Posts Tagged ‘search engine marketing’

ATS Ratio- A Marketing Spend Vs Sale!!

Wednesday, November 12th, 2008

One of the key element in today’s online marketing scenario and has always been is what is your ATS ratio. That means Advertising to Sales Ratio.

Let me explain this in bit detail as this useful while an online marketer tries to drive online traffic to his website.

Lets start with an example: I have spend close to 10000 in Google adwords and generated an affiliate sale of one million. This means my ATS ration will  be become:

ATS=(10000/1000000)*100= 1%

This means so far my marketing spend is 1% of the total sale. This ratio differ from product to product and Business to Business.

For any Business or product, an ideal ATS ratio should be 2-3% . Later in the post, i will touch what is see page ratio.

Traffic Is Money

Saturday, November 8th, 2008

I think, every kid or a teenager in their growing years heard this quote from their parents “Time is Money” so that we don’t waste it in unnecessary things. And when i was doing my Data Mining projects, i learnt that “Data Is Money” and indeed we were making good monies by analyzing data.

Without any doubts, both the above mentioned quotes were right on those times and hold so true in regards to the context.

But today, “Traffic Is Money” and just work towards building it on your website. More traffic you have, more money you can earn by monetizing it thru different channels. Just mentioning few to take notes-

  1. Affiliate Marketing
  2. Lead based model
  3. Google Ad sense
  4. Ad revenue from third party banners

Would love to know from readers of this post various means to monetize web traffic and ways of making money thru it.