ONLINE ADVERTISING TERMS, UNDERSTAND WHAT YOU PAY FOR WHEN ADVERTISING ONLINE

That website that has outrageous amount of traffic per day, is good to put up your advert on. But for advertisers how do you know you are actually getting your money’s worth when advertising on these websites, for the websites’ how do you know your getting paid what your site is worth?

Well this little explanation hopefully will explain to all of you about the advertising terms and how to calculate what you should pay or get paid for advertising online. The places where ads actually get enough exposure and different websites where one can advertise online.

1)The terms

i) Cpc, cpm and cps

i)Cpc means cost per click, This is simply the cost per every time your advert is clicked, cpc is usually higher than cpm, the main purpose of an online advert is to redirect the traffic from a website that already has a lot of traffic to your website/page explaining more on what you are selling or offering, because basically advertising is aimed at selling or offering a certain product or service. Getting your advert clicked is more important than just getting it noticed.

ii) cpm means cost per placement.

This is the cost per the time the advert is put up, this varies depending on how much traffic a website gets. CPM is usually cost per thousands, this is a set rate per thousands of people who see your advert. Sometimes referred to as ECPM (Estimated Cost per thousands), basically ecpm is charge per impression.

iii)CPS means cost per sale

sometimes referred to as PPS (pay per sale), is a form of advert payment where the advertiser pays the advertising source once a sale is made, most of the time a percentage of the sale, eg. You put up an advert for a car to be sold for a million you agree the advert to be placed on the website under circumstances that 40 percent of the sale goes to you for advertising. This is also done by many online business in form of affiliate marketing, where if an affiliate refers a product to its viewers and viewers buy, the affiliate gets a percentage.

2) Placement of an advert

The position where an ad is placed. The best place to put up your ads is of course the header, this is where everyone will see as soon as they land on the page. Lets say someone gets into a website and does not like it by just giving it a first glance, well that glance puts out many things, the sites logo, the sites navigation, a portion of the top part of the website and the Header advert. Other places that you can put an advert though not as effective, the sidebar is a good place to place an advert, the footer is the last place one would choose to place an advert but if a website is really good and has a lot of traffic, this spot would be a good place too to place an advert. So the header advert or the top advert is the place where advertisers pay more, followed by the sidebar then lastly the footer.

3) Ad Size

An advert should not be so huge that it distracts the readers from the actual content, nor should it be so small that the targeted traffic can’t even see it, it should be proportional depending on the dimensions of the website. Standard advert sizes that are used by a lot of people and used by google Ads are as

(Width*height)

728*90

336*280

160*600

And more all depending on the dimensions of the website.



4) Types of adverts

(i)Banner ads

Banner ads are basically the image ads, these usually cost more. To make them and even put them up on websites

(ii) Text ads

Text adverts are simple text with a link to the advertised page or product.

 5) ROI (Return on investment)

Return on investment (ROI) is basically getting back more than what you paid for advertising in sales, or in conversion depending on what your sole purpose of advertising was in the first place.

For example, advertising is set a budget of 5 dollars per day , and maybe you have set you advert to pay 50 cents per 1000 views and 50 cents per click, so you get an average of 5000 views and 5 clicks per 5 dollars, ROI comes in on the landing page, where someone goes to when an advert is clicked, you have to convince them to buy what you are selling, so the 5 clicks you get, if 1 of the people agrees to buy a product for 10 dollars, that means you ROI is more than 100%, ie you paid for 5 dollars and got 10 dollars back.


- Source: http://eastafricanwebs.com/


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