When it come to internet marketing, online advertising plays a chief role. In fact, in some cases, we may say internet marketing is a synonym of online advertising though this is not always true. While internet marketing means selling of products and services on the internet, online advertising entails creating awareness for these products and services. So now we know that both terms are related but not same. Anyway, in this post, our focus is on online advertising, methods of online advertising and how each of these methods work.
IMPORTANT: If you are looking to create awareness for your products and services, we can help if you tell us more about your needs.
Online advertising is a form of promotion that uses the internet to deliver marketing messages to attract customers. Online advertising employs different methods of creating awareness on the internet which may include banner advertising on websites, email advertising, search engine advertising, cost per click, cost per impression, cost per action, etc.
Among all these methods of online advertising, the famous ones are; cost per click (CPC), cost per impression (CPM or CPI), cost per action (CPA). Let us now explain how each of these works.
Cost per Click (CPC)
This is a method of online advertising where the advertiser is only charged when a potential customer clicks on the advert. This method of advertising is popular because it is believed that only a potential buyer will see an ad and decide to click. Well do these people always buy? The answer is NO. This becomes one major disadvantage of this method.
Cost per Impression (CPM)
This is an online advertising method where an advertiser is charged for the number of times a specific ad shows up on a website. If you ask me, this method of online advertising is worst because you may not even get a single click yet you pay.
Cost per Action (CPA)
This is an online advertising method where the advertiser only pays when a specific action occurs. This could be when a sale is made, when a form is submitted, etc. I tag this as the best online advertising method for advertisers since you only pay when you achieve what you want.
Well for publishers this may not be friendly at all because they will have to wait…
If you want to advertise online, the best thing to do is to study the kind of product or service you are advertising and pick a suitable advertising method for it; different advertising methods work for different products or services.