Competitive advantage over traditional advertising
One major benefit of online advertising is the immediate publishing of information and content that is not limited by geography or time. To that end, the emerging area of interactive advertising presents fresh challenges for advertisers who have hitherto adopted an interruptive strategy.Another benefit is the efficiency of the advertiser's investment. Online advertising allows for the customization of advertisements, including content and posted websites. For example, AdWords, Yahoo! Search Marketing and Google AdSense enable ads to be shown on relevant web pages or alongside search results.
Types of Internet marketing
Internet marketing is broadly divided into the following types:- Display advertising: the use of web banners or banner ads placed on a third-party website or blog to drive traffic to a company's own website and increase product awareness.
- Search engine marketing (SEM): a form of marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of either paid placement, contextual advertising, and paid inclusion, or through the use of free search engine optimization techniques also known as organic result.
- Search engine optimization (SEO): the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results.
- Social media marketing: the process of gaining traffic or attention through social media websites such as Facebook, Twitter and LinkedIn.
- Email marketing: directly marketing a commercial message to a group of people using electronic mail.
- Referral marketing: a method of promoting products or services to new customers through referrals, usually word of mouth.
- Affiliate marketing: a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts.
- Content marketing: the process of creating specialized content such as infographics, blog articles and ebooks to attract more customers.
- Inbound marketing: involves creating and freely sharing informative content as a means of converting prospects into customers and customers into repeat buyers.
- Video marketing: This type of marketing specializes in creating videos that engage the viewer into a buying state by presenting information in video form and guiding them to a product or service online video is increasingly becoming more popular among internet users and companies are seeing it as a viable method of attracting customers.
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)
- CPV (Cost Per Visitor)
- CPV (Cost Per View)
- CPC (Cost Per Click) or PPC (Pay per click)
- CPA (Cost Per Action or Cost Per Acquisition) or PPF (Pay Per Performance) The following are common variants of CPA:
- CPL (Cost Per Lead)
- CPS (Cost Per Sale), PPS (Pay Per Sale), or CPO (Cost Per Order)
- eCPM: Effective CPM or eCPM
- Fixed Cost
- Cost per conversion
Geo-targeting
In Internet marketing, geotargeting is the methods of determining the geolocation of a website visitor with geolocation software, and delivering different content to that visitor based on his or her location, such as latitude and longitude, country, region or state, city, metro code or zip code, organization, Internet Protocol (IP) address, ISP, and other criteria.Though, as seen above, the large majority of online advertising has a cost that is brought about by usage or interaction of an ad, there are a few other methods of advertising online that only require a one time payment. The Million Dollar Homepage is a very successful example of this. Visitors were able to pay $1 per pixel of advertising space and their advert would remain on the homepage for as long as the website exists with no extra costs.
- Floating ad: An ad which moves across the user's screen or floats above the content.
- Expanding ad: An ad which changes size and which may alter the contents of the webpage.
- Polite ad: A method by which a large ad will be downloaded in smaller pieces to minimize the disruption of the content being viewed
- Wallpaper ad: An ad which changes the background of the page being viewed.
- Trick banner: A banner ad that looks like a dialog box with buttons. It simulates an error message or an alert.
- Pop-up: A new window which opens in front of the current one, displaying an advertisement, or entire webpage.
- Pop-under: Similar to a Pop-Up except that the window is loaded or sent behind the current window so that the user does not see it until they close one or more active windows.
- Video ad: similar to a banner ad, except that instead of a static or animated image, actual moving video clips are displayed. This is the kind of advertising most prominent in television, and many advertisers will use the same clips for both television and online advertising.
- Map ad: text or graphics linked from, and appearing in or over, a location on an electronic map such as on Google Maps.
- Mobile ad: an SMS text or multi-media message sent to a cell phone.
- Superstitial: An animated ad on a Web page from Enliven Marketing Technologies. It uses video, 3D content or Flash to provide a TV-like advertisement. Used to be known as Unicast Transitional ads as they were originally made by Unicast Communications but the company was acquired by Viewpoint Corporation in 2004, which then changed its name to Enliven in 2008.
- Interstitial ad: a full-page ad that appears before a user reaches their original destination.
- Frame ad: an ad that appeared within an HTML frame, usually at the top with the site logo. As the user browsed the site, the frame would not change.
Source : Blog, Encyclopedia, SFI- Marketing Group
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