Cyber Flopping!

The online marketing advertising business has become a huge industry and has been giving traditional media a stiff competition in terms of revenue and reach. Many large corporations have recognized the benefit they will get from online advertising that they allocate huge amount of money into it in their annual marketing program.

 

However, despite the fact that online marketing advertising business has become a part and parcel of our daily life, majority of us do not really understand how the online advertising industry really works.

 

Defining your product

Before we try to understand the nitty-gritty of online advertising, we must first understand our product. Understand what is your product? The answer is advertising inventory also known as the ad impression. It pertains to the supply of opportunity to post ads in a specific medium. Ad impression or opportunity to display is the single viewing of a single ad by a single individual.

 

The Publishers, or the web site owners, and developers of software, video games or emails creates these advertising inventories. They can generate reliable and huge volume of advertising inventories for selling which translates to income.

 

How to compute ad inventory

To better understand what an ad inventory is, you must learn how it is computer. A web site which offers simple online advertising with automatic refresh functions, gets one batch of advertisement for each impression. There are two principles in computing advertising impressions. One is the number of page impressions on the site and the other is the average number of advertisement per page. To put it simply a one million page impression per month and an average of 5 ads per page will result to 5m ad impressions per month (5 x 1m = 5m).

 

Who are the publishers

As mentioned above, Publishers refers to the site owners, or builders of game, mobile portal, etc, which have created advertising inventory to sell to advertisers with the intention of generating income.

 

Because their goal is to sell as much of their advertising inventories as possible, Publishers normally hire sales teams to engage advertisers and advertising agencies to conduct business. However, small-time publishers resort to Ad Networks to sell their ad inventories

 

Some of the biggest Publishers with large amounts of ad inventories are the search engines, such as Google, Yahoo, MSN, etc. They have the capacity to sell large volumes of advertising inventories to advertisers and advertising agencies.

 

These are some of the major players in the online marketing advertising business, next time we will discuss the other players in the game.