Online advertising has a great potential and the sphere is going to balloon to $50 billion. According to the Morgan Stanley’s latest presentation, people spend 28% of their time on internet but there is only 13% of relevant advertising. According to the presentation made in Web 2.0 summit held in San Francisco, online advertising is yet to see its golden days with an eye pooping growth of $50 billion. Now it is simple to understand where should, the merchants head for showcasing their products. Many business sectors have already pulled up their socks to beat the competition. Hospitality industry leads other with many popular hotels opting for companies offering Hotel Internet Marketing strategies. It is a known fact that people spend a great deal of time surfing internet, and it is quite understandable that web is the place to be in the eyes of your customer. Now, when you chose to advertise online, you have four options by which you can buy space for your advertisement. Usually when asked about different form of internet advertising, people think of popup ads, banner ads, floaters etc but all these actually fall under four categories. And these categories are cost per click, cost per impression, cost per action and cost per lead.
Cost per click ---- CPC online advertising model invites users to show interest in a product or a service. Clicking on these ads specifies that visitor wants to get information about the specified product. When purchasing a cost per click ad, the advertiser agrees to pay every time a visitor clicks the advertisement. Now the cost of these ads is determined by either flat rate or bid based purchasing. In the flat rate agreement the advertiser and space seller agree for a predetermined rate per click. But in the bid based model prices are sold in a private auction with bid being placed by competing buyers. If your ad is full of high worth keywords then the cost of bidding will also go up. It is most popular and chosen form of online advertising. But it has its own share of woes. Cost per click programs have become the breeding ground of fraud. Space selling websites in connivance with people by luring them with good percentage keep the click ratio up and make profits while the advertiser pay for fake visitors.
Cost per impression ---- this type of advertisement campaign is based on the assumption that a higher a traffic to advertisements generates a high volume of sales. The cost of each impression is fixed as low as fraction of a cent. However depending on the value of traffic the cost sometimes can even go up.
Cost per action ---- in this type of advertisement campaign the buyer of the space pays only when the visitor performs a specified action say filling up a registration form or subscribing free newsletters. This kind of ad program is based on the assumption that by educating the visitor about a specified product he/she can be turned into a buyer. Cost per action ads are generally a first step towards a more strategic and expensive marketing campaign. These are often started to make a data base of prospective clients who by signing up for permission advertising give the advertiser a green pasture. This type of ad campaign is started with the aim of getting visitors attention towards the product only.
Cost per lead ----- these types of advertisements are best for the space buyer as he has to pay the money only if a lead is generated. Such ads are often used to promote high end services for example investment or real estate purchases. Leads are qualified on a range of factors including age, financial standing, and medical history etc. advertisers hoping to initiate contact with customers such as health insurance companies frequently use CPL ad campaigns.
No comments:
Post a Comment