While Mark Twain was talking about his own death, there is another reported death that I am thinking about.  Back in January 2009 I included a quote about banner ads being the next direct mail.  I mean no offense to direct mail but the implication was that the value of a banner ad was diminishing.  The belief was that banner ads were being replaced by social media, which is a disruptive technology much in the same way that e-mail marketing has replaced direct mail in many industries and situations.  Direct mail still is a valuable channel but it is being used more selectively than it once was.

Well reports of the death of the banner ad might be premature.  A recent study by eMarketer predicts that banner ad spending in 2010 will be up 8.2%.

Earlier this week I heard on Marketplace that the banner ad started 15 years ago.  On October 27, 1994 the web site Hotwired.com posted banner ads for Volvo, MCI, Club Med and 1-800-Collect. The click rate was 78%!   Those were the days.

In 2007, BusinessWeek reported that the average click rate on a banner ad was 0.2% according to Eyeblaster , a New York-based online ad firm.  According to Advertising Age, the click rate for display ads has dropped 50% in less than two years.

Today’s Wall Street Journal had the following comment by Colleen DeCourcy, chief digital officer at Omnicom’s TBWA:

“Banner ads will be the new junk mail.  More and more, reputable companies won’t be buying up the space around the Web sites you visit.  Clicking these ads will become less and less legitimate as brands will endeavor to do things that add more value to you in the social-media and customer-service space.”