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CEO at MD
26 January 2004 13:26pm
Hi Everyone,
I have come from internet advertising design and moving into the big world of Internet Advertising.
I have a blue chip client who would like to advertise on various portals around the world. I was just wondering what is considered an average spend on online advertising (Banner placement etc) in the UK and the US. I am aware this is a 'how long is a piece of string' question (Depends on their budget and ROI etc), but there must be somewhere I can get this average information.
Please could anyone advise. Many thanks in advance.
Regards,
Michael Digital
Senior SEO at Weboptimiser
26 January 2004 13:55pm
PPC (Pay-per-click) is probably the best form of online advertising in terms of ROI. Banners have little value beyond branding these days.
Overtures last figures indicated that their average CPC is around $0.40, Google does not (yet) publish such data, but I assume it's in the same order of magnitude.
GIven that advertising budgets in general are rising, and that online advertising is winning an increasing share of advertising budgets, competition, and prices, are likely to rise. I would expect both OV and G to be seeing av. CPC costs at around $0.80 - $1 by the end of the year
>> have a blue chip client who would like to advertise on various portals around the world. I was just wondering what is considered an average spend on online advertising
There are those spending in excess of £250,000 per month on PPC. There are also blue chips spending a few '000's per month. £10.000 per month will buy them a presence. £100,000 per month should buy a commanding position in all but the most competitive markets
In all cases, the controlling factor seems not to be the size of the company, but their commitment to online advertising. Using an experienced PPC management agency will improve results greatly also (and I DON'T mean the Google in-house team)
Managing Director at 120 Feet Ltd
27 January 2004 10:03am
Whilst CPC deals can be suitable for many companies, if you want to measure ROI you won’t achieve this by just measuring ‘clicks’.
To measure ROI you must be measuring the action on the web site which results in a sale and the associated [basket] spend. Remember that the purchase could happen in the same session as when they respond to your advertisement or it could be sometime later. For example, at RedEye we find that it’s not uncommon for a financial client to sell a product several months after the purchaser first responded to a banner, email or other paid for listing (which could include a CPC deal).
Therefore, if your blue-chip client is serious about wanting to measure ROI, then you should consider investing in a system that can measure (and ideally deliver) your online campaigns and track visitor behaviour and spend on their website.
This goes several steps beyond CPC and naturally requires more effort and budget from the client (planning, setting objectives, continually testing and refining) but the results should speak for themselves.
Multi Media Developer at SportNetwork.net
30 January 2004 10:50am
Average spend is hard to judge to be honest.
I have seen some blue chip companies spend a few 1000 a month on some low CPM campaigns and a few 100 of a Google adword campaign to test the water so to speak.
Then if they have the correct tracking in place and then can measure if this small amount has made any difference to website traffic and increased brand awareness.
It also depends on what your client is after. If they want sales to increase from there on-line campaign ask them for some of their direct marketing money and find a good affiliate network.
If they want their brand awareness to go up, then in the current climate find an agency with a bit more creative spark outside of the normal restrictive banners and overlays.
Think content integration, think sponsorship, of course get them to knock up a few banners to support these campaigns but if its brand awareness that you want then get away from banners to get your ROI.
Cheers
John
Owner at Fuzzbox
10 March 2004 10:57am
On 13:26:20 26 January 2004 MikeDigital wrote:
>Hi Everyone,
>
>I have come from internet advertising design and moving
>into the big world of Internet Advertising.
>
>I have a blue chip client who would like to advertise on
>various portals around the world. I was just wondering
>what is considered an average spend on online advertising
>(Banner placement etc) in the UK and the US. I am aware
>this is a 'how long is a piece of string' question
>(Depends on their budget and ROI etc), but there must be
>somewhere I can get this average information.
>
>Please could anyone advise. Many thanks in advance.
Hi there, average cost to design £200 with reference to posting the banner add, it all depends on how much the site requires, but just to advise to design a banner ad is approx £200
www.fuzzbox.net or you can give us a call on 0800 061 2450
>
>Regards,
>
>Michael Digital