Meridian Internet Marketing for SEO, PPC and Internet Marketing

Internet Advertising Explained

Internet Advertising is a very broad term. Though Search Engine Marketing (both Search Engine Optimization SEO) and Pay-Per-Click (PPC)) may be considered a form of Internet Advertising, we are focusing on banner display advertising and rich media advertising.

When the Web first became commercialized, the banner ad emerged as the most common advertising format. The ads work like outdoor billboards, with text and graphics featuring a product or company name and some branding elements. They appear in different sizes and shapes, almost always conforming to the Interactive Advertising Bureau’s (IAB) ad unit guidelines.

At first banner ads were sold like most traditional advertising – on a cost per thousand impressions or CPM basis. Over time other performance-based pricing models emerged (like PPC) and now ads are sold in a variety of ways.

Banner ad value was initially measured by click through rates – the percentage of users who click on the banner. Today banner ads deliver value by promoting brand awareness and brand image similar to an outdoor billboard or a display banner at a sporting event. They have the added benefit of delivering traffic as well, albeit in relatively small numbers.

Banner display ads work to influence future purchases as a brand-building tactic (as opposed to a direct response tactic). That’s why display ads comprised 32% of all online advertising dollars in 2006 (according to the IAB). Banner display ads serve a very different role than Search Engine Marketing because it comes into play at a different part of the buying cycle than Search Engine Marketing. It’s been shown to complement and support Search Engine Marketing. According to two studies released in December 2006 (one by Yahoo and comScore Networks and one by Avenue A/Razorfish) exposure to display advertising increases the click through rate of PPC ads.

Media buying for Internet Advertising works much like the process for traditional media. Prospective customers (or the target audience) can be defined by a range of characteristics. For example, an audience can be targeted by demographic, geographic or even behavioral characteristics (e.g. anyone who has shopped online for a car). Media planners will then find the best websites or network of sites that can deliver the defined target audience.

Banner display creative – how the words and images are presented in the banner has evolved dramatically since the early days of Internet Advertising. Animated ads, ads with video and other types of “rich media” ads now make up more than 20% of banner display advertising.

The latest trend in Internet Advertising is Online Video advertising. Video Advertising has already been shown to generate more interest than a standard banner display ad. As a relatively new format, the category is still being defined. Online Video Advertising today can mean streaming video, downloadable video, video on your site, video on a social network, video in an ad, video before/during/after another video or Flash video.