Online advertising includes ads on search engine results pages, ads placed in emails, and other methods in which advertisers use the Internet.
The main goal of advertising is to increase revenues, but also aims to raise brand awareness.
One of the main benefits of online display adverts is that they are not limited by geography or time. Online ads are also much more interactive than offline ones.
Online display advertising can include hyperlinked images, video, sound, and lots of other technologies.
1.1 Objectives of advertising
Online and offline advertising has the same objectives.
1.1.1 Strengthening brand awareness
Awareness of a brand or a product is a central long-term objective for any marketer. Once consumers know about the brand, the marketer has taken the first step toward gaining the consumers’ trust and patronage.
Online, creative ads or banners are mainly visual and ideal for promoting brand collateral.
1.1.2 Generating consumer demand
Advertising often needs to convince customers about what they would like and why they would like it.
1.1.3 Satisfying customer demand
It is essential for the marketer to show the customer how their actual brand or product will best meet that need.
1.1.4 Driving traffic and sales
Online marketing needs to drive traffic and sales in the long term. But online adverts also drive traffic and sales in the short and medium terms. Contrasting with offline advertising, online advertising can turn the potential customer into an actual buyer right there and then.
1.1.5 The key differentiator
Online activities can be highly tracked and measured, and it makes possible to target advertisements and to accurately track and gauge the efficiency of the advertisements.
1.2 Types of display advertisements
There are lots of methods and tools to display adverts online, the most popular types are the following:
1.2.1 Pop-ups and pop-unders
These adverts pop up, or pop under in a new, smaller window, if a page is being viewed. You can see a pop-up right away but will see a pop-under after you close the browser window. These were very showy in the first period of online advertising, but because of audience irritation there are now “pop-up blockers” in web browsers. It’s advisable not to use them anymore.
1.2.2 Interstitial banners
Interstitial banners are presented between pages on a website. As you click from a page to another, you are shown this ad before the next page is shown. Sometimes you can close the ads.
1.2.3 Map advertisement
A map advertisement is advertising located within the online mapping applications, such as Google Maps.
Figure 3: Google map showing an ad
3.2.4 Floating advert
A floating advert appears in a layer over the page for a few second. The user can often close it. Floating ads are usually produced with dynamic hypertext markup language (DHTML) or Flash. The animation often finishes by disappearing into a banner.
3.2.5 Wallpaper advert
A wallpaper advert modifies the background of the page being viewed.
Figure 4: Banner sizes (altlab.com)
3.3 Payment models
There are several different payment models for display advertising.
3.3.1 Cost per impression
Cost per impression (CPI) means that the advertiser pays always when the advert appears on a page. The most usual method of referring to this model is cost per mille (CPM) (mille = thousand). An email campaign is normally priced so when brand awareness is the main goal.
3.3.2 Cost per click
Cost per click (CPC) means that the advertiser only pays when his/her advert is clicked on by an interested party. CPC advertising is related to paid search marketing, or pay-per-click (PPC) advertising. Banners can be priced so when the goal is to drive traffic. It is also sometimes used in affiliate marketing, when the goal is to drive traffic to a new Web site.
3.3.3 Cost per acquisition
Cost per acquisition (CPA) means that the advertiser only pays when an advert delivers an acquisition. Acquisition may be when a user is filling in a form, downloading a file, or buying a product. CPA is the optimal way for an advertiser to pay because he/she only pay when the advertising is certainly successful.
3.3.4 Flat rate
Possessors of lower-traffic sites seldom can sell banner space at a flat rate, at a fix cost per month irrespective of the traffic or number of clicks.
3.3.5 Cost per Engagement
Cost per engagement (CPE) means that advertisers pay only when a user engages with the advertisement unit. Engagement means a user interacting with an advert in any lots of ways, including viewing, sharing, voting, commenting, reviewing, playing a game, or taking a poll. It is an emerging technology and very popular on social networking sites (such as Facebook).