29/10/2024
Did you know, digital banner ads are turning 30?
Thanks to AdNews Australia
On October 27, 1994, the first banner ad went live on Wired Magazine’s website, HotWired.com, and the world’s digital advertising landscape changed forever. Created by AT&T, that simple, clickable banner started a multi-billion-dollar industry that has evolved drastically since.
In those early days, banner ads were experimental and lacked standardisation. Lexlab’s head of digital, Maija Gwynn, remembers working during the UK’s dotcom boom, when ad teams created small banners wherever space allowed, making use of the massive budgets being funnelled into “new media.”
Her team at Ninemsn was among the first to monetise leftover ad space using a cost-per-acquisition (CPA) model, a novel revenue stream back then. At that time, premium ad spaces could command CPMs of up to $100, a stark contrast to today’s prices, where increased competition has pushed prices down to under $10.
While early ads saw a clickthrough rate (CTR) of 44%, user behaviour has since shifted, with today’s banners averaging CTRs below 1%. However, many adtech experts agree that the format has stood the test of time, continuously adapting to meet shifting demands.
As banners evolved, they advanced from static images to formats that could support rich media, real-time bidding, and interactive elements. Today, banners use data, programmatic buying, and AI to reach audiences more precisely than ever.
The banner ad’s journey reflects digital advertising’s growth, progressing from basic images to immersive, personalised experiences that engage users in meaningful ways. Now enhanced with AI, augmented reality, and adaptive formats, banner ads continue to connect brands with audiences, underscoring the industry’s commitment to innovation and user-centered experiences in an ever-evolving digital world.
Looking for top industry experts? We can help. Lexlab combines meaningful research with expert implementation support to maximise campaign performance, answering the why and how of digital advertising. Contact us today 📞
https://bit.ly/humblebannerturns30
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