Thursday, January 7, 2010

Modern Banner Ad Price Evaluation

As posted earlier about the traditional method of banner ad pricing evaluation, today I'll take you with the modern methodology of estimating spend & targets while going for banner ads advertising.

For example, the top 100 or so Web sites can charge a premium because of their size, but we can opt for the option called targeting. For example, if you want to sell a mobile, you can advertise on the Univercell Mobile articles and get a targeted audience for your ad, which will typically increase the click-through and response rate for the ad. Recently Yahoo and many search engines target their banner ads to the search query people type in, and they charge more for these targeted ads, which is also called as Contextual Advertising. But for most other Web sites, there is very little money to be made from banner ads.

Conclusion

In order to charge more than the average spend per thousand impressions in this digital era, Web sites have to offer ads that follow either of the below statistics along with many different advertising formats and experiments to carry on with:

  • Have a lot more branding power

  • Get a much higher click-through rate

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