Thursday, September 10, 2015

How Does Internet Advertising Work

The Webmaster Sets Aside Space for Ads


To generate revenue from advertisements, webmasters first need an established website with a considerable amount of traffic. As the website grows and traffic begins flowing onto the site, the webmaster may evaluate the need for advertising and set aside some space for ads in a slot on the page that tastefully complements the main content. As long as the content remains relevant and interesting, users will continue to access the site and potentially produce advertisement revenue.


The Webmaster Uses an Ad Broker


Web ads are prevalent on the Internet and may have been constructed without any personal contact between the advertiser and webmaster. A number of advertising brokers match advertisers with webmasters, offering a quick and painless registration process and easy integration of the ads onto the webmaster's site. Brokers like Google Adsense and Kontera allow webmasters to place a portion of code on their site; when the page is visited, the code displays advertisements relevant to the text shown on the page. The code embedded on the web page automatically reports vital statistics--such as how many times the ads have been viewed and how many visitors have clicked on the ads--back to the ad broker who, in turn, compensates the webmaster for the advertisement space.


The Webmaster Seeks out "Sponsors"


Sponsorships are another form of web ads. In a sponsorship arrangement, the webmaster seeks out other websites, generally in businesses that complement his own, that offer "affiliate programs." The webmaster signs up for the affiliate program and selects display or text ads to code into his web page. When a visitor to the site sees or clicks on the ad, special codes in the web link alert the affiliate program to the action and update the webmaster's account. Webmasters may be paid a small fee for every 1,000 times the ad is displayed (cost per 1,000, or CPM advertising) or may receive a stipend for each time the ad is clicked (pay per click, or PPC advertising). Ad-bearing websites may focus on an infinite number of topics, but webmasters should use caution to ensure the selected advertising program nicely complements the topic of his site.


The Webmaster Might Sell Ads


Some webmasters prefer a more traditional approach to web sales. These webmasters approach local businesses, retailers, restaurants and other establishments with advertising opportunities. Depending on the website's focus and popularity, ad prices might range from $25 per month to $99 per month or higher. The webmaster places an ad (developed either by the customer, by the webmaster or by a professional advertising firm) on the site and charges the advertiser a flat fee, regardless of how many times the ad is seen or clicked. This approach seems to be most prevalent in small, community-oriented websites, though those sites also enjoy some income from ad broker or sponsorship accounts.

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