Web Banners have become the most popular means of advertising on the Internet.
You can organize your banner advertising for free through
Web Banner Exchange Programs. (Read more about this in Banner exchange
section). If you decided to pay for your advertising it is better to do some research on where your
advertising dollars would have the best return.
Here are some terms used in banner advertising
Impression:
One (1) impression occurs each time a banner is displayed
on a screen. Also known as a "View".
CPM
Cost Per Thousand impressions: This is the unit of measure
by which most banners are sold, the important distinction
here is to understand that you are buying in bundles of
1000 impressions and not by the number of times the banner
is clicked on.
Click (or Click through)
All banners act as a link (or "URL") to the web
site of the advertisers product or service. This means that
anyone viewing the banner may choose to click the banner
and be taken to that web site. A "Click" occurs
when a person does indeed click a banner and visit the advertisers
web site.
CTR
Click Through Rate. The ratio of "Impressions"
to "Clicks" usually expressed as a percentage.
e.g. 1% This means that for every 100 times a banner is displayed
- one person clicks on it. The industry average is under
1% and is approaching 0.5%. However, quality art with a
good message on your banner, combined with relevant context
with the page that the banner is displayed on, can raise
this to 2% or greater. Exceptional results of over 3% can
be achieved with highly targeted campaigns.
CPC
Cost Per Click. Some web sites will sell banner space based
on a payment method measured by the amount of Clicks the
banner receives. e.g. A CPC of $0.50 means that every time
the banner is clicked the advertiser pays the web site fifty
cents. Some advertisers prefer to buy this way as they are
only interested in achieving click through - the web site
prepared to sell banners in this way may reserve the right
to reject your product or the actual banner art - as poor
product or art means that neither party will get results
but the web site incurs the most risk (opportunity cost)
compared to a CPM transaction, where as the advertiser risks
little.
General Rotation / Run of Site
Banners on General Rotation are displayed at random across any part of a web site to any site
visitor. Also know as "Run of site" these campaigns tend to be the least expensive because they
are the least targeted.
What you need to consider, if you decide to buy banner advertising
Where to advertise
Single site advertising
If you found a site that has the same type of visitors that
your potential clients and not competing with you on the
same service market it might be a good idea to check advertising
options. For example, if you are running a web site selling
tours to Italy, then banner advertising on the info portal
about Italy can be very effective.
Network-wide advertising
Many popular web sites sell their space on the web site to
advertising networks. Advertising network then can offer
you banner advertising on few sites in the same category
or in all sites of the network. This means that your banner
will appear on dozens or even hundred sites that have agreement
with the network. Here are links to some of the biggest
and most popular advertising networks: Fast click; Burst
Media; Value Ad; Ad Scholar; Double Click.
Targeting
Targeting your advertising means showing your banner ad to a visitor,
who might be interested in your product /services. Example
with advertising of tours to Italy on the info-portal about
Italy goes here as well. You can do targeting by category
(for example Business, Finance, Insurance, Travel) or geographical
targeting (only for US residents, Europe, China etc).
If you buying banner advertising from advertising network,
then targeting is very important, as you don't want you
banner impressions to run out in vain on some site that
cannot possible bring you potential visitors.
You can do targeting by both criteria even if you advertise
on a single site. Limit you banner placement to certain
categories and you can also ask to show your banner only
to visitors from certain location. Good ad serving software
can check IP and show different ads
Ways of banner advertising
Buying impressions
you buy certain amount of your banner impressions. Normally the minimum buy starts from 5000
impressions and some sites or networks can require a minimum buy of 50 000 impressions.
You banner will be rotating on the site(s) until it will be shown this number of times.
Buying fixed placement
this can be arranged if you advertising on a single site, you buy advertising space for your banner
on the site for a certain period of time. You are not given in advance number of impressions your
banner will get, but normally sites can predict this judging from their statistic reports.
If you buying fixed placement, no other banner will be shown on this reserved place while your
campaign lasts.
Buying clicks
instead of buying number of impressions you buy number of clicks on your banner. For example if you
are buying 100 clicks on your banners, your banner will be rotating on the site(s) until it will
be clicked on 100 times. This is more preferable way of advertising, since it means you are buying
actual visits to your site (even if click not always means unique visitor - someone can click on
the banner twice and this would mean 2 click, unless ad software counts only unique clicks on the
banner). Banner size and place The most popular size still is 468x60. However skyscraper ads
(120x600 px) are getting more and more popular for ad advertising. The bigger the ad the more
chance it stands to get noticed. When you are buying banner ad you can expect that your banner will
be placed on the visible spot on the site and not buried somewhere in the bottom or hidden with
other images and text.
The Cost
The prices for banner advertising may vary depending on place and type and other special conditions of
advertising Single site advertising: Small sites can charge from $1 to $10 CPM, and $0.01 - $0.05CPC.
Fixed placement can cost from $25 to $100 per week (depending on banner size and web site popularity).
Bigger sites that have hundreds of visitors a day can charge from $12 to $40 CPM and $0.20- $2.00 per
click. Fixed placement on the big portal can cost you from $300 to $1500 per week. Rates can go down
significantly if you are buying in big volumes. Network advertising: Prices here vary depending on
targeting and volume of buy. You can get Run of network (non-targeted advertising) for as low as
$0.1CPM and highly targeted by category can cost you from $5 to $15 CPM depending on the volume
you buy. Cost per click can be from $0.05 to $1.50.