Effectiveness of Web Banner Ads

Requirements Clarification & Assessment

1. Understand Business Objectives:

   • Goal: Increase revenue through the integration of web banner ads.
   • Success Criteria: Define what constitutes a successful monetization strategy. This could be a specific revenue target or an improvement in key performance metrics like Click-Through Rate (CTR) or Conversion Rate.

2. Clarify Monetization Methods:

   • Revenue Models:
     • Cost per Impression (CPM)
     • Cost per Click (CPC)
     • Affiliate-based Revenue
   • Target Audience:
     • Stable, loyal readers
     • Casual, click-bait chasers

3. Assess Audience Characteristics:

   • User Engagement: Determine the typical engagement level of the audience (e.g., average time spent on site, pages per session).
   • Audience Segmentation: Identify if there are distinct user segments that might respond differently to banner ads.

4. Define Success Metrics:

   • Primary Metrics: CTR, Conversion Rate, Revenue
   • Secondary Metrics: User Engagement (time on site, bounce rate), Retention Rate

5. Experiment Design Considerations:

   • Testing Scope: Determine whether to test the number of banners, types of banners, or placement.
   • Duration: Decide on the experiment length to capture both short-term and long-term effects.

6. Guardrail Metrics:

   • User Experience: Ensure that banner ads do not negatively impact user experience (e.g., increased bounce rate).