How To Use Online Advertising To Your Advantage

By Jared Lansky | May 20, 2008

By: Guest Editor
Online advertising according to Jared Lansky is advertising that is different from ordinary advertising because it uses the internet and World Wide Web to deliver marketing messages. He believes that this form of advertising is very efficient in targeting customers. Examples of certain online advertising include banner ads, advertising networks and e-mail marketing, as well as contextual ads on search engine results pages. It even includes e-mail spam.

This type of advertising is very successful because of how many people use the World Wide Web every day. So the real question is how do you buy space for online advertising and how does it work? Well, the three most common ways in which online advertising is purchased are CPM, CPC, and, CPA.

CPM, which stands for Cost Per Impression, is where advertisers pay for exposure of their message to a specific audience. CPM costs are priced per thousand impressions. This means you pay for every thousand clicks. CPC, or Cost Per Click, is also known as Pay Per Click. Advertisers pay every time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on. This system allows advertising specialists to refine searches and gain information about their market.

Under the Pay Per Click pricing system, advertisers pay for the right to be listed under a series of target rich words that direct relevant traffic to their website, and pay only when someone clicks on their listing which links directly to their website. Jared Lansky has found that CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site.

The last form being CPA, or Cost Per Action advertising, is performance based and is common in the affiliate marketing sector of the business. In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser pays only for the amount of users who complete a transaction, such as a purchase or sign-up. This is the best type of rate to pay for banner advertisements and the worst type of rate to charge.

Online advertising can be very tricky if you don’t do it right, according to Jared Lansky. It is very important you research which type of add will be best for you and your product. If you use the World Wide Web to your favor, you will make customers aware of your product in no time.

Topics: Jared Lansky |

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