The basics of Web advertising
Web advertising usually take the form of banners, buttons, rectangles, text links and other modules you see whirling and twirling on a variety of Web sites. This advertising isn't exclusive to high-traffic sites. In fact, anyone with a site can add banners to their pages. The trick is getting paid for it.
Independent publishers have a couple of Web advertising options, but before we get into them, we need to go over a little background information.
CPM and CPC campaigns
For the most part, there are two types of Web advertising campaigns: CPM and CPC.
CPM stands for "cost per 1,000 impressions" (the "M" is a roman numeral). With this type of campaign, an advertiser pays a Web site a certain dollar amount for every 1,000 impressions of the advertiser's ad. CPM rates for independent publishers are pretty low -- from $0.25 to a couple of bucks, depending on the ad format and advertiser. However, these campaigns can be useful if your site gets a high number of page views each month.
CPC is an abbreviation of "cost per click." Under this format, advertisers only pay when a visitor clicks on their link. The CPC rate varies from a few cents per click to a few dollars. A Web publisher who caters to a specific group of readers may be well served by this type of ad, especially if the ads are targeted toward the topic the site covers.
Brand campaigns vs. lead generation
Early on (1996-2000 or so), Web advertisers thought the interactive nature of the Web would lead to a boatload of direct customers. Unfortunately, user behavior didn't mirror this enthusiasm and click-thru rates (CTR) on many Web banners plummeted below 1 percent.
Why did this happen? Two reasons:
- Because the concept of "brand" campaigns had not yet extended to Web advertising. Advertisers and Web publishers didn't play up the effectiveness of showing an ad to a visitor -- an odd development since advertisers spend billions of dollars every year on TV, radio and print branding campaigns. These days, Web-based branding campaigns are more common.
- Because sites were serving up general advertisements that held little relevance to visitors. Think of it this way: Would it make sense for a kitchen appliance manufacturer to advertise in Sports Illustrated? Sure, the ad would be seen by a ton of people, but are they the right people? Probably not.
These early problems are fading now that Web advertising is maturing. Nevertheless, Web publishers who rely on advertising should keep up on the latest developments in the ad realm. Sites like ClickZ and Marketing Sherpa are excellent resources.
Types of ads
Independent publishers can use a number of banner formats to integrate Web advertising into their sites. Current formats include:
Other formats include:
- Pop-up: Appear above the main browser window and annoy the hell out of most people.
- Pop-under: Appear below the main browser window and still annoy people, but not quite as annoying as pop-ups.
- InVue: Interrupt the main browser window by scrolling from left-to-right. (Here's an example.)
- Interstitial: A large ad that takes over the entire browser screen and displays for 10 seconds or so. Visitors usually have an option to "skip" the ad and continue on to the page they originally clicked to. (Click for an example.)
- Half-page: It's exactly what it claims to be -- a half-page ad that takes up a significant portion of the screen. You'll find these on TV Guide Online.
Independent publishers can also implement text ads. Google's AdSense program serves up text ads in a number of formats, including banners, rectangles and skyscrapers. These ads work best when they are contextual -- meaning, they relate to the main content on the page. In essence, contextual text ads are like related links, only they originate from advertisers.
How to get ads on your site
As mentioned above, independent publishers have a couple of options when it comes to putting ads on their sites. The most common techniques are joining an ad network or selling your own ads.
Ad networks like Fastclick, Burst! Media and Google act as a middle-man between publishers and advertisers. These companies seek out advertisers to participate in their network of sites. Upon reaching a deal, the advertisers submit their banners to the networks. Network Web publishers then pick the ads they want to display on their sites. In the end, the advertisers get their ads displayed on thousands of sites, the publishers earn revenue by displaying the ads, and the ad networks take a cut for making it all come together.
Joining a network is easy. A publisher fills out an online form, supplying general information about their site. The network reviews the site to make sure it's in line with their terms and conditions. These terms usually call for a minimum number of monthly page views and no posting of pornographic or edgy content. If the site passes muster, the publisher is invited into the network. The network supplies ad code and tracking tools to help the publisher manage his or her campaigns. All told, it usually takes an hour or less for a newly-accepted publisher to get ads running on a site.
The upside for Web publishers using a network is that they don't have to spend any time or effort looking for advertisers. The downside is that they have to sacrifice a percentage of the ad revenue (anywhere from 35 percent to 50 percent). If this percentage is too much for you to give up, you might want to sell your own ads.
Selling your own ads requires ad management software (phpAdsNew, Central Ad and Ban Man Pro are a couple of options). It also requires an ability to sell yourself and your site directly to potential advertisers. If you've got a knack for sales, going it alone can be quite lucrative since you won't be splitting your costs with a network. You'll also have the ability to target advertisers who don't participate in ad networks.
If you want to get the best of both worlds, try working both angles. For example, let's say you have an advertiser who wants to buy 10 percent of your monthly page views. This leaves 90 percent of your page views (your "inventory") still open. Instead of beating the bushes for more advertisers, what you can do is combine ad management software and an ad network (ad networks do not require exclusive contracts). Using the ad management software, you could grant 10 percent of your page views to your advertiser and the remaining 90 percent to network ads. By doing this, you'll get 100 percent of the revenue from your one advertiser and 50 to 65 percent from network ads. At the end of the month, you'll have earned money on every page view.
Related links
| Name |
Type |
Notes |
 |
Google
AdSense |
Ad Network |
The popular AdSense program lets publishers place CPC text links on their sites for free. |
|
| Fastclick |
Ad Network |
This ad network pays out 65% of ad revenues to publishers. The company's Web-based campaign tools make for easy management. |
|
Burst!
Media |
Ad Network |
Burst pays out 50% of revenues to publishers in its ad network. |
|
Webmaster
World |
Resource |
An excellent resource for any publisher interested in online advertising or affiliate programs. Be sure to consult WebmasterWorld's FAQ before posting. |
|
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