It’s referred to by some industry commentators as ‘banner blindness’ – the process whereby website users unconsciously skip or ignore banner ads.
While the first banner ad managed to achieve a 44 per cent CTR, today, this figure sits at around 0.05 per cent. In other words, a marketer can expect five clicks per every 10,000 impressions achieved.
And according to the founders of media technology company WINR Marcelo Ulvert and Perry Lyndon-James, these numbers suggest the industry is in need of change.
That’s why they have created advertiser-funded paywall AdGate, a hybrid between the free ad-funded model and traditional paywalls.
Rather than traditional banner ads or a paywall, readers of the partner sites are presented with an interactive ad – usually a branding question – embedded partway into an article. They are able to unlock and instantly read the remaining content in the article in exchange for one-interaction with the advert.
Early data shows AdGate is achieving between 30 and 45 per cent engagement rates for partner publishers which so far include nextmedia, Interplay, Tribal Football and Dynamic Business.
According to Ulvert, it’s all about “valuing human attention and engagement with brands, rather than just impressions.”
The founders have called it a “win-win-win” for publishers, brands and consumers
“As far as the publisher is concerned, they’re getting better yield,” said Ulvert. “Therefore, they can fund their content more easily.”
“The advertiser is getting higher engagement and higher interaction rates, therefore they’re getting a better bang for their buck and evidence that a consumer or a