Why conversion rate and cost-per-thousand are the most important Web-Centric Metrics for a company's online retail store
Most online businesses need to focus on internet advertisements because they provide customers with more detailed information than the ads in the print media or display. There are Web Centric Metrics that can be used to evaluate Internet campaigns. Conversion rate is the percentage of potential customers who visit a site and purchase an item. It is the ratio of visitors who convert their website visits into actions based on direct requests from advertisers. To online retailers a thriving conversion may include selling a product to a consumer whose interest in the thing was first sparked by clicking a banner advertisement.
An increase in conversion rate would mean increased profits. The more traffic one can buy the more prospective customers one draws, and also the more amount of repeat business one receives. A successful online business begins with a focus on the conversion rate because it transforms visitors into potential customers. By optimizing the landing page or site, a business can bring a specific traffic that is more likely to convert into buyers. Conversion rate also offers tangible benefits. For example, with offering useful and inexpensive gifts, one potentially converts many customers into active participants. This will help in building a firm user base that can be tapped to advertise a company’s products and services. By inserting testimonials, a business can market its products or services at little cost and increase the credibility of the site. In addition, if a business offers live assistance, the conversion rate shoots up which give the customers a platform to access the company in real-time.
Cost-per-thousand, CPM, is defined as sales dollars generated per dollar of advertising. It is a System where an advertiser pays for the number of times their ad is to be seen by a consumer, regardless of the whether the consumer acts or not. CPM can hold the best value for marketing dollars online for small retail businesses. The advantage with CPM marketing is that one can choose the marketing sites to place banners basing on the demographics of the site. This will aid in reaching a targeted audience rather than advertising to a large number of the masses.
With the CPM marketing online and using banners, a business will save a significant amount of money because you can analyze and assess which banners and which websites are driving the most traffic to your sites. With the analysis, one can move the banners from the websites as needed so as to attain marketing goals and save dollars on non effective campaigns. This marketing is advantageous to business owners and an opening to guerilla marketing to a business. CPM advertising is an effective method in reaching potential customers on the Web. In a CPM campaign, a company purchases a set amount of impressions. CPM-based advertising, if used is a very cost-effective method.