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The Kelsey Report® Advisory

SME Global's Formula for Localized Banner Ads
Bobbi Loy-Luster , 6/28/2002

Issue: SME-GS Shifts to Pay-for-Performance on Geotargeted Banner Ads

News: It wasn't very long ago that analysts were predicting a sea change in which businesses were going to shift significant amounts of money to Internet banner advertising. Of course it hasn't quite worked out that way.

Findings from Wave V of The Kelsey Group and CONSTAT Inc.'s Local Commerce Monitor research indicate that just 4 percent of small businesses use banner advertising as part of their advertising mix. By contrast, nearly 70 percent of small businesses that advertise say they use a "telco Yellow Pages." The fact that so few small businesses have utilized banner advertising is tied to the fact that banners have typically not met the needs of small-business advertisers.

In the past, banners were expensive, carrying a significant cost per thousand (CPM) rate. They were also generally unable to reach highly targeted local geographies. But SME Global Solutions (SME-GS), a reincarnation of CMGI's Flycast and Engage businesses, is now working aggressively to solve both of these challenges.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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