Stop Buying Banner Ads

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Flying Saucer

There is a simple formula I use when determining how much money a startup should spend on display advertising in its first year. First, I take whatever budget they had arrived at through careful modeling of estimated traffic, revenue goals and sundry and then I proceed to multiply it by zero. The result is the new budget.

Unless you’re selling Yachts or luxury vacations, a few extra dollars in design, PR, SEO, content development or even (rarely) Adwords will go significantly further than trying to generate positive returns off of banners. Even if you happen to be selling Yachts or luxury vacations, you’d probably have just about as much luck handing out flyers at your next mixer.

Save the banners for when you have exhausted every other channel and still have a few dollars burning in your pockets, at that point the awareness generated might be worth the negative financial returns. (Photo Credit)

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  • useful article thank for sharing

  • Michael Bian

    I don't know about this stuff, thanks for sharing this.

  • spa supplies

    It is the fact, which is mostly unknown too many. Thanks for this article it will provide a good social awareness.

  • Fan

    True, banner ads are not as efficient as it was anymore. SEO might be one of the better move than that.

  • I couldn't agree more. With banner advertising you fall into the old trap of not knowing which half of your budget is well spent.

  • Guest

    These people can't help themselves.

  • there are sure goods things banner ads can give you, I think if the banner ads are put in the rigth place, will sure give you good results

  • Nice article Steve. An insightful post..Thanks

  •  An interesting discussion is worth comment. I think that you should write more on this topic, it might not be a taboo subject but generally people are not enough to speak on such topics. To the next. Cheers

  • I agree with your principle as far as advertising is concerned, however,even if impressions on ad banners only helps you in promoting your items, i think that this will also help you for conversions in the future, you just have to know how to analyze everything in it! Think of it as an additional investment as well. 

  • I use the same formula and it has been pretty effective for me.

  • KarmaCRM

    A good ad plan with all the plotted costs and various alternatives would help one stretch out the ad budget. But marketers should bear in mind this internet marketing development - SEO has now been overpowered by SMO.

  • Totally amen to that. There are millions of others ways to market sites, products and services out there and you just have to be creative.

  • That's great, I have to agree that a little SEO and content management can do far more then paying for banners. Its still hard for me to understand why some many businesses are dumping money into banners....of course these same companies demand that they have their phone number listed in  a hard copy phone book.

  • Your point is quite interesting. But I think banner ads can also be helpful if used after much research ad planning. What will always matter is where you'll place these ads.

  • hm... i don`t know that

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