ABSTRACT
This chapter outlines what agencies perceive as the major problems facing Internet advertising measurement and pricing. It describes what agencies have been using to price, measure, and pretest banner ads rather than nonbanner promotional techniques, such as affiliate programs, referrals, or classifieds. Today, server-based technologies enable advertisers to display banner ads according to user profiles and interests and in ways that were not possible before. For most banner ads, the outcome could be lead generation, online inquiry, registration, order, or purchase. One of the principal elements that drive advertising in all media is ratings. In 1997, the Coalition for Advertising Supported Information and Entertainment (CASIE) and Future of Advertising Stakeholders (FAST) both published voluntary guidelines for the measurement of online advertising, including standard definitions of metrics. Finally, the chapter provides some initial insights on how agencies price, measure, and pretest Internet banner ads, as well as what they perceive as the problems in measurement.
