Online Advertising Models – By

Small Business Resource Ltd

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 E-Mail Advertising
Unsolicited commercial e-mail (UCE or spam)
Opt-in or solicited e-mail
Ad supported e-mail
HTML mail with banner ads
Sponsoring e-mail discussion lists

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 Web Advertising
Classified ads Content sponsorship
Banners Web site as advertisement
Buttons Push technology
Chat Interstitials
Associates programs
Paid hyperlinks

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 Pricing Online Ads
CPM--Cost per 1,000 impressions
Buys often require a minimum number of impressions
(say, 50,000)
$5 to $85 CPM
CPC--Cost Per Click
Results oriented
Discounts brand and image building
Ad quality determines click through

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 Pricing Online Ads
Flat Fee
Tied to period of time, not to impressions or click through
Examples:
• Service directories (e.g., campground listing
for $300 per year)
• Some hypertext links
• Premium placements on a site or search
engine

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 Pricing Online Ads
CPT--Cost Per Transaction
Pay only when the advertisement concludes in a sale
Higher commissions
Examples:
• Amazon.com
• Barnes and Noble
• Microsoft

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 Pricing Online Ads
CPM vs. CPC vs. Flat Fee vs. CPT: When should you use
each method?
Flexibility is the key
What are your goals?
What are the industry trends?
Hybrids (e.g., CPM with a guaranteed click-through of,
say, 2%)

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