Online Advertising: Introduction to online advertising, how it works, banner advertising, ad servers, advertising networks, and ad exchanges.

Online advertising is advertising on the Internet. Online advertising hold advertisement on search engine results pages.

Suppose it is online or offline, the main objective of advertising is to increase sales. Also, advertising aims to increase brand awareness. Advertising is based on a simple method of supply and demand. Advertisers aim to encourage a consumer need and then satisfy that need. Today’s online advertisements are more interactive than offline advertising. Online display advertising began as simple hyperlinked images shown on a web site and has since progressed to include video, sound and many other modern technologies.

Online advertising: how it works



Build your brand awareness: Making persons aware of a brand or product is an important long-term goal for any marketer. Once customers know about the brand, the marketer has taken the first step towards gaining the customer’s trust and patronage. Online advertising or banner advertising is largely visual, making it an ideal channel for promoting brand collateral.


Creating user demand: Online advertising needs to convince user about what they should want and why they should want it. Today’s online advertising provides a great way to communicate the unique selling points of a product, hereby helping encourage demand.


Fulfill user demand: Once the user is aware of and desires a product, they need to find out how to fulfill that desire. If brand making has been effective, they will know that a particular brand exists. At this point, it is important for the marketer to show the user how their typical brand or product will best meet that need.

Handle response and sales: All type of online marketing need to drive traffic and sales in the long term.  Although, the instance of online advertising also drives traffic and sales in the short and medium terms.

Different types of display advertising

Nowadays there are many different ways to display messages online. The following are some of the most common.


Interstitial banners: The banners that are shown between pages on a web site. If you click from one page to another, you are shown this advertisement before the next page is shown.

Pop-ups and Pop-unders: Pop-ups open in a new, smaller window. You will see a pop-up right away, but you will obviously only become aware of a pop-under after you close your browser window.


Map advert: Here is advertising space within the online mapping solutions available, such as Google maps.


Floating advert: This advertisement seems in a layer over the content but is not in a different window. Usually, the user can close this advertisement. Floating adverts are created by DHTML or Flash, and float in a layer above a website content for a few seconds. However, the animation ends by disappearing into a banner ad on the page.

Wallpaper advert: Wallpaper advertisement changes the context of the web page being viewed. Generally, it is not possible to click through this advert.

Banner advert: The graphic image or animation is shown on a computer screen on a web site for advertising purposes. Static banners are GIFs or JPEGS, but banners can also place huge media such as Flash, video, JavaScript and other interactive technologies. The Banners are not limited to the space that they occupy, some banners expand on mouseover or when clicked on.

Payment method for display advertising:


Here are also a number of different payment method for show advertising.

CPI or CPM: Cost Per Impression (CPI) means the advertiser pays each time the advert appears on the publisher’s page. The absolute common way of referring to this model is  Cost Per Thousand impressions (CPM).

CPC or PPC: Cost Per Click (CPC ) means that the advertiser only pays when their advertisement is clicked on by an interested user. Cost Per Click advertising is generally related to partner site by paying or paid search marketing also called Pay Per Click (PPC) advertising. Here the Banners can be priced this way when the aim is to drive traffic.


CPA: Cost Per Acquisition (CPA) means the advertiser only pays when an advert delivers an acquirement. Cost Per Acquisition is a good way for an advertiser to pay because they only pay when the advertising has met its goal. For that reason, it is also the worst type for the publisher as they are only rewarded if the advertising is successful. The Cost Per Acquisition method is not commonly used for banner advertising and is generally associated with affiliate marketing.

Flat rate: Here, holder of lower-traffic sites chooses to sell banner space at a flat rate, that is at a fixed cost per month regardless of the amount of traffic or impressions.

CPE: Cost per engagement (CPE) is an emerging technology in which advertisers pay for the rollover adverts, placed in videos or applications based on the interactions with that advert.

Know all about Ad Servers, Advertising Networks, and Advertising Exchanges

Ad Servers: Advertising Servers are servers that store advertisements and serve them to web pages. Advertising Servers can be local, run by a publisher to serve adverts to web sites on the publisher’s domain, or they can be third-party ad servers which serve adverts to web pages on any domain. Advertising Servers facilitate advert trafficking and provide reports on advert performance.


Advertising Networks: Advertising networks serve adverts across a number of web sites and can track a user visiting web sites in the network using cookies or IP addresses. The advertising network can also target adverts based on the business rules of the advertiser or based on the profiles of the users.

Advertising Exchanges: Advertising exchanges, where publishers can place unsold catalog for bidding. The catalog is sold to the highest bidding advertiser. Here giving advertisers far more control, this type of advertising is a pay per click based model of paid search bidding. It allows publishers to fill unsold catalog at the highest available price and can give smaller advertisers access to this catalog.

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