Placing Your Banner Ad (Banner Ad Traffic Part 2)

Placing Your Banner Ad (Banner Ad Traffic Part 2)

Road to Success Checking Website Traffic

Now that we have a list of potential websites to advertise in from Part 1 we need to check and make sure these sites are actually getting traffic.

As a general rule of thumb you want the site to be getting at least 10,000 visitors per month. If the website has less than 10,000 visitors per month it’s unlikely you’ll get many leads from that ad at all.  You can scratch them off your list and focus on the sites that do have traffic and potential leads.

Banner ads typically don’t generate many clicks at all. Industry wide the average click through rate is about one half of one percent. We’ll look at how to increase this up to 2% a little bit later but first we want to make sure the websites we’ve found are appropriate for our banners.

Checking Traffic

There’s a few ways you can check, or estimate, the traffic a website may be getting. The first and most well-known way is by using Alexa has a toolbar installed on roughly 1% of Internet users and the browsing history of these users is used to estimate the traffic of a website. It’s not very accurate but will give you a rough gauge of the popularity of a site.

The second way to check traffic to a website is by using This site uses a variety of data sources and aggregates them to estimate the traffic to a site. You can also get a lot of other data from these two sites such as demographics, referrals, bounce rates and ranking.

Another website you can check is Simply type in the website you are looking at and check its traffic data. If the website doesn’t have a profile on than it’s too small to bother with. Simply delete these URLs from your list and move on to the next one.

Placing Your Banner Ad

Once you have a filtered list of high traffic websites you want to go to each of these sites individually to check the pricing, position size and placement of banner ads. Each banner ad location will have a separate price because different locations on the web page have different click-through rates.

A click through rate is simple the number of people who click on an ad compared to how many people came to the website. If 1 out of every 100 visitors click on your banner than your click-through rate is 1%.

Most websites that accept advertising have an “Advertising” tab at the top or link at the bottom.

There are two types of payments that you need to be aware of, monthly and CPM.

Monthly Payments – Fixed price per month. This is recommended when you are just starting out. No matter how many clicks or leads you get the price will be the same.

CPM – Is cost per 1,000 visitors to your website.

Know Your Metrics

It’s very important that you know your metrics. What I’m talking about here is the profit you expect per lead or per visitor to your website. Once you know how valuable a visitor is to your business you know how much you can afford to pay for your banner advertising.

If for example you pay $250 for a banner ad and this website gets on average 50,000 visitors per month and the CTR is 0.5% how do we find the cost per lead (CPL)?

50,000 x 0.5% = 250 clicks

From 50,000 views converting at 0.5% you can expect your banner to get 250 clicks.

If your landing page converts at 20% then out of the 250 people who click on the banner only 20% of them will opt-in to your email list. The number of leads you’ll get from this campaign is:

250 x 20% = 50

So we can expect 50 leads from those 250 clicks and if we’re paying $250 for the banner ad for the month the cost per lead is:

$250/50 = $5

So after spending $250 on this banner ad campaign each lead we generate is going to cost us $5, assuming our traffic, click-through rate and opt-in rates are correct.

The amount that you are spending per lead is the number that you want. In this case it’s $5. It may be more or less depending on the metrics.

If you’ve been doing your business for a while and you’ve been tracking properly you should have an idea of how much you can pay for each lead. Maybe $5 per lead is too much for your business or maybe it’s ok.

If you have a good funnel with high ticket back end products such as MOBE then maybe $5 is ok per lead, even $10 or more. It depends on your business and your sales funnel.

Looking at the stats for CPM or cost per 1,000 impressions is a little bit different. If for example the CPM is $5 and you want to buy 100,000 impressions then the cost is:

100,000 / 1,000 = 100

100 x $5 = $500 for the banner ad

If the CTR as in the previous example is 0.5% then the amount of clicks will be 500.

If our landing page converts at 20% than you’ll get 100 leads from those 500 clicks. At a cost of $500 each lead will cost:

$500 / 100 = $5

So you’ll be paying $5 per lead which is not bad if you’re promoting a top tier product such as MOBE.

What are the average click through rates for banner ads?

Across the industry the average banner ad CTRs are between 0.5 and 1%. If you’re doing better than that then your banner is converting fairly well. We’ll have a look in the next few parts about how to increase your CTR to 1% and higher.

Click here for Part 3 on how to design your banner ads and skyrocket your click-through rates.

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