Internet Business

Banner advertising can dramatically help you increase traffic to your web site. Banner advertising can be a very cost effective marketing solution and can help you to gain access to millions of internet users. It can also prove to be a huge waste of time, even creating a net loss rather than increasing your bottom line. So we’ll try to guide you onto the path to true results and a very successful Internet Marketing campaign using banner ads.

First things first: What’s it going to cost you? Assuming you’re going to design and building your own banners, you can still loose money on the cost of advertising if you’re not careful. Work out the estimated cost of each banner advertising campaign:

Cost-per-Visitor: If you pay $10 per thousand impressions ($10/CPM), and you get a 2.0% click-through (20 visitors), your cost-per-visitor is $.50 ($10 per 20 visitors).

Cost-per-Sale: Now you know about what you’re going to pay per visitor. So what does that amount to per sale? Well, if 1 in every 20 visitors buys your product, your cost per sale is $10.00.

Total Sale Amount : $9.95 USD Paypal’s Fee Amount : -$0.59 USD Net Profit Amount : $9.36 USD

So if each sale of your product produces a gross profit of $9.36, then your net profit per-sale will be -$.64 ($9.36 gross profit - $10 cost-per-sale). This campaign is not profitable!

As you can see, something has to change in order to make a profit. That’s why it’s important to track and calculate every campaign. So what went wrong with this example?

-Paying too much for the banner space?

-Need a better click-through rate?

-Need to charge more for your product?

The truth is that only you have the information required to decide but at least at this point you’re in a better position to make a qualified decision.

Return on Investment Ratios: Your return-on-investment (ROI), before non-marketing expenses, is 0.0% ($0.00 total net profits with a $10 investment).

Experiment by advertising on multiple sites or using different banners if your budget will allow it. Find the perfect campaigns that yield the highest ROI.

A few terms to know:

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Banner exchanges are not as effective as they once were but hey free advertising is free advertising. Especially when you don’t have to go out of your way to advertise it exclusively. What do I mean? Well I use banner exchanges only on traffic exchanges at the very bottom of my ads. For those of you who are not familiar with banner exchanges, they are virtually the same as traffic exchanges.

I put banner exchanges on the bottom of my ad in the traffic exchanges and put a caption like, “Banner Exchange Sponsor Ad.” You are killing two birds with one stone here. You are clearly telling your visitors that you are using a banner exchange on your ad so they don’t click thinking you are the owner of the banner.

You are also don’t need to do any extra advertising to use banner exchanges. You can look at an example of a banner exchange on one of my traffic exchange ads here.

You can probably get away with putting two banner exchanges on the same page. This way you will produce credits in the traffic exchange and you will also be racking up banner impressions somewhere else on the web!

It takes some browsing and research to find the right banner exchange to match your business. This way you are more likely to get a higher click thru percentage (which is a good thing). You can see around a 1% conversion rate for your clicks with a good exchange. A huge banner exchanges usually have different categories to choose from to fit your business.

Best Banner Exchanges

I currently use the 3 best banner exchanges that distribute my banner impressions the quickest. I usually get a ratio for about 30 clicks on my banners from each three exchanges per month. Obviously you not going to light up the traffic charts but remember that banner exchange click thrus are of higher quality.

Here are the 3 best that I use and pleased witht the results

* Banners Go MLM- this banner exchange is by far the fastest at showing your banner on other peoples pages. For some reason I also get a higher click thru ratio from them as well.

* Rx2 Super Banners- Rx2 is ranked very high as far as quality traffic and click thrus

* TDH Banners- I know the owner personally on this exchange and she does a really great job keeping your banners showing smoothly.

Simply put the banner html for each exchange into your traffic exchange ad. You can look at one of my ads for example (TDH Banners On Ad). Now that you have done that, make sure that you have your own banner uploaded on their server so that you can get click thrus. You can use a banners that a business you are promoting provides or you can create your own at Free Addesigner.

Read the full article with active links at my blog!

Author: Corey Morehouse
Freewebbizsolutions.com

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