Monday, January 7, 2008

Building An Effective Banner Campaign

Banner advertising can dramatically help you increase traffic to your web site.
Banner advertising can be a very cost effective marketing solution and can help you to gain access to millions of internet users.It can also prove to be a huge waste of time, even creating a net loss rather than increasing your bottom line.So we'll try to guide you onto the path to true results and a very successful Internet Marketing campaign using banner ads.

Cost-per-Visitor: If you pay $10 per thousand impressions ($10/CPM), and you get a 2.0% click-through (20 visitors), your cost-per-visitor is $.50 ($10 per 20 visitors).

Cost-per-Sale: Now you know about what you're going to pay per visitor.Well, if 1 in every 20 visitors buys your product, your cost per sale is $10.00.

Total Sale Amount : $9.95 USD Paypal's Fee Amount : -$0.59 USD Net Profit Amount : $9.36 USD

So if each sale of your product produces a gross profit of $9.36, then your net profit per-sale will be -$.64 ($9.36 gross profit - $10 cost-per-sale). This campaign is not profitable!

As you can see, something has to change in order to make a profit.
-Paying too much for the banner space?

-Need a better click-through rate?

-Need to charge more for your product?

The truth is that only you have the information required to decide but at least at this point you're in a better position to make a qualified decision.

Return on Investment Ratios: Your return-on-investment (ROI), before non-marketing expenses, is 0.0% ($0.00 total net profits with a $10 investment).

Experiment by advertising on multiple sites or using different banners if your budget will allow it.

A few terms to know:
» CPM - Cost Per Impressions (The "M" comes from the Roman numeral for 1,000).
» CPC - Cost Per Click. You pay an agreed amount for each click-through to your site.
» Click-Through (CT) - A click on an ad which takes the viewer to another site.
» Click-Through Rate (CTR) - This is the number of people who click on an ad (banner or text link) divided by the number of displays of the ad, represented in percentages.Example: 500 people click on an ad that has been shown 10,000 times, which works out at: 500/10,000 X 100% = 5%.
» Run Of Site (ROS) - This means your banner will be displayed on all or most pages of the site.
Buying or Creating your own banners: You can find a graphic designer to create your banner or you can simply learn to design and build you own.We have done both on this site and our research shows almost equal results when using identical conditions.We're not going to give tutorials on banner design but we will offer a few tips to help get you started.

If you decide to purchase your banners: Do your research.There are many so called ' graphic designers' that have very little training or experience with any type of graphics much less internet marketing or banner advertising.

Get any promises or guarantees in writing.Keep in mind that anyone can setup shop online and many have no idea what they're doing to say the least.

Do it yourself banners: There are several options when it comes to creating your own banners.Again, we're not here to teach you how to design and build your own, just to guide you in the right direction.

Here are a few things to consider:
» Think through your design.
» Decide on a format.
» Flash or Animated.
» Image or HTML.
» The best banner size.
» Image load times.

for more info about tis topic visit:
http://www.extremesitepromotions.com/

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