Continued from page 1
Your probably starting to get
picture now, impressions, and CPM do not necessarily translate into click-throughs, sales or income.
Let's look at
thing from a different angle then. How about instead of impressions
advertising people sell you click- throughs? That makes sense to me. Now though we are faced with another acronym CR, or conversion rate (Told ya we'd get to it.) Actually this comes into play even with
scenario on impressions described above, but in this example we have a two step process ( CTR, CR, )to arrive at
sale rather than a 3 step process ( impression, CTR, CR )
As more is learned through trial and error as well as better tracking tools we are finding that merely getting visitors to a site no longer has
same value as when Web site traffic was generally accepted as a measure of success. The trend towards profitability, along with
above mentioned, better tracking tools, has resulted in much less attention being paid to click-through rates and more attention being paid to CR's (conversion rates).
The CTR then can be seen as a measure of "immediate response" to an ad, but not
overall response to an ad. The exception involves ads that display identifiable information ( sometimes referred to as "branded" ) about
destination site, and can be arrived at without clicking on
ad and not recording a "click-through" in these cases
click rate will vary from
overall rate.
Contrary to what you might think a high click-through rate does not necessarily assure you a good CR ( conversion rate,) and
two rates may even have an inverse relationship. An ad geared towards curiosity clicks such as those that actually trick
viewer into clicking on them will result in a great deal fewer sales, than an advertisement geared to receive qualified clicks.
Let's sum all that up. Impressions vs. Click Throughs -
An impression is counted each time
banner is called from
server. Some browsers may cache data causing impressions to be an inaccurate measurement.
Impressions are sold in groups of 1000 which is called CPM or Cost Per Thousand ( I'll go out on a limb here and say that
M is for
Roman numeral that indicates 1000 .) 1000 impressions, based on
industry average will bring you something between 20 and 50 site visitors, MAYBE!
Impressions do not mean you'll have visitors to your site. A Click- Through is
act of someone somewhere actually clicking on a graphic image or text link and arriving at your web site.
Purchasing advertising by Click-throughs means that you only pay for people that actually visit your website. This means you don't need to purchase thousands of impressions to get 10 visitors. You purchase as many click-throughs as you want visitors. This is a much more exact science, but is in direct relation to your ability to create a high CR, conversion ratio.
How do you do that? Easy, just have a product that is in high demand, present it to groups that are interested, at a price that is lower than anyone else yet allows you to make a profit. Place your ad on a tracking system like this one, notice
above average CR.
Now just book that flight to
BAHAMAS!!
"Your Success Is Our Success"
jbp

[ jim Peters is Manager of NSI "SOLUTIONS". NSI specializes in custom website design,promotion, maintenance, domain registration ,site hosting ,site and graphic design, as well as e-commerce packages for small to medium sized companies. In other words "SOLUTIONS".]