Internet Services from  


Communications  
Dragonfire Communications offer a complete connection and design service to get your business on the web with the minimum of fuss. 

The Internet is a fact of life. The only decision is how should an advertising budget be split between the various media, not whether it should be. 

There
are several types of media to consider when mapping out an Internet marketing
campaign. Some of the more popular candidates include payperclick (PPC)
listings, PPC banners, banners based upon impressions, email, search engine
positioning, and link exchanges. Choosing between the different alternatives
can be a daunting task. Regardless of which media you are considering, it
pays to sit down with a calculator and do the math – and you may be
surprised! THE FACTORS Trying to determine the cost per acquisition (new order or customer) prior to running a campaign is like shooting in the dark  there are just too many factors, such as the costperclick, total clicks, and clicksperacquisition. Most of the advertising placement companies will provide you with sufficient statistics to analyze your campaigns. It’s also essential that you implement statistical software so you can independently analyze your results. For the first month, you can start with the numbers the advertisers provide you. Next, you need to translate each of the media to a common base. i.e. the costperclick (CPC) measurement for each media. The next big question: how many clicks does it take to get an acquisition (a new order or customer)? Finally, you need to keep track of how many acquisitions you received from your Internet marketing campaign. This can be difficult, but it’s essential in analyzing your results. You can do this by using unique phone numbers, extensions or Web sites. You should now know the total number of new acquisitions and clicks received from all of your media for the testing period. By dividing the total number of clicks by the number of new acquisitions, you’ll know the number of clicks it took to get an order. For example, assume that you received 20,000 clicks and closed 400 new orders, taking 50 clicks per order. To determine the CPC, you simply take the total cost for all media, divided by the total number of clicks. As an example, assume you paid $5,000 for Internet advertising and received 10,000 clicks; your CPC would be $0.50. Armed with these three factors  costperclick, clicksperacquisition and number of acquisitions, you are now ready to do the math. DOING THE MATH Putting it all together to determine the costperacquisition is now very simple. The formula is: CostPerAcquisition = Cost per click x Number of clicks per acquisition This methodology assumes that a click is a click; it doesn’t matter if the click came from a banner or PPC or Yahoo or Search.com. It assumes that all clicks are equal. The reasoning behind this is that for branding purposes, your listings, banners and other ads all should present the same message  in a similar manner. It also assumes that it doesn’t matter where the ad is displayed, a click is a click. You should now apply the above formula to each of the media you are using. By assuming that the number of clicksperacquisition is the same for all media, you’ll have a good idea of what each media is costing  per order. In 2002 Yahoo banners which were running around $70 for every 1,000 impressions, or a CPM of $70. So each time a banner was displayed, the costperimpression was $0.07 ($70 / 1,000). At first, this doesn’t sound too bad – until you do the math. A good clickthrough rate on a banner campaign is 1%, so let’s use that. In this case, if you were to run 1,000 banner impressions, you would get 10 clicks (1% of 1,000), for a costperclick of $7.00 ($70 / 10 clicks). If it took 100 clicks to get an order, your costperorder would be $700 ($7.00 x 100 clicksperorder). This is extremely high for most types of offerings. Only a year later, it’s funny how things change. Yahoo have reduced the price of banners to $3 CPM.” Using the same assumptions as above, the costperimpression was now $0.0033 ($3 / 1,000), the costperclick is $0.33 ($3 / 10 clicks) and finally the costperorder is $33 ($0.33 x 100 clicksperorder). Dragon Fire Communications will discuss with you the best strategy for your business click here for further information. 

Frequently Asked Questions Click A for an answer  
WHAT WILL THE COSTS BE? A 

I AM QUITE HAPPY WITH THE WAY I ADVERTISE WHY CHANGE? A 

MUST I HAVE MY OWN COMPUTER TO ADVERTISE ON THE WEB? A 

DO YOU NEED A COMPUTER SYSTEM TO USE THE INTERNET? A 

WILL IT LOOK RIGHT? A 

HOW DO I GET STARTED? A 

For more information contact us on +34 922 86 27 13 or email: info@dragonfirecommunications.com 
