Ad Tracking in high demand despite recession
Ad Tracker August 3rd, 2009
Ad Tracking cannot be compromised, even in budget binds. Overall ad spending has gone down, but businesses continue to invest in online advertising and Ad Trackers, proving their lucrative rewards.
The newly-released Advertising Expenditure Forecasts report by ZenithOptimedia Group predicts online advertising is the only advertising medium that will see growth. While facing today’s harsh economic conditions, any sign of growth as opposed to decline reflects very well on an industry; But not only is online advertising forecast to prosper, it is forecast to BOOM to 15.1 percent of worldwide total advertising expenditure by 2011.
This forecast is in line with online advertising trends. According to a PricewaterhouseCoopers IAB Online Advertising Expenditure Report, online advertising has a 30 percent yearly growth rate, with a record $450 million in online ad spending in the third quarter of 2008 alone.
With this increasing online advertising expenditure comes more demand for Ad Trackers, PPC Tracking tools and Click Fraud monitors. An expansive 96.1 percent of the more than 600 professionals polled by the Web Analytics Association (WAA) will maintain or increase spending on Ad Trackers, PPC Tracking devices and other web analytic software.
Interactive Advertising Bureau (IAB) Australia CEO Paul Fisher connects the recession-proof quality of online advertising to Ad Tracking data, and said online advertising is “proving to be a winner in tough economic times because of its accountability, measurably and bang for buck.”
Even though businesses are increasing spending on Ad Tracking, PPC Tracking and Click Fraud software, they are actually saving money. Not only do Ad Trackers promote a greater ROI – they do it cost-effectively. Let’s look at some sample numbers…
Addie owns her own retail gift shop. Her monthly advertising budget is $15,000 and she wants to know whether her money is better spent online or in her local newspaper. She is concerned about the added expense of Ad Tracking.
Online:
• Average Cost Per Click = $0.40 x 37,500 clicks = $15,000
(based on Efficient Frontier industry average data)
• 37,500 clickers x 5% conversion rate = 1,875 customers gained
Print:
• Cost of one page local newspaper print ad with circulation of 200,000 = $15,000
• 200,000 readers x 2% conversion rate = 580 customers gained
These conversion rates are just samples, but show the vast difference in the effectiveness of online versus print advertising. The ROI for online ad spending is even greater when Ad Tracking is utilized and Click Fraud is prevented.
One thing to consider is that 2 percent is a reasonable conversion rate guess. With Ad Tracking and PPC Tracking software, you are able to actually measure your conversion rate – without shooting in the dark.
Using Ad Trackers is a sound investment that can help you make the most cost-effective marketing decisions. Not only is online advertising proving to drive more business than traditional print advertising, but Ad Tracking and PPC Tracking software allows businesses to create a lean, profit-boosting online advertising campaign.
With the economy putting extra strain on marketing budgets, it is especially important to make advertising decisions that will gain the most customers, for the least amount of money. With online advertisements and Ad Trackers, businesses are sure to get the most bang for their buck, making the combination of online ads and Ad Tracking a recession-fighting tool for success.
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August 8th, 2009 at 8:59 pm
Great post. Ad trackers are especially important during the tough times to insure every click counts. A small investment in Ad tracking can save thousands in advertising.
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