Understanding performance parameters of web banner advertising


The ultimate measure of a particular type of advertising is to increase sales of goods or services offered by the advertiser, ROI. To evaluate this parameter as well as the cost of banner advertising, calculation is based on the following parameters:

The number of banner impressions – is the main parameter for the advertising campaign.

The number of clicks – it’s the second, no less important parameter showing how advertising really interested users.

CTR (click through rate) – the ratio of clicks to impressions, measured as a percentage. The higher the value, the more effective the banner is considered (does not apply for branding).

For example, CTR = 2% means that for every 100 banner impressions, 2 users go to the advertised website. At the dawn of the Internet advertising CTR of 1-2 % was considered normal.

A CTR of 0.03-0.05 % is considered to be normal. Typically, a lower value indicates a failed advertising banner.

The cost of banner advertising – the final cost of the campaign.

There are other performance parameters to track banners and effectively control the course of the entire campaign.

Types of tariffs

When calculating the cost of advertising using different metrics:

CPI (cost per impression) – price for 1 show or CPM (cost per mille) – the cost of thousands of impressions
CPC (cost per click) – price per 1 click
CPT (cost per time) – the cost for the time period or CPD (cost per day) – not paid for impressions

To avoid overspending, placing banners on a commercial basis, quotas are usually set on the number of impressions and / or clicks on a banner or for the whole campaign, or for certain periods (eg per hour, day, week, etc.).

There may be other types of quotas – on budget, on the show for a unique user, etc.

Types of placements

Basically divided into the following types:

Direct banner on the site
Placing a banner through banner ads :

banner exchange network
commercial banner ads

Make $25 when you register for a Payoneer account