Graphics Reference
In-Depth Information
can find out what the click-through rate (CTR) is. The CTR is the
rate at which users click on your ad based on how many times it
was shown. In most cases, the math will be done for you by the
ad-server tool, but just in case, the formula is simply clicks divided
by impressions times one hundred ((clicks
100).
So if you have 1000 impressions and 100 users clicked on the ad,
your CTR would be as follows: (100
÷
impressions)
×
10%.
Finally, a conversion is counted when a user has clicked on your
banner, been directed to the landing page, and performed the
action that you intended for him or her to perform. For example,
your banner may have directed a user to a page with an e-mail
sign-up form. If he or she fills out the form and submits it, a conver-
sion is counted. Likewise, you may have directed him or her to a
page where he or she could instantly purchase your client
÷
1000)
×
100
=
s product.
Again, if he or she makes the purchase, a conversion is counted.
'
Determining the
Now comes the part where you find out how well the banners are
working for their money. If you aren
Cost per Everything
t already working in the online
advertising world, you may have never heard several of the terms I
'
m
about to talk about. Then again, you may be working in online adver-
tising but never paid much attention to what these terms mean.
Either way, I
'
'
m about to explain a few costs that are determined by
the information gained from tracking your banners
'
performance.
In regard to figuring out how well an ad was performing on a
cost basis, I was once jokingly told,
We have a cost per everything.
There
s a cost per click, a cost per interaction, a cost per conversion,
and so on. There are formulas for figuring out each of these costs
but they will most likely be done for you in the ad-server tool. In
short, the ads that are performing better will have lower costs asso-
ciated with them, and the ones that are performing worse will have
higher costs. The importance of knowing how much each aspect of
your ad is costing comes into play on several occasions and one of
those is when it
'
'
s time to optimize the campaign.
Optimize Your Campaign
At some point, enough time will have passed that you can use the
numbers from your tracking and costs to optimize your campaign.
When you optimize your campaign, you
re making the banners
work more efficiently for the money spent, which in turn means
that your client is getting a better return on their advertising
dollars. Figuring out how exactly your campaign should be opti-
mized is pretty straightforward. The first step is to study the perfor-
mance of each banner on each site. After comparing them all
against each other to find which ones are doing better, you
'
'
ll know
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