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Online Advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web
for the expressed purpose of delivering marketing messages to attract customers.
Examples of online advertising include contextual ads on search engine results pages,
banner ads, Rich Media Ads, Social network advertising, interstitial ads, online classified
advertising, advertising networks and e-mail marketing, including e-mail spam.
Competitive advantage over traditional advertising
One major benefit of online advertising is the immediate publishing of information and
content that is not limited by geography or time. To that end, the emerging area of
interactive advertising presents fresh challenges for advertisers who have hitherto
adopted an interruptive strategy.
Another benefit is the efficiency of advertiser's investment. Online advertising allows for
the customization of advertisements, including content and posted websites. For example,
AdWords, Yahoo! Search Marketing and AdSense enable ads to be shown on relevant
web pages or alongside search results of related keywords.
Revenue models
The three most common ways in which online advertising is purchased are CPM, CPC,
and CPA.
CPM (Cost Per Mille), also called "Cost Per Thousand (CPT), is where
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 where advertisers pay for the delivery of a Targeted
Visitor to the advertisers website.
CPV (Cost Per View) is when an advertiser pays for each unique user view of an
advertisement or website (usually used with pop-ups, pop-unders and interstitial
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. 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.
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. This is the best type of rate to pay for banner advertisements
and the worst type of rate to charge.
o 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.
o Also common, CPO (Cost Per Order) advertising is based on each time
an order is transacted.
o CPE (Cost Per Engagement) is a form of Cost Per Action pricing first
introduced in March 2008. Differing from cost-per-impression or cost-perclick 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
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.
Types of Internet Advertising
Though, as seen above, the large majority of online advertising has a cost that is brought
about by usage or interaction of an ad, there are a few other methods of advertising online
that only require a one time payment. The Million Dollar Homepage is a very successful
example of this. Visitors were able to pay $1 per pixel of advertising space and their
advert would remain on the homepage for as long as the website exists with no extra
Floating ad: An ad which moves across the user's screen or floats above the
Expanding ad: An ad which changes size and which may alter the contents of the
Polite ad: A method by which a large ad will be downloaded in smaller pieces to
minimize the disruption of the content being viewed
Wallpaper ad: An ad which changes the background of the page being viewed.
Trick banner: A banner ad that looks like a dialog box with buttons. It simulates
an error message or an alert.
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.
Video ad: similar to a banner ad, except that instead of a static or animated image,
actual moving video clips are displayed. This is the kind of advertising most
prominent in television, and many advertisers will use the same clips for both
television and online advertising.
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.
Interstitial ad: a full-page ad that appears before a user reaches their original
In addition, ads containing streaming video or streaming audio are becoming very
popular with advertisers.
E-mail advertising
Legitimate Email advertising or E-mail marketing is often known as "opt-in e-mail
advertising" to distinguish it from spam.
Affiliate marketing
Affiliate marketing is a form of online advertising where advertisers place campaigns
with a potentially large number of small (and large) publishers, whom are only paid
media fees when traffic to the advertiser is garnered, and usually upon a specific
measurable campaign result (a form, a sale, a sign-up, etc). Today, this is usually
accomplished through contracting with an affiliate network.
Affiliate marketing was an invention by in 1994 and was excelled by when it launched its Affiliate Program, called Associate Program in 1996.
The online retailer used its program to generate low cost brand exposure and provided at
the same time small websites a way to earn some supplemental income.
Contextual advertising
Many advertising networks display graphical or text-only ads that correspond to the
keywords of an Internet search or to the content of the page on which the ad is shown.
These ads are believed to have a greater chance of attracting a user, because they tend to
contain content relevant to the user's search query. For example, a search query for
"flowers" might return an advertisement for a florist's website.
Another newer technique is embedding keyword hyperlinks in an article which are
sponsored by an advertiser. When a user follows the link, they are sent to a sponsor's
Behavioral targeting
In addition to contextual targeting, online advertising can be targeted based on a user's
past clickstream. For example, if a user is known to have recently visited a number of
automotive shopping / comparison sites based on clickstream analysis enabled by cookies
stored on the user's computer, that user can then be served auto-related ads when they
visit other, non-automotive sites.
Semantic advertising
Semantic advertising applies semantic analysis techniques to web pages. The process is
meant to accurately interpret and classify the meaning and/or main subject of the page
and then populate it with targeted advertising spots. By closely linking content to
advertising, it is assumed that the viewer will be more likely to show an interest (i.e.,
through engagement) in the advertised product or service.
Important Components of Internet Network Marketing
When it comes to internet marketing there are three main components that needs to be in
place and these are a lead capture page, email follow up system and direct marketing
sales pages.
It doesn’t matter what type of product or service you are selling but if you don’t know
how to do internet marketing correctly than none of those things matters.
When it comes to internet marketing there are three main components that needs to be in
place and these are a lead capture page, email follow up system and direct marketing
sales pages.
Lead capture page
A lead capture page is the first page prospect see when they first come to your site. The
purpose of the lead capture page is to collect information enter by prospect so later you
can follow up with them. The main purpose of the lead capture page is to filter out
prospect who are not so interested and you only work with people who are interested in
what you have to offer.
E-mail Following Up
Many marketers make the mistake of driving traffic to their site and not following up
with them later. Once you collect information from your prospect you need to follow up
with them to build trust and relationship. With email system this makes your follow up
much easier whether your prospect list is 100 or 1000 as this whole process is automated
once you have your follow up email set up. You can also simply broadcast important
message to the entire list of prospect in your database with a push of a button. In case if
you didn’t know it takes 7 to 10 interactions for the prospects to warm up to you and trust
Direct Marketing Sales page
Direct Marketing Sales page is an important part of any marketing system. The purpose
of the direct marketing sales page is to close the prospect and takes you out of the sales
process so that is why having the marketing system that closes prospects automatically is
extremely powerful. Because the sales page is consistent in leading the prospect all the
way down to the marketing funnel and closing sales you can now predict as to how many
leads are required to opt in to make a sale. Basically you are letting the system works for
you in stead of you having to call each lead and human are not consistent all the time
even though you are very good at what you do and you tend to make mistake.
The Internet Marketing Process
You may have invested a considerable amount building a professional looking web site,
but that investment won't pay off unless you use the Internet to effectively market your
business. Building a web site and doing Internet marketing are two completely different
things. You've probably visited a few web sites that were completely useless. Maybe they
looked good, but you couldn't find the information you needed, or worse you had trouble
finding the site in the first place. Don't let this happen to your web site!
We're about to show you how to use the Internet to effectively market your business.
What does the process look like? Some elements are the same no matter what kind of
business you have. We've extracted the common themes from more than 30 successful
Internet marketing campaigns to develop this six step process for Internet marketing.
1. Create an Internet marketing plan
What results do you want and how much can you invest to get those results? If you want
to acquire customers, consider how much a customer is worth to your business, and what
you can pay to get a new customer (or keep an existing customer). What do you want
visitors to do when they come to your web site? To turn visitors into customers, you need
to know your target audience and give them reasons to work with you instead of the
competition. We're amazed by how many web sites have been designed and built without
having a clear understanding of these fundamental questions.
2. Evaluate your web site and fix the real problems
Make sure your web site renders properly and quickly on your visitors' computers.
Whatever you do, don't tell the visitor what kind of software to use. "This site optimized
for Internet Explorer" is a virtual slap in the face to anyone using Firefox or a Macintosh.
3. Use web analytics to learn from your visitors
If you've made the investment to build a site, you want to promote it, and you can't make
smart decisions about how to promote your site unless you have reliable information
about visitor behavior. Every business needs to know:
How many visitors come to the site?
What are the sources of visitor referrals ?
What keywords do visitors use?
What pages attract the most interest?
How many visitors are completing the objective? ("conversions")
4. Promote your web site via Pay-Per-Click (PPC) advertising and any other
methods that work
We began by considering what a customer is worth to your business. Every customer
represents a value, so why not buy low and sell high? If the search engines can "sell" you
customers for less than what customers are worth, that's a good deal. Sure, you can get
traffic from search engine optimization (SEO), but search advertising is a faster, more
certain way to rank. SEO takes time and money, and the results are never guaranteed.
PPC advertising is also a way to simultaneously test hundreds or thousands of different
keywords with visitors to your site. A certain fraction of visitors become customers.
That's the "conversion rate." PPC advertising can tell you the conversion rate for each
keyword. Once you know the keywords that have the highest conversion rate, what we
call the "golden keywords," you can optimize your site by creating content to specifically
address these topics.
5. Search Engine Optimization: Get free search engine referrals
Your web analytics will tell you what information your visitors seek, and how they found
your site. Use this information to continuously improve the content of your web site, and
increase the value per visit. That's the essence of search engine optimization. You are not
trying to trick the search engines into listing your site higher. You are making your site
better so the search engines choose you over all the others.
6. Maintain the quality of your site, and rebuild when maintenance no longer works
If a visitor comes to your site and sees old information, they are going to lose faith and go
elsewhere. You need to make sure the information most frequently requested by
customers and prospects appears on your site. Web site changes and additions take time,
and you need to have qualified web site editors. We've seen situations where uninformed
web site editors have severely disrupted the effectiveness of a web site by making poorly
planned changes.