Website Advertising Basics

How do web sites make money?

Ever wondered how a web site makes money? Simple! Banner ads! Banner Adverts are those little rectangular (or square), often animated ads that appear along the sides, top or bottom of a web page. Ideally, a banner ad should be placed on a web site having content directly related to the ad. Makes sense huh?

If a person visits the web site looking for information, they might click on a related banner ad to learn more about the advertiser's business, product, or service. The real purpose of a banner ad is to bring traffic to another web site (the one you go to when you click the banner ad) so that the visitor will (ultimately) buy something.

What do the latest banner ad designs feature?

People are getting very used to advertisements on web sites nowadays and tend to ignore the flashy type that jump out at you. The latest technique is to make the banner look like it is part of the web page, complete with typical HTML features like "radio buttons," check boxes," "hypertext links," and "text boxes" that can be filled in and submitted. Audio ads are also becoming more prevalent.

How much do Banner Adverts cost? There are basically two factors:

1. The cost of the banner advertising space on the hosting web site.
   As with traditional advertising, you are paying for space, circulation, and the number of times your ad runs. This is a "continuing" expense, which should constantly be evaluated in terms of how much business the ad generates. Scrupulous web site managers "should" (but often don't) base this fee on the traffic their site experiences (the number of visitors over a fixed period of time). After all, who wants to advertise on a site with no visitors? For example, advertising on Yahoo!'s web site (always one of the highest rated sites) might cost a small fortune, but the number of Yahoo! visitors per day is in the millions, thus increasing the probability that your banner ad will be clicked and the person will see your site. Banner Adverts can be a few dollars per month or possibly thousands of dollars per month.
2. The cost to have someone make the banner ad:
   CMYKreative charges roughly $75 upwards per ad, primarily to cover the time spent utilizing complex graphics/animation software in creating a multimedia ad. If you feel like doing so, you can download the software necessary to "do it yourself." Be aware however, these ads usually have stringent file size restrictions and the graphics software for composing elaborate images can sometimes be complex to learn. You also have to factor in the 'design' aspect of a banner advert. It must be well designed and look interesting, otherwise no one will click on it.

How is banner ad effectiveness determined?

The number of "impressions" is the number of times a page (with your banner) has been viewed. The number of "click-throughs" are the number of times a visitor has actually clicked a banner ad to link to your web site. "Good" click-through rates run between 3% - 6% of impressions although the industry average is 0.8%. This translates to your banner being clicked 3 - 6 times for every 100 times the page has been viewed.

Should I advertise on someone's web site?

The question of whether or not you should advertise on someone's web site can be answered by asking yourself a few questions:

• Is this site directly related to my business, product, or service?
• Does this site deal with local interests where my business is located and patrons are likely to visit?
• Does the site have significant traffic?
• Do I have a worthwhile web site that the visitor will like once they click my ad?

CMYKreative can of course create Banner Ads in any size or format you require, even non-standard sizes or formats.

Contact us today to learn more or click here to view a selection of banner ads created for current clients.

Click here to see what it costs to produce your next banner advert.