Online Advertising Terminology | Types of Web Advertising

Posted by : food Sunday 25 August 2013

Know more aobut some Online Advertising Terminology

Banner Ads

Banner ads are small advertisements that are placed on a Web site. Companies usually develop their banner ads, find sites for placement, and then either purchase or trade banner space.

Click-Throughs

When a viewer clicks on a banner ad with their mouse and goes to the site advertised, it is called a “click-through.” Sometimes banner advertising prices are determined by the number of click-throughs. You don’t pay every time your ad is displayed. You pay only when someone actually clicks on your ad and is delivered to the appropriate page on your Web site.

Hits

Hits to your site are the number of times that another computer has accessed your site (or a file on a site). This does not mean that if a page on your site has 1,000 hits, 1,000 people have visited it. If your home page has a number of graphic files on it, this number could be misleading.

A hit is counted when the home page main file is accessed, but a hit is also counted for every other file that loads along with the home page. Each one of your pages will have a number of files on it—you have a file for each graphic, a file for each banner you display, and often a different file for each navigation button on the page.

So if a person visits 10 pages on a site and each page has 15 files included on it, then at least

150 hits would be generated.

Impressions or Page Views

When a banner ad is viewed, it is called an impression. Banner advertising prices often are calculated by impressions. If a person visits a page where your ad is displayed six times, this generates six impressions.

CPM

Cost per thousand, or CPM, is a standard advertising term. CPM often is used to calculate the cost of banner advertising if a site sells advertising based on impressions. If the CPM of advertising your computer software package banner ad on another site is US$40 (that is, $40 per thousand impressions) and the number of impressions your ad generated was 2,000, then you, the advertiser, would have to pay US$80 for displaying the ad.

CPA

Cost per action, or cost per acquisition, is an ad payment model in which advertisers pay only when their ad leads to a complete conversion—sale, registration, download, or booking. Almost all affiliate advertising is based on the CPA model. This type of advertising model is best suited to high-volume sites as a large number of banner displays are needed to generate actual sales.

Keywords

You can purchase keyword advertising on search engine sites that have sophisticated advertising programs, or sites whose advertising real estate is maintained by online advertising agencies that have sophisticated advertising programs. Your ad appears when someone does a search on the keyword that you purchased. This is good for zooming in on your target market.

Geo-targeting

Purchasing geographically targeted banner advertising is one of the latest trends in Internet marketing. This is done by purchasing banner advertising for a range of IP addresses. Every device that connects to the Internet has its own unique IP address. These are assigned centrally by a designated authority for each country.

We are now seeing search engines sell advertising by IP addresses to help businesses pinpoint their target geographic group. For example, John Doe is planning to purchase a motorcycle in Florida and is searching for a dealership in his area. Cycle Riders, a new and used motorcycle dealership in Orlando,

happens to be marketing over the Internet, and as part of Cycle Riders’ advertising campaign they have purchased ads by keyword and by IP address. Simply stated, they have said that they want their ad to appear only when the keyword motorcycle is searched on by individuals whose IP address is within a certain range (the range being those existing in Florida).

When John Doe does his search on the word motorcycle, the Cycle Riders ad is displayed at the top of the page holding the search results. Someone in Michigan searching for motorcycle would see a different ad.