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Banner Click Through Rate Help

by phil.wheatley
7 replies
Hey Gang

I'm from Dorset(UK) so Maths isn't my strong point

I've been quoted £250 for a banner based on 50,000 impressions. The average CTR is between .09% and .15% - Let's take the low end of that.

Soooooo, does that mean that I would get less than 1% of 50K? In other words, 50000 X .09% would be 45 clicks??? That seems hugely expensive!!

Can anybody point out if that is correct, or I'm just being completely dumb.

Thanks
Phil
#banner #click #rate
  • Profile picture of the author TheContentAuthority
    Phil,

    CTR will vary based on the type of online advertising as well as the industry you are active in. For example, a good CTR on Google’s platform is around 1% whereas with Facebook’s PPC, anywhere from .2 - .5 is considered pretty good.

    One thing that isn’t quite clear is how the company offering you this service is computing that metric. Are they using their own ads or are they allowing people to do their own designs? Or is it a mix of both? If people are allowed to write their own copy and make their own ads, then that CTR won’t tell you much because they may not be good at making ads. Conversely, if the provider also does the design and writing work for the ads, then that metric would be valid.

    The metric itself seems very dismal. I would find out how they are calculating that metric and if they say people are using their own ads, you may give it a try. You also want to see though if their site’s content is relevant to your ad and if their placement is good.

    Hope that helps,

    SHawn
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  • Profile picture of the author Alexa Smith
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    Originally Posted by phil.wheatley View Post

    I've been quoted £250 for a banner based on 50,000 impressions. The average CTR is between .09% and .15%
    Hi Phil - if your banner's CTR is between 0.09% and 0.15%, then on those figures you're paying something between $3.33 and $5.55 per click.
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  • Profile picture of the author WillR
    Yes, that's very expensive. Without knowing the niche I can't say whether it's worth considering or not since some niches could still do well at that type of traffic cost. But for most niches that is extremely high just for banner ad traffic.. and that's also considering your banner got the same CTR they are quoting. I'm not sure why they would actually quote a CTR because that has more to do with your ad than anything else.
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  • Profile picture of the author phil.wheatley
    HI Guys

    Thanks for your replies. The guy came back to me and confirmed what you have all outlined above. So yeah, VERY expensive. It is in the gaming niche, so this is something I do NOT want to be spending 3-5 bucks per click ;-) Oh course, if it was real estate or something, that would be a different matter.

    Again, thanks guys for your help.

    Cheers
    Phil
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    • Profile picture of the author SunilTanna
      A lot of banner advertising is sold on a cpm basis - Internet Marketing Dictionary - CPM

      In this case, you are being offered 5 pounds cpm, which is pretty expensive.

      The seller may try to justify this on the basis motbjust that people may click, but many more may see the ad helping you build a brand. I tend to be skeptical about such claims myself, except in the case of big brands, but your opinion may vary.

      In addition...

      It might be that the ads are below the fold etc., so not really seen, or hidden away in places with poor click thru rate.

      Plus which site(s) are your ads on? Run of network - Internet Marketing Dictionary - Run Of Network - ads are pretty untargeted, and even so-called targeted ads can be fairly untargeted - a category like gaming might include (depending on the ad network) everything from chess to warcraft.

      The beauty of banner advertising: there are always other places looking to sell ads.
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  • Profile picture of the author george b
    I would take a look at buysellads.com

    I have used it a few times, and each time after the first advert i put up has been sucsessful in ethier generating a profit or increasing my list size!
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  • Profile picture of the author phil.wheatley
    Thanks again guys. buysellsads looks good. The problem nowadays is the CTR of banners seem really low. The average CTR of gaming banners is .09% ..and of course, only a given percentage of those will take action when they land on your site.

    Phil
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