Internet Advertising: Types and Pricing Models

Internet Advertising: Types and Pricing Models

Internet advertising or Online Marketing is a version of virtual advertising in which businesses are promoted to consumers. The ads on Google and Youtube are some examples of Internet Marketing.

This article will elaborate on the types of online marketing and its pricing models, including PPC services.

Types of Advertising

  1. Search Engine Optimization – This is one of the most common advertising methods. The current generation tends to research before investing in a product or service. The SEO services use this as an opportunity to advertise. Based on the frequently used keywords, the SEO services bring the focused website to the top results. 
  2. Social Media Advertising – Social media platforms like Facebook, Twitter, Pinterest, and Instagram are used for promotions. There are two different ways to promote ads on social media- Paid and Organic.

In the paid method, promotions are displayed according to the users’ age, gender, and common activities. Promotions are made indirectly here. In the organic method, content is posted directly by businesses themselves.

  1. Native Advertising – In this method, companies directly pay popular sites to place their ads. These include Buzzfeed and the New York Times. The ads are shown in a very casual and entertaining way, making it less irritable.
  2. 4. Mobile and Email Advertising – Mobile advertisements appear on mobile phones and tablets. SMS is a common way of advertising on mobile phones. It is one way to attract local audiences too. 

Email advertising is one of the oldest ways of advertising. It is possible to send bulk emails with the information of products through emails. Recently ads also appear in our emails through the cookies we use.

Pricing Models

Various advertising agencies put up internet advertisements. They are paid for by the companies, according to different pricing models. 

Some of them are:

  1. CPC or PPC– Cost per click or pay per click is a payment method where the advertisers pay only when the user clicks on their website. This will help the advertising specialists to refine their search engines and analyze the market before putting up the ads. 

PPC services enable the advertiser’s ad to appear on the search result page when the user types a keyword query. They appear as “sponsored ads” in most cases.

  1. PPC– Pay Per Call is an advertising model where the publishers charge the advertisers based on each call. This was developed in 1998 by Jeffery Brewer. This facility enables popular advertisers to create ads even in local numbers. 
  2. CPA or PPA – Cost Per Action or Pay Per Action is a popular model that adapts to a business’s performance. The process is risky as the payment is made only for those users who complete a particular action like a purchase or sign up.

This model is popular among online services like Internet Service Providers, Banks, and Subscription Services. There are various variations to the CPA model. Some of them are:

  1. CPL- Cost Per Lead mainly focuses on a user who takes the lead to complete a form or register for a service.
  2. CPC- Cost Per Conversion is the division of an ad campaign based on its conversions.

Conclusion

Internet advertising is gaining global attention due to its more detailed coverage and affordable rates. The algorithms can be analyzed to be effective on the target audiences. 

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Keerthana

Keerthana

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