Banner many advertisers are looking to increase their online sales. Google Adwords does not always give the desired profitability. In other cases, the investment may reach a ceiling and alternative channels must be found to increase online sales. Display advertising can provide the desired ROI, but you have to know some tricks for good profitability.
I always say. The world of online advertising is complex. Sometimes it’s hard for me to keep abreast of the latest developments in the sector, even though I’m part of it. When you make your first steps with online marketing you have to learn the basics to understand the most advanced “tricks”. If you do not have much knowledge of online marketing in general and Internet advertising, it will be difficult for you to understand this post 100%.
Three reasons to invest in display advertising
The latest IAB study on the online advertising market in 2011 confirmed the importance of online advertising through Printing Near Me. Compared to investment in search engines, it is positioned slightly below, reaching almost 50%. Its growth rate is positioned even above. Here are some reasons to invest in display advertising with image ads.
- Alternative to search engine advertising when there is a lot of competition and the CPCs hinder optimal profitability.
- When there is no critical mass of searches because the product or service is innovative or little known.
- To increase sales because the volume of traffic through search engines has reached a limit.
The importance of the first 2 ad impressions on a banner
Few advertisers today are aware of the importance of the first impressions of an advertising banner. Whether the objective is a branding campaign or results are sought, the following three points must be taken into account.
1. Greater user attention: when a user arrives at a web page, he gets a global view of the content and also perceives graphic ads with greater intensity. It is with first impressions that the advertiser has the greatest impact on her ad.
2. Higher conversion rate: what is intuited with common sense, Media Mind Research confirms with a study. The first 2 impressions show the greatest effectiveness when carrying out performance campaigns. There is even an important difference between the first and the second at the conversion rate level.
Greater volume and reach
3. Greater volume and reach: digital media such as blogs usually have an average of 2 impressions per visit. If you do not give importance to hiring first impressions, access to this type of site is almost automatically lost. In general, the volume and coverage of impressions are lost.
If you want to do branding, it is not worth buying at a very low price because you are going to appear in the last impressions of the support ad server. In campaigns that seek results, it is important to negotiate good positions in the ad server of support.
Internet advertising campaigns – when to choose CPC, CPM, or CPA?
To mount your first advertising campaign on the Internet you can choose between several business models. Apart from choosing whether you want to promote your online store (or services) with banners or text ads, you have the possibility of hiring companies that charge you for clicks, impressions, or sales. All models have advantages and disadvantages.
Operation and measurement of CPM, CPC, and CPA – what you have to take into account
In the online advertising market, there is great transparency and little measurement standardization because each one applies its own criteria.
The CPM is paid for every thousand impressions of a banner on a web page. Some count views when the creative is not in the visible part of the screen. The position of the banner and the measurement are therefore important criteria when hiring a campaign with an impressive model. Most actors don’t bill for non-viewable impressions. Make sure the company you hire follows this standard.
Speaking of CPC, a click is not always a click. Every online advertising company seems to be doing it differently. Something reasonable is to count a click per user per hour or session. That way you avoid counting erroneous clicks. Interestingly, there are many users who double-click on a banner. Unfortunately, there are companies that count this as 2 clicks and create additional costs for an advertiser.
Online advertising campaigns
The variable model of the CPA also has important variations according to campaigns. The affiliate marketing industry is changing and is in a housecleaning phase. 1 to 2 years ago many advertisers paid in a “post-view” (Zanox) or “eye sales” (Tradedoubler) model. This allowed him to generate revenue for affiliate support that was the last to display a banner to a user before e.g. buying a flight ticket or taking out home insurance up to 30-45 days after viewing the banner. creativity. Many affiliates found ways to engage in “undesirable” practices that allowed them to generate significant income. Consequently, the main advertisers have stopped working with “post-view” or “eyesores” models.
Most affiliate campaigns today work with post-click. A web visitor clicks on a banner visits an advertiser’s site and makes a purchase. Sometimes it can take a few days between the click and the conversion (sale or registration) for a commission to be posted to the affiliate (website).
Choosing CPC, CPM, or CPA for online advertising campaigns?
Each payment model has good and bad features. It depends a lot on the objective of the campaign that we have in mind if it makes sense to give preference to one model or another. I present different objectives of a campaign and the payment models that are usually more convenient.
1. Pure branding campaign: the most suitable model is the CPM. In a campaign of this type, you want to obtain visibility on websites with a target audience related to the product or where the brand of the web support transfers its strength to your own. Depending on the quality of the sites, you can pay 4-10 Euros for every 1,000 impressions. These types of websites can be prominent fashion, luxury, economy, finance portals, or the online version of well-known newspapers.
2. Branding and traffic campaign: few campaigns seek only visibility. Most branding advertisers additionally seek to redirect visitors to their site. These campaigns also go to CPM but optimize towards a minimum CTR (Click Through Rate, ratio of clicks per 100) of 0.1%. To guarantee a minimum number of visits, a part of the budget can be invested in CPC. Depending on the theme, the CPM can be between 2-5 Euros. The CPC could vary between 0.5-2 Euros.
Traffic and conversions
3. Traffic and conversions campaign: Many online advertising campaigns seek an immediate ROI. The most obvious option would be the CPA. This model is not suitable for all companies because you must already have a brand created (see also “Why branding helps you if you sell online” ) to find affiliate websites that accept this type of collaboration. The second option seems to be the CPC.
- Interaction campaigns with publications and reach (Cost per Interaction and Cost per Thousand Impressions)
- Interaction Campaigns with a focus on generating traffic (Cost per Click)
- Dynamic catalog campaigns with sales objective (Cost per Action or Cost per Sale)
To summarize, one can never say that one model is more suitable than another. The advertiser must be very clear about the objective of the campaign. Not all models can work on all online advertising channels. CPM and CPA do not exist directly as models for advertising on search engines.