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 Banners Buttons Chat Associates programs Paid hyperlinks
Content sponsorship Web site as advertisement Push technology Interstitials
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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 Brought to you in association with
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 Brought to you in association with
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 Brought to you in association with
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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