Re: UKNM: Search Engines

[D.Dias]

>

From: "Sarah Thomas" <sarahmotionpixels [dot] co [dot] uk>

>

> And are banners a complete waste of money?

   

Whether banners are a complete waste of money or not depends

on your goals and what you are trying to sell - I'm

surprised to see such a sweeping and unqualified generalisation.


If you're an e-tailer selling low ticket and low repeat purchase items

then yes banners are probably a complete waste of money if your goals

are customer acquisition and sales.


eg. let's say you sell posters for around 4 quid, and the average

order comprises two posters, giving you a total of 8 pounds per average

order.


You then buy 100,000 banner impressions at a CPM rate of say 25 pounds.

Which costs you 2500 pounds. You get a click thru rate of [optimistically]

1%. Of these 1% [1000 people], 2.5% actually make a purchase [25 orders].


It doesn't take a genius to work out that banner advertising in this

instance isn't a particularly cost-effective way of generating sales.

eg. spend 2500 to get 200 quid's worth of orders.


If you were selling PCs at 1000 pound per system then based

on the conversion rates above, then of course it would make sense.


Hope this helps


D.


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