People tend to choose banner advertising due to its low maintenance and affordable rates. But even with affordable advertising, you need to get your money's worth and learn to calculate the rate yourself. Here are some tips:
1. You must learn how to calculate the CPC (cost per click). Though most banners can't be bought on a CPC basis, you should know the standard rate to estimate whether a certain site's rate is fair. If your banner has a click-through of 5 clicks this month, your click through ratio would be 0.5%. If you are paying $20 for your monthly advertising rate, then you will be paying $4 per click, which is a bit high.
2. Another popular type of banner advertising is cost per unique visitor. Usually, the average number of pages that a visitor sees on a website varies. For example, a website has an average of 10 page views per visitor, its average number of pages per month is 1M, then, its average user sessions would be 100,000 monthly.
3. If the recognition of your brand is your greatest aim and you want to make your brand popular among many people, then your banner should be all over the place and can be seen as many times as your budget permits you so. A low cost per visitor should not be as crucial as low cost per impression.
4. Another banner advertising rate is called "conversion rate". This is important for websites that are selling products and services; many online stores use this. This particular banner advertising rate shows the number of people who opened the banner and actually bought something.
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