Re: UKNM: Re: Banner ads ...

[Ray Taylor]

Matteo Berlucchi wrote:

> 

> Dear Amy,

> 

> Two comments on banner ads:

> 

> 1) The best way to assess the success of your campaign is not by

> measuring the 'click-through rate' (CTR), but by analysing what the

> people that click on the banner actually do once they are on your site.

> 

> For example, let's say you bought 50.000 impressions on site A and B to

> promote your e-commerce site. At the end of the campaign site A has

> generated 5% CTR and B only 2%. Site A will have brought 2.500 people

> and B only 1.000. But if 30% of people coming from site B (300) had

> bought products from you against a 10% of sales from site A visitors

> (250), then the campaign on site B will have proven more successful.

> 



To follow this through:


50,000 impressions bought at �25 = �1250


At CTR of 2%..

Total number of clicks = 1000

Cost per click = �1.25


At 30% conversion to sales, cost per sale = �4.17


But 30% conversion to sales? Is this the sort of performance you can

deliver to your clients or was the figure just there for illustration

purposes?


I would have thought even 3% conversion to sales a bit on the optimistic

side, making the cost per sale in this example �41.70. At this rate lets

hope the merchant gets a repeat or multiple order through. And if the

conversion rate drops to 1% on a CTR of 2% and �25 CPM you have taken

the cost of acquiring a single customer above the �100 mark. Worth it?