I remember days when Internet was new and companies were charging an average of $35 to run advertisers' banners on their web sites for 1,000 impressions.
Boy, times have changed.
In early days, advertisers use to enjoy click-thru rates of about 15% on their banners. Today average click-thru rate is only 0.5%. So why hasn't average price to purchase banner impressions dropped at same level?
Major web sites depend on banner revenue to continue operating, and as long as their are big advertisers such as IBM, Dell, etc. who can afford these overinflated prices, costs will remain unrealistic.
What happened to banner market? It started to drop drastically to a point that authors were writing articles that banner industry was dead. With an average click-thru ratio of only 0.5%, advertisers could not afford steep price for banner impressions. Likewise, web sites selling banner ad space could not afford to sell banner impressions at a discounted price.
Advertisers started using other means of advertising such as ezines. Ezine advertising took off a few years ago, but even enthusiasm for this advertising medium has since then leveled off as readers started becoming immune to print ads or sponsor messages.
But things are changing now.
Advertisers do not want to pay for unguaranteed results anymore. They want to pay only for performance. Companies that provide advertising are now realizing that selling advertising is not a one way transaction anymore.
Companies have to become partners with their advertisers if they want to truly succeed. I saw this trend about a year ago and that is why I offered to critique my advertisers classified ads.
Many of my advertisers were submitting poor copy and I knew that their ads were not going to perform well in my ezine. I figured that if I rewrite their ads or offer suggestions on improving their ads, they will get a better response.
Of course some of my customers wrote great classified ads and I didn't edit them, but sad fact is that majority of my advertisers do not know how to write an effective classified ad.
Not only did this differentiate my ezine from other ezines, it showed my customers that I cared enough to see them get results.
Who do advertisers blame when their ad copy does poorly? They blame ezine publisher. I depend on repeat business, so I took it upon myself to make sure that they got results. Results mean repeat business.
Who doesn't love repeat business? :)
But once again market was getting tougher. Advertisers were still demanding better results. How could I keep my advertisers happy so that they would keep coming back to purchase more ad space?