Online Advertising – Way of Digital marketing

Online Advertising mostly called Internet advertising and Digital advertising has become one of the most popular way of Digital marketing and brand promotions. Let’s delve into it to get more insight. Normally, Traditional advertising uses a form of print medium, commercials on Radio and TV, Billboards now the concept has taken a digital turn according to the real time technological requirements and business essentials. In today’s business world, advertising is the big market in digital arena which conducts in form of promotion that uses Internet and world wide web (www) to deliver marketing messages to attract customers.

Ways of online advertising
Examples of online advertising include contextual ads on search engine results, banner ads, blogs and websites, Rich Media Ads, Social network advertising, Social media ads, interstitial ads, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. Mostly these types of ads are delivered by an Ad server.
Being Digital to earn online

By increasing the users convergence in digital information, online advertising has become revloutionary in context of marketing format which allows immediate publishing of information and messages across boundaries. With the help of online advertising, you can disseminate your content in a very short time to million of users with the functionality to allow customization of advertisements, including content and posted websites. For example, AdWords, Yahoo! Search Marketing and Google AdSense enable ads to be shown on relevant web pages or alongside search result.

Recommended Revenue Models of online advertising
Normally the online advertising revenue models based on CPM, CPC and CPA.
  • CPV (Cost Per View) is when advertisers pay for each unique user view of an advertisement or website (usually used with pop-ups, pop-unders and interstitial ads).
  • CPC (Cost Per Click) or PPC (Pay per click) is when advertisers pay each time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on. This system allows advertising specialists to refine searches and gain information about their market. Under the Pay per click pricing system, advertisers pay for the right to be listed under a series of target rich words that direct relevant traffic to their website, and pay only when someone clicks on their listing which links directly to their website. CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site.
  • CPM (Cost Per Mille) or CPT (Cost Per Thousand Impressions) is when advertisers pay for exposure of their message to a specific audience. “Per mille” means per thousand impressions, or loads of an advertisement. However, some impressions may not be counted, such as a reload or internal user action.
  • CPV (Cost Per Visitor) is when advertisers pay for the delivery of a Targeted Visitor to the advertisers website.
  • CPA (Cost Per Action or Cost Per Acquisition) or PPF (Pay Per Performance) advertising is performance based and is common in the affiliate marketing sector of the business. In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser pays only for the amount of users who complete a transaction, such as a purchase or sign-up. This model ignores any inefficiency in the sellers web site conversion funnel. 

The following are common variants of CPA:

  • CPL (Cost Per Lead) advertising is identical to CPA advertising and is based on the user completing a form, registering for a newsletter or some other action that the merchant feels will lead to a sale.
  • CPS (Cost Per Sale), PPS (Pay Per Sale), or CPO (Cost Per Order) advertising is based on each time a sale is made.
  • CPE (Cost Per Engagement) is a form of Cost Per Action pricing first introduced in March 2008. Differing from cost-per-impression or cost-per-click models, a CPE model means advertising impressions are free and advertisers pay only when a user engages with their specific ad unit. Engagement is defined as a user interacting with an ad in any number of ways.
  • Cost per conversion describes the cost of acquiring a customer, typically calculated by dividing the total cost of an ad campaign by the number of conversions. The definition of “Conversion” varies depending on the situation: it is sometimes considered to be a lead, a sale, or a purchase. 
Advantages of Online Advertising
  • Online advertising has the potential to access an enormous global audience in a very low time.
  • Online advertising is less expensive as compare to traditional ads.
  • Company are able to track ads analytics like how many people see their ad, how many people click on it and how many people buy items as a result of the ad. 
  • Audiences can learn more about a product through online means than through a TV commercial or print ad. Visitors can click on the ads and diverted to take direct information from website.
By | 2017-04-29T08:20:41+00:00 February 1st, 2012|Digital Marketing|0 Comments

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