Concept of Online Advertising

Last updated on May 28 2022
Meetesh Sahu

Table of Contents

Concept of Online Advertising

“Think sort of a publisher, not sort of a marketer.”
− David Meerman Scott, Online marketing strategist.
In the era of Internet, people can get tons of data online, which increases their awareness about lifestyles, products, and services. For them, the web is a channel for not only communication but also for transaction and distribution. People can visit the web site and may pay online for what they purchase.
You can increase the business profit in multifold by online advertises of your products and services.

What is Online Advertising?

Online advertising may be a sort of business promotion which uses Internet to deliver marketing messages to draw in customers.
With the rapid climb of Internet users and Internet technology, variety of companies began to advertise their products and services online.

Publishing a web Advertise

Publishing a web Ad may be a sequential process. the subsequent diagram shows the essential steps a billboard publisher takes to make and post the Ad online −

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tensorFlow

Ad Planning

The marketing team conducts analysis of varied domains.
• Marketing analysis
• Product targeting analysis
• Audience analysis
• Customer targeting analysis
Based on the analysis results, the advertiser decides on −
• Selecting a publisher
• Ad presentation approach
• Approach of posting the Ad
• Ad posting schedules
Creating Ad Space Catalog
Ad space list is made to record Ad space availability status, space profile, location, presentation, scheduling method, frequency, etc.

Trading Ad Space

Advertisers and Publishers interact to work out online Ad space. There are three sorts of Ad space trading −
• Buy and Sell − Publishers sell the Ad space schedule to Advertisers on first-come-first-serve basis.
• Space Auction − Ad space bidding is conducted to settle the trade.
• Space Exchange − Multiple publishers interact with one another to sell the space schedules available with them, which haven’t been sold.

Scheduling the Ad Space

The online publishers create and maintain advertising schedules for the web Ad space. they assist the advertisers for booking, purchasing, and confirming various schedules for online advertisements.

Materializing the Ad Space

The online publishers collect advertisement from the advertiser and materialize the required ad spaces by displaying the advertisement as per the required schedules.

Measuring a billboard Space

All active Ad spaces within the publishing websites are monitored and measured. After the Ad is really visible and accessible online, it’s evaluated regularly for performance. The analyzers collect data and evaluate the effectiveness on the viewers, its popularity, Ad space management, etc.

Ad Closure

The advertisers pay the publishers by pre-decided terms of payment for the published online Ad.
Online Advertising Performance Measurement
The performance of a web Ad is measured to enable the marketing team to research the readings of measurement.
What Does the Performance Measures Tell?
The performance measurement can uncover the subsequent facts −
• Effectiveness of the Ad on views.
• Problems associated with the Ad like inappropriate content, incorrect targeting of individuals , Ad place, and timing for publishing.
• Estimation and prediction of sales briefly and long terms.

Online Advertising – What to Measure?

The performance metrics of Online Ad are as follows −
Clicks − it’s the amount of times viewer clicks the Ad. It are often taken as viewer’s acknowledgement to your Ad. It suggests that the viewer has seen the Ad and needs further information.
Impressions − it’s the amount of times your Ad is displayed on the online page.
Click Through Rate (CTR) − it’s the ratio of Ad clicks to Ad impressions. the upper the CTR, the more relevant your Ad is.
Cost Per Click (CPC) − it’s the quantity advertiser pays for every click on the Ad. the quantity of clicks determines the amount of payment. The lower CPC is best.
Cost Per Thousand Impressions or Cost Per Mille (CPM) − it’s the quantity the advertiser pays for thousand clicks.
Return On Investment (ROI) − it’s (Return – Investment) X 100. the upper ROI is best.

Advantages of Online Advertising

Online advertising is useful over conventional advertising in some ways.
• Internet access is straightforward and affordable. Today, the amount of worldwide internet users is nearly 3 billion. No other conventional advertising medium can bring such huge audience for your products or services.
• Internet is capable of serving multimedia substance like audio and video content aside from text and graphics. Multimedia advertisements are highly persuasive.
• Internet naturally is interactive. It can provide a reliable platform for smooth shopping experience for people. The conversion rate is high for compelling advertises.
• No time or demographic constraints on delivering the web advertise.
• Online advertising is promotional also as informational.
• It brings speedy outcomes.
• It provides effective performance tracking.
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