A recent article by Andrew Schrock in the MIT Technology Review discusses how banner ads are effective even if online consumers never click on them. The article cites published research that suggests that even if people are explicitly ignoring your banner ads, they’re actually being implicitly exposed anyway. The research shows that even though most consumers don’t pay attention to banner ads or bother to click on them, something about the message still gets through and can be measured using “implicit memory” measures.

This was like deja vu all over again because more than a decade ago, media effectiveness guru Rex Briggs argued the very same thing, based on a widely cited industry study he did with Millward Brown.

It’s pretty easy to argue theoretically - and empirical research shows - that passive ads (TV, banner, you name it) may have some sort of persuasive impact even if people go out of their way to avoid paying attention to them. As Dan Mitchell observed in the New York Times, “Internet banner ads can work about as well as ads in traditional media.” (Uh, not exactly high praise.)

Yet, the idea that banner ads might work even if people don’t click on them completely misses the point of the power of the Internet as a communication medium!

Even granting that banner ads may have some impact on perception begs the question of what are the most effective ways to advertise in the new medium.

Banner ads are not the solution.

In my mind, the more interesting question is how companies can take advantage of the unique characteristics of the medium to enhance consumer engagement. The kinds of things innovative companies are doing incorporate ideas of engaging consumers in “conversations” that allow consumers high degrees of control and interactivity.

Companies have to stop thinking of the Web as a modern version of the old one-to-many broadcast model that pushes content (and ads) at passive consumers and, instead, start playing with the new media forms the medium allows.

For starters, take a look at what Kimberly-Clark has done with its Kleenex site http://www.kleenex.com/. This is just one good example of a traditional company taking advantage of Web 2.0 - it lets the customer into the conversation, it’s very engaging, and it’s fresh and original with constantly updating content - thanks to regular consumer updates.

This is how firms need to start thinking about online “ads.”

Banner ads so Web 1.0… ;)