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Banner Advertising Models
by Brian Chmielewski
Describing 1997 as a breakthrough year for advertising on the Internet,
the Internet Advertising Bureau put the total online advertising revenue
figure for 1997 at US 907 million, a sharp increase from the US 266.9 million figure of 1996.
Following the trend back to 1995, one can see that online advertising,
with an emphasis on ad banners, has overwhelmingly been chosen by marketers as the preferred
method to promote products and services on the Internet. It is only
natural that a visual ad element, like the banner, and a visual serving medium, like the
computer monitor, are destined for a comfortable marriage. Like many
things in life, they simply belong together.
When advertisers talk about banner advertising in a per impression sense,
they talk in terms of cost per thousand (CPM), governing, banner frequency
and clickthrough percentages. CPM is the amount of money you pay per thousand
banners served (impressions) at a site and is typically determined by the
amount and quality of traffic on a given web page or web site. You'll notice that it
offers different CPM's depending on the location that you want to target.
Based on the audience that you wish to target with your banner, you will find a site,
or group of sites that match your target. To make an ad buy, you will need
to contact the advertising sales contact or the advertising representative. Either one
can be involved in all or part of the sales support, serving of the
banners through an ad server, and developing the reporting.
Clickthrough percentages are based on the direct relationship between
banners impressions and the actual number of people who click on the
banner and are routed
to the site. To earn good results, you must be alert to your banner's
effectiveness in getting people to click through, so access to immediate
reporting is essential.
Targeting by site and having a topic-specific banner are the variables
that generate your traffic.
Banner frequency determines how many times a banner will be consistently
displayed before moving on to another banner. Remember, you may be sharing
location with other advertisers unless you buy up all of the impressions
available. Most analysts agree that presenting your banner at a frequency
of three is optimum,
unless you are attempting to brand your company, where the number of
banner impressions is insignificant, and clickthough percentages are not
Governing refers to the pace that you want your entire campaign to follow.
If you purchase 100,000 banner impressions at a site that receives 2.4
million visitors per
month, you could run through them quickly. However, governing the
impressions over 30 days, gives your campaign some balance over time and
may get your
message in front of a more diverse audience.
For example, let's say that you sell guitars and having done your market
research or hired a professional to do it for you, you find that your
target audience typically
spends time online at the free sheet music sites, guitar store sites,
music chat rooms, and online guitar periodicals. Either you or your
professional will contact the sites
or their ad reps and put together a media plan within your budget. Your
campaign begins, and you see an immediate swell of traffic and then its
gone. What went
wrong? You look at your reporting to find that your banners are still
being rapidly served. Is the problem the banner or the sites that you are
serving them on? You
rush to have another banner created, put it into flight and again receive
an immediate influx of traffic.
So, what if you could get guaranteed visitors, not have to worry about
switching out a banner when it weakens or have to constantly monitor a
report to drive
qualified traffic to your site? You can! Per click or per visitor banner
advertising has arrived and is becoming more pervasive in the marketplace
because it allows
you to execute all of your banner advertising needs with one agency. You
simply choose a target audience and indicate how many visitors you would
like to your
web site and the process begins. Working with an agency that offers a per
visitor banner advertising model allows you to concentrate on the
qualified traffic that visits
your site, rather than concerning yourself with the management of your ad
On average, you will find the expense of per visitor models to be higher
priced, but when you consider that you are paying for actual visitors to
your site, rather than
for the displaying of a banner, the value becomes obvious. Some per
visitor models offer additional benefits. For instance, uPromote(TM) Exact
Traffic assumes the
responsibility of targeting your audience based on your directives and the
development of effective banners to drive the number of visitors that you
want within the
time frame that you specify. Choosing one agency to manage your campaign
alleviates the confusion that often results from the interplay between the
an ad agency and a creative developer.
Traffic service offers you a surefire solution to driving qualified
visitors to your web site. Click through to the web site at
www.upromote.com/traffic to learn more about this exciting
and results-driven advertising service.
First published in WebPromote's May 1998, Vol 1 newsletter.