| The goal of any advertising campaign is to increase sales by getting the right message to the right audience at the right time. The promise of cheap upfront costs and a seemingly infinite number of places to advertise online, though, can turn the head of even experienced marketers. But just as it works in the offline world, you need to make sure you’re spending your precious advertising dollars wisely. Start with strategy
The strategy of your online advertising campaign should fit into your overall marketing strategy. If your company doesn’t have a marketing plan, create one before you start creating online ads. Find out more about marketing plans at The Write Market or through the Small Business Administration. If you need help with the basics of marketing, you may also want to read through Small Business Marketing for Dummies for a comprehensive guide to marketing. Planning your campaign
The plan for your online ad campaign should incorporate the following: - Objectives of the campaign. Do you want a fixed increase in Web site visits or a fixed increase in sales? Assigning hard numbers to your objectives will ensure you can measure the effectiveness of the campaign.
- The budget. How much can you afford to spend on online advertising? If the goal of your ad is to increase sales, figure out the maximum cost per sale for your product or service. A $5 cost-per-sale for a $15,000 car sounds great, but not for a $15 hand-painted teacup.
- The target audience. Knowing your target audience will help you select the placement of your ads. For example, if you’re selling software to businesses, it probably doesn’t make sense to place ads on a consumer-oriented site. Your marketing plan should provide the details of your target audience.
- The message(s) that will get people to your site and encourage them to buy. As with most content on the Web, short and to-the-point messaging works best. And be sure that your Web site can deliver what your ads are promising.
Your marketing plan should help determine the answers to all these topics. If you don’t have the in-house expertise to plan a campaign, though, you may want to seek out professional help from a marketing or advertising consultant. Choose how you want to buy ads
While the technology of online advertising is evolving steadily, the way ads are sold isn’t. Your budget and the goals of your ad campaign will help determine the method you choose. - Cost-per-impression: An impression is counted each time someone visits a Web page where your ad is placed. This type of advertising is inexpensive, selling in blocks of thousands or millions of impressions. However, there is no guarantee that your ad will be noticed or that any readers will click it. Have a look at Fastclick.com for an example of how cost-per-impression advertising works.
- Cost-per-click: Choose where you want your ad to run and determine how many clicks you want to buy—you pay only when someone clicks on your ad. This method allows costs and clicks to be budgeted in advance, and even lets you make adjustments to your campaign while it’s still running. To get an idea of how cost-per-click advertising works, take a look at Overture or FindWhat.
- Cost-per-sale: Like a commission, the company selling you ad space doesn’t get paid until your customer completes their sale. While tempting, this is the most costly way to buy online ad space. It’s also the most complicated, requiring interaction between the server that processes your Web sales and the server that sends you leads. It can also lead to complications arising from credit card chargebacks and product returns. Commission Junction is an example of a company offering cost-per-sale advertising.
More information
Look for articles in future issues of Covad Connections about choosing an ad format and measuring the success of an online ad campaign.
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