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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.
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