A PROJECT ON Analysis and Development of a Pay Per Click Advertising System : Chapter Four

Chapter 4 Online Pay Per Click Advertising 1. What is advertising 2. Types of advertising 3. Online advertising 3. Pay Per Click advertising 4.1 Advertising Advertising is the process of persuading potential customers to buy products or promote its services. The process of advertising involves a variety of strategies and media. Advertisements may appear in many forms, including newspaper and magazine ads, radio and television commercials, direct mail campaigns, and various other forms. 4.2 Types of Advertising: With the emergence of brand recognition as a key factor in marketing and advertising, companies have entered into multi-billion dollar contracts with advertising firms to promote their products and services. These efforts have led to products becoming integral aspects of popular culture. Below is a list of types of advertising appeals. Article Marketing Article marketing is a type of advertising in which businesses write short articles related to their respective industry. These articles are made available for distribution and publication in the marketplace. Well-written content articles released for free distribution have the potential of increasing the authoring business' credibility within its market as well as attracting new clients. Banner Advertising Banner Advertising is a major component of web-business creation. It is also a very good method for creating revenue via your website. Banner ads, simply put, are just HTML codes in a specific size and shape (differing from advertiser to advertiser) that present a small snippet of your product or service on a specific host site. Banner advertising has gained popularity at an increasing rate over the past few years due to the increasing popularity of Internet as well as the fact that it has more audience and the ability to direct a prospective client to their website with just a click. Billboard Advertising A billboard is a large outdoor advertising structure (a billing board), typically found in high traffic areas such as alongside busy roads. Billboards present large advertisements to passing pedestrians and drivers. Typically showing large, ostensibly witty slogans, and distinctive visuals, billboards are highly visible in the top designated market areas. Brochure Printing Color brochures are about the quick delivery of information. All brochure printing designs sport messages that are easily readable and immediately understandable. Brochures are an old standby of print advertising and color printing. They’ve endured the test of time, but sometimes they get overlooked in the rush to hop on the latest marketing bandwagon. Some will say that brochures just aren’t as hip and sexy as their online oriented alternatives. Business Cards Business cards are an essential factor in furthering your business. They are available in several unusual types, sizes, colors etc. Eco-friendly business cards are one of the many unique types of business cards available today. To know more about these eco-friendly business cards, read on. Controversial Television Advertising Needless to say, the television exposed us to media like never before, bringing foreign worlds, fantastic ideas and advertisements to our living room. Television advertising is generally a thirty second audio visual clipping telling us the features and advantages of a particular product. Since the time span of an advertisement is so less, the advertisement should always be exciting, interesting and get the point through immediately. If we marry the concept that advertisements are always time bound and that human psychology is always attracted to controversy, we get the perfect advertisement, not good advertising, not bad advertising, but perfect advertising-controversial-advertising. Direct Mail Postcard Marketing Postcard marketing is a low cost, low-tech, high impact direct marketing method. Any business can benefit from a targeted, structured postcard marketing strategy. Used the right way and with the right audience, a direct mail postcard works wonders and often outperforms email. The humble postcard can turn out to be your most result-oriented marketing weapon. The articles below contain postcard marketing tips, ideas to grow your business with direct mail marketing through promotional postcards, and help make postcard campaigns more effective. These articles will help put direct mail to work for you and make the most of your business postcard advertising and marketing efforts. Email Advertising E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing. However, the term is usually used to refer to: a) sending e-mails with the purpose of enhancing the relationship of a merchant with its current or previous customers and to encourage customer loyalty and repeat business, b) sending e-mails with the purpose of acquiring new customers or convincing current customers to purchase something immediately, c) adding advertisements to e-mails sent by other companies to their customers, and d) sending e-mails over the Internet, as e-mail did and does exist outside the Internet (e.g., network e-mail and FIDO). Google Adwords and Adsense AdWords is Google's flagship advertising product and main source of revenue ($21 billion in 2008). AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Google's text advertisements are short, consisting of one title line and two content text lines. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes. AdSense is an advertisement application run by Google. Website owners can enroll in this program to enable text, image, and more recently, video advertisements on their websites. These advertisements are administered by Google and generate revenue on either a per-click or per-impression basis. Google beta tested a cost-per-action service, but discontinued it in October 2008 in favor of a Double-Click offering (also owned by Google). Internet Advertising 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, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. Media Planning Media planning is a very frequently heard term in advertising circles. If you are planning to launch an advertising campaign for your product, you will surely come across this term. However, most people do not know what this term exactly means. Here's an explanation. Traditionally, media planning meant deciding what kind of media should be employed for the advertising campaign. They would decide where the advertisement would have the maximum impact. Options considered were advertising on hoardings, television, cinema halls, overhead LCD TVs in malls or newspapers. All these traditional avenues of advertising were considered and then their profitability was analyzed. Based on such studies and researches, the final media for the publicity campaign were selected. Today, the concept of media planning has undergone a difference. Media planning now involves not only selecting a media for the advertising, but also deep analyses into the outreach of the ads. Also, media planners will today select unconventional streams of advertising such as mobile vehicles, advertising in small retain stores, etc. Newer options are decided depending on what the product being publicized is. That is why today the 'media planning' concept is slowly waning out, and is being replaced by more expansive terms such as 'media strategy' or 'communications planning'. MLM (Multi Level Marketing) Multi-level marketing (MLM), is a term that describes a marketing structure used by some companies as part of their overall marketing strategy. The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduced to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing. Network Marketing Network marketing is a general term for a type of marketing that is usually performed by an individual instead of a company. It refers to the use of interpersonal or social networks to market products and services for business purposes as opposed to the more traditional and common practices of wide-range advertising. The term is technically a type of marketing that can be used as part of an overall marketing strategy which may or may not encompass multiple tactics. For example, the most common marketing tactic in a network marketing strategy is word of mouth. Newsletters A newsletter is a regularly distributed publication generally about one main topic that is of interest to its subscribers. Newspapers and leaflets are types of newsletters. Additionally, newsletters delivered electronically via email (e-Newsletters) have gained rapid acceptance for the same reasons email in general is gaining popularity over printed correspondence. Many newsletters are published by clubs, churches, societies, associations, and businesses, especially companies, to provide information of interest to their members, customers or employees. Some newsletters are created as money-making ventures and sold directly to subscribers. Sending newsletters to customers and prospects is a common marketing strategy, which can have benefits and drawbacks. Online Affiliate Marketing Affiliate Marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. It is an application of crowdsourcing. The Affiliate Marketing industry has four core players at its heart: the Merchant, the Network, the Publisher and the Consumer. The market has grown sufficiently in complexity to warrant a secondary tier of players, including Affiliate Management Agencies, Super-Affiliates and Specialized Third Parties vendors. Online Advertising and Online Marketing 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, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. PPC Advertising PPC (Pay Per Click) Copywriting is advertising text that accompanies a web-based advertisement, costing the advertising company money only when a user clicks on the advertisement's graphic. The advertisement is hyperlinked to a "landing page," which the company hopes will generate a sale. Public Relations Public relations is a facet of advertising and marketing that deals specifically with the response of the intended market population to the advertising and marketing efforts that are being employed. In many instances, businesses handle public relations by setting up a means of communication between customers and the representatives of the business. The lines of communication can be through a telephone information service or over the Internet. The purpose of the communication between the representatives of a business and its customers is to foster among the customers a positive image of the company and its products. Below are articles on public relations, effective public relations plans, campaigns, investor relations, public affairs and media relations. Radio Advertising A radio commercial (in the USA also called a spot by people in the business) is a form of advertising via the medium of radio. Airtime is purchased from a station or network in exchange for airing the commercials. Search Engine Marketing (SEM) Search engine marketing is a powerful marketing tool to generate online leads and make your online business successful. It is the process of promoting your website through search engines such as MSN, Sina, Ask.com, NexTag, AOL, Google, Yahoo, Altavista and AT&T Worldnet. SMS Marketing SMS is an extremely cost-effective, high-response-rate vehicle, which can help to acquire and retain consumers, sell and promote products, drive loyalty, and reinforce branding efforts. Have you tried SMS marketing to promote your business? Subliminal Messages in Advertising Subliminal advertising is the technique of embedding messages in advertises which can be perceived by the subconscious human mind. To know more about subliminal advertising, read on. Telemarketing Telemarketing (known as telesales in the UK and Ireland) is a method of direct marketing in which a salesperson solicits to prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call. Telemarketing can also include recorded sales pitches programmed to be played over the phone via automatic dialing. Telemarketing has come under fire in recent years, being viewed as an annoyance by many. Trade Show Displays / Exhibit Booths Trade show giveaways are very useful in marketing since they can be used for several purposes. The first use of a trade show giveaway or a trade show gift is spreading information about the product and promoting its use. Second of all if you are using free product samples as trade show giveaways then the people can obviously use the products and provide you their feedback, thus promoting the use of your product. Trade show giveaways can also be a great way to establish or even enhance company’s brand identity. Trade show giveaways help to establish a bond of goodwill and create a positive image of the company amongst the customers and investors. Often when a company is launching a new product or wants to incorporate a big change in its existing product line or services, the trade show giveaways are and excellent options to communicate the changes. Trade Show Promotions A trade show acts as a medium between companies and consumers. Trade shows are an option for companies to display their products wherein the consumers can interact directly with the company representatives and also handle products displayed. Trade show promotions are an innovative tool used by advertisers to market products for their clients. The responsibility of planning for trade shows and booth themes along with the design and construction of the displays, rests solely with the event planning agencies. Advertisers and event managers need to come up with innovative strategies to promote brands and products to translate into sales for their clients. Thserefore, event managers give utmost importance to the décor of the trade show exhibit booths. This draws interest and attracts crowds, which can even lead to impulsive buying at such trade show displays. TV Commercials & Television Advertising A television advertisement or television commercial (often just commercial (US) or advert or ad (UK/US) or ad-film (India)) is a span of television programming produced and paid for by an organisation that conveys a message. Advertisement revenue provides a significant portion of the funding for most privately owned television networks. The vast majority of television advertisements today consist of brief advertising spots, ranging in length from a few seconds to several minutes (as well as program-length infomercials). Advertisements of this sort have been used to sell every product imaginable over the years, from household products to goods and services, to political campaigns. Video Advertising and Marketing Video marketing is another web marketer’s way to success in making money online. Website companies are now using video marketing in order to promote their services and products effectively within convenience. Nothing can come close to the persuasive power and effectiveness of video marketing. Viral Advertising and Marketing The buzzwords viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages. The basic form of viral marketing is not infinitely sustainable. Website Promotion Website promotion is the continuing process to promote a website to bring more visitors to the website. Many techniques such as web content development, search engine optimization (also known as SEO), and search engine submission, are used increase the traffic to a site. 4.3 Online Advertising 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, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam. One major benefit of online advertising is the immediate publishing of information and content that is not limited by geography or time. To that end, the emerging area of interactive advertising presents fresh challenges for advertisers who have hitherto adopted an interruptive strategy. Another benefit is the efficiency of advertiser's investment. Online advertising allows for the customization of advertisements, including content and posted websites. For example, AdWords and AdSense enable ads shown on relevant webpages or aside of search results of pre-chosen keywords. Another is the payment method. Whatever purchasing variation is selected, the payment is usually relative with audiences' response. 4.4 Pay Per Click Advertising Pay per click (PPC) is an Internet advertising model used on search engines, advertising networks, and content sites, such as blogs, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site. Although many PPC providers exist, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators, and all three operate under a bid-based model. Cost per click (CPC) varies depending on the search engine and the level of competition for a particular keyword. The PPC advertising model is open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.

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