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Online ad

DEFINITION:

It is basically advertising through online. For example, people can advertise their services and/or products over the Internet. The main objective for online advertising is to expose and promote whatever is being advertised to the public. Online advertising can be done in many different ways, such as unlimited links and images. Also, it is a very important business aspect because some advertisers rely on their online ads to generate business.

TYPES:

Some of the types of online advertising are electric mail marketing, web banners, and advertising through social networking web sites.

Electronic mail marketing, also known as e-mail marketing, advertises by sending marketing messages to e-mail addresses. The intention is to provide a good business relationship to potential, existing, and old customers. The intentions would hopefully lead to a repeated business with the customers in the near future. An advantage of e-mail marketing is it is quick and convenient. An advertiser saves a lot time sending e-mail messages compared to advertising through a newspaper. However, a disadvantage is there can be too many e-mail marketing, which is considered as junk e-mails or spam.

Web banners can be found on web pages. The banners are linked to the advertiser’s site. They can be made from a JavaScript application or an image, such as Portable Network Graphics (PNG) and Graphics Interchange Format (GIF). Although web banners maybe irritating to some users, its purpose is to catch their attention. A privoxy can be used to stop web banners. Privoxy is a proxy server that blocks and can filter unwanted applications, such as pop-up ads.

Social network advertising, another form of online advertising, can be found on social networking web sites. MySpace and Facebook are popular examples of social networking sites. Three main ways of advertising through a social network site are:

  • Indirect advertising by making and independent web page
  • Direct advertising through a user’s own social networking site
  • Direct advertising through a user’s network of friends

Social network advertising is becoming a big hit for online advertising and it makes a lot of money.

ADVANTAGES AND DISADVANTAGES:

One advantage of online advertising is it is very fast. Advertisers are able to advertise their services and products online faster. They save up a lot of time and sometimes money, unlike advertising through a newspaper or on television. Fast advertising can also mean quick business. For example, when a seller advertises something online, there are many potential buyers because there are many that are always on the Internet.

The next advantage is the major exposure that advertisers get through online. Again, since there are many users always on the Internet, online advertising is a great way to attract customers. When attracting a lot of customers, there is a good possibility that someone will be interested in an advertiser’s online ad. A benefit for advertisers is they are able to create and design their own ads in many ways so it can be appealing to consumers.

There are also disadvantages of online advertising. A disadvantage is the lack of communication and sometimes description. Advertisers and consumers are not able to fully interact with each other face to face, which could cause problems. An example would be a misunderstanding of product description. Although a product may have a well-written description, consumers might still have questions for various reasons. For description, an online ad should have clear and specific information, or else consumers might ignore it due to the lack of details. 

Another disadvantage is it does not catch everyone’s attention because not all use the Internet. Another possibility can be is not everyone shops or surfs online. Although they are maybe looking for things online, some prefer to shop outside because of personal reasons, such as credit card theft. An advertiser can spend a lot on online advertisements, but if the ads are dull and boring, then expect a business to do poor.

HOW ONLINE AD IS BOUGHT:

There are three main ways of acquiring online advertising:

-Cost Per Action (CPA) – An advertiser pays only when an action has taken place that is related to his or her advertisement. An example would be when a consumer buys something, the advertiser then has to pay the fee for the online ad.  

-Cost Per Mile (CPM) – CPM is also commonly known as Cost Per Impression (CPI). Online advertisers have to pay to disclose their advertisements. The advertisements can be advertised in e-mails, web banners, and other places. CPM is similar to television ads because of the amount of exposure it gets.

-Cost Per Click (CPC) – Online advertisers have to pay every time their ad gets click, which leads to their site. An important notet to remember is advertisers pay only when a user clicks on their site. It does not cost anything for them to post an online advertisement. A more specific name for CPC is Pay Per Click (PPC).


SOURCES:

Wikipedia
Online Advertising
WiseGEEK
M/Cyclopedia

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