Yahoo ditches banner ads, others may follow suit

The rise of mobile browsing means people are using devices with smaller screens and no room for clunky banner ads. Yahoo is ditching banner ads completely by encouraging marketers to buy "Stream ads"--a term the company uses for their native ad placements.

Digiday's John McDermott says that banner ads have "long been a point of contention in the ad industry," and the argument about their effectiveness is now reaching a fever pitch as more consumers use mobile devices to browse the Internet.

Selling banner ads has helped companies, especially Yahoo, become what they are today. Now, McDermott says, Yahoo is "looking to move away from the very format it inflicted on the world as it continues to adapt to the mobile age."

Yahoo wants to replicate the success of Facebook and Twitter with native advertisements. Since the ads are "embedded into a stream of content," according to McDermott, consumers are more engaged and more likely to click on an ad.

How are enterprises coming along with the transition away from banner ads? Not so great, according to Digiday's Jack Marshall in an article sponsored by the mobile ad company Celtra. "Mobile's combination of poor targeting and tracking capabilities and lackluster creative opportunities have given advertisers no real reason to invest in the medium," Marshall says.

However others are doing in the enterprise, Yahoo is pushing forward with the Stream ads initiative. Ad inventory is relatively low due to cheaper prices, according to Digiday, but the company is hopeful for the success of Stream ads because of higher engagement rates.

Marshall offers advice in his article for companies still struggling with mobile ads. "The takeaway for publishers? Try something new, agencies say. There's little to lose at this point." 

For more:
- read McDermott's Digiday article
- read Marshall's sponsored article

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