Findings from a recently released report show that online ads appearing “above the fold” are nearly seven times more effective at generating a click through than those appearing “below the fold” and that the more times someone sees an ad the more likely they are to click through and take action.

The report, issued by Casale Media, was based on their analysis of nearly two billion ad impressions which were generated during the 1Q 2011. Titled “The Link Between Ad Placement & Performance,” the report found…

Much like the age old real estate axiom, it’s all about location, location, location.

The earlier the better as ad effectiveness plummets as the user progresses through their online viewing.

And confirms another marketing axiom that states a consumer will not act until he/she has seen/experienced a minimum of nine marketing messages…

The report also shared some additional considerations which I think are extremely important and relevant…

  • Clutter: an excessive number of ads on a page create visual noise that even the best creative will have trouble overcoming. Share of voice (SOV) is reduced and hence the chance of being noticed.
  • Engaging content: users immersed in their experience (e.g. photo gallery) are all the more likely to ignore any secondary content (i.e. advertising).
  • Auto-refresh: some sites use an auto-refresh mechanism to force a page refresh at regular intervals. While this may help keep static page content current, it has a downside for advertisers, whose ads may be displayed in a vacuum should users step away from their screens while leaving their browsers open.

So what’s at stake for marketers and advertisers?

Well what’s at stake is whole lot of revenue when you consider that according to the Interactive Advertising Bureau (IAB), Q1 2011 set an all-time record in Internet advertising with $7.3 billion in revenues.

Then there’s the Facebook Factor… EMarketer predicts Facebook will overtake Yahoo in the U.S. market for online display ads, with revenue of $2.2 billion this year, vs. Yahoo’s $1.6 billion.

And don’t think for one second Google+ (Google Plus) won’t play a role in all this in the very near future, either.

Now, more than ever, it is imperative for marketers and advertisers alike to work closely with communications agencies who are experts at staying abreast of this ever-changing landscape, who live and breathe this kind of stuff, who can create, implement, and track online strategic marketing plans which are fully integrated into an overall marketing communications plan.

Sources: Casale Media, USA Today, Click Z, EMarketer, Location And Repetition Key To Online Ad Success