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Online Advertising

The wikipedia defines online advertising as "a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers."

 

The objectives of online advertising include:

  • brand awareness
  • online ad awareness
  • message association
  • purchase intent

 

Types

 

There are different tools that can be used to promote your messages through the web.

  • Banners (static, animated, HTML, nanosite, transactive, DHTML, rich-media banners)
  • Trick banner: a banner ad that looks like a dialog box with buttons. It simulates an error message or an alert.
  • Floating ad: an ad which moves across the user's screen or floats above the content.
  • Expanding ad: an ad which changes size and which may alter the contents of the webpage.
  • Polite ad: a method by which a large ad will be downloaded in smaller pieces to minimize the disruption of the content being viewed
  • Sticky ad
  • Screensaver ad / wallpaper ad: an ad which changes the background of the page being viewed.
  • Video ad: similar to a banner ad, except that instead of a static or animated image, actual moving video clips are displayed.
  • E-mercials
  • Interstitials
  • Pop-up: A new window which opens in front of the current one, displaying an advertisement, or entire webpage.
  • Pop-under: Similar to a Pop-Up except that the window is loaded or sent behind the current window so that the user does not see it until they close one or more active windows.
  • Text links
  • Search engine marketing
  • Search engine optimisation
  • Associate programmes
  • Web pages sponsoring
  • Map ad: text or graphics linked from, and appearing in or over, a location on an electronic map such as on Google Maps.
  • Mobile ad: an SMS text or multi-media message sent to a cell phone.

 

Revenue models

 

There are various ways in which online advertising is purchased.

 

CPM (Cost Per Mille), also called "Cost Per Thousand (CPT), is where advertisers pay for exposure of their message to a specific audience.

 

CPV (Cost Per Visitor) or (Cost per View in the case of Pop Ups) is where advertisers pay for the delivery of a Targeted Visitor to the advertisers website.

 

CPC (Cost Per Click) is also known as Pay per click (PPC). 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. CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site.

 

CPA (Cost Per Action) or (Cost Per Acquisition) 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.

 

Similarly, 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.

 

Also common, CPO (Cost Per Order) advertising is based on each time an order is transacted.

 

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.

 

 

Here are some interesting publications that might help you in your online marketing activities.

 

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