Online Advertisement & Internet Marketing

Online advertisement is a part of internet marketing which uses internet as a delivary medium like other internet marketing services. Online advertisement is a form of promotion and its main advantage is that it is much more cost-efficient than regular advertising, and has a better return on investment (ROI). Your target audience can also be more efficiently reached.

There are different methods, both of delivery and payment, of online advertising. Some methods are:

• Contextual ads on search engine result pages.


• Banner ads on other websites.


• Interactive or “rich” media. In this form, one would submit a number of different ads for different products or services, and the ad fitting the user’s activities on the advertising site would trigger specific ads to display based on such interaction.


• Social network marketing: Social Network marketing is considered as online reputation management. There are many social media sites like Twitter, facebook and orkut etc to build a solid reputation of your product and your business.


• Interstitial ads. Theseare ads that appear before or after a user enter a website, usually covering the entire viewing area.


• Online classified advertising. Like newspaper or magazine classified advertising, your ad will be 12px, and buried with many others. Craigslist is an example.


• Advertising networks. These are websites devoted to providing advertisement feeds for other websites. Google AdSense is an example. There are three types of online advertising networks:
  1. Vertical. These have full transparency as far as which sites your ad will appear on, and under what conditions. It is all planned out and billed accordingly.
  2. Blind. These ads can appear on any random website registered with the particular network, and under any condition.
  3. Targeted. These ads target specific demographics and technologies.

There are two types of advertising networks:

• First-tier. First-tier advertising networks have their own advertisers, publishers, high quality traffic, and also serve ads and traffic to second-tier networks. An example is Google AdSense.


• Second-tier. Second-tier networks have some of their own advertisers and traffic, but generate most of their income by syndicating advertisements from a first-tier network.

There are different revenue models, but the three most common are:

• Cost per Mille (CPM), also called Cost per Thousand (CPT). This means that the advertisement is billed per one thousand clicks to the targeted website. This does not usually include page refreshes.


• Cost per Visitor (CPV). This is, of course, a charge based upon every visitor that comes to your landing page through such an advertisement. It can also be called.
  
  1. Cost per View (CPV), is almost like cost per visitor, this is the term generally used for pop-ups and pop-under, those advertisements that appear in a separate window, either on top of or under the browser.
  2. Cost per Click (CPC), also called Pay per Click (PPC). This is when the advertiser is charged every time their ad is clicked, whether or not the user stays on the landing page.
• Cost per Action (CPA), or Cost per Acquisition.  This is performance based, and used largely in Affiliate marketing programs. This means the advertiser is only paid when the advertisement converts a user to a customer.
  1. Cost per Lead (CPL) is based on the user filling out a form for more information or a newsletter, thus enabling the website to directly market to the user via email marketing.
  2. Cost per Order (CPO) is based upon the user actually making a purchase of a product or service through the advertisement.
  3. Cost per Engagement (CPE) is when a user interacts with the advertisement in certain ways. Engagement usually means and ad that is interactive in some way, such as a game, a poll, or a roll-over triggered commercial; within the ad itself.

As to which one you should use, depends on a very important figure: Cost per Conversion. This is the cost of acquiring a customer, usually calculated by dividing the total cost of an ad campaign by the number of conversions, or sales, that are directly attributable to that advertisement. The definition of ‘conversion’ can mean getting a lead (when a user puts in their email and specifies what they are interested in), a sale, or a purchase, depending on the circumstance.

Lexprosoft Technoligies as a online advertising company help its client in designing advertisements, whether banner or keywords, and how to get the most out of your advertising dollar. Trust us to take your business to the next level!