When you want to determine which of your banner ads are
delivering the most cost-efficient results and which are simply
draining your bank account, take a valuable lesson from the
marketers who track customer responses in real time.
Using a process known as real-time optimization, you can uncover
information, like how many customers have clicked on a banner ad,
the ad's conversion rate (the total number of transactions from
that ad divided by the total number of visits during any given
period) and even customer response to individual aspects of an
offer, such as the price or the message itself. That information
helps entrepreneurs "optimize the ads that are running, push
Web sites that aren't performing to do better and, if
necessary, cancel contracts with them," says Brad Aronson,
president of i-Frontier, an interactive advertising agency in
Philadelphia. "One advantage of Net advertising is that you
can measure results daily and use that information to increase
efficiency."
Analyzing results every day-or even in real time-is paramount,
because if you find shoppers aren't responding to your banner
ads, you'll want to make changes as soon as possible.
"Tracking response in real time allows entrepreneurs to adapt
fast," confirms James Vogtle, director of e-commerce research
at strategy consulting firm Boston Consulting Group Inc. "If you're
spending money on an ad campaign [that's not] working, you want
to know immediately so steps can be taken to adjust it."
Content Continues Below
This kind of data analysis doesn't come cheap, however, and
costs climb even higher when extensive changes have to be made. For
starters, you'll need to install special software or hire a
Web-tracking service before you can examine your server logs. The
costs will vary depending on your needs and traffic volume. For
around $700, you can get a real-time analysis product called Log
Analyzer from WebTrends. For prices starting at $10,000, you can get
third-party software like AdKnowledge from Engage and Dart from
DoubleClick.
Aronson recommends a combination of these services.
"WebTrends lets marketers know what consumers do on their
sites-if they leave after seeing one page or if they never go to
the special offer page," he explains, "while AdKnowledge
and Dart will track from banner ad to order."
Depending on the results, once you obtain this information, you
may want to change your banner ads to make them more effective. You
can make those adjustments on your own or turn to outside help. If
you use an ad agency, costs will range from $1,500 to $3,000,
depending on the project's complexity. However, good marketers
know to test many slight variations of the original banner before
tweaking the ads for maximum effectiveness-and designers rarely
charge extra for that service.
Is it worth the effort to develop your banner ads until they get
the effect you're looking for? Apparently so. Says Aronson,
"Usually, the increased response a marketer receives from
tweaking ads significantly outweighs the additional
costs."