ADVERTISING ON

INTERNET
 INTRODUCTION

• Online advertising is a form of promotion that

uses the Internet and World Wide Web for the
expressed purpose of delivering marketing
messages to attract customers.
• Examples of online advertising include
contextual ads on search engine results pages,
banner ads, Social network advertising, online
classified advertising, advertising networks and
e-mail marketing.
• The three most common ways in which online
advertising is purchased are CPM, CPC, and
CPA.
• CPM (Cost Per Mille), also called "Cost Per
Thousand (CPT), is where advertisers pay for
exposure of their message to a specific
audience .
• CPV (Cost Per Visitor) is where advertisers pay
for the delivery of a Targeted Visitor to the
advertisers website.
• CPV (Cost Per View) is when an advertiser
pays for each unique user view of an
advertisement or website (usually used with pop-
ups, pop-unders and interstitial ads).
• CPC (Cost Per Click) is also known as Pay per
click (PPC). Advertisers pay each time a user
clicks on their listing and is redirected to their
website. They do not actually pay for the listing,
but only when the listing is clicked on.
• Cost per conversion describes the cost of
acquiring a customer, typically calculated by
dividing the total cost of an ad campaign by the
number of conversions. The definition of
"Conversion" varies depending on the situation:
it is sometimes considered to be a lead, a sale,
or a purchase.
• Most rates online are expressed in terms
of CPM (Cost Per Thousand Impressions)
or CPC (Cost Per Click). Low rates are
generally had for untargeted advertising
placements to a general consumer
audience and generally range between
$0.25 CPM to $2.00 CPM
 Average PPC Costs

• Metric2005 20062007200820092010Cost per

click (CPC)$0.38$0.32$0.62$0.71$1.03$1.24Click
through rate (CTR)1.5%
0.7%0.3%0.3%0.3%0.7%Average Ad Position4.0
4.03.94.03.63.7Cost per 1000 impressions
(CPM)$5.56
$2.38$1.95$2.16$3.34$8.55Conversion
rate3.8%4.0%7.0%7.5%6.0%6.8%Cost per
conversion$10.18$7.63$6.41$7.02$12.60$13.14I
nvalid click rate n/a3.5%6.5%4.9%5.5%6.7%