How to get a 20% response rate with your banners (VIII).
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|By eliminating your weakest designs, you would be able to concentrate on the best ones, refine them and come up with a winner with measured effectiveness.
Whether that effectiveness is 2%, 5% or 35% percent, based on that simple number you will be able to gauge all your campaigns in the future.
For example, if you were to advertise on Andinia.com, and you know that your banner pulls a 10% click-thorough ratio for a targeted environment - which is a fair estimation -, just by considering your costs and the clicks-to-sales ratio, you could estimate how good your campaign will be and thus, how much money you would get out of your investment.
If 1.000 targeted ads in Andinia.com cost $ 20,00, and you are selling a product for which you charge $ 50, then, knowing your banner effectiveness (10%) from your tests and your clicks-to-sales ratio from past sales (let's take a 0,5% ratio, which is a fairly conservative number), you can calculate whether such a campaign will be good or not.
A 0,5% clicks-to-sales ratio means that for each 200 unique visitors coming to your site, you will get one sale.
A 10% click-thorough ratio on a banner means that for each 1.000 exposures, you will get 100 unique visitors.
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