Today a majority of businesses invest in online advertising. For many business owners, the results of such campaigns are highly frustrating. These usually range from mysterious to disappointing. Here are two tips to help you get more value from your ad dollars.
Ensure economies of scale
Scalability is a major reason behind the popularity of television ads. To prepare a television ad, a team consisting of a producer, a copywriter, a designer and a media person is required. But, once the ad is ready, it can be run any where across hundreds of channels.
Such predictability and standardization is missing in case of web ads. Different formats created by different publishers make it difficult to take advantage of the economies of scale. It is a mistake to assume that all online platforms are similar. It makes sense to opt for promising outlets that allow you to use existing material.
Don’t get distracted by the click-through rates
Low click-through rates are often perceived as a sign of failure of the campaign. This is not always true. A low click-through rate with sufficiently high conversion rate and low cost can be a profitable buy, while you may end up losing money in spite of high click-through rate, if the final conversions are low and the cost is high.
Click-through rates on their own can be a distraction. You not only need to track potential clients coming in from a particular venue, but also calculate the total number of conversions. It is important to work out the numbers correctly.