Set goals and expectations with your advertiser prior to launching a campaign

The most important things to keep in mind are the advertiser and the specific goals of the campaign. Remember the old adage: The customer is always right. By being honest up front you can save yourself a lot of trouble, and most likely keep the advertiser around for a longer period of time if the campaign does not perform initially. 

Many advertisers do not know what a good click-through rate is, and some do not have realistic goals for a campaign. By clearing up uncertainties from the start and setting realistic and attainable goals, you are setting yourself up for success. You also need to identify clear CPA goals, ensure that top quality graphics and copy are used, and that the landing pages have a direct call to action.  

2. Know your target audience and be specific in your web placements
Targeting is half the battle for a quality CTR.  After you've established clear goals for the campaign, figuring out the proper audience for the campaign is vital to achieving an above-average CTR. It's not that web users hate advertisements -- they just hate advertisements that are not relevant to them. For too many years, useless ads have been put in front of them, and they are tired of it. Does a man shopping for a new car really want beauty skin care products? Or does a woman shopping for new clothes need a pill to increase her libido? 

With targeting, not only can you reach the type of customer your advertiser is after, but you can also design creative that is specific to a certain demographic, which will thereby improve results. Targeted ads outperform run-of-network campaigns two to one.

A few additional points to note: When targeting an ad campaign, run small tests on multiple sites and networks to get a clear view of what works and what doesn't. Some ad content works well with certain sites, and some works better across an entire network.

3. Create an interesting banner
Basic, static banners that only change when you refresh a page do not work anymore. We have to be more creative now and give web users something that is visually stimulating. Animated banners stimulate the eyes and can provide a needed escape from that dreaded research paper or old TPS report. Expandable and rich media graphical banners can perform up to 400 percent better than a standard static banner. The more interactive it is, the better. 

I do not mean the old whack-a-mole or "shoot the president" interactivity, but a way for the user to really see the service and product you are offering within the framework of that particular ad size. The first action does not necessarily need to be a click. It could be rotating a product, pulling a lever, or pushing a button -- all of which provide a second step into the product advertised.

Video banners also work very well and can outperform a typical television spot at a fraction of the cost. It is essential, however, not to overinflate the actual value of the product or mislead the user in any way with super-creative banners. If you get a 5 percent click-through rate but fail to sell a product, the advertiser is still going to be displeased.