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Don’t Neglect Everything But The Banner…

Having a professional-looking, eye-grabbing banner is crucially important, HOWEVER, you should not forget about your overall marketing funnel and strategy.

What do I mean?

Well, once someone clicks on your banner and go to your site;

– are you capturing their information (like email)?

– Are you using banners in conjunction with other advertising mediums?

– Are you offering your customers products on the backend?

These questions might all seem like they have little to do with having a profitable banner, yet they all play a big role. Let’s explore each of these in more detail…


Your Landing Page

Getting traffic is fine and dandy, but you want to make the sale too, right? In that case you’ll want to capture your visitor’s contact information to follow-up with them (and consequently increase your conversion rates many times over.)

So let’s say you’re advertising a FREE Forex eBook and your banner looks like this:

After someone clicks on your banner, they should be brought to a landing page where they need to enter their contact information to get their free eBook. Afterwards, you can then follow-up with them and try to get them to purchase your Forex video training course or whatever it is you’re selling.

(Note: there are different “lead capture” models out there such as reverse opt-in etc. The purpose here is not to discuss the merits of each of these specifically, but rather to give you an idea of the landing page’s overall importance…)


Banners And Other Advertising Mediums CAN Co-Exist

Now earlier I mentioned how 2014 will be a great year for banner advertisers. Now that doesn’t mean that other sources of advertising shouldn’t be used at all. Smart marketers use banners in a campaign along with other forms of advertising.

Example: A study from ATLAS DMT showed that combining banner and text ads together produced results 21%+ greater than either traffic method used alone.

Experienced marketers will take advantage not only of the favorable banner market, but also from various traffic sources that can be used profitably; therefore increasing the brand’s visibility and the campaign’s overall profitability by staying in the customer’s mind more often (and be there when the time for the sale comes along!)


The Backend and the Numbers

Now this might not be anything new, but did you know that the real profit is NOT made on the first sale?

That’s right. The purpose the first sale is usually to get a customer. The real profit is made on subsequent sales. That’s why many companies (such as subscription-based skin care companies, for example) will lose money just to acquire new customers.

Once you know your customer’s total lifetime value, it becomes very clear how much money you can spend in order to acquire one.

OK, so what does this all have to do with banners?

Simply this: don’t just think about CTR. Think CPS: Cost Per Sale.

In other words, how much can you afford to spend in order to acquire a new customer? If that number is $5.00, then you’ll want to optimize your banner and landing page so that you can convert customers for under $5.00 (it’s also why you should consider adding backend products to increase the value of each customer…)

That’s why you shouldn’t necessarily let a “low” CTR fool you. CPS is more important for the bottom line.

Obviously you want to maximize your CTR as much as you can, but if you get a 0.1% CTR and your banner is profitable, why not keep using it as you test to improve it?

Here are two other reasons why the CTR can be a misleading metric:

  • In some niches, banners can increase the resulting search activity for your company or product by as much as 155%, yet this is something that doesn’t show up in your CTR measure (from a 2008 Specific Media survey.)
  • A 2009 study by iProspect revealed that out of several people who responded to an ad, only 31% of people actually clicked on the ad itself! 27% of people searched for the product/brand in search engines, 21% typed the website address directly in their browser and another 9% investigated the company through social media. That means that the actual response from your banner may be as much as 300%+ higher than the reported CTR!
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Tuan Nguyen

Customer support and project management at 20dollarbanners.com.


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