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Webvertising Basics 

Added: 06/14/2004, Hits: 2,611, Rating: 0, Comments: 0, Votes: 0
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While advertising on the internet possesses many of the same foundations as tradition mediums, there are enough differences that even the most seasoned marketing professionals may find themselves out of their element if they do not have a firm grasp on them. In this tutorial we will go over some of the terms and concepts that have arisen in the digital age of marketing.

The types of advertising on web sites continues to grow, however, you will almost always be purchasing space in some form or another. When we use the term space, we are referring to a spot on the web site that can be measured. When you look at media kits, you will often see web sites describe 468x60 banner ads. 468x60 is the size of the banner that you can have hosted when purchasing advertising, but what does that measurement mean? These number represent the horizontal and vertical dimensions measured in pixels such that the ad would be 468 pixels wide by 60 pixels tall. All graphics programs used for banner design such as Photoshop, Paint Shop Pro, Illustrator, Flash, etc. have the capability of displaying size in pixel format. Banners can come in a wide variety of sizes. Some of the most common sizes are 468x60, 120x60 and 88x31.

Next, you may notice limitations on the size of the file that you are allowed to have hosted. A common measurement for a full-size banner would be 15 Kilobytes (kb). It is in your best interest to minimize the size of your ad as it will load on the page faster giving the audience a better chance to view it before they move on.

Everything related to computers has to be riddled with acronyms and advertising on the internet is no exception. Below are the common pricing and statistical terms you will run into when discussing the cost of your ad.
  • Impressions - This term is also known as "page views" and sometimes "hits". It refers to the number of times your ad will be seen. Keep in mind that your ad will probably be seen multiple times by the same visitor as they navigate the web site. For some types of advertising, you will purchase a designated number of impressions to be shown on the target web site.

  • Cost Per Thousand (CPM) - This term is used when calculating price and describes cost as a rate per 1,000 impressions (per month). For example, if you were to order 50,000 impressions for your banner at a CPM of $6, the total cost would be $300. This term also applies to newsletter advertisements.

  • Clickthrough Ratio (CTR) - This is the percentage of people that clicked on your banner during its flight. Using the above example, if you were to order 50,000 impressions and 500 clicks on your banner were registered during the campaign, your CTR would be 500/50,000 = 1%. This measurement is used to determine the effectiveness of a banner campaign or newsletter ad.

  • Cost Per Click (CPC) - This concept measures the price that you paid for each click on your banner or newsletter ad and is a good way to measure value to be used in comparing the cost-effectiveness of ad campaigns. If you have 2 campaigns running and campaign A is delivering 5x as much traffic but costs 10x as much, campaign B is your better bet. Again using our example, we paid $300 for 500 clicks on our ad. The CPC can be calculated as 300/500 = .60 or 60 cents per click.

Rotation VS Static
You will often see these 2 terms used when describing the exposure that an ad will receive. Most full-sized banners are put into a rotation in which you purchase the number of impressions that your ad will receive. Static banners on the other hand will display on every page (unless a custom arrangement), every time. The advantage of static ads is that every visitor will have a chance to see it, however, each visitor will see it repeatedly as they navigate the site and the CTR will tend to be lower than a rotating banner. For this reason, static ads often much less expensive and are usually charged on a flat rate as opposed to using a CPM model.

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