In this week’s tip I would like to reference an article by Harry Gold
in Clickz where he explains
how to use predictive model to test the break-even point of a online
display advertising campaign. It is a problem I have been thinking
about since we already saturate search results with PPC, and SEO
efforts so our next frontier is to master the online display marketing
landscape. In a nut shell you need to calculate what the average
profit is on an average sale then work backwards with standard click
thru rates and conversion rates to see at what point does your cost
per click (CPC) or cost per thousand (CPM) ads exceed you profit on an
average sale. There is a sample table and link on our DigiFutures
blog. Check it out.
That’s our Internet Marketing Tip of Week from John Daus at DigiFutures.
Have a great week. "
Sample table format for developing the breakeven point for an online display ad campaign:
BudgetCPMImpressionsClickRateClicksCPCConvrtRateSalesCost/Sale
If you would like we can include this analysis in a free DigiFutures Internet Competitive Evaluation (DICE) for your industry. Just complete the DICE request form.
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