NEW YORK (MarketingClick/Reuters)–The number of unique vertical Internet ads surged by almost 70% in the fourth quarter, as publishers sought to boost online advertising revenues, according to a new report published Monday by research firm Jupiter Media Metrix.
Web sites have been looking for ways to become more attractive to advertisers, who have been disappointed with response rates to traditional horizontal Internet banner ads.
However, the Jupiter report said the return on investment for advertisers from the vertical online ads, which are more expensive than their horizontal counterparts, remains uncertain.
According to Jupiter Media Metrix’s AdRelevance unit, vertical online ads cost advertisers $54 for 1,000 impressions–almost twice as much as full-size horizontal banner ads, which cost $28 for 1,000 impressions. A computer user viewing an ad counts as one impression.
It said the average cost of a full horizontal banner fell to $28 from $31 for 1,000 impressions, due to rising ad inventory, falling response rates for direct marketers and a renewed emphasis on a return on investment.
“Publishers are clearly experimenting with new and larger ad sizes in an attempt to increase online advertising revenues in what is undeniably a soft market,” said Christopher Todd, a Jupiter analyst.
“However, bigger ads don’t necessarily mean better results for advertisers–especially over the long term. A great deal of work still lies ahead to unilaterally identify and communicate the true value proposition of online advertising as a medium,” he said.
The research also said that vertical banners received 20 percent of all ad impressions during the fourth quarter–a total of 1.9 billion impressions–while the full horizontal banner continued to be the most common online ad format with 36 percent of impressions.
