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Advertising Strategies: Calculating Banner Advertising Rates

by Robbie Darmona

There are many types of advertising strategies used by different people. Upon testing which strategy will be best for you, you should remember that one strategy may have different results with different people. There is no specified strategy that works smoothly for everyone, producing the best results. That is why you have to decide for yourself which way of advertising to choose. Before choosing, you need to get accustomed with all available advertising techniques. One of them is advertising using banners on the Internet.

Banner ads of your business can be put in different sites on the Internet. The most important thing you must learn about banners is to calculate the banner advertising rate. It determines the price you have to pay, as well as the results from the advertising. The first banner advertising rate that you must learn to calculate is the cost per click. Although most banners are not sold on a cost-per-click basis, you should know it so that you estimate whether advertising on a certain site is worth paying. If your banner has been clicked on 5 times this month by visitors of this site, your clickthrough ratio amounts to 0.5%. If you have paid 20$ for a monthly advertising on the site, then the cost per click is 4.00$ (you paid 4$ for a single click on your banner).If another site delivers a similar click rate but offers a lower-cost CMP, then it is better for your budget.

Another banner advertising rate is the cost per unique visitor. The average sum of pages that the visitor sees on a certain site varies. If, for example, a particular site has an average of 6 page views per visitor and its average number of impressions per month is 600 000, then their average user sessions per month would be 100 000. If your aim as an advertiser is the number of clickthroughs, then the cost per visitor should not be bigger than the CPM. Having this site as an example, the impressions that you will get per month will amount to 100 000.

But if brand recognition is your greatest aim and you are trying to make your brand name popular among many people, your banner should be seen over and over again. If so, then a low cost per visitor would not be as important as a low cost per impression. Many ad agencies are dealing with calculating different banner advertising rates, so that your money can match the purpose that you are trying to achieve.

Another calculated banner advertising rate is the so called ”conversion rate”. It is important for sites that are selling goods, and many online stores use it. This banner advertising rate shows how many people who saw the banner actually bought something.

So, as you have probably understood, the main problem when calculating different banner advertising rates is to have an idea of the exact number of clickthroughs. The easiest way to do this is to use a script that will track down the number of clicks received from different links. Here are two ad tracking resources ,which will ensure that you get the correct total count of clicks.

If you decide upon trying banner ads, you should have these things in mind. You should learn to calculate your banner advertising rates, so that your money is not wasted uselessly.

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About the Author:

Robbie Darmona - article writer who writes on a wide variety of subjects. For more information click Banner Advertising Rates

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