Nowadays, we can see two prominent things going on the internet. The first one is the offer made by the website to subscribe to that website by paying some amount and the other one is web advertising on different websites in the form of pop-up advertisements, the ads having sound features and the ads which move around on the screen. This web advertising is being normally displayed on all types of commercial websites.
The web users have some concerns regarding these ads; like, why websites display so many ads, why there are popups which are shown against user’s will. The ads which move around are also problematic as they cover the content which a user wants to see. In addition users wonder how they can make it possible to remove all these ads from the websites.
This article aims to discuss the different types of web advertising and what are the economics behind them in order to make the working of web ads more clear. This article is useful for those who use internet very frequently as well as those who are not the regular users.
There are millions of companies who compete to have their website in the top ranking of the search engine as the search engines are the means for people to search for their desired item and even to compare different products being offered by the competitors. The companies use keywords, build links etc. to get the focus of the searcher.
Web advertisements are basically for those who need help against one click. These are designed for those who want to avail some service instantly so the chances of sale in such cases are more. These ads are not that expensive for the marketers. There are several forms of web ads which are as follows:
Banner Ads or Paid Traffic
There is one possibility to gain the user’s focus by buying ads on the websites which have high ranking, so when a user opens a window, he/she may come across your ad. Ads can be bought in the form of pay per click, cost per view, cost per acquisition or cost per thousand. These models are rather expensive as there are chances to lose some money.
The Webmaster Controls the Ads
After setting up a website, it is webmaster who decides that whether ads will be displayed on the website or not, if yes then how many ads would be there and what will be their size. The payment made for these ads may be in the form of a lump sum payment or the other models which are more popular i.e. pay per click and cost per thousand.
Pay Per Click
The webmasters places the ads for the monetary benefits. The fee is paid to the webmaster whenever a user clicks on the ads. The amount paid can be in dollars for large web advertising companies and pennies in the case of small companies. The benefit for the webmaster is that he earns money and for the advertiser is that he has to pay the fee only when the user clicks the ad which seems to be more economical.
Cost Per Thousand
This method is a traditional one. In this method the advertiser pays a specific amount agreed between the parties when the number of users who clicked on the ad reaches to 1000. The cost varies from agency to agency. Larger agencies pay hundreds of dollars for one thousand views while smaller ones only pay 50 cents for thousand views.