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:
- Targeting options such as demographic and behavioral
targeting are available to laser in on your audience and,
- 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
