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.
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.