Online Display Advertising – An Overview

Display advertising is graphical advertising on the World Wide Web that appears next to content on web pages, IM applications, email, etc.

These ads, often referred to as banners, come in standardized ad sizes, and can include text, logos, pictures, or more recently, rich media.

Rich media, synonymous for interactive multimedia, is enhanced media that utilizes a combination of text, audio, still images, animation, video, and interactivity content for active participation from the recipient of the ad.

The internet has become an ongoing emerging source that tends to expand more and more. The growth of this particular medium attracts the attention of advertisers as a more productive source to bring in consumers.

A clear advantage consumers have with online advertisement is the control they have over the product, choosing whether to check it out or not.

Online advertisements may also offer various forms of animation. In its most common use, the term "online advertising" comprises all sorts of banner, e-mail, in-game, and keyword advertising, on platforms such as Facebook, Twitter, or Myspace has received increased relevance. Web-related advertising has a variety of sites to publicize and reach a niche audience to focus its attention to a specific group. Research has proven that online advertising has given results and is growing business revenue. For the year 2012, Jupiter research predicted $34.5 billion in US online advertising spending.

You may picture display advertising like magazine or newspaper ads, just online and - like TV commercials - with the possibility of moving from static to interactive, flash and video. However, display advertising has a significant advantage over advertising in magazines, newspapers and TVs:

1. Targeting options such as demographic and behavioral targeting are available to laser in on your audience and,
2. You can track the performance of your campaign daily to measure metrics such as impressions, clicks and conversions to calculate your ROI.

Online advertisement as Digital Promotions for Television

Online advertisement can also be classified as Digital Promotions. Digital promotion in connection to the television industry is when networks use authentic digital resources to promote their new shows in a growing vast range of venues.  Television networks development of digital off air promotional strategies allowed digital promotion to remain significant to the advertisement advancement in the television.

Examples of television online digital promotions:

The Sci Fi network for loaded a special recap episode of Battlestar Galactica onto Microsoft’s Xbox online gaming service; this gave the audience additional opportunities to sample content if they may or may not be familiar with the show.

Another example of digital promotion in television is when network CBS incorporated new digital technologies of Bluetooth-enabled mobile devices that were able to download a thirty seconds clip of the new advertised show on their devices; consumers standing in range of billboard don’t need an internet link to down load the show’s content. These non-linear viewing opportunities provided as a valuable tool for gaining audiences; and to encourage them to intersection with the linear audience.

Revenue models

The three most common ways in which online advertising is purchased are CPM, CPC, and CPA.

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.

CPV (Cost Per View) is when advertisers pay for each unique user view of an advertisement or website (usually used with pop-ups, pop-under 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.

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 seller's 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.

eCPM: Effective CPM or eCPM calculated through other conversion events such as Cost per Clicks, Cost per Downloads, Cost per Leads etc. for example when an advertiser getting $2 per download and for 100,000 impressions you received 10 downloads worth $20, in this case your effective CPM or eCPM will be 2*20*1000/100,000= $0.4

Fixed Cost: Advertiser paying fixed cost for delivery frame by campaign flight dates without any relevance to performance

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.

Source: help.yahoo.com and www.wikipedia.com

Tips for Improving Pay-Per-Click Campaigns

Pay-per-click (PPC) advertising can be an effective way to drive traffic to your website quickly, but small businesses too often make mistakes that undermine their campaigns.

Here's how PPC works: Through programs such as Google AdWords and Facebook Ads, marketers specify an amount they're willing to pay for each visitor who clicks through to their sites. They also indicate whether they want their ads to appear in search engine results or content blocks embedded within websites, or both. It's an auction-style system through which the advertiser that bids the most for a targeted keyword receives the most exposure.

Although PPC advertising may sound simple, plenty of beginners have created campaigns that generate little click-through action because they target the wrong keywords or lack a compelling message. So, consider these suggestions for avoiding the seven mistakes that most new advertisers make:

1. Avoid "broad match" keywords.

One of the biggest mistakes is ignoring the difference between choosing specific keyword match types and setting all keywords as "broad match," which means that your ad will appear not just for your chosen keyword phrase, but also for any similar phrases or relevant variations your advertising program deems appropriate. Although broad match placements can help increase your exposure, they can also attract irrelevant traffic that costs you money.

For example, a PPC ad with the broad match term "show ideas" could be displayed for the search query "baby shower gift ideas." Even though the search query contains the broad match term, it isn't a relevant match.

To avoid losing money on irrelevant clicks, focus on phrase or exact match keywords.

2. Separate search and content ad placements.

Search network placement refers to PPC ads that appear in search query results, while content network placement means websites that display PPC ads as blocks within their pages. Most new PPC marketers select both the search and content networks when they set up their first campaigns, and they usually use the same keywords, ad content and payment amount for each click.

But the specific queries and websites that trigger your content network placements can be significantly different than what yields results on the search network. Running the same ads on both networks, therefore, could cost you money in terms of irrelevant placements. Although customizing takes more time and effort, it's far more efficient to tailor your keywords, ad copy and keyword bids for each network.

3. Use negative keywords, too.

PPC marketers often fail to use negative keywords, which allow you to specify where your ad should not appear. For example, in our "show ideas" and "baby shower gift ideas" example, the words "baby," "shower" and "gift" could be designated as negative keywords to help eliminate such irrelevant ad placements.

4. Efficiently target ad campaigns. 

Many advertisers aren't precise enough in targeting their campaigns. To increase efficiency, take advantage of features in PPC accounts that allow you to specify who sees the ads.

Here are a few areas to consider in targeting your campaigns:

• Multiple countries. If you plan to advertise in several countries, set up an ad group for each. Otherwise, limit your ad to U.S. placements.
• Micro-geographic focus. If you create an ad for a local business keyword -- "Mexican restaurants in Chicago," for example -- use the micro-geographic targeting features in your advertiser account to select the specific zip codes in which your ad will appear based on your business's delivery area.
• Time of day. If your ads generate the most conversions during a particular time of day, set them up to run only during those time periods.

5. Match landing pages to ads. 


Sending a visitor from your PPC ad to an irrelevant landing page not only disrupts the sales process, but also can also result in the assessment of lower ad quality scores. That means you'll pay more for each click and receive less exposure than advertisers with higher scores. Sending a visitor from your PPC ad to an irrelevant landing page not only disrupts the sales process, but also can also result in the assessment of lower ad quality scores. That means you'll pay more for each click and receive less exposure than advertisers with higher scores. Sending a visitor from your PPC ad to an irrelevant landing page not only disrupts the sales process, but also can also result in the assessment of lower ad quality scores. That means you'll pay more for each click and receive less exposure than advertisers with higher scores.

To avoid low relevance ad and landing page pairings, decrease the number of keywords. That will help make your landing pages as relevant as possible.

6. Test ad copy.

Writing effective ad copy can be difficult. Unless you test different versions of ads to see which perform best, you aren't maximizing the ROI of your campaign.

Most PPC platforms allow you to set up split tests that rotate different ads for each of your targeted keywords. To do the test effectively, adjust your setting so that ads will be served up randomly rather than according to the platform's formula of displaying the ad it determines will result in the most clicks.

7. Track your return on investment. 

To effectively manage PPC campaigns and improve your ROI, you need to know exactly which clicks are resulting in sales. To generate this data for free, tie your PPC account to Google Analytics to track which ads led visitors to your page and which visits resulted in sales. Without this information, you can't adjust your keyword bids or eliminate less effective ads and keywords.
To effectively manage PPC campaigns and improve your ROI, you need to know exactly which clicks are resulting in sales. To generate this data for free, tie your PPC account to Google Analytics to track which ads led visitors to your page and which visits resulted in sales. Without this information, you can't adjust your keyword bids or eliminate less effective ads and keywords.

Source: www.entrepreneur.com

PPC - Pay per click

Pay per click (also called Cost per click) is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher (typically a website owner) when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market.

Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements are shown on web sites or search engine results with related content that have agreed to show ads. This approach differs from the "pay per impression" methods used in television and newspaper advertising.

In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model that provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites.

The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.

Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site.

Among PPC providers, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators, and all three operate under a bid-based model.

The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.

Source: en.wikipedia.org

Types of Internet Marketing:

The various types of Internet marketing are:

Search Engine Optimization (SEO):

In this kind of marketing, the website is made more search engine friendly so that when a specific keyword or search is typed by the user, the site will make it into the top search results. This type of Internet marketing is more appropriate method to attract the potential customers.

Pay-Per-Click: 

Under this category, the advertiser pays the search engine certain amount to get the address of his website featured separately if a keywords relating to his industry of sector is typed in.

Affiliate Marketing: 

It is a kind of marketing wherein a company hires other companies or websites known as affiliates and entrusts them with the responsibility of marketing the product. The affiliates are paid commission. The affiliates can host a website in which it may display the banners or logos of the company. If the visitor clicks on this banner, they are redirected to the sponsor's site. The affiliate is paid a commission.

Online Auctions: 

Online auctions are just as the auctions that take place in the real world. Items are put up for sale and the seller quotes the minimum price. Interested buyers then start quoting their price. And the item is sold to the highest bidder. The buyers in case of online auction can be form any part of the world

Banner advertising: 

Here banners of the advertiser are displayed on the website. The advertisers pay a certain amount of money to get the banner displayed on the website for a certain period of time. The banners are usually visually appealing to attract the potential customers. The respond it will get depends upon the website it has been displayed. Again there is no guarantee that the prospective customers will view it.

Directory Listings: 

It is a service wherein sites are placed in special categories in a directory. Such kind of service can be free or fee based. The listing can be made in yellow pages or directories such as Yahoo.

Internet marketing is thus a new age marketing that provides the sellers with never seen before kind of opportunities. Since it is online, it is much cheaper than traditional methods of marketing and can be done by even a small-scale enterprise.

Ethical E-mail marketing: 

There are many web applications which allow website owners to maintain the subscriber database and allow personalized newsletters to be sent in a jiffy. Usually marketing strategies are impersonal in nature. For e.g. an ad shown on TV is simultaneously watched by many. Email marketing gives an opportunity for personally addressing the recipient. If handled tactfully, email marketing can be used to successfully stroke the emotions of the targeted audience and thus elicit positive response. It can be used to send information about the latest product information, launches, beta products, and updates on service workshops, seminars etc to the subscribers.

Source: www.alzains.com