• by September 13, 2000

By David Cotriss

Manhattan-Pacific Multimedia, a New York-based media research firm, has released a study showing that as frequency of exposure to banners increases, click-through rates decrease. This finding is at odds with the traditional notion that increased frequency leads to increased awareness and action.

"We basically found that if people are overexposed to ads, they are less inclined to click on them," says Craig Gugel, President and CEO of Manhattan-Pacific Multimedia. "After multiple exposures, banner ads can become completely worn out."

For the study, the firm analyzed Nielsen//NetRatings data for June 2000, studying 35 popular domains and the effects repeated ad exposures had on those domains. Exposures of the heaviest users on those sites were correlated with the overall site click-through rates. This gave a curve, or trendline, of where frequency of exposure met with click-through rate.

"What this tells us is that it's important to make creative more compelling and spread it over more sites, reducing frequency and increasing reach," says Gugel. "It's up to agencies to better plan campaigns." A key example is when the same ads appear on multiple sections of a site. This can cause the surfer to tune out the messages. The "wear-out" factor is compared to offline media, where viewers learn to skip over or ignore TV commercials with excessive exposure, for example.

Gugel adds that excessive online advertising could damage the relationship between the advertiser and customer. The point is well taken considering the challenge of developing a loyal and profitable customer base online. Online ads are often seen as a nuisance to surfers, perhaps more so than offline.

Media buyers and planners must keep these factors in mind since they have the power to control this balance to a great extent. The debate over frequency is an ongoing one. The Internet is very much a direct-response medium, and as such, results can be determined quickly. Immediate lack of response to offline direct response ads often indicates trouble, and this study indicates online ads are similar in this regard. Perhaps only after a number of online advertisers stumble and fall will this point be driven home.

- MediaDailyNews Staff Writer David Cotriss may be reached at DCotriss@mediapost.com