action index


                    Ad exposures       Impressions                Clicks                 Actions
                    ≤4                    120402698               17705                      772
                    ≥5                  1782435036              3108613                   164911
                    Total              1,902,837,734




As in offline advertising, several exposures are required to achieve some degree of familiarity and to
register with users. However, it is also a well known fact that over-frequencied ads can be
counterproductive. To mitigate the effect, “frequency capping” mechanisms may be implemented to
limit the number of times an ad is delivered to the same user or “frequency optimization” to determine
the optimal cap for a specific campaign.




Click or call to learn more: casalemedia.com | 1.888.227.2539
Research brief



Further considerations for branding-focused advertisers
High visibility has its caveats, as we already know from phenomena like “banner blindness” and “over-
frequency.” Therefore, paying particular attention to the environment where ads eventually appear is
essential to the success of any branding exercise online, as even when visible, impressions can still be
wasted:

          Clutter: an excessive number of ads on a page create visual noise that even the best creative will
           have trouble overcoming. Share of voice (SOV) is reduced and hence the chance of being noticed.

          Engaging content: users immersed in their experience (e.g. photo gallery) are all the more likely
           to ignore any secondary content (i.e. advertising).

          Auto-refresh: some sites use an auto-refresh mechanism to force a page refresh at regular
           intervals. While this may help keep static page content current, it has a downside for advertisers,
           whose ads may be displayed in a vacuum should users step away from their screens while leaving
           their browsers open.


Final thoughts
The fragmented nature of the online display advertising industry does not make it easy for advertisers to
devise effective plans for their branding strategies online. However, relying blindly on a single indicator,
such as a reach table, or technique, such as hyper-targeting, could prove a mistake.

The wisdom to gain from this study is that the basic requirement of getting an advertising message in
front of eyeballs should not be taken for granted: Without delivery above-the-fold, early session
placement and frequency optimization, campaign performance will suffer.

Diversification might mitigate the risk, but most of all, vigilance should be applied: Only through careful
assessment of a potential partner’s inventory acquisition and brand safety policies will advertisers make
the most efficient use of scarce resources.


1
    click index calculated as (number of clicks/number of impressions)x10000
2
    action index calculated as (number of actions/number of impressions)x100000




Click or call to learn more: casalemedia.com | 1.888.227.2539

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The Link between ad placement and performance

  • 1. Research brief The link between ad placement & performance In this paper, Casale Media demonstrates with the support of hard data captured on its own network, MediaNet, that advertisers need to carefully scrutinize where exactly their ads get displayed to maximize the efficiency of their media spending online. Executive summary To advertisers disconcerted by the abundance of channels available to deliver online display campaigns, this study offers simple pointers based on the hypothesis that not all impressions are created equal. Three criteria relating to the serving of online banner ads were examined: placement relative to the page fold, moment of delivery within a user’s session and frequency of exposure. Significant performance lift was observed for delivery above-the-fold, early session placement and repeat exposure of at least five times, leading to the suggestion that careful review of a supplier’s offering in this light may provide an effective way for advertisers to minimize media waste and improve their campaign ROI. Click or call to learn more: casalemedia.com | 1.888.227.2539
  • 2. Research brief Introduction Few would argue with the premise that advertising is all about capturing the attention of one’s audience. Yet online, some advertisers tolerate the distribution of their ads to places where they have virtually no chance of ever being seen, let alone clicked, remembered or even subconsciously noticed. This waste of media not only costs in terms of the time and budget devoted to creative production, but it also impacts raw campaign ROI. And in these times of intense competition and economic stress, where the motto “do more with less” increasingly guides spending on everything from corporate entertainment to energy consumption, marketing can not afford to buck the trend. In an attempt to provide some guidance as to how to avoid such waste, we set out to test the hypothesis that not all impressions are created equal, by evaluating the effect of three ad placement variables (page positioning, view order and frequency) on campaign performance (quantified in terms of click and action rates). Methodology The study findings were compiled using a random sample of almost two billion impressions generated during the first quarter of 2011. All impressions sampled went to performance-based campaigns running Flash-based creative. All creative clicked through to simple, one-step actions (e.g. newsletter sign-ups). Click and action counts were recorded by Optimax, Casale Media’s proprietary ad serving technology. Three ad delivery parameters were examined in an attempt to evaluate their influence on the number of resulting clicks and actions:  Page positioning (above/below-the-fold): advertising delivered above the website fold is visible as soon as the page is loaded, i.e. scrolling is not required. We endeavoured to establish whether or not placement of an ad above the fold resulted in any significant performance lift for advertisers.  View order: ads are assigned a ranking according to their order of delivery within a user’s session, e.g. the very first ad to be delivered is considered to be in “first impression” position. View order relates to where in the “tail” inventory is positioned, e.g. early impressions are considered to be “short tail”, while impressions delivered late in a user’s site browsing session would be considered “long tail”.  Frequency: this refers to the number of times an ad is shown to a user over a fixed period of time. We examined the data to establish the effect of repeated ad exposure on campaign performance. Click or call to learn more: casalemedia.com | 1.888.227.2539
  • 3. Research brief Results & interpretation Above-the-fold is a must for branding Our analysis revealed that when displayed above-the-fold, ads are almost 7 times more effective at generating a click than ads delivered below the fold. The ratio is virtually identical when considering whether an action was completed. These results support the findings of numerous studies based on eye tracking data, according to which users spend the vast majority of their time looking at information positioned within a page’s initially viewable area. Do ads delivered above-fold get better traction? Above 17.9 9.5 Below 2.6 Click index1 1.4 Action index2 Page position Impressions Clicks Actions Above fold 1,728,347,297 3,094,349 164,169 Below fold 54,087,739 14,264 742 Unknown 120,402,698 17,705 772 Total 1,902,837,734 Click or call to learn more: casalemedia.com | 1.888.227.2539
  • 4. Research brief The early bird catches the worm We segmented the view order of the impressions sampled for this study into eight different tiers ranging from 1st-2nd position to 255th and beyond. The data corresponding to each tier shows that both click- through and action rates decrease rapidly as users progress through their online journeys: ads ranking in 3rd to 6th position see their click and action rates plummet compared with ads showing as 1st/2nd impressions (almost 3-fold and more than 4-fold respectively). Do ads shown early on perform better? 1st – 2nd 32 20.3 3rd – 6th 12 4.7 7th – 14th Click index1 9.5 2.6 Action index2 View order Impressions Clicks Actions 1st – 2nd 655313282 2095995 133175 3rd – 6th 398362243 479545 18841 7th – 14th 286068413 271858 7468 15th – 30th 202354583 162232 3305 31st – 62nd 123788168 67707 1124 63rd – 126th 47171268 14327 216 127th – 254th 10865305 2231 36 255th + 4424035 454 4 Total 1,728,347,297 This data suggests quite clearly that as users are exposed to more and more ads within their browsing session, those ads become less and less effective at capturing the user’s attention, to the point of oblivion (a.k.a. banner blindness). The earlier an ad is shown to a user, the more likely it is to be noticed and therefore, effective. This echoes a common practice in print advertising, where “early” pages, situated near the main editorial content, carry a higher advertising rate. Interestingly, the data above shows that there is still value to Click or call to learn more: casalemedia.com | 1.888.227.2539
  • 5. Research brief extract even from very low ranking impressions. Although these will makeup some proportion of any inventory, they should be excluded from cases where an advertiser buys and values campaigns based on exposure alone. Repetition pays It has been said that it takes nine times for a marketing message to move a prospect from a state of total apathy to purchasing readiness. The results of this study certainly lean in the same direction, as both click and action rates dramatically increase, almost 12- and 14- fold respectively, for ads that have been shown 5 times and over. What is the effect of repetition? 2095995 ≥5 174.4 92.5 ≤4 Click index 14.7 6.4 Action index Ad exposures Impressions Clicks Actions ≤4 120402698 17705 772 ≥5 1782435036 3108613 164911 Total 1,902,837,734 As in offline advertising, several exposures are required to achieve some degree of familiarity and to register with users. However, it is also a well known fact that over-frequencied ads can be counterproductive. To mitigate the effect, “frequency capping” mechanisms may be implemented to limit the number of times an ad is delivered to the same user or “frequency optimization” to determine the optimal cap for a specific campaign. Click or call to learn more: casalemedia.com | 1.888.227.2539
  • 6. Research brief Further considerations for branding-focused advertisers High visibility has its caveats, as we already know from phenomena like “banner blindness” and “over- frequency.” Therefore, paying particular attention to the environment where ads eventually appear is essential to the success of any branding exercise online, as even when visible, impressions can still be wasted:  Clutter: an excessive number of ads on a page create visual noise that even the best creative will have trouble overcoming. Share of voice (SOV) is reduced and hence the chance of being noticed.  Engaging content: users immersed in their experience (e.g. photo gallery) are all the more likely to ignore any secondary content (i.e. advertising).  Auto-refresh: some sites use an auto-refresh mechanism to force a page refresh at regular intervals. While this may help keep static page content current, it has a downside for advertisers, whose ads may be displayed in a vacuum should users step away from their screens while leaving their browsers open. Final thoughts The fragmented nature of the online display advertising industry does not make it easy for advertisers to devise effective plans for their branding strategies online. However, relying blindly on a single indicator, such as a reach table, or technique, such as hyper-targeting, could prove a mistake. The wisdom to gain from this study is that the basic requirement of getting an advertising message in front of eyeballs should not be taken for granted: Without delivery above-the-fold, early session placement and frequency optimization, campaign performance will suffer. Diversification might mitigate the risk, but most of all, vigilance should be applied: Only through careful assessment of a potential partner’s inventory acquisition and brand safety policies will advertisers make the most efficient use of scarce resources. 1 click index calculated as (number of clicks/number of impressions)x10000 2 action index calculated as (number of actions/number of impressions)x100000 Click or call to learn more: casalemedia.com | 1.888.227.2539