Internet Advertising Rates

For online companies, internet advertising rates are a vital cost of doing business and an expense that can get out-of-control without careful monitoring or a carefully-crafted strategic plan. Successful companies, whether the sole proprietor who sells nothing but mushroom-shaped birdhouses or one of the Fortune 500 giants, understand the importance of designing effective marketing strategies that reach the selected target audience through a specifically chosen network of online publishers. (In the context of the internet, a publisher is a website or the owner of a website). Though the sole proprietor or small business owner may be more concerned with cheap internet advertising than their larger competitors, the management teams at companies of all sizes are putting their resources into establishing and maintaining an online presence. In a global economy, an online website is practically a requirement for a business to stay competitive. In addition, the growth of internet shopping over the past few years is phenomenal. Improved technologies provide additional security to wary consumers that the personal information, such as credit card numbers, that they enter into a merchant's checkout system is secure. Consumers have become increasingly more comfortable shopping online and love the convenience of being able to comparison shop, place an order, and have it delivered to their door. The more positive experiences that customers have, the more confident they are in making additional online purchases.

Even so, current economic conditions have affected internet advertising rates, according to one industry index that collects and analyzes data from a sampling of website publishers. This data indicates that the effective cost per thousand impressions (eCPM) experienced a one-month drop of a dramatic twenty-three percent from March 2008 to April 2008. The CPM is the set amount that an advertiser negotiates to pay a publisher for hosting an advertisement. Software programs track the number of visitors to the publisher's site that see the advertisement. These programs also include features that track whether the visitor clicked through to the advertiser's website. The tracking feature continues to provide data on the number of people who actually made a purchase on the advertised website. This type of economic data can be important for marketing departments to track and analyze as management seeks to find the most cost-effective ways to reach the target audience with the company's message regarding its products and services. Knowing the number of visitors who clicked through compared to the number who became customers allows the advertiser to calculate conversion rates for particular ads and also the cost per sale.

Many companies may find that cheap internet advertising is available by utilizing banner ads. Though this type of marketing has lost some of its appeal due to consumer weariness of feeling bombarded by flashing graphics and annoying animation, the banner ad is a legitimate marketing tool when used correctly. Some advertisers find that compelling banners prominently mention the particular product or service rather than the advertiser's name or logo. Apparently, people are more likely to click, for an example, on a banner promoting a vacation cruise than an advertisement for a travel agency. Once the advertisement is clicked, the visitor is taken to the agency's website. At that point, the visitor may be given the opportunity to sign up for email alerts about future bargain trips or to book a vacation. The visitor's actions are tracked by special software programs. This software has features that will provide data on the number of people who click on the banner, and of those, the number who become leads -- in other words, the number of visitors who registered for information, entered a promoted contest, or for some other reason provided contact information, perhaps an email, to the advertiser. The tracking software also notes the number of visitors who become customers by purchasing the company's goods or services. Each of these different types of data are important for the advertiser who will pay the publisher, the owner of the website on which the company's banner appeared, according to the contracted arrangements. The agreement may be pay-per-click (PPC), pay-per-lead (PPL), or pay-per-sale (PPS). Depending on the internet advertising rates and policies that the advertiser and the publisher negotiated, the advertiser will pay the publisher a specific amount per click or lead, or perhaps a percentage of the sale, in return for the company's banner being placed on the publisher's website. For controlling costs, this type of cheap internet advertising can be a crucial component of an overall marketing strategy.

Marketing gurus suggest that companies design several different banners on an appropriate network of websites. The network should be selected based on having a similar demographic to the advertiser's target market. For example, a company that sells bandanas and booties for dogs will want to place advertising on a network of websites that is geared to dog owners instead of a network catering to first-time parents. The management team can determine which banners are most effective in enticing viewers to click on them by analyzing the data supplied by the tracking software program. Once the management is aware of which banners appeal to the most visitors, and lead to the most sales, these one or two ads can replace the others. Marketing consultants suggest that any banner with a response rate of over three percent is a keeper. Business owners may remember that: "Wisdom resteth in the heart of him that hath understanding: but that which is in the midst of fools is made known" (Proverbs 14:33). Understanding is gained by researching internet advertising rates and being familiar with website lingo and terms. By having a good foundation in marketing strategies, the business owner can take advantage of cheap internet advertising that will still effectively bring customers to the company's online store.

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