Seth Godin writes about how simple your approach to online advertising should be in his post:
If your ads work, if you can measure them and they return more profit than they cost, why not keep buying them until they stop working?
And if they don’t work, why are you running them?
The time-tested response is that you’re not sure, that ads are risky, that you can’t tell. …
Digital ads are different (or they should be). You should know cost per click and revenue per click and be able to make a smart guess about lifetime value of a click. And if that’s positive, buy, buy, buy.
And if you don’t know those things, why are you buying digital ads?
We do a lot of online advertising through various providers and it is amazing how scientific you can get in order to gain real value from the medium. Online ads have totally changed the marketing landscape and we no longer rely on made up stats like “readership” and “circulation” that off line print media rely on the help justify their advertising costs. I’m not saying don’t use “off line” media, as not all of your target audience are necessarily online, but it sure does help to focus your marketing efforts with stats such as cost per click and revenue per click.
The one thing about online advertising is that you need to actively track them. Gone are the days of sending off an advert to your favorite magazine and then waiting for the phone to ring. Today, you can see exactly how your online ads are performing, who is viewing them and if they are delivering real business results. All in real time. Its amazing how the Internet is revolutionising marketing and the way we reach customers.