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Subject: Re: UKNM: Re: Banner ads ...
From: Ray Taylor
Date: Thu, 30 Jul 1998 14:54:40 +0100

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?



Replies
  Re: UKNM: Re: Banner ads ..., Matteo Berlucchi
  Re: UKNM: Re: Banner ads ..., Paul Cook

Replies
  UKNM: Re: Banner ads ..., Matteo Berlucchi

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