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Internet Advertisng Success PyramidViews: 771
Nov 09, 2005 7:44 pmInternet Advertisng Success Pyramid#

Garland Coulson

Here is an Internet advertising pyramid, showing the 4 basic components needed for a successful Internet advertising campaign.

 

 

I have been using this pyramid as an illustration for the free training sessions for members of my Free Traffic Bar to show my members how to make their Internet advertising more effective.

Here is how it works.

1.  Tracking Results - A critical component that helps show you when any of the other components aren't working well.  Tracking your Internet advertising using systems like 1ShoppingCart will save $1,000s on advertising costs every year.

2.  Targeted Traffic - Working with targeted traffic like Google Adwords or the Free Traffic Bar is much more effective than advertising to the general public because you are reaching interested prospects who are more likely to buy.

3.  Advertising Message - Your advertising message must be of compelling interest to your prospects, encouraging them to click to find out more and be taken to the landing page.

4.  Landing Page - The landing page is a special page set up to convert visitors to customers.  It is the page where people can actually buy the product, subscriber, or provide contact information to find out more.

So if your Internet advertising is failing you can use your tracking to troubleshoot it.  Here are some examples:

1.  No clickthroughs - means that either your audience isn't targeted enough, or your advertising message isn't compelling enough.

2.  Lots of clickthroughs but no sales means that your landing page isn't working or the product offering isn't compelling enough. 

I recommend running multiple advertising messages and landing pages and tracking your success.  Each month, drop the low performing ads, keep the ones that are working well and try new versions.   This way, your advertising should work better every month and your Internet advertising budget becomes more effective.

Garland Coulson, "The E-Business Tutor"
Free Traffic For Your Web Site Everyday
http://www.freetrafficbar.com 
Internet Marketing Mentor
http://www.ebusinesstutor.com

Private Reply to Garland Coulson

Nov 12, 2005 1:59 pmre: Internet Advertising Success Pyramid#

Denise O'Berry
Garland --

===================================
You wrote:
So if your Internet advertising is failing you can use your tracking to troubleshoot it. Here are some examples:

2. Lots of clickthroughs but no sales means that your landing page isn't working or the product offering isn't compelling enough.
===================================

And here are the million dollar questions that come up time and again.

1. What are "lots of clickthroughs?"

2. For a good selling page, what should people expect the conversion rate to be (clickthroughs that buy)?

Best regards,

Denise O'Berry
Small Business Expert

Want to squeeze more cash out of your website? It's time you had your own product. Visit http://www.gotsmallbusiness.com

Private Reply to Denise O'Berry

Nov 12, 2005 2:27 pmre: re: Internet Advertising Success Pyramid#

Simon Payn
Hi there

I know Denise's question isn't directed at me...but I couldn't help jumping in anyway. Too much coffee this morning, maybe.

I think conversion rate and number of clickthroughs are not the most relevant questions.

Instead, it's all about profitability and ROI.

If you're selling enough product to cover the costs of your clickthroughs and product costs, you're in profit. Period.

Of course, you can go on to further improve your conversion rate, but that's a relative number.

Conversion rates for low-priced products are likely to be higher than for high-priced products. And conversion rates can also be affected by how well targeted your internet advertising is. (PPC advertising that matches keyword well to ad will covert better than less well targeted advertising).

If you are selling a $5,000 seminar, for example, you can spend a lot of money on marketing (and afford a lot of PPC clickthroughs) for each sale. Your conversion rate might be .001% and you might have thousands of clickthroughs but still be happily profitable.

On the other hand, if you're selling a $19 ebook, you've got to get a much higher conversion rate (or pay a lot less for clickthroughs).

Conversion rates are a useful yardstick by which to measure current performance relative to previous performance. But what matters at the end of the day is ROI.

Simon

Private Reply to Simon Payn

Nov 12, 2005 6:06 pmre: 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
http://www.freetrafficbar.com 
Internet Marketing Mentor
http://www.ebusinesstutor.com

Private Reply to Garland Coulson

Nov 12, 2005 10:26 pmre: re: Internet Advertising Success Pyramid#

Denise O'Berry
Thanks Simon and Garland. I agree with you 100 percent. At the end of the day it's the return on investment that matters.

Best regards,

Denise O'Berry

Private Reply to Denise O'Berry

Nov 13, 2005 6:37 pmre: Internet Advertising Success Pyramid#

Garland Coulson
Hi Simon,

Jumping in and participating is what makes this forum fun!

Many times some members will answer someone's question so well, I don't even have to comment on every post.

You're right. In the end, it comes down to ROI. If a campaign makes you money, continue it. If it doesn't dump it. If you can't tell, track it.

I am amazed at how many people spend money on web sites and Internet advertising, yet they aren't willing to spend the money on a tracking system that saves $100s or $1,000s every month.

Garland Coulson, "The E-Business Tutor" - Moderator, IMTools
Free Traffic For Your Web Site Everyday
http://www.freetrafficbar.com
Internet Marketing Mentor
http://www.ebusinesstutor.com

Private Reply to Garland Coulson

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