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Internet Advertisng Success PyramidViews: 253
Nov 12, 2005 6:06 pm re: Internet Advertising Success Pyramid

Garland Coulson

Hi Denise,

There is probably no hard number I can point to and say above this is a "good" number, but Google Adwords used to drop ads with less than a .5% clickthrough rate (1/2 of 1 percent).

As the originator of the Free Traffic Bar, I am seeing a LOT of ads every week.  Since I have a large downline generating a large amount of monthly advertising credits I can use, I have been using the Free Traffic Bar to carefully test what works for me.

My approach has been to place 2 ads for each product on the system. After a few thousand ad impressions, I keep the top 1 ad for each product and rewrite the poor performing one. This way my clickthrough rates keep getting better and better. I also advertise about 20 products at a time and dump the 5 worst performing ones each month and insert 5 new ones.

Before I did this systematic approach, I had very dismal clickthrough rates, some as low as .06%. But now, I have some ads performing at a rate well over 2% and many performing between .5% and 2%.

Many people say banner ads on web sites don't work, but my banner ads are pulling a slightly better clickthrough rate than my toolbar ads.

Of course, the real crunch is how many people buy from the ad.  This really boils down to your return on investment (ROI).  I don't have hard data on what is an average good conversion rate, but this is precisely why people need to track their advertising using systems like 1ShoppingCart so they can tell if they are making money on their advertising.  1ShoppingCart tracks not only clickthroughs, but it will also track sales from each ad campaign.

Spammers have a very low clickthrough rates and very low conversion rates, but they continue because even 1/10 of 1 percent makes them money when they reach millions.  Their ROI is great even though clickthrough and conversions are low.

Garland Coulson, "The E-Business Tutor" - Moderator, IMTools
Free Traffic For Your Web Site Everyday
Internet Marketing Mentor

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