If
you're new to promoting your website through banner ads, you probably
have some questions. These are the ones people usually ask first.
How does banner advertising work?
We display your banner ad on our site where it can
be seen by our site's visitors. If someone is interested in your
product or service, they click on the banner and are transferred
automatically to your site where you can tell them more, and hopefully,
get them to make a purchase. We sell you advertising space on our
site on the basis of how many times your banner is seen, a measurement
called CPM.
What does CPM mean?
CPM refers to "cost per thousand" and is used
by the advertising industry to describe how many people have viewed
the banner ad ("page views" they call it), or received an "impression"
by seeing the ad.
What does "click-through" mean?
When someone is interested in your banner ad, they
click on it, and are transported to your website. Every time someone
clicks on your banner, it is called a "click-through," and
the "click-through rate" is expressed either in per cent
or clicks per thousand.
How do you decide where my banner shows up?
Our lower rate is for "run of site" (ROS), which
means that your banner appears randomly throughout the site throughout
the month. Our banner-serving software allows us to evenly spread
your banner ad "deliveries" throughout the month, and mix them with
banners from our other advertisers.
How can I find out how well my banner is working?
We are in the process of developing a tracking system
that will keep track of all details of your ad. In the mean time
we will email you reports whenever you like.
What kind of click-through rate should I expect?
Ours is a fairly targeted site, attracting people who
are interested in music or Guitars in general. You can expect a
1% to 2% click-through rate, or higher if your banner is very compelling.
It all depends on your banner's message and catchiness. We often
see banners that run at 3% and sometimes even higher.
How can I get a higher click-through rate?
We also allow advertisers to "own" a position on one
of our Web pages where their banner shows exclusively. Let's say
you manufacture guitars, and you secure exclusive rights to the
top banner on our main page. If your product is a strong match with
the topic of the page. You should get an even better click-through
rate.
Why are some CPM rates higher than others?
Typical rates range from $5 CPM to $150 CP10M (Click
Per 10 Thousand) The more targeted the site, the better match between
the visitors and the advertiser's product, the higher the rate.
Not only is the click-through rate likely to be higher, but also
the percentage of sales you make is likely to be higher.
How much will this cost per customer?
Perhaps a better question is How much does it cost
me to get customers? Every business tries to calculate how much
it costs them in advertising to get a customer to walk through the
door. After a while in business, they can also estimate the average
sales per customer who walks in the door.
Here's one way to look at the actual costs per customer.
| |
"Run
of Site" (ROS) |
| Rate (Cost per thousand
page banner views referred to as "CPM") |
$10
CPM |
| Average click-through
rate (CTR) |
1.0%
to 2.0 % (projected) |
| Click-throughs per
Thousand |
10
to 20 |
| Cost per click-through
(CPC) |
$0.50
to $1 |
| Percentage of click-throughs
who purchase from you.
(Conversion rate) |
10%
Your rate may be higher or lower, depending on your site.
10% is quite high. |
| Cost of advertising
per purchase (CPP) |
$.75
(CPC average) / 10% (conversion) = $7.50 |
Do you have any minimums?
Yes, our minimum monthly "run of site" is 5,000 page
views, or $50. If you plan to purchase 50% or more of the available
page views on any section of our site, we will require a contract
with a two month minimum, and a 30-day notice. This protects us
from having a major part of our advertising income disappear without
a chance to fill it up again.
What size banner can I use?
We have 3 different sized banners that you can use:
a small banner ad is 115 pixels wide X 60 pixels high. This banner
is suited for the middle part of the main page or the side bar.
Next we have 213 pixels wide X 60 pixels high. This can be placed
on the main page in the center. Our biggest ad is 449 pixels wide
X 86 pixels high. This is the top banner and you can either "own"
this on the top of the page or share it with other advertisers.
Do you prepare
banners?
Yes. We can design custom banners to fit our site. Our staff
is experienced and very detailed oriented. We charge $100 if you
already have a concept and artwork in mind. If not we charged $150
and can make you a static banner or $200 for an animated banner.
Can I advertise my porno site or my off-shore gambling
site?
No.
Can I advertise my cookbook on your site?
Yes, but why would you want to? Our site is fairly
well targeted on guitars. For cookbooks, I'd recommend something
else.
Do you cooperate with ad agencies and media
buyers?
Yes. Of course, the word "cooperate" really means:
Will you allow an ad agency to pay 15% less for bringing their client
to you? We like to work with ad agencies, since once they learn
about our site, they may bring other customers. We also recommend
that you consider working through an ad agency, since you have nothing
to lose (it's our 15%, not yours). Of course, if you have a small
budget, an ad agency probably won't be able to serve your needs,
but we'll be happy to work with you.
Can you serve banners through third parties?
Yes. We can set the HREF and IMG tags in our banner
serving program to a URL on their site, and surfers are "passed
through" seamlessly. We can also set "datestamps" for "cache-busting"
techniques.
Can you serve HTML and Java ads?
Yes.
What's the next step?
Why don't you begin by purchasing 10,000 or 20,000
page views on our site and see how it works for you. You can e-mail
us or pick up the phone and call our advertising sales staff
at (408) 863-0004, Monday through Friday, 9 am to 5 pm Pacific Time.
We look forward to helping you make your business a success.
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