It is a long discussion about average CTR rate in Romania. Everybody wants to talk about everything but CTR and banner efficiency. Talking with Liviu some month ago, he said he would never buy display advertising because if he calculate reverse engineering cost with 1% conversion principle, the display isn’t
worth for any Online Shop. Hot discussions were with Sorin, talking AdWords vs. Display.
Calculation 1:
Network average CTR 0,3%
Average cost of 1000 impressions : 8 Euro
Conversion rate 1%
That means 1 click=2,6 Euro, 1 sale = 260 Euro spent for a sale
( talking about Gogole you can take an 0,12 Euro average click and only 12 Euro spent for sale )
and I said there are some parameters you can optimize and change COMPLETELY the Display situation:
Good placement of banner
Good realization of banner
Improve the conversion rate system
And of course negociate long-term deals
Let’s see a new calculation based on the indicators of Fisela.ro (fishing shop) banners in Boom.ro Network (online advertising sales house) on Underclick.ro website
Fisela (Boom) 23,217 impressions 12,571 visitors 385 clicks 1.66 CTR (last 2 weeks)
Network average CTR 1,66%
Average cost on 1000 impressions : 6 Euro (long term deal)
Conversion rate 2% (after mix with newsletter and other display elements)
That means 1 click=0,3 Euro, 1 sale = 30 Euro spent for a sale
If we mention here a branding campaign … there are very good results.
Comparing with first calculation = 8 times more efficient.
And of course, I think we can improve this campaign to beat Google ass anytime, and getting display instead of plain text. But , this is another future story. Display advertising is better than anything if you KNOW HOW to do it.
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salut,
poti sa-mi confirmi te rog interpretarea mea a cifrelor de mai sus?
eu inteleg asa:
23,217 impressions – afisari in reteaua boom
12,571 visitors – nr de vizitatori in reteaua boom catre care au fost afisate cele 23,217 impressions
385 clicks – nr de clickuri pe bannere si vizite pe fishing shop
1.66 CTR – rata generala de conversie a magazinului in ultimele 2 sapt (ai cumva o cifra a ratei de conversie pentru cei care au venit din retea?)
daca e asa… atunci intr-adevar cifrele din display adv devin interesante … am inteles ok?
Da, 1,66% (de 5 ori mai mult decat media pe retea) a generat o eficienta pe display de 8 ori mai mare decat normalul din cauza de click si rata de conversie. Eu am estimat 2% insa adevarul este doar in urma unei declaratii oficiale a magazinului. Insa la TL (min 12 luni) pe lucrul cu utilizatorii pot sa spun ca 2% e onest, in cazul de magazine cu produse cu adresabilitate larga as putea spune chiar 3%
Mult prea multe discutii google vs. banner. Sa fie adevarate zvonurile cum piata publicitatii on-line este lipsita de credibilitate? In afara de afisari (si alea obtinute daca nu dubios, macar discutabil), marii adserveristi din RO nu ofera si nu garanteaza nimic. Ah, era sa uit: ai parte de expunere…..
nu-i mai normal ca rata de conversie pe magazine cu gama mai larga de produse, rata de conversie sa fie mai mica?
in orice caz… cifrele sunt interesante.
@ Flamini : Google nu iti ofera date nici cat cel mai mic dintre advertiserii din Romania. Sunt zeci de discutii pe tema asta si pana si Google a recunoscut ca 50% anul trecut era SPAM. La advertiserii romani ai inerentele pierderi de retea, insa e aquis international si marja sta in 10% si treaba asta nu e inventata de romani.
@ robert. E mai usor sa rulezi 40-50 de bannere diferite pe an adresate unui public mai larg , decat unul singur care are target un anumit public. Luata la termen lung rata de conversie estimez ca este mai buna. S-ar putea sa ma insel, insa mizez ca am vazut multe la viatza mea 🙂