Creative Themes Design

Business Website Advertisements – Value Add or Distraction

08/09/2010  |  1,206 views  |   Print This  |   Email This  | 

Small Online Retailers & Online Affiliate Marketers are often in doubt whether an advertisement they show on their web page adds any value or is the cause for losing a sale?

Unlike the large online businesses, who can spend millions of dollars in advertising, the small online business owners cannot. In fact, they often earn a significant revenue from the advertisements they show on their website. But is it worth a loss of sale?

Do Advertisements on Business Websites Add Value or Drives Away Customers?

From our experience in designing Creative WordPress Business Themes & from all the feedback we’ve had from trials & tests that involve experienced affiliate marketers, small online retailers & freelancer bloggers, we have learned a few things about advertisements on Business Websites.

• it is OK to show advertisements on freelancing websites, where you are marketing your content. Contextual ads have added value to the visitor by showing extremely relevant ads. In our creative designs we ensure that the ads are placed close to the content without actually distracting the readers
• for marketing & retail websites, 3rd party ads, like those of Google etc, can cause potential buyers to abandon shopping carts & leave the website for an ad that appears more attractive to them
• creative marketing themes’ design can reduce the number of people leaving the site by clicking on an ad with proper ad placements
• marketing & retailing websites benefit more by showing advertisements on their products that deep links to other pages / posts within the site
• our creative marketing website designs also ensure that external ads do not compete with your own promotional banners & call outs

Let us look at the maths now. These are assumed numbers but the statistics are very relevant to most of the websites (they are slightly on the higher side). It assumes that:

1. you have 10,000 page views in a day
2. for marketing or affiliate sites you sell products at about $20 a piece
3. assume 10% conversion rates for product retailing websites
4. for content based websites, you do not market any specific product
5. ad click rate on an average is 20 cents (CPM of about $ 2)
6. click through rate is about 10%
7. ad fill rate is about 50%
8. it does not account for any spends on marketing etc

For a content based website that is not really selling any specific product, this work out to about $ 200 a day.

For a marketing or a retailing website that sells products for abut $20 a piece, for a 10% conversion, the earning per day is about $ 2000 purely from selling.

For the customers you have lost to external ads for an estimated earning of $ 200, you could have earned an extra 10% which is another $2000! If you are an affiliate marketer, would you want to lose $2000 in exchange of $200? Probably no.

The argument against this is, those 10% customers were anyway about to leave your site, so why lose $2200 instead of $2000? You are cutting your loses by $200 simply by showing advertisements.

We have special Advertising Themes for freelancers that could potentially increase a freelancer’s earning from ads to over $200 a day. We do suggest showing relevant ads in marketing & retailing websites, however, our designs minimize potential loss of sales by showing ads creatively.

Our Shopping ECommerce Themes & Marketing Themes are created specially for Small Business marketers to maximize their earning from ads & sales.

Category: Blog, Creative Designs