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The statistic of banner ads

The Internet can provide a level of detail that no other medium can ever hope to. The online advertising business is a more grown-up than many people realize, and the tools to measure the effectiveness of banner ad campaigns are there for those who know how to use them. Banner ads give in two benefits. First the benefit of ad banners is building brand recognition, this is almost impossible to measure. Second, they may attract users to click on the banner and go to the advertiser's site. Each time this happens is called a "clickthrough", and the number of clickthroughs divided by the number of impressions is called the "clickthrough ratio" or "click rate". This is easy to measure, and provides a direct measurement of a banner's effectiveness. The more times each individual user sees a particular banner, the lower the click rate will be, but brand recognition (brand name) will be hammered into people's heads. This seems logical, and it is a very well-established fact. So if you care about clickthrough more than about building your brand recognition the total number of impressions bought on a particular site should represent only a small fraction of the site's total traffic. It's well known that the click rate for any particular banner goes down steadily the longer the banner is up. To maximize clickthrough, rotate banners often. Ad agency types refer to the banners themselves as "creative". Some banners are much better than others at generating clickthrough, often for unfathomable reasons. For this reason, a campaign usually starts out with several different banners. After a week or two, the banners with the lowest click rates are pulled out of rotation. Conversion Rates This refers to the number of site visitors who make a purchase, that is, are "converted" from window-shoppers into customers. If your site receives 100,000 visitors per month, and generates 1,000 sales per month, then you have a (very creditable) conversion rate of 1%. The main things that influence the conversion rate are of course the product and the site design. If you are selling junk or over-priced product, then your conversion rate will be low. Or if the web site doesn't load properly for the visitor because the webmaster couldn't resist building a web site loaded with graphics, complicated java and javaScript and redirects to "flash" pages, then your conversion rate will always be low.

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