In an Instant Track banner-ad performance in real time to find out who's paying attention.

When you want to determine which of your banner ads aredelivering the most cost-efficient results and which are simplydraining your bank account, take a valuable lesson from themarketers who track customer responses in real time.

Using a process known as real-time optimization, you can uncoverinformation, like how many customers have clicked on a banner ad,the ad's conversion rate (the total number of transactions fromthat ad divided by the total number of visits during any givenperiod) and even customer response to individual aspects of anoffer, such as the price or the message itself. That informationhelps entrepreneurs "optimize the ads that are running, pushWeb sites that aren't performing to do better and, ifnecessary, cancel contracts with them," says Brad Aronson,president of i-Frontier, an interactive advertising agency inPhiladelphia. "One advantage of Net advertising is that youcan measure results daily and use that information to increaseefficiency."

Analyzing results every day-or even in real time-is paramount,because if you find shoppers aren't responding to your bannerads, you'll want to make changes as soon as possible."Tracking response in real time allows entrepreneurs to adaptfast," confirms James Vogtle, director of e-commerce researchat strategy consulting firm Boston Consulting Group Inc. "If you'respending money on an ad campaign [that's not] working, you wantto know immediately so steps can be taken to adjust it."

This kind of data analysis doesn't come cheap, however, andcosts climb even higher when extensive changes have to be made. Forstarters, you'll need to install special software or hire aWeb-tracking service before you can examine your server logs. Thecosts will vary depending on your needs and traffic volume. Foraround $700, you can get a real-time analysis product called LogAnalyzer from WebTrends. For prices starting at $10,000, you can getthird-party software like AdKnowledge from Engage and Dart fromDoubleClick.

Aronson recommends a combination of these services."WebTrends lets marketers know what consumers do on theirsites-if they leave after seeing one page or if they never go tothe special offer page," he explains, "while AdKnowledgeand Dart will track from banner ad to order."

Depending on the results, once you obtain this information, youmay want to change your banner ads to make them more effective. Youcan make those adjustments on your own or turn to outside help. Ifyou use an ad agency, costs will range from $1,500 to $3,000,depending on the project's complexity. However, good marketersknow to test many slight variations of the original banner beforetweaking the ads for maximum effectiveness-and designers rarelycharge extra for that service.

Is it worth the effort to develop your banner ads until they getthe effect you're looking for? Apparently so. Says Aronson,"Usually, the increased response a marketer receives fromtweaking ads significantly outweighs the additionalcosts."