Online Advertising-Introduction

Simply put, online advertising is advertising on the Internet.
Advertising, whether online or offline, has a number of objectives:
· Building brand awareness
· Creating consumer demand
· Informing consumers of the advertiser’s ability to satisfy that demand
· Driving response and sales
The key difference of online advertising is that:
Online advertising is able to drive instant sales and conversions. Online activities are highly trackable
and measurable, which makes it possible to target adverts and to accurately track and gauge the effectiveness of the advertising.
There are different types of display advertising:
interstitial banners
These are banners that are shown between pages on a web site
pop-ups and pop-unders
As the name suggests, these are adverts that pop up, or under, the web page being viewed.
map advert
This is advertising placed within the online mapping solutions available, such as Google Maps.
floating advert
This advert appears in a layer over the content, but is not in a separate window.
wallpaper advert
This advert changes the background of the web page being viewed.
banner advert
A graphic image or animation displayed on a web site for advertising purposes.
Payment models for display advertising
CPI or CPM
CPI stands for Cost Per Impression. This means the advertiser pays each time the advert appears on the publisher’s page.
CPC
CPC stands for Cost Per Click. This means that the advertiser only pays when their advert is clicked on by an interested party
CPA
CPA refers to Cost Per Acquisition. This model means the advertiser only pays when an advert delivers an acquisition.
flat rate
Sometimes, owners of lower-traffic sites choose to sell banner space at a flat rate i.e. at a fixed cost per month regardless of the amount of traffic or impressions.
cost per engagement
This is an emerging technology in which advertisers pay for the rollover adverts, placed in videos or applications (such as Facebook applications), based on the interactions with that advert.
Targeting and optimizing
Advertising networks serve adverts across a number of web sites, and can track a user visiting web sites in the network using cookies or IP addresses. This means that advertising networks can offer advertisers:
Frequency capping: the network will limit the number of times a user sees the same advert in a session.
Sequencing: the network can ensure that a user sees adverts in a particular order.
Exclusivity: ensure that adverts from direct competitors are not shown on the same page.
Roadblocks: allowing an advertiser to own 100% of the advertising inventory on a page. The advertising network can also target adverts based on the business rules of the advertiser or based on the profiles of the users:
Geo-Targeting: online advertising has the ability to target markets by country, province or city, and can even drill them down to something as specific as their IP address.
Operating System / Browser Type: markets can further be targeted via networks or browser types such as Firefox, Internet Explorer, Safari, etc.
Connection Type: users can be segmented and targeted according to their Internet connection type, e.g. whether they use broadband or dial up connections.
Day and Time: advertisers can choose the time of day or day of the week when their adverts are shown.
Social Serving: web sites gather personal data about users and then serve each user with targeted and relevant advertising.
Behavioural Targeting: the advertising network uses the profile of a user (built up over previous web sites visited) to determine which adverts to show during a given visit.
Contextual Advertising: the ad server infers the optimum adverts to serve,
based on the content of the page.
Advantages of online advertising
banner ads and their similarity with traditional media
Bottom line - if done correctly, online advertising builds brand awareness and increases sales!
images - display can offer a rich brand building experience
Some campaigns are better suited to having images rather than the plain text of a PPC campaign
interactivity
Since banners can contain rich media, they offer levels of interaction that other forms of advertising cannot achieve. It allows your target market to not only see your banner, but to play with it too
measurability and data gathering
Banner ads, like all eMarketing tactics, are measurable. Track click-through rates and you get an idea of exactly how many people are responding to your call to action.
Disadvantages of online advertising
technical obstacles
The nature of a lot of display advertising is intrusive, so pop-up blockers can often prevent ads from being served as they were intended by the advertisers.
connection speed
Bandwidth can also be an issue, although this is a shrinking problem.
advertising fatigue
Consumers are suffering from advertising fatigue, so while new technologies can provide great results, as soon as the market moves mainstream, it can get saturated.
ad blockers
As well as most browsers now blocking pop-ups, there are also extensions available for the Firefox browser, such as AdBlock plus.