Re: UKNM: Re: Banner ads ...

[Paul Cook]

At 14:49 30/07/98 +0100, you wrote:

>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?

>

>

The best thing to do is to find out the exact figures on conversions and

repeat

business by referring site... Blow me what do we have over here but

NetOutcome and that's

just what it does!


Sorry couldn't resist it, makes a change from job ads.


Paul


Paul Cook

Managing Director



http://www.redeye.com

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