How Online Advertising Works

While online advertising is a proven way to target and reach audiences with concise messaging, myriad options make it tough to know which avenue(s) will be most effective for a business. The major online advertising options (described below) offer enough variety so businesses of any size, type, and budgetary constraints can conduct an ad campaign that suits their needs. Online advertising affords certain benefits that business marketers can leverage:

• Advertise only to those in the target audiences, with easily-customizable, specific messaging, since “online” is where customers are
• Track effectiveness via metrics demonstrating an ad’s impact on traffic to the website or other measures, then modify in real-time as needed
• Businesses of any size and type can participate – e-commerce business (sells only online); local/regional service or product business (for customers in a specific location, i.e., retail stores, restaurants, physicians, etc.); non-geographic services (not limited by location, such as consulting or IT support)

Online advertising is much more fluid and dynamic than simple print ads. Online ads can and should be precise in who they target, going only to viewers based on location, age, interests, or other demographics relevant to the business. Most businesses structure and pay for online ads in one of two ways: pay-per-click advertising or fixed rate advertising.

• Pay-per-click (PPC) is paying for an ad based solely on the amount of clicks it gets. A business can post multiple versions of the same ad and quickly see which gets the most clicks and make changes as needed. This is effective for those with a strict budget, as spending limits can be preset.
• Fixed Rate is when businesses pay a set price for ads up front, and is used often on content-focused sites where the target audience is likely already there.
• In both cases, the ‘click’ goes to the business’s homepage or a content-specific landing page.

Types of Online Ads

Google Adwords > These ads appear on Google search result pages, on the side, for businesses pertaining to the search criteria and accounting for the demographic parameters. These are usually PPC ads and are effective for campaigns based on specific keywords.

Search Ads > These are similar to Google Adwords, except these ads appear assearch results (usually top results) instead of on the side. This example shows how ads appear ahead of organic search results for search criteria of “buy a PC”.

ReadMore: http://mediumwell.com/online-advertising-works/

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