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Online Advertising Models – By Small Business Resource Ltd. 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. Classified ads Banners Buttons Chat
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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
Classified ads Banners Buttons Chat Associates programs Paid hyperlinks Content sponsorship Web site as advertisement Push technology Interstitials Web Advertising
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
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
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
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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