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Banner Ad Opt-in Rates?

by johnnys229
6 replies
What is a good opt-in rate from banner ad traffic? If I've got a good squeeze page converting at 50% from solo ads, what would be an expected conversion from 'cold' banner traffic? I'm thinking around 20% but I don't yet have any experience of sending traffic via banner ads to my squeeze page so I can only guess. Is it at all possible to get it up to, say, 30%? (I'm thinking that might be pushing it, but who knows.)

I'm concerned about opt-in rates from banner ads because in my solos I redirect to a OTO which recoups all or part of my advertising costs, massively decreasing my cost per lead. But if in banner ads I've got less than half the opt-ins and therefore less than half the people being forwarded to my OTO, in total I would probably need to have a CPC in banner ads of around $0.10 which I know is very low (not even sure if such CPCs are possible in direct buys), in order to not lose a lot of money on the front.

Anyone have any experience with banner ads going to squeeze pages?

Cheers,

J
#banner #optin #rates
  • Profile picture of the author Randall Magwood
    Banner ads for me haven't been so effective... even when i lead them to a squeeze page. If you sell a high priced item on the backend, and your email marketing is good... i wouldn't worry too much about losing a little money on the frontend when aquiring a customer. You'll recoup that loss (and more) with the next sale to this same customer.
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    • Profile picture of the author johnnys229
      Originally Posted by Randall Magwood View Post

      Banner ads for me haven't been so effective... even when i lead them to a squeeze page. If you sell a high priced item on the backend, and your email marketing is good... i wouldn't worry too much about losing a little money on the frontend when aquiring a customer. You'll recoup that loss (and more) with the next sale to this same customer.
      Hi Randall, thanks for sharing your results -- this was my instinct too, it seemed very hard to make any sort of economical lead acquisition via banner ads unless you have a very, very high lifetime value per customer. Do you have any figures like the ballpark CPM you paid, and the kind of opt-in rates you got?


      Originally Posted by SamAlnawar View Post

      Banner ad is good if the price of your OTO is at least $97. Or you
      have a very solid funnel..

      I've realized that most of the banner ads advertisers make their
      profits at the backend..

      If you don't have a high ticket product to offer to your customers then
      banner ads isn't for you..

      I say this from experience..

      Yes, Sam, that's what I was thinking. I could see no way of coming close to break even with a $7 OTO which you might be able to use with a good solo ad provider and actually break even on the front. And having a $97 OTO kind of defeats the object for me, of having a low priced OTO to quickly recoup advertising costs and get as many people on the buyers list as possible.

      You mentioned that we either need that high priced OTO or a very good funnel. What kind of revenue per subscriber per month / lifetime value per customer do you think that we need to be able to be profitable with banner ads? I guess the question relates to what kind of cost per lead we can expect from banner ads.
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  • Profile picture of the author SamAlnawar
    Banner ad is good if the price of your OTO is at least $97. Or you
    have a very solid funnel..

    I've realized that most of the banner ads advertisers make their
    profits at the backend..

    If you don't have a high ticket product to offer to your customers then
    banner ads isn't for you..

    I say this from experience..
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    • Profile picture of the author retsced
      Originally Posted by SamAlnawar View Post

      Banner ad is good if the price of your OTO is at least $97. Or you
      have a very solid funnel..

      I've realized that most of the banner ads advertisers make their
      profits at the backend..

      If you don't have a high ticket product to offer to your customers then
      banner ads isn't for you..

      I say this from experience..
      This is exactly right from where I'm sitting. Banner ads work really well for me (far, far, far better than solo ads) but you must have a solid sales funnel in place. The trick is to test a lot of banners and leave the ones that give you a good ROI to do their job.
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      • Profile picture of the author johnnys229
        Originally Posted by retsced View Post

        This is exactly right from where I'm sitting. Banner ads work really well for me (far, far, far better than solo ads) but you must have a solid sales funnel in place. The trick is to test a lot of banners and leave the ones that give you a good ROI to do their job.
        Cheers retsced, I am not surprised banner ads work much better than solo ads, even though the opt-in rates are lower solo ad traffic will mostly be freebie seekers, high opt-in rates but very few buyers.

        As a result of the relatively low opt-in rates in banner ads vs solo ads, I was considering just sending traffic straight to my sales page, in order to build my buyers list and have 100% of the traffic forward to my offer instead of just 20% if they had to opt-in first and then were redirected to my OTO. What do you reckon with this?

        So you are saying we should not even TRY to break even on the front-end? And if the OTO needs to be high priced e.g. $97, that means banner ad average CPCs must be skyhigh. Of course they are priced CPM but assuming a decent CTR, are banner ads really that expensive?

        It all depends on the numbers which I am trying to estimate before going into this. What would be an average sales page conversion rate straight from cold banner ad traffic, on a product priced at say, $17 vs a product priced at $97.

        I've heard that banner ads have two different pricing structures - branding and direct response. Branding prices e.g. crazy stuff like $10 CPM are obviously off the cards. But direct response prices of $0.5-$2 CPM which could surely be negotiated on small-medium sites via direct buys, could surely be viable to break even on the front?

        $2 CPM x 0.5% CTR = $0.40 CPC

        assuming 1% conversion rate of the sales page, we need the offer to be priced at $40 to break even on the front.

        Are these calculations realistic?
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  • Profile picture of the author hgustavs
    I´ve used banner ads as well, I´ve made some money with it. Any way this is not where I would focus. If you have a site with good quality traffic, there are much more money to be earned from your own products or even affiliate products than banner ads.
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