The Internet Advertising Cheat Sheet

Today we are already living in the Age of the Internet. We can almost do anything in the Internet from entertainment, communication, learning, shopping, dating, games, video and music streaming, and many more. There are already billions of Facebook users around the globe, there are about more than 4 billion Google searches per day and a viral video from YouTube have gained more than a billion views already. With this kind of popularity in the web, people have further innovate the field of bringing people to buy their products through Internet Advertising. Google is the most popular search engine since 1998 together with Yahoo! and Bing. They are also one of the biggest names in Internet Advertising. Internet advertising which is also known as web advertising or online-marketing is becoming popular over the traditional kinds such as the tri-media - television, printed and radio advertising.

How many of these terms did you know?

What is Internet Advertising?

Internet Advertising (or Web advertising or online marketing) is a form or kind of advertising where you access the web and related technologies to deliver targeted or non-targeted types of advertisement. This is similar to the traditional media such as television, printed materials or radio but makes use of websites or blogs to deliver ads to prospect customers and buyers.

The Cheat Sheet

If you are going to start a career as an expert in online-media advertising, you should know at least the basic terms used in this industry. These are CPM, CPA/CPL, CTR, PPC, CPC, etc. I will start this cheat sheet for these 5 basic concepts first and will add more in the future. So, here we go.

CPM (Cost Per Mille)

It is the amount you ask or pay in every thousand impressions or views of your advertisement. If you are paying a publisher to advertise your product in this way and the publisher tells you that he charges $1 CPM, you will be paying him $1 per one-thousand views or impressions of your ad.

CPA (Cost Per Action) / CPL (Cost Per Lead)

Aside from CPM model where you are charged for every views, in CPA you will be paying your publisher when you have made a sale. Let's say I am selling an e-book and I have found someone who will advertise my book on his website using CPA model. We agreed that I will be paying him $50 CPA. This means that for every book that I will sell, I will give him $50. A similar model is called CPL, in CPL or Cost Per Lead, you do not need to make a sale before you can earn from this. All you need to do is gather 'leads'. For example, a visitor subscribed to your affiliate's RSS feed and e-mail. Using CPL model, you will now pay them $50 per lead to your business.

PPC (Pay Per Click)

Pay Per Click is a service from advertisers where you will be paying them every time someone clicks on your advertisement. Google offer this kind of service through Google Adwords. These kind of advertisements are shown in the SERP or Search Enginer Results Page located on the right side. Some people would opt for this kind of advertisment over the CPM model where you pay whether the user clicks or not.

CPC (Cost Per Click)

CPC or Cost Per Click is the amount you pay for every clicks received by your advertisement. This can range from as little as $1 and can go high up to several thousands of dollars depending on the competition of the keywords you selected. As an advertiser, you will have to bid for selected key words or key phrases that you will target.

CTR (Click-Through Ratio)

Click Through Ratio measures the effectiveness of an advertisement. It is the ratio between how many clicks an advertisement received over the number of times it was seen. A good CTR ranges from 5-10%.

The web is growing rapidly as you read this blog post. Companies now utilize the industry in Internet Advertising to grow their reach as more and more people become internet savvy. People consumes web pages and web resources from almost everywhere - desktop, laptop, tablet and even from their cellphones! If you are a marketing or advertising specialist or looking forward to similar career, then you must at least know the basic terms.

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Mark Hugh Neri

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