How effective is online advertising?
The answer is simple: not enough! Some people may believe that if online banners are so expensive they should be worth it. The truth is that’s not the case.
According to Eric Wittlake banners don’t drive leads in B2B marketing and he supports his point with the following data:
B2B Banner Advertising Lead Cost
These numbers may vary depending on your business, however the following trend is most likely to be true.
The Click-though-Rate from Banner advertising is extremely low (between 0.04-0.08%) which makes it highly uneffective as a way to drive traffic to your website.
The exception to the rule
The way to make online banners more efficient is called retargeting: showing your ads to people who have already visited your website. If you’re not familiar with this, you should definitely check out AdRoll. It might be the best example for a platform offering this service.
The main benefits of using retargeting are:
1. Showing your ads to people who were initially interested in your product or service;
2. Reminding past visitors of your existence. Many people may forget your company’s name or website address even if they are willing to become your customers;
3. Massive reach – around 95% of the web including Facebook;
4. Stronger call to action and higher ROI. The average company makes $10 for each $1 spent on retargeting;
5. Lower price. The average CPM range of $1- $2.50.
The best thing about retargeting is that you can even try it for free and if you’re not happy with the results you don’t have to pay. Have you tried it yourself yet? How do you compare it to traditional banner advertising?
