Talking with my friend working for the ad agency, I was surprised by the
price of placing a banner ad on the YouTube's front page. According to my
friend, it costs $60,000 a day on weekends and $40,000 a day on weekdays to
place a banner ad on the YouTube's front page (only on Japan's YouTube front
page). It is much more expensive in the States. The article
mentioned that it costs $200,000 to place a banner ad in front page of the
States YouTube. As well as the paid search, the Google appears to raising a lot
of money from the banner ads. I was wondering whether this banner
has the value the Google is charging. Considering the number of traffics the
YouTube have everyday, the price might be reasonable, but it is still hard to tell whether the firms are gaining enough profits out from it.
Browsing through the web I found this article
that compares the ROI of paid search and banner ads. The article states that paid search has much higher ROI, where banner ads amounted to four times the
cost of paid search. Just looking at this article, paid search seems
much more cost effective, however, I think it really depends on the type of business. The paid search is affordable to various type of businesses from
small to large, but the banner ads seems to target the larger businesses especially to the business related to broadcasting or apparel. To
prove the point, ABC has their banner ad on today’s YouTube’s front page. The Google is really doing a good job of offering different types of ads to satisfy multiple needs.
In the future, I wonder which ads will be the trend of the internet marketing or new form of internet ads might emerge by that time.
Banner ads have their place, what we're talking about here is impressions - this is important for branding and awareness. So a "takeover" is usually done at an opportune time that make sense in relationship to your business cycle. If you are looking for raw ROI conversions PPC is the way to go.
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