banner advertising

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Banner advertisements are another great way to drive traffic to your affiliate link. If you have spent anytime on the internet you have seen banners. They are the image ads you commonly see on websites. Banner advertisements are generally placed along the top of a website or along the left and right sides of a website, sometimes they can even be in the middle of the content. The website owner places them where they feel they will get the best exposure.

There are two major factors that influence the cost of a banner advertisement, the website’s traffic and the actual placement of the banner advertisement within the website. The more traffic obviously the higher the cost.

Banner advertisements can be a very effective form of marketing as you can accurately target your desired audience. Banner advertisements can also provide a consistent flow of traffic as you’re able to plan your advertising in advance.

There are several terms you should familiarize yourself with so you can understand banner advertising better. Definition of terms regularly used when advertising banners.

Impression: Whenever your banner is loaded on a website page that is considered an impression.

Click: When a person actually “clicks with a mouse on the banner” this is a “click.”

PPC: Pay Per Click - you only pay when someone clicks on your banner. This is great because you only pay when someone actually visits your website.

Conversions: There are two major types of conversions actual sales conversion when someone makes a purchase or buys a product can count as a conversion and also when a website visitor fills out an email capture form is often counted as a conversion. This is also considered a lead.

CPI - Cost Per Impression: This is where you pay for impressions of your banner and not actual clicks. The downfall of this type is you pay even if you do not send any visitors to your site. As with any advertising you must test and track all of your results so you can effectively manage your marketing budget.

CTR - Click Through Rate: This is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the "number of users who clicked on an ad" on a web page by the "number of times the ad was delivered" (impressions). For example, if a banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1 percent.

Cost Per Conversion: This describes the cost of acquiring a customer, typically calculated by dividing the total cost of an advertising campaign by the number of conversions. The definition of "conversion" varies depending upon the situation, it is sometimes considered to be a lead, a sale, or a purchase.

Publisher: The website that is providing the space for your banner.

Advertiser: The person who is paying to place the banner on the website. This will be you.

It’s a good idea to do a little research on some of the sites you want to advertise on. If you see other banners that are selling the same product as you are then that is a good sign. That usually means that the site is providing the kind of traffic you will need to convert clicks to customers.

Always start with a smaller budget and test and track to ensure the conversion rate is there. You top priority is making a profit and the more you track the more profitable you will become.