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Internet Marketing

by: Mrs. Nicholas Streich

Internet Marketing MKTG 342

Marketplace > Radford University > Marketing > MKTG 342 > Internet Marketing
Mrs. Nicholas Streich
GPA 3.82


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This 23 page Class Notes was uploaded by Mrs. Nicholas Streich on Monday October 19, 2015. The Class Notes belongs to MKTG 342 at Radford University taught by Staff in Fall. Since its upload, it has received 42 views. For similar materials see /class/224670/mktg-342-radford-university in Marketing at Radford University.


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Date Created: 10/19/15
How Banner Ads Work by Tom Harris th39lwww39 If you39ve spent any time surfing the Internet you39ve seen more than your fair share of banner ads These small rectangular advertisements appear on all sorts of Web pages and vary considerably in appearance and subject matter but they all share a basic function if you click on them your Internet browserwill take you to the advertiser39s Web site But how do they work and why are they there Banner ads are usually relatively simple pieces of HTML code but their presence on the Web and their importance in Internetbased business is immense In this edition of How Stuff Works we39ll examine banner ads and their place on the Internet We39ll see how they work how advertisers rate their effectiveness and how you can use them to advertise your site or bring in revenue We39ll also examine the technology behind them and look at some ofthe different forms they can take By the end of this article you will be a banner ad expert What is a Banner Ad Over the past few years most of us have heard about all the money being made on the Internet This new medium of education and entertainment has revolutionized the economy and brought many people and many companies a great deal of success But where is all this money coming from There are a lot of ways Web sites make money but one ofthe main sources of revenue is advertising And one ofthe most popular forms of Internet advertising is the banner ad A banner ad is simply a special sort of hypertext link If you39ve read the How Stuff Works article quotHow Web Pages Workquot then you know how a basic text link works A bit of HTML code instructs a Web server to bring up a particular Web page when a user clicks on a certain piece of text Banner ads are essentially the same thing except that instead of text the link is displayed as a box containing graphics usually with textual elements and sometimes animation Because of its graphic element a banner ad is somewhat similar to a traditional ad you would see in a printed publication such as a newspaper or magazine but it has the added ability to bring a potential customer directly to the advertiser39s Web site This is something like touching a printed ad and being immediately teleported to the advertiser39s store A banner ad also differs from a print ad in its dynamic capability It stays in one place on a page like a magazine ad but it can present multiple images include animation and change appearance in a number of otherways Types of Banner Ads Like print ads banner ads come in a variety of shapes and sizes The Internet Advertising Bureau IAB specifies eight different banner sizes according to pixel dimensions A pixel is the smallest unit of color used to make up images on a computer or television screen The IAB39s standard banner sizes are shown on the following page The full banner 468 x 60 is by far the most popular but you will see all these variations all over the Web These are not the only banner ad shapes and sizes either but they are a good representation ofthe range of common banner ads There is no universal filesize constraint for banner ads but most Web sites impose their own limits on memory size usually something like 12K to 16K This is because banner ads add to the total file size ofthe page they appear on therefore increasing the time it takes for a browser to load that page 125 X 125 Pixels Square Button 120 X 90 Pixels Button 1 r A 120 x 60 Pixels Button 2 a 88 x 31 Pixels Micro Button em i or creative amohg banner ads The simpiesi banner ads fealure ohiy ohe Static GiF or JPEG image which is hnked otheau hi i h hi pay ad i ammaed motion 39 media banner ads 77 ads that use audio Video or Java and Shocmave programming These ba ner ads hie sizes BannerAd Objectives Advertisers generaHy hope a banner ad Wiii do one of two things deaHy a ViSitOrtO the publisher site du in a i ii i The hher the ViSitOr Faihng a Ckthrouah oi i iiihi ih h h ad ba cli ii i ii i i ad aiid befure EnaHu gme achEUmE a e e M e shuppmgfur hw r a m e m Rrand P PH f yuu re ehty tarhmaryyth 1 because at aeyemsmg rm PHHPHH aeyemsers rheasere bannerad seeeess Aeyemsers tank at 39 39 u m hemer aemweet m Pubhsher n a etem dew erar eeae Ha the Humu r an e anF M n remah numera S M eqeats a thuusand 39 CTR e e an The typteat 1 percent Hth that are very rare Costpersale ah at these eterhehts when judgmg the EffECWEnESS uf a banner ad Who Makes HarmerAds e Wte du Tu nude the barman strhpty umbme the HTMLtag ter a hnk Wth the HTML tag ter ah magE Yuu eah ereate the deer wam e trurh thts stte du HJV u Stuff Wurks ts nude uuks We thts a quotrel 395 Img rc adstaticgirgt lt1 The hnkcumpunentufme nude 5 a hrefquothttpllwwwhowstuffworkscom395 lt1 As yee rah ee r r fyuu were Whthg a text MHK yuu Weete strhpty vyrte serhethhg We Huvv Stuff Wurks h the New spacey and a ste ytster eeem chck eh these WEIrdS te b ng up the Hsvvherhe page Tu make a banner MHK yuu am pretty much the same thing except instead of text you put a tag for a graphic in the empty space The graphic tag component ofthe code is ltimg src 39 39 39 39d39 39quot h gifquotgt In this case the tag simply consists ofthe URL location ofthe graphic image the full URL would be quothttpcomputerhowstuffworkscomgifbanneradstaticgifquot go to this URL and you will see the graphic but we only need to put the last part ofthe URL here since we are already within quothttpwwwhowstuffworkscomquot This tells a visitor39s browser to load the image posted at that particular URL The visitor can then click anywhere on the entire image to visit the How Stuff Works home page For more information on how to code image and hyperlink tags check out the How Stuff Works article HM Web Pages Work Basic static banner ads are so simple you can make a few for your site in an afternoon and animated GIF banner ads aren39t much more complicated On the other end ofthe spectrum are complicated rich media ads Ads with elaborate animation or user interactivity require much more extensive programming ability Amateur banner ads often work fine but with so many ads competing for viewer attention many Web sites need the help of professional ad designers Good advertising agencies and professional designers not only bring their programming skills to banner ad creation but also their creativity and extensive marketing experience They work to match a banner ad campaign with the advertiser39s product or service and to make innovative attentiongetting graphic content There are many ad agencies and freelance banner ad designers serving Web sites today and they have a wide range of experience ability and success They also have a wide range of fees You can get a professional banner ad for 50 oryou can spend upwards of 1000 There are also Web sites that offer free banner ad creation They either provide you with all the components you need to create your own banner ad such as backgrounds and fonts or they create a banner ad for you These designers and companies do this for a number of reasons Some simply make money from advertising on their sites some offer free banner creation in exchange fortheir customers posting client banner ads on the customer39s site and a few designers simply create banners as a hobby Some popular free banner design sites are Make Your Bannercom ABC Banners Atomic Arts Like most forms of advertising banner ads vary considerably in quality because their creators vary a great deal in ability and experience The range is even greater with banner ads than with most other forms however because it is so easy and inexpensive to create and post banners Advertising with Banners An advertiser that is interested in posting banner ads on other sites has three basic options The advertiser can Arrange to display other Web sites39 banner ads in exchange for them displaying its ad Pay publisher sites to post its banner Pay an organization usually a banner network like DoubleClick or Flycast to post the banner on a number of publisher sites These three arrangements take many forms and advertisers and publishers must choose the specific arrangement that best suits them If you want to post banner ads on other sites but don39t have the capital to mount a traditional advertising campaign you may choose to exchange banner ads with other sites There are two ways you can go about this The first is to individually develop relationships with otherWeb sites and trade specific banners This is a very natural process and allows you to place your banner ads conscientiously and post other Web site banner ads that fit your site well Your banner ad doesn39t end up on very many sites however unless you invest a whole lot of your time in seeking out interested webmasters If you want to get your banner ad on a lot of sites in a short amount oftime and don39t want to pay for it then your best bet is joining a banner exchange program Banner Exchange Programs Banner exchange programs offer a simple service If you post a certain number of banner ads on your site they will post your banner ad on another site Usually this isn39t an even exchange you have to post more than one banner ad for every one of your banner ads they post This is how the exchange program makes a profit Their arrangement yields them more banner ad spaces than actual banner ads they need to place for their members so they can sell the extra banner ad spaces to paying advertisers The exact ratio varies but 21 posting two banner ads on your site for every one of yours posted on another site is a typical arrangement Most banner exchange programs distribute banner ads in the same way For every banner ad you39ve decided to display the exchange provides you with a piece of HTML code This code instructs a visitor39s Web browser to bring up a banner ad from the exchange program39s server This enables the exchange program to easily change which banner ads are on which sites They can also monitor the success of particular banner ads on particular member sites which helps them to pair sites with suitable advertisers The advantage ofjoining a banner exchange program is it39s a free way to get other sites to post your banner ads The disadvantage is that you give up a lot of control over where your ads are posted and what ads are posted on your site In most cases the banner exchange program chooses where to put its members39 banner ads and you may not like what they decide to post on your site or where they end up posting your banner ad Most banner exchange programs attempt to link banner ads and sites intelligently and they often do a good job but there is a possibility that at some point you will be dissatisfied with a banner ad that ends up on your site Some major banner exchange programs are LinkExchange BannerSwap SmartClicks Free Banners LinkBuddies It39s pretty easy to join a banner exchange program Go to any ofthe above sites and they will walk you through their particular process It39s definitely a good idea to shop around because different banner exchange programs have different strengths Some programs concentrate on effective banner placement more than others and some specialize in Web sites that feature a particular subject matter such as religion or kid interests Most banner exchange programs are free to join but some also offer a better exchange ratio for a small fee Buying Advertising If you are interested in buying advertising space you have a few different options You can Approach Web sites yourself Employ an advertising agency Join a banner ad network Start an affiliate program Each of these options has its own advantages and disadvantages as we will see Approach Web Sites Yourself This is an involved timeconsuming way to place your banner ads but it does offer some significant advantages Mainly placing all your banner ads yourself gives you a lot of control over how you advertise You can fully investigate potential publisher sites to decide if their content matches yours and you can often work with the site to find the best location for your ad This can be a relatively inexpensive way of advertising if you target small Web sites that don39t attract a lot of other advertisers If you choose such sites carefully your banner ad can be fairly effective A small Web site that caters to a particular niche may not have very high traffic but the people who do visit are all interested in some of the same things If you sell rare PEZ machines for example a wellplaced ad on a small toy collector site could bring you significant traffic To place advertisements this way you have to approach each site individually follow its particular procedures and purchase its particular advertising packages Start by searching the site to see ifthey have a page for potential advertisers If you can39t find anything online call the site or send them email Shop around for an advertising arrangement that meets your needs and fits your budget Larger sites will probably have a set advertising package with a relatively high price tag Most sites sell advertising space on a CPM basis in a package consisting of a certain number of impressions CPM varies considerably you can expect to pay anywhere from 5 to 100 per thousand impressions on a fairly popular site There is such a wide range because different Web sites have different levels of popularity and different sorts of audiences A site with consistently high traffic will usually charge a lot more than a less popular site If a site caters to a particular niche it may charge more than a general interest site because its advertisers can more effectively target a specific demographic The amount of impressions in an advertising package varies but 50000 to 200000 impressions sold at a time is typical of goodsized sites Smaller sites may not have any advertising plan whatsoever which means you might be able to work out a good deal with them Employ an Advertising Agency A fullservice advertising agency will do most ofthe work of posting banner ads for you and it will lend its expertise to the process Agencies help you seek out suitable publisher sites they negotiate the price of banner ad space and they help you make the best use of your advertising budget Additionally advertising agencies work with you to conceive advertising campaigns and they create professional banner ads for your site They can often get a better price on advertising space because they have a lot of clients and can buy impressions in bulk There are many good Internet advertising agencies offering a wide variety of special services It39s clear that using an advertising agency has a lot of advantages but it also has one significant drawback for smaller sites Advertising agencies usually deal only with accounts of a certain minimum size Agencies vary considerably in reputation services offered and size and so also vary a great deal in price and account minimum The best way to find out if an ad agency is right for you is to shop around Find out what an agency offers how much it charges and how much experience it has Look at several agencies so you can make an informed decision The cost of using an agency is certainly worth it to very large companies because they need the expertise and talent of professionals to make their ads competitive with rival companies39 ads It may be a necessary investment for a smaller Web site too if it wants to establish itself as a significant presence on the Internet Advertising is a very difficult process and an important ad campaign is certainly best handled by experts If you have a limited advertising budget however you might do better to spend most of your money on actual banner ad placement rather than marketing plans and topoftheline banner design Join a Banner Ad Network If you want to place your banner ads on a lot of sites and don39t want to put in the time to negotiate with the sites yourself then using a banner network is a good option Banner ad networks simply act as brokers between advertisers and publishers Like banner exchange programs they take care of placing an advertiser39s banner ads and tracking all activity related to that ad They also share one ofthe main drawbacks of banner exchange programs however a lack of client control Banner networks decide where to place banner ads and they don39t give each client the level of attention an advertising agency would Consequently there39s a good chance you won39t always be happy where your banner ad gets displayed Many Web sites happily accept this shortcoming in light ofthe extensive services ad networks provide at a relatively low cost You definitely need to shop around to find a suitable banner network For one thing many of the larger banner networks primarily sell advertising space from hightraffic publisher sites which may be too expensive for your budget There are banner ad networks that specialize in more affordable advertising space on smaller publisher sites and a few networks offer discounted quotremainderquot advertising space also called excess banner inventory which is simply ad space that didn39t sell at the regular price You should also check out networks that specialize in a particular kind of site as they may place your ads more effectively Unfortunately there are plenty of banner ad networks that promise more than they deliver and that fail to place your ads effectively so be sure to research a network thoroughly before you join You39ll also need to decide whether you are interested in impressions or clickthroughs as most banner ad networks specialize in one or the other Some major impression networks are DoubleClick Flycast BURST Media ContentZone Some major clickthrough networks are Banner Brokers ValueClick BannerSpace eAds Start an Affiliate Program This is a very costeffective way to get your banner ad on other sites If you set up your own affiliate program you can arrange to pay publisher sites only when you get a specific result This could be a number of things such as a visitor simply clicking through to your site or the visitor actually purchasing something once she gets there Unlike traditional banner advertising through a banner network you don39t have to buy affiliate program clickthroughs or impressions in bulk You pay a small amount for each click or you pay a percentage of your profit from a referred visitor You can learn all about affiliate programs in the How Stuff Work article How Affiliate Programs Work Selling Advertising Space Selling banner advertising space is a great way to use your site39s traffic to generate revenue but it can be a bit tricky The easiest option is to join a banner ad network which will recruit advertisers keep track of your earnings and control banner ad placement on your site In exchange for these services the network will take a hefty percentage of the advertising money generated by your ad space Because there are more sites that want to sell advertising space than there are sites that want to buy advertisements banner networks tend to be somewhat choosy about the publishers they recruit Most banner networks set a minimum monthly traffic amount which is often fairly high A lot ofthe bigger banner networks require publishers to have upwards of 250000 visitors a month to join a CPM program Many banner networks do cater to a range of sites setting up different tiers to divide publisher sites based on monthly traffic This is a good service for advertisers because it lets them choose the range of sites that best fits their budget and marketing campaign Additionally most banner networks put certain restrictions on publisher site content They may exclude sites featuring adult content or socially offensive material and they may also exclude publishers that already feature too many advertisements If your site gets a good deal oftraffic more than 100000 impressions per month then you should be able to join a good banner network39s CPM program If you have a smaller site you should look into banner network clickthrough programs which tend to have lower minimum traffic requirements You probably won39t make much money in a clickthrough program however because you are only paid when visitors actually click on the banner which is very seldom typically less than 1 percent of the people who see a banner will click on it Once you39ve joined as a publisher banner networks operate very similarly to banner exchange programs You put a piece of HTML code in the ad space on your site and the banner network takes care ofthe rest They place banner ads they feel fit your site and track the relevant impressions or clickthroughs so you will be paid correctly As with exchange programs you will probably end up with unsuitable banner ads on your site from time to time and you won39t get a whole lot of control overthe process How much money might you make through a banner ad network Most networks are selling quotrun of sitequot ads to advertisers and they are getting something like a 5 CPM rate for the ads Then the network takes between 30 and 50 ofthe 5 as its cut Therefore you might expect to earn something like 03 cents per impression that appears on your site or a 3 CPM rate If your site generates 100000 impressions per month you can expect to receive a check for 300 every month If you are getting paid per click you might receive anywhere from 3 cents to 20 cents per click 5 cents might be a typical average If you get a 1 click rate and you have 100000 impressions per month that means that you might expect to receive 50 per month Selling Space Yourself If you want total control over the banner ads that appear on your site you may want to recruit advertisers yourself There are many more sites on the Web that want to sell ad space than there are advertisers so you need to have a fairly impressive site to go this route The things that impress advertisers are high traffic and specialized content because these are the things that translate into impressions and hi h clickthrough rates If you want to sell ad space your task is to convince potential advertisers that placing a banner ad on your site is a good investment You do this with traffic numbers information about your visitors called demographic data and with specific content that relates to their product or service Since you won39t be using a network or exchange program you39ll also have to set up technology to track visitor traffic so you can bill your advertisers correctly Approaching advertisers marketing your site tracking traffic and collecting money from advertisers all require a lot of time and effort but if you are committed to growing your Web site and only running banner ads that would appeal to your visitors the payoff can certainly be worth the effort What Makes a Banner Ad Effective There are no concrete rules about what makes a good banner ad As in all advertising an effective banner ad is the product of a number of different factors and there is no sure way to predict how well any banner ad will do A lot of successful banner ads are the result of extensive trial and error experimentation A Web site puts a banner ad up and monitors the response it gets lfthat doesn39t work the site tries something else What makes a good advertisement is largely a mystery That said there are a few qualities that generally make for more effective banner ads in many situations If you are mounting a banner ad campaign you should keep these suggestions in mind Post banner ads on pages with related Web content the more related the better Advertise a particular product or service in your banner rather than your site generally If you do advertise a particular product or service linkthe banner ad to that part of your Web site rather than your home page Put banner ads at the top ofthe page rather than farther down Use simple messages ratherthan complicated ones Use animated ads rather than static ones Your graphic content should pique visitor curiosity without being too obscure Keep banner ad size small If the page takes too long to load a lot of visitors will go on to another page The most important things are to make visually appealing ads with interesting content and to intelligently place the ads so they are exposed to audiences that would be interested in them Combining these qualities is a simple notion but effectively accomplishing this is a complicated art And like any art advertising is constantly evolving New approaches to banner ads pop up all the time One interesting development that has been around for a while is targeting Banner ads that are targeted appear based on the Internet user39s activity For example advertisers can buy keyword advertising on a search engine such as Alta Vista or Yahoo so that their ads are displayed when someone performs a particular search If an advertiser buys up keywords related to its product or service it can probably increase clickthrough rates because the visitor has already demonstrated an interest in finding sites on that particular subject The Internet is an attractive medium to advertisers because cookies allow sites to gather information about each visitor It39s a good bet that the future of Internet advertising will involve extensive use ofthis technology to target individual Internet users Many Web sites are already experimenting with presenting each visitor with specific banner ads that would be likely to interest them based on information gathered from surveys and the visitor39s Websurfing activity The Future of Internet Advertising Web experts have been predicting the end oftraditional banner advertising for years noting dwindling clickthrough rates They have several different ideas of what will replace it as the dominant means of advertising Popup ads advertisements that appear in their own small browser window have been growing in popularity Many Web users find them extremely annoying because you have to close each browserwindow and ifthere are enough ofthem they can overload some browsers39 capacity Some Internet research shows that text links are more effective than banner ads This is probably because so many Web users are automatically aware of banner ads and so can easily ignore them while text links are less obvious they appear to be part of the site39s content Advertisers have also found some success with interstitial ads Like Popup ads these ads appear in their own browser window When a visitor clicks on a link the interstitial ad appears before the browser brings up the linking page Most interstitial ads close automatically so they are less annoying than popup ads but they briefly fill the user39s screen so they definitely make an impression If you keep an eye on Internet news you will continually see stories on the death ofthe banner ad as well as stories about upturns in banner ad success Banner ads will most likely be around for some time but it39s a good bet they will take new interesting forms As we39ve all read in recent years the Internet is in its infancy and webmasters have only begun to tap its potential The same can certainly be said for Internet advertisers and since advertising is the main source of revenue the keeps Web sites going you can be sure it will continue to evolve at an accelerated rate Using Banner Ads to Promote Your Website by Dr Ralph F Wilson ECommerce Consultant httpwwwwilsonwebcomarticlesbanneradhtm We are in a period when banner advertising seems to be on the wane You know those rectangular flashing boxes at the top of webpages on commercial sites Clickthrough rates have dipped to 039 average and the industry magazines regularly carries articles discussing the death of banner ads But while banner ads aren39t as effective as they once were the truth is that a great many companies large and small still use banner ads as part of their advertising mix and will continue to do so Nevertheless advertisers are becoming more sophisticated about when and how to use banner ads De ning Terms To explore this broad and evolving type of advertising we need to begin by defining some terms Hits A fuzzy term meaning the number of times a webserver has been quothitquot by a request for a webpage or a graphic image Since perhaps 5 out 6 quothitsquot are for graphic images the number of quothitsquot can be grossly misleading Usually people mean by quothitsquot the number oftimes a webpage has been seen but to be precise the better term is quotpage viewsquot or quotpage impressionsquot Page impressions or page views Refers to the number of times a webpage has been requested by the server Banner views Refers to the number of times a banner has been viewed Almost the same as quotpage viewsquot but some banner server programs don39t count the banner view unless the visitor stays on the page long enough for the banner to be fully downloaded from the banner server CPM A metric from the print days of advertising meaning quotCost PerThousandquot using the Roman numeral quotMquot to stand for one thousand A price of 15 CPM means 15 for every thousand times a banner is displayed Banner ad An ad graphic hyperlinked to the URL of the advertiser These are usually animated GIF images though we are seeing an increasing number of MacroMedia Flash banners The full banner size is 468 x 60 pixels and most sites limit the file size of the graphic to 12K to 16K The Internet Advertising Bureau IAB specifies eight different quotstandardquot banner sizes httpwwwiabnetiabbannerstandardsbannersourcehtm Creative quotAdspeakquot for the actual banner graphic Click When a visitor clicks her mouse on a banner ad she is transferred to the advertiser39s site The number of responses to a banner ad is sometimes refereed to as the number of quotclicksquot Click Throughs Same as quotclickquot commonly used to count the number of visitors who click on the banner and are transferred to the advertiser39s site Click Through Rate CTR The percentage of click throughs to banner views A 1 CTR means that 1 of each 1000 banner views or 10 visitors have clicked through Conversion Rate The percentage of shoppers in an online store who actually make a purchase This is typically 1 to 5 in online stores but can be lower or higher Cookies Small files written to your computer when you view a banner ad visit a website or put a product in a shopping cart This helps the banner server to keep from showing you the same ad or perhaps show you ads you might be more interested in seeing Cookies are controversial but are here to stay too much ofthe Web is run by cookies to get rid ofthem Cookies also allow an advertiser to track which banner ad a visitor saw that brought him to the advertiser39s site and which banner ads resulted in actual sales Run of Site ROS Refers to displaying a banner ad throughout a website or a banner network with no targeting by keyword or site category Run of site advertising costs substantially less than more targeted advertising How Do You Measure Success You39d thinkthat success would be easy to measure but advertising has never been a simple art Ad agencies have their unique selfserving spin advertisers set their own objectives and banner ad designers see something else again Here are some ofthe factors involved Click Through Rate CTR This is a basic measure of how effective an ad is CTRs range from the industry average of about 039 to 10 As a general rule the more targeted the site the higher the CTR For example you39d expect an ad for Wilson Tennis Racquets to get a higher CTR on a tennis site than on a general sports site A run of site on a general site such as MSNBC would get an even lower CTR Disclosure I hold no financial interest in Wilson Sporting Goods but wish I did Directories and search engines also sell banners ads that pop up when a particular keyword is entered Thus your banner could show only when someone entered a searchword that included the word quottennisquot However the more targeted the banner exposure the higher the CPM cost per thousand banner views Cost Per Sale A much more important figure is the actual cost of making the sale of a tennis racquet In the final analysis you don39t care how high the CTR is if it doesn39t result in a proportionate number of sales What complicates this is the fact that your banner ads on the World Tennis Ratings site may actually sell fewer tennis racquets than those on NCAAChampionshipscom You can only make this determination when you use sophisticated tracking methods using cookies to separate the lookers from the buyers and determine which sites and which banner ads had the best result This kind of precision is enabled by using the DART ad server system from DoubleClick httpwwwdoubleclickcompublishersservice as well as the sort oftracking used in affiliate software programs Branding While CTR and cost per sale relate to direct marketing objectives another way of looking at banner ads is as quotbrandingquot tools They create brand awareness and a brand image in the viewer39s mind whether or not the viewer clicks on the ad But hopefully when the viewer gets ready to make a purchase those quotimpressionsquot a wonderful ad agency buzz word will cause you to select Coca Cola over Pepsi or Barnes and Noble over Amazon or JCrew over Lands39 End Branding is very difficult to measure but can be very powerful Typically only the larger and betterestablished companies have the budget to pursue branding consistently Brand awareness is sometimes measured in surveys with questions such as quotWhat brand names can you recall in the field of tennisquot CPM Banner Economics While brand marketers may assess effectiveness in some fuzzy way direct marketers look at any advertising method in terms of how many sales it produces immediately Let me give you an idea of how the numbers might look for banner ads Your results will vary depending upon where you advertise and the effectiveness of your creative Here are some arbitrary numbers to use in our calculation CPM 10 a typical rate for general notverytargeted websites CTR 05 0 Conversion Rate 2 Cost per Visitor CPM 1000 CTR 10 1000 005 2 In our example the 10 you spent to show the banner ad to 1000 people netted you 05 or 5 visitors to your site Each visitor cost you 2 to get there Hmmm Not inexpensive But now let39s calculate what your advertising cost is per sale Cost per Sale Cost per Visitor Conversion Rate 200 02 100 Oops You mean it costs me 100 to get one sale Yes Virginia Of course if you have a 10 conversion rate rather than a 2 conversion rate it only costs you 20 to get a sale Lower Cost Approaches What this all means is that banner advertising on a CPM basis can be expensive If you have a compelling banner that 5 to 10 of the viewers click on that can change the economics fthe price you pay for banner ads drops to 3 CPM that can help too If you can pay a modest cost per click through that would make a huge difference in the cost per sale If you can pay a commission of 5 to 15 only when a sale is made affiliate programs begin to look more and more attractive But no matter which approach you use to pay for advertising developing and placing 468 x 60 pixel banner ads is likely to be part of your advertising mix Online Advertising Taking Over the Web By Tessa Wegert June 19 2003 wwwclickzcomexpertsmediamediabuyarticlephp2224061 If you spend a lot oftime surfing the Web you39ve probably noticed a change in the advertising as of late Suddenly ads are appearing in some unique places and assuming unfamiliar forms Given recent statistics it39s easy to establish why According to a report released by NielsenNetRatings the top traditional offline advertisers increased their online share 30 percent by the end of last year These same companies are deemed quotmore apt to experiment with different ad formatsquot It39s this willingness to try new approaches combined with increased ad clutter and more competition among advertisers that39s changing the online landscape into something more advertising oriented than we39ve yet seen Offline marketers have long used every possible medium as a vehicle for promoting products and services Some say no publicly viewed surface is safe from the armies of media strategists Now that the initial thrill of banner ads is a distant memory and advertisers are unafraid to experiment it stands to reason advertising would show up in new places online in advertorials in strategic publisheradvertiser microsite partnerships and on previously adfree sites that still maintain bannerless formats The trend is being embraced by traditional advertisers and online publishers It demands analysis from the consumer perspective We know many consumers still don39t appreciate that advertising is necessary to sustain freecontent models They39re weary of countless banners rich media ads and fullscreen Internet commercials every time they go online How will they react to even more intrusive advertising appearing in places formerly safe from marketing incursions A few weeks ago I came across a Fidelity Investments placement on Monstercom To post a resume on the famed job search site users must first go through a registration process involving a fairly brief online form After submitting it and viewing another registrationrelated page the user receives a third page This looks suspiciously like the original registration form It39s not however part ofthe registration process It39s an adsponsored means of database generation The form39s fields are prefilled with the personal information the userjust provided making it easy to click quotsubmitquot hence approving Fidelity Investments39 use ofthat information A small note at the top of the page lets users know they39ve successfully created a job search account but the focus is the advertiser and the pitch quotseven helpful facts that you need to know about rolling over your 401kquot I39ve discussed what I call quotintegrated advertisingquot I39ve praised advertisers for ingenuity forging successful contentintegrated online placements This particular placement employs a similar strategy but appears at a time and in a place consumers would not expect a sponsored message Does that make it equally ingenious Or does it cross the line One could argue the advertiser and publisher are following the rules by identifying the section quotMy Monster Special Offersquot and featuring appropriate disclaimers Others would say it39s misleading arguing consumers could easily misread the page39s purpose and what they agree to by resubmitting their personal data Some may argue the placement is a deceptive attempt at database generation that could result in an unqualified list and a damaged brand image Regardless of how you interpret this type of online placement it39s certain we can expect to see many more experimental advertising methods in the months to come Advertising is bound to pour into nearly every nook and cranny of the Net as marketers seek their ideal approach As a result marketers and media buyers will be faced with a difficult decision Follow these trailblazing traditional advertisers39 examples and use the Internet as a testing ground or stick with relatively inoffensive triedandtrue placements such as text links and paid search placements Those advocating the cautious route will take a waitandsee approach The Fortune 500s will whittle down their budgets until they find something that does work It will be an interesting ride even for those just watching from the sidelines Surprise Badly Written Banner Ads Yield Bad Results wwwatnewyork comnewsarticle php729941 Banner bashing It39s hip It39s now It39s the rallying cry of pundits ad agency clients and traditional copywriters who have always had their suspicions about the efficacy of Web advertising and now believe they have the facts to back up their bluster quotBanners don39t workquot yelp the bashers quotThey39re a waste of money and don39t generate results Internet advertising bad Internet dissing funquot But given all the wetoIdyouso histrionics one has to question whether the issue isn39t banner ads as a flawed configuration but rather banner ads with flawed messaging Back when banners began dancing across Web pages in the mid 199039s it was common for clickthrough rates to be in the double digits regardless ofthe banner39s message As the novelty of banners lessened and their presence exploded clickthrough rates tumbled It should have been apparent that the creation of clickworthy banners required more ingenuity than simply tossing a wiggling logo and a Click here button into a 480 X 60 frame Recently approved International Advertising Bureau IAB formats for bigger louder and more eye catching ads are a partial solution to the challenge of low user response But once the novelty oftheir production gimmicks has worn off these new formats won39t invite sustainable clicks unless their inherent messages are skillfully composed It39s an eadvertising example ofthe quotWaterworldquot phenomenon mega production plus middling story equal micro box office or in the case of banners miniscule cIickthroughs So how can a Web copywriter improve the messaging of hisher banners to make them more consistently clickable Here are some simple yet effective suggestions Lead with a question Want to write better banners Looking to ramp up your clickthrough rate See how engaging this technique can be in getting users39 attention Create a lyrical rhythm wellwritten banners follow a catchy word flow from frame to frame The number of syllables chosen to convey the message is deliberate like haiku The pacing ofthe words is energetic like a roadside Burma Shave ad And the idea builds to a payoff like a welltold joke frame 1 is the set up frame 2 the fiIIin and frame 3 the punchline Keep it single and simple the more ideas you force your banner to communicate the more muddled it will be Choose one easily digestible point and drive it home with as few words as possible Show don39t tell if an image can get your idea across instead of words use it Your message will be communicated quickly easily and memorably Write visually banners offer infinite choices of entertaining visual techniques that can enhance and sell your message words and images shrinking dissolving stretching morphing zooming in crawling etc Keep these tricks in mind as you compose your text and include them as suggestions for your design partner Offer an offer when it comes to calls to action offers rule Free downloads free demos free white papers free info kits free shipping pretty much anything free or other incentives such as percentage or dollar off savings will get the user clicking faster and more consistently than an uninspiring and ambiguous Click here button Justify the click if your banner isn39t offerdriven continue its message by making the call to action specific to what the user would receive ifthe banner were clicked ie Click for more info or CIickto see it in action or Click to get started Brand with benefits creating a banner with vague messaging and cool vibe may seem like a novel way to build brand awareness but it won39t generate many clicks lnstead enumerate the enticing and absolutely essential benefits eg save money improve productivity lose weight etc that the brand promises Nix the tricks banners using cute comeons quotCatch the monkey and win 20quot to boost site traffic and are fun to write but they can only work once You also run the risk of alienating scads of users who will never visit your client39s site again Test as the user once your ideas have been completed imagine the mindset of a userwho39s viewing a page where your banner will appear Reread each of your ideas and ask yourself is this banner39s message communicated credibly simply and irresistibly enough to compel a user to leave the site that heshe is in and click to my client39s site Considering the newness ofthe Internet as a messaging vehicle relative to other media it39s understandable that the craft of banner ad writing is still a workinprogress But when wittily artfully and precisely composed banners can be a powerful and extremely effective component in a company39s advertising and brandbuilding arsenal regardless of how boisterously the bashers may bleat to the contrary The Rich Media Ad A Thing of Beauty By Dorian Sweet wwwclickzcomexpertsadrichmediaarticlephp3517791 July 8 2005 For some beauty is only skin deep Superficial suffices For the rich media unit beauty must be more than what viewers see on the surface though what they see in the first second or so had better be beautiful too in a relevant sort of way Let39s explore the a rich media unit39s layers engagement interaction and exit In doing so we39ll be able to give viewers beauty and substance in exchange for their time and perhaps get some conversion while we39re at it A rich media ad39s beauty lies in the engagement layer It39s what the viewer sees in the first couple of seconds As in traditional offline advertising 99 percent of an ad39s success is based on how well a viewer39s interest is piqued in the first two seconds The Web has so much more potential to garner a fruitful relationship than offline advertising With a rich media ad campaign relatively big money is on the line Understanding how to succeed at the engagement layer is pretty important Let39s start with what not to do Amex SeinfeldSuperman quotWebisodesquot are a great example of what not to do Sheer star power was wielded to get online users to seek out American Express advertising Getting to the site wasn39t easy getting into it was even harder And let39s be honest who wants to wait for a threeminute video spot to load other than hopeless Seinfeld fans and hopeless online marketing people like me When we assume people will endure technologyjust to be marketed to we39ve lost our perspective on what people want to see online How many times have I heard quotJust throw this TV spot on the Web That39ll get some clickslquot Unfortunately that happens a lot the glare of celebrity and the flash of technological innovation blind us to the fact viewers have the power to click away A great rich media ad is like a story It has a beginning middle and end The beginning is the engagement layer and the technology that supports it is as fast as viewers demand It has the right amount of image copy movement and sound Once hooked viewers are ready to be immersed in the ad This is the interaction layer They play with it get some information give you something oftheirs are rewarded orjust go away Marketers often try to do too much at this stage Stick to marketing basics and keep the message simple The interactions can be fun complex and imaginative but the information you convey must remain simple Otherwise you lose people Information overload sets in and you train viewers to zone out If you39ve been successful with engagement and interaction you only have to conquer the exit layer and you39ve won gold This layer is about reward You39ve created a desire now you must fulfill it What do you do Offer a quotclick herequot or quotsubmitquot button Invite them to go to the Web site or to find out more Thank them Here39s where we shy away from online advertising39s potential The exit layer should be a reward for the viewer The key word is quotrewardquot That39s why a landing page isn39t always the best next step Providing a surprising personalized relevant experience is The ability to get more information through an ad unit without leaving the site or a 20 percent discount when you book your travel reservation via the ad is certainly gratifying If only adserving technologies could keep up I know what you39re thinking a customized landing page garners great conversion rates It39s a classic direct marketing approach right down to page design Of course those conversion rates are great but what are they compared to Being deposited into some deep link in a site A product page that was out of the campaign39s scope The reality is a customized landing page is the best solution we have now But many marketers can39t even do that right here39s some help in that area Too often the people who control online marketing efforts don39t control the pages within the Web property There goes your reward and that conversion Yet there39s more to the rich media experience than just getting people to sign up purchase or reserve It can provide the kind of emotional messaging marketers and consumers love We have the capacity to measure how users interact with ads even if they don39t heed our calls to action lmagine pure unconditional interaction is the point of a campaign If it were possible to have a 10MB ad 392 unit and some day it will be who really needs a Web si e I39m not coming down on conversion rates or landing pages But let39s challenge ourselves Let39s take advantage ofthe medium39s richness Consider engaging interacting with and rewarding the viewer right there in the ad where you can control the quality of the experience Consider creating a rich media unit with the purpose of pure beautiful brand immersion Soon enough technology will get a user through the shopping experience without ever leaving the ad unit And when it does we39ll be ready Way Beyond the Banner New online ad formats are whirling shaking popping and tilting all over the Web By Owen Thomas June 2002 Issue CNET started it with giant rectangular ads that ran smackdab in the middle of news articles Then Yahoo NYTimescom and a handful of others weighed in with fullscreen video promotions and interactive gimmicks like animated cars that tore across their homepages Before long it seemed that every major site was experimenting with some new increasingly attentiongrabbing ad all in an attempt to woo jaded advertisers back to the Web Herewith a look at the new ad types and what39s working COST EFFECTIVE ANNOYANCE AD FORMAT NESS FACTOR Banner Standard rectangular ad still found atop most 6 60 webpages Pros Much much cheaper than ever before and clickthrough rates have rebounded Con Average clickthrough rate just 075 Check it out Any commercial website FIOatingad or Shoshkele Animated object like a car that races across your screen 2535 3 W Pro Can be amusing and attentiongetting Con They work only with the latest Web browsers Check it out Unitedvirtualitiescom Interstitial or Superstitial Fullpage ad often with video 3045 W W or animation Pros Unavoidable can accommodate movie trailers and TV spots Con Web users complain that ads take over the screen Check it out Unicastcom Large rectangle Oversize ad placed in the center of the 1085 mu m page Pro Ideal for news outlets where readers don39t want to leave website Con Average clickthrough rate is 1 to 15 Check it out Newscom Popunder Ad opens in a window under the webpage 25 H Pro Low cost intrusive Con 724 of people close the ads without reading them Check it out LATimescom Popup Ad opens in a window on top of the 1075 w W webpage Pro Highly intrusive Con Highly intrusive Check it out Hollywoodcom Skyscraper Vertical banner 575 n 1 Pro In tests raise brand awareness 7 Con On small screens readers can39t see ads Check it out Americangreetingscom SEWER i39illll 15 1mm laminate All Surround session Users are served ads from one 90 advertiser during their entire 115 W H visit to a site Pro Raise brand awareness 11 nearly three times more than banner ads Con Costly Check it out NYTimescom Prices are measured in cost per 1 000 impressions CPM and are based on rangesf d in published rate cards negotiated rates may be oun much lower SOURCES AdRelevance Interactive Advertising Bureau Jupiter Media Metrix Two Intrusive Ads Deemed Appropriate By Robyn Greenspan March 17 2004 httpwwwclickzcomnewsarticephp3327491 Twice is just enough for intrusive ads with pop ups being among the least welcome according to Dynamic Logic39s AdReaction Study that measures consumers39 perceptions towards advertising The December 2003 survey revealed that consumers deemed two intrusive ads per hour were appropriate on free Web sites while also evaluating reaction to traditional advertising and different online ad formats For the most part consumers agreed with experts finding intrusive advertising frustrating and annoying Nearly one third of Dynamic Log ic39s 425 respondents reported that ads that appear over Web content such as pop ups out of frame and floating ads on the pages they are browsing were never appropriate The findings were determined through a median number where 50 percent of the population is above that number and 50 percent are below Based on that calculation 172 percent of respondents indicated that two over content ads per hour would be an appropriate number to view on a free Web site Interestingly 33 percent of respondents felt that 10 over content ads per hour would be appropriate Frequency was the biggest complaint consumers had about the intrusive ads with 70 percent reporting that there were too many over content messages Fifty eight percent were annoyed that they were required to close the ads and 56 percent were concerned about blocked content Survey respondents were more tolerant of banners skyscrapers and interstitials while placing pop ups pop unders and out of frame ads among the most negatively perceived forms of online advertising Rounding out the mid range were ads with audio large rectangles or squares and ads with video quotIt39s interesting to note that when online ads are generalized pop us have a negative perceptionquot said Christina Goodman marketing manager Dynamic Logic of the findings Among the forms of traditional advertising Dynamic Logic asked survey recipients about newspaper magazine radio and billboardoutdoor ads generated more positive reactions than Web opt in e mail and direct mail Not surprisingly telemarketing and non opt in e mail or spam inspired the most negative results The three part survey included individuals from Dynamic Logic39s database that had previously participated in a study using a Web intercept model that utilized pop ups possibly influencing the results quotParticipants for the AdReaction study were recruited via e mail taken from a database of individuals who filled out an online survey in the last four yearsquot Goodman clarified CPA or CPM That Is the Question By Heidi Cohen wwwclickzcomexpertscrmactionableanalysisarticlephp3421141 October 14 2004 Like Hamlet online marketers face a tough decision Do you buy online media for branding power or purely for cost efficiency Beyond the media buy whether you use cost per action CPA or CPM has strategic implications Given online advertising39s measurability both brand and responsecentric marketers look at online spend in a strictly actiondriven promotional context From this tactical perspective they use online promotional budgets to generate leads or other actions that like their offline equivalents yield some branding Yet the potential synergistic effect of smart spending can be overlooked According to Jason Heller CEO of Mass Transit Interactive a hybrid media model delivers the best results by building brand and purchase intent while selling CPM and CPA are complementary advertising buys that fill different needs CPM brands while CPA primarily drives response CPM can also be used for direct marketing Remember direct response doesn39t work for every product quotTypically the bluechip advertisers my firm works with almost always buy on a CPM basisquot said Paul DeBraccio CEO of lnterevco quotwhile lowertier companies in the same categories generally rely on a CPA modelquot Strategic Perspective Consider your marketing strategy39s media aspect How do the following apply to your offering How do target customers use the Web How does this relate to your offering How does it fit into your overall strategy What are your marketing and advertising goals Do you need to improve branding to build purchase intent drive immediate response or both How will the Internet get you where you need to be How does your ad39s viewing environment reflect on and influence branding and purchase intent Can your media buy scale Broadly assess editorial direction content target audience and other advertisers in terms of product and quality How does creative including copy design format and landing pages relate to the target customer and your marketing strategy Tactical Considerations Publishers price ad impressions based on reader quality and demographics Marketers usually advertise online to acquire customers and immediate sales as measured by return on investment ROI For advertising to be effective it must usually drive potential customers from ad to Web site to a required action39s completion The difference between CPM and CPA buys depends on who bears the risk for converting an impression into an acquisition This is basically your yield the product of CTR and conversion rate CR When publishers sell media on a CPM basis they know how many page views are required to fulfill their obligation When they sell media on a CPA basis they don39t know in advance how many page views are needed Many factors affecting yield eg landing pages and conversion processes are beyond their control CPAplacement sellers generally charge a premium to accept the risk of your ad yield Using CPAonly deals can limit your options and potential universe as not all publishers accept them Choices are very limited primarily to sites with lots of unsold inventory and low demand Consider Which sites efficiently contribute to your reach goals Do they deliver quality customers If you don39t know the quality of customer derived from each combination of media placement and promotional campaign you need a better marketing tracking system How does media context interact with your ads ls advertising integrated with content Does this environment help increase purchase intent Does the content complement your product eg health for health products Should you develop andor test new creative approaches Are the media cost effective in light of your strategic goals and key indicators What39s your projected customer lifetime value Can the campaign39s effectiveness be improved by optimizing various factors such as format content landing pages and media placement to get higher conversion rates and lower acquisition costs Run different tests to determine which work best for your offering Analysis Is a CPA or a CPM basis more cost efficient for your specific campaign To find out you must express CPMs and CPAs using consistent factors Express CPMs in terms of acquisitions or CPAs in terms of impressions or CPMs the industry standard For today39s exercise total advertising costs only include the media expense Also these formulas are useful if you buy only on a CPM basis but track acquisitions To calculate CPM Media CPM media spendnumber of impressions x 1000 Now express CPM in acquisitions Since Impressions number of acquisitionsCTR x CR Then Media CPM media spendnumber of acquisitionsCTR x CR x 1000 To calculate CPA Media CPA media spendnumber of acquisitions Now express CPA in impressions Since Number of acquisitions number of impressions x CTR x CR Then Media CPA media spendnumber of impressions x CTR x CR Sample Calculations Use the following information to see how easy converting from one measurement to another is Assume CTR and CR are known based on past experience Total media cost 18000 Impressions 30000 I Media CPM 600 Clicks 600 CTR 20 percent Acquisitions 200 CR 333 percent Media CPA 090 To determine media CPM based on CPA and acquisition goals first find impressions 1 20020 percent X 333 percent 2 200002 X 0333 3 200000666 4 30030 Then plug the impressions into the CPM formula Media CPM 1800030030 X 1000 599 differences due to rounding To determine to media CPA based on CPM and impressions first find acquisitions 1 30000X20X333 2 30000 X 002 X 0333 00 30000 X 000666 Je 1998 differences due to rounding Then plug in the acquisitions into the CPA formula Media CPA 180001998 090 differences due to rounding You should pay more to advertise where your ad receives more attention and doesn39t suffer from viewer fatigue As a result fewer impressions are necessary to acquire betterperforming customers Myopic marketers may not consider the fact lower price can translate into lessproductive media To truly understand your customer base39s dynamics use fully loaded costs A customer39s true lifetime value is based on its revenue streams minus the cost to acquire and maintain him This varies by media source No matter how you purchase media either CPM or CPA you must manage customer acquisition on a CPA basis that includes all marketing costs to understand your ROI Creating Compelling Search Engine Ads and Landing Pages By Shari Thurow Guest Writer httnlsearchenqinewatch 39rdayarticle php3396681 Effective search engine advertising goes far beyond simply bidding on keywords With both ads and landing pages you have scant seconds to capture the imagination and clicks of a searcher Search engine advertising presents many challenges First advertisers need to purchase the most relevant keyword phrases Second ads must be written to compel consumers to click on the ads Third the ads and the keyword buys need to generate clicks from qualified buyers Advertisers don39t want their search engine advertising campaigns to generate unqualified traffic costing them money and offering no hope of conversion Additionally ads must comply with the search engines39 editorial standards a lot of work for what appears to be a simple ad campaign Assuming search engine ads do reach the right audience the landing pages you display are an essential component to help you convert browsers into buyers In this Search Engine Strategies session a panel of experts discussed ways to get the right clicks from search engine ads and to design landing pages that convert Creating compelling search engine ads quotFor sponsored search ads you have 18 seconds and one glance to convince searchers to click on an adquot said Gordon Hotchkiss President and CEO of Enquiro Search Solutions Inc quotOnce searchers arrive on your landing pages you have 132 seconds to convince visitors that they are on the right sitequot Hotchkiss divides searchers into researchers and buyers Researchers can be qualified leads After researchers gather enough data about the range of products and services that many sites offer they might return to your site to make the final purchase Buyers have a shorter timetable They are more likely to make a purchase or inquiry at the time of the search Both researchers and buyers look for the same characteristics in a search engine ad including Query term in the title and description Product information features comparisons Trusted brands and vendors Trusted URLs Researchers and buyers are different in that researchers are looking for trusted sources of information such as product reviews from trusted sources of information and buyers are looking for valueadded features such as discounts and free shipping quot828 or BZC you must know your audiencequot said Misty Locke President of Range Online Media quotDo your research Who are you speaking to Who do you want to speak to Know your client and take that across the board from keywords creatives and the site Deliver the message and content that works best for your audiencequot Effective landing pages With BZC businesstoconsumer landing pages product photos and prices are a must End users need to viewthe product they might be purchasing and its features Sizes color options availability and shipping rates are components of landing pages that should be measured and tested Seeing trusted brands in both the ad and the landing page can also lead to higher conversions With 828 businesstobusiness landing pages advertisers often cannot specify a price for a service For 828 landing pages the panel made the following recommendations I Instead of a specified price use a price range End users who cannot meet the minimum price requirement are filtered out early in the sales process I Create an added value such as a 10 discount a free gift or an additional service offer purchase one service and get another service for half price However researchers tend to value price comparisons more than query words Buyers value a clean professional layout and conversion paths more than researchers do


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