Issue 16, June 22, 1996

In this issue:

• Using Banner Ads to Promote Your Web Site
• Involvement Devices in Web Marketing, by Charles J. Duff

Using Banner Ads to Promote Your Web Site

by Dr. Ralph F. Wilson

When Web marketers get together there's one inevitable question: how many hits is your Web site getting. For too many, the answer is embarrassing. Web marketers can use a variety of tactics to raise the number of visitors which cost little but time. However, many business persons, who calculate a fairly stable ratio between page hits and products or services sold, decide it will be worth their while to increase traffic by purchasing banner ads on high volume sites.

Terminology

To understand advertising on the Web we need a few handles:

• Hits -- a fuzzy term meaning number of files downloaded
• Raw hits -- number of files downloaded, using a combination of graphic images and HTML pages. To be accurate we need to subtract the images, which may account for 5 out of 6 "raw hits".
• Page impressions or page views -- Refers to the number of visitors who view a page or a banner ad on that page.
• CPM - Cost per thousand impressions or page views.
• Banner ad -- an ad graphic, usually a GIF image, measured in pixels (on Lycos the size is 468 wide by 60 high, limited to 7.5 K)
• Click -- When a visitor clicks his or her mouse on a banner ad, the visitor is automatically transported to the advertiser's Web page.
• Click rate -- The percentage of visitors who click on a banner ad.
• Click throughs - The number of people who click on a banner ad and get to the advertiser's Web site.

Costs

But can I afford banner advertising? you ask. Calculating the actual cost of securing an order is a very useful exercise when it comes to advertising. Does it cost you $1 or $5 or $100? You need to know. Armed with this information, you'll be better equipped to plan an advertising campaign. While there is a good bit of variance in rates, you might expect the typical Web ad to cost you about 5 to 7 cents per page impression, which translates to a CPM (cost per thousand) of $50 to $70. The more targeted the visitors to the Web site, the higher the rate charged. Many Web brokers and Web sites, however, set minimum charges.

• WebConnect, a large Web media broker, for example, requires a monthly expenditure of at least $995 (which can be spread over several Web sites)
• Yahoo charges $1,000 per month for when you "purchase" a "word" on their search engine. Let's say a banner ad for your executive recruitment agency pops up anytime someone searches for the word "career" or "job." For the $1,000 per word per month, Yahoo will guarantee you 10,000 impressions (a CPM of $100, or 10 cents per impression).
• Lycos charges $500 minimum per month per "word," at 5 cents per impression over 10,000 impressions (CPM of $50).

You should be intensely interested in how many people seeing your banner ad will click through to your site. If you put an ad on the first page of Yahoo, for example, millions of people will see it, but you can expect a low click rate. "When people get to Yahoo," explains Roy Schwedelson, CEO of WebConnect, "I don't think they're ready to make their jumps yet. It's too early. You have to get to those outer islands." He stresses the importance of "verticality," of precisely targeting the kind of people who might visit a particular Web site, and who might have an affinity with your product or service. CyberAtlas reports that Songline's Ferndale Web site tracked click through rates for several services: Infoseek, 1.1%; WebCrawler, 0.7%; HotWired, 2.8%, Mr. ShowBiz, 1.5%. More closely targeted sites might bring click rates of 8%, 13%, or even higher.

Another important factor is the actual banner ad itself. "The banner is like the outer envelope of a direct mail piece," says Schwedelson. "The Web site content compares to what is in the envelope. Like direct mail, on the banner ad you might offer a free premium, special value, or question that they want answered."

Testing

With so many variables, careful testing is important. WebConnect suggests that their clients spread their advertising dollars over several Web sites, tracking the click rates for each Web site where their ad is placed. Within a month, they can see which sites are most effective for their particular purpose, and concentrate their money for greater effectiveness.

The banner ad itself needs to be tested, since a slight variation might double the click rate. Some Web media brokers allow clients to test various banners (for a somewhat higher fee).

Securing Ad Space

So just what are those fees? Your advertising agency will probably get a 15% commission, and the Web broker will get another 15%, with the rest going to the Web site owner who displays your banner ad.

A broker may represent several hundred Web sites, large and small, each of which may be right for a particular client. WebConnect, for example, represented 1,200 Web sites at last count. Is there any way to avoid paying a broker? Yes, but consider what you give up, since a good Web broker will carefully often categorize his Web sites demographically, and will have software in place to accurately measure traffic. In return, he will ask for an exclusive contract with a Web site where the advertising is to be placed, much like a real estate broker obtains a listing for a property.

Still, some Web sites seeking to attract advertisers on their own might purchase ad rotation and tracking software such as Ad-Master from Victory Information Network, which costs $149 to $179.

In every case, let the buyer beware. Plan carefully, read contracts before you sign them, and test rigorously.

Involvement Devices in Web marketing

by Charles J. Duff (cduff@ix.netcom.com)

[Editor: Charles is a longtime reader of Web Marketing Today. I asked him to share how he incorporates direct marketing techniques on his Web site.]

Softwear.Com's purpose (http://www.softwear.com) is to sell ties. It is designed as a "quick-hit" Web site on the premise that men -- the predominant users of the Web -- are not shoppers. The average attention span of a 40 year old male is about 22 seconds. Waiting or shopping beyond this point only angers the average male.

I start selling right at the top of the home page, then employ tried and true methods of direct marketing: involvement devices, premiums, and response coupon placement. For example, direct marketing says you must ask for the sale six times before a person will buy, so I repeat the order form and ask for an order on every screen.

You've received direct marketing letters containing magazine stickers, gold stickers, and coin tokens. Involvement devices such as these require some form of action, with the idea that if you can get a person to do something, anything, you have moved one step closer to the sale.

My favorite involvement device a list is a top ten list of reasons you should wear one of our computer ties. Judging by response, it works well. I receive a number of very amusing ideas concerning why people should wear our ties:

• "So you will look like you are working, even when you are not."
• "The boss likes a gift that makes him look well connected."
• "The perception of total geek will give me space."

People who enter the contest for amusing entries are providing me with a e-mail prospect list for announcements about new products.

Another involvement device/premium is our "Win a Tie" contest page -- visible after a visitor has viewed all our ties. The visitor enters his name, e-mail address, and the tie he wishes to win; immediately he is shown another order form.

Another form offers custom orders, wholesale discounts, and a tie-of-the-month club, created to provide three more alternatives to pique the user's interest and get him to enter his e-mail address or actually order the product.

A word of caution, however. Just a small oddity in the page can stop the sales process:the small details add up to sales. This is designed as a process of seduction. The buyer is enchanted with the qualities and benefits of the product, then makes a small effort to read the top ten reasons, adds a reason, and is on the way to ordering a tie.

Now why don't you visit http://www.softwear.com and see how this works. Maybe you'll purchase a tie!