Greenchip competes against banner ads with e-mail concept

An e-mail advertising medium, which backers claim will replace ’dying’ banner advertising, is to launch in the UK next year.

An e-mail advertising medium, which backers claim will replace

’dying’ banner advertising, is to launch in the UK next year.



Greenchip Investment, an Ofex-listed company, will start looking for a

sales and marketing director and sales team to sell the new concept to

European advertisers in around six weeks’ time.



The medium, yet to be named, will be a version of the US outfit,

Megachain, which launches in the US next month. Megachain works by

recruiting ’agents’ - anyone with an e-mail address who is willing to

receive ad details from ’vendors’.



Agents will select offers and forward them on. Every time the e-mail is

clicked through to the advertiser’s site, the agent will receive a

commission from the vendor.



Subscription to the service will be free for advertisers, who will only

have to pay the agent if the recipient of the correspondence clicks on

the ad. However, Megachain is yet to announce the names of any vendors

or reveal how many agents have signed up.



According to Greenchip’s research, banner advertising is ’rapidly

reducing’ in its effectiveness. It says there has been a significant

fall in click-through rates (CTRs), from 2 per cent to under 0.5 per

cent in the last 12 months.



’Evidence suggests that the sheer volume of banner advertising is

annoying a lot of new users,’ said Jonathan Haswell, new technologies

analyst at Greenchip Investments, who will initially oversee the UK

venture.



However, new-media analyst Fletcher Research said some campaigns get

CTRs as high as 35 per cent.



Haswell said candidates for the top sales job must be ’highly internet

literate.’ He added that it was too early to say how many sales people

he was looking for.