Banners help increase traffic and brand awareness. The problem lies with knowing how much to pay. Unfortunately, there's no real consensus or uniform guidelines to make things easy. This article shows some factors to consider when determining the cost of placing your Banner Ad.
Compare Similar Websites
First you need to determine where you wish to advertise. Find websites that your target audience is visiting. Determine how targeted each website is and contact the appropriate ones for their advertising rates. Ask for demographics of their audience and their analytics. Most importantly you want to know their unique visitor count. Their demographics will confirm who's visiting their site (for example middle aged men interested in fitness).
As you receive standard banner rates from your chosen websites, assess and compare the pricing based on their unique visitor count and relevancy towards targeted audience. You should start to see the range being charged, enabling you to determine which Ad Space is reasonable and which is overpriced. You can also find, compare and buy Ad Space at a Banner Auction website. To start off, watch some of the auctions taking place with the "watch this item" feature.
Banner Size, Positioning and other factors
Also consider these factors when purchasing Banner Advertising:
· Generally, the larger the banner size, the more it will cost. What sizes are on offer?
· Is the websites' target audience strongly related to yours?
· How many advertisements are on each page? The more ads per page, the less it should cost.
· What positions are on offer? Will your ad appear on the side, top or bottom? Positions above the fold (appearing on the page without requiring the viewer to scroll down) are ideal and generally cost more.
· Is there a sliding-scale ad rate for the website?
· What rotation system is used? Is it ad hoc or does the sites' program automatically profile visitors and show the most appropriate banner? The more targeted the system, the higher the cost.
CPM, PPC and Flat Rate Pricing
CPM (cost per thousand impressions) is a charge for each thousand times an ad is viewed (or served) whereas PPC (pay per click) is charged on each actual click-through, not just viewing of the ad. On a given site, the charge per impression should be less than the price per click-through (PPC).
Most direct banner sales are made on a flat price basis, not PPC or CPM. This is because such sites generally do not attract copious amounts of traffic. Sites that attract a lot of traffic generally sell bulk ad spots using automated systems of an ad network such as Goolge AdSense, Yahoo, AdBrite, CPXInteractive and MSN. By charging PPC, websites' revenue is too dependent on the quality of your ad. Therefore, it makes more sense for websites with limited traffic to charge a flat rate for a specified period of time sometimes called the "Contract Term".
Flat rate pricing benefits both the advertiser and the publisher alike. Budgets can escalate quickly using PPC or CPM since you need to practice and experiment to get viewers that are highly targeted and qualified. Paying for a period of time enables you to budget correctly by knowing expenses upfront and gives you exposure no matter how many views or clicks are generated.
When Buying Advertising Space , you may come across websites or blogs with no advertising. This is a great opportunity to approach the site owner and possibly negotiate a trial advertising period. They may not even be aware of being able to sell advertising on their website so you can snap up some great deals this way.
While approaching websites directly, try to negotiate the advertising rates. Many are aware that advertisers will attempt to bargain with them and accordingly leave room for movement. Do not enter into a long term contract the first time you deal with a publishing website. Try the website for 30 days, leaving you the option of not renewing your contract if you are unhappy with the performance. Remember however that Banner Advertising does not generally provide a surge of sales. The return on investment is earned over time through repeat traffic. For this reason, you need a quality landing page, a sticky website and smart permission marketing practices.
Many e-commerce websites find themselves struggling to achieve traffic levels due to the high competition. Banner Advertising offers a cost effective means of gaining targeted and qualified visitors to your website. Traditional media advertising costs are high, but that's no reason to give up. Take advantage of the opportunities offered by online advertising, but do it wisely.