Pay-For-Placement Replacing Banners Easier To Reach Target Use of paid search engine listings allows marketers clear measurement of ROI.(INTERNET & TECHNOLOGY)

Byline: GARY M. STERN

Can pay-for-placement ads succeed where banner ads failed? While most research says banner ads have had minimal impact online, pay for placement has shown it can generate a positive return on investment.

A study by Jupiter Media Metrix and Harris Interactive of 2,000 companies, mainly small businesses, showed pay for placement provided "an affordable way to drive results," said Marcia Lowenstein, senior analyst at Jupiter Media Matrix. The study was done in July.

Pay for placement lets companies "match customers and prospects with desired information," said Lowenstein. For example, someone interested in buying a PC types "computer" into a Web search field. The person then sees a listing of other Web sites with information about computers.

This system lets marketers reach target customers that are interested in their products.

Using pay for placement, companies bid to be listed on such search engines as Ask Jeeves, Sprinks, Overture, LookSmart, MSN, AOL and Yahoo. Companies pay the fee, which ranges from 5 cents to $1.80, only when the customer clicks on the link for the advertiser's site.

Some sites inform consumers how much a company pays for the referral, amounting to full disclosure. At overture.com, a consumer who types in "sporting goods" sees 82 companies that pay 1 cent to 48 cents per click. Pages of nonpaid results for the query "sporting goods" follow the paid listings.