Online Advertising & Marketing Proffesional blog

Situation: limited ad-market, high frequency, limited channels, overlapped audience and so on

Default gap between unique visitor and clicks isn’t very large UVR (CTRu) vs CTR 

BUT!

Game or other interactive activity in banner generates repeated-user-clicks

For example banner with teasing game generates CTR 1,5% and UVR 1,0% 

Why? : because user likes game, wants to play again, or smth. like this.

Is it OK?: ok but don’t forget – check quality of traffic and don’t trust CTR as final performance indicator for campaign creative or message.

If you pay for click – you pay for repeated click. :( Not very good. But it depends on your tactics.

Use network with CPC(u) cost per click (unique)

Or use capping, freq. limiting or other techniques too avoid overlapping.

Click-Through-Rate (CTR)

The number of times a link is clicked on divided by the number of impressions. Main Performance Indicator for Online ads.

For example CTR 1%  =  1000 impressions and 10 clicks

CTR = clicks/Impressions*100

Or simple formula in excel:

Excel formula

The same banner or banner slot or banner campaign – looses CTR during time.

Ad unit burnout:

For example banner 728×90 Leaderboard, FFW – Flat Rate Week ad placing model:

• Day 1 CTR = 0,9%
• Day 2 CTR = 0,56%
• Day 3 CTR = 0,21%
• Day 4 CTR = 0,08%
• …
• Day 10 CTR = 0,05%

Online Campaign Burnout:

Online Ad Campaign Overal Burnout - Visits only, without Impressions. Google Analytics.

Banner burnout depends on:

• Time period
• Unique visitors per time period  (more unique = higher CTR per time, lower burnout per time) But don’t forget – sites with high loyalty have lot of returning visitors = low unique views.
• Frequency for unique user (lower frequency = bigger CTR) 
• Message. Strong message = better result (more complicated message = lower CTR, higher burnout)
• Content and Ad. More contextual = more constant CTR during period (It’s wrong to say that static GIF has no attractiveness, if you use static GIF like part of content (with relevant ad content) you will have constant click-rate, high conversions)

How to avoid high burnout rate:

• Simple, strong message
• Don’t hide your offer
• Call to Action
• Don’t use long animations (bullshit – scenarios) with meaningless intra-frames.
• Use mixed-form tactics: Animated banner + Static banner + Text Ad (imitating) banner + Dynamic content banner.
• Change form of message and offer (You can leave core messages the same but you can change syntax)
• Don’t fool yourself with mantras like: “Creativity will help us”, 1/10000 ads goes to Cannes, others must do hard work for your money.
• Use mixed channels – different sites.
• Check your campaign KPI’s during campaign period.
• By the end of campaign – use simple static frame with messages and logos.

Price model of Internet advertising based on impressions. CPM is the same like CPT. This model is more similar to Flat Rate then CPC/CPA.

CPM – Cost per Mile (Cost per 1000 Impressions)

CPT – Cost Per Thousand (Cost per 1000 Impressions)

CPI – Cost Per Impression (Cost per 1 Impression)

If you are advertiser: You pay for impressions, CPM is price for 1000 impressions. 

If you are publisher: You earn from ad slot position impressions. 

Example:

CPM = 10$ = 1000 impressions of ad costs 10$

Default CPM is overall (not for unique user) impressions without any guaranties that user saw the ad. Impression is generated always when HTML is loaded, but user go for next page without visual impact with ad (for example ad in context and under scrolling area).

User reloading factor:

Ad-servers have/not have reload filters – if user reloads the same page several times – ads on CPM model will or not use impression pool: