According to research by Harris Interactive, 46 per cent of US internet users say they ignore banner ads, and 17 per cent ignore search engine ads.
Just 1 per cent find banner ads helpful in making a purchase decision, and just 14 per cent claim to be influenced by paid search results.
Despite widespread belief that traditional media is dying, it still holds sway over the majority of US consumers, with 37 per cent admitting to being influenced by TV ads, and 17 per cent turning to newspaper ads.
Hoping to tap in to the popularity of TV ads, 87 per cent of brands have increased spending on online video ads, particularly pre-roll formats.
Reflecting the perceived ineffectiveness of display, the average rate card CPM across premium sites has dropped from £60 last year to around £20 this year as publishers scramble to hold on to brands shifting their spend to search and affiliate marketing.
Industry experts estimate that the average CPM for banner campaigns has fallen by approximately 25 per cent to £1.50.
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