Everyone knows that a small business runs on a limited budget. Banner Advertising is typically known for increasing “brand recognition”, but it is worth it for the local companies to also participate in this particular form of internet marketing? That question can be best answered by looking at the costs and ROI involved with Banner Advertising.
How much do they cost?
According to http://www.markneting.com/internet_marketing.shtml, banner advertising is the most expensive online form of advertising. This is partially because of the cost-per-impression payment model, and also because of the low click-through-ratio that banner advertisements receive.
Although the cost will vary based on the site, I recently had a client that was quoted that it would cost him about $6-$10 for each click he would get from running a banner ad on several sites including automotive and financial sites.
Do the People who “click” care about your product?
Many people will argue that these clicks are not as “qualified” as the ones they will get from search engines, since the consumer was not actively searching your product. This is because banner advertising is a form of indirect advertising such as TV or Radio advertising versus the more effective direct advertising such as direct mail, telemarketing or search engine marketing.
How do I make my banner ad experience more successful?
According to “Web Marketing for Dummies”, with banner advertisements, bigger is always better. The smaller the ad, the less clicks it will potentially receive. Also the best positions for banner ads are:
1. The right side by the scroll bar
2. As close to the top of the page as possible (above the fold)
3. Rectangles integrated into the page layout
They said to avoid the standard banner ads that run across the very top of the page (486 x 60). These are the most popular, but surprisingly the most ineffective.
According to a Burst Media study, the more banner ads that display on a single page, the less success the advertisers will have. They said that “ad clutter not only annoys the audience but it also diminishes ad effectiveness. An astonishing three-quarters (75.5%) of the respondents who remain on a site they perceive to be cluttered say they pay less attention to advertisements appearing on its pages”.
In my opinion, spending money on Search Engine Optimization is the best form of online advertising and has a much better ROI than banner advertising. According to several sources, it has the highest ROI next to customer referrals.