Online Advertising Solutions

In about the year 2002, pay per click internet advertising was introduced by giant search engines as a component of online advertising solutions for the business community. Advertisers, especially those businesses with very small advertising budgets, were intrigued by the model which allowed them to pay a small amount each time someone clicked on their ad or sponsored link. As part of the process, the advertiser bids on specific keywords and the amount of the bid determines the placement of the ad or sponsored link. The highest bid gets top placement. Of course, one benefit is that the bid amount isn't paid until the click occurs. But that wasn't the only benefit. The entire world of marketing and advertising has changed over the last several years. Though the change accelerated with the technological advances of the internet, it began earlier than that with an increase in media outlets, including cable channels, satellite radio, and periodicals. At a much earlier time in American history, the vast majority of adults watched three television channels, listened to local radio broadcasts, and magazines such as Life, The Saturday Evening Post, and Good Housekeeping seemed to dominate. Advertising in these mass markets needed to appeal to a variety of people and interests. All that has changed. The marketing world calls it fragmentation and the industry spends a great deal of money and time figuring out all kinds of demographic niches.

Fragmentation means that people are more likely to pursue specific interests and hobbies. Aspiring chefs and the culinary-challenged watch the cooking shows; history buffs watch the history shows; and watching sports seems to have never gone out of style with many American men -- though now they have even greater options. Radio programs from far-away places can be accessed via satellite radio or through the station's internet website. The periodicals market still includes general interest magazines, but there are many magazines, newsletters, and even ezines that appeal to very specific niche groups, such as collecting the latest fad or raising rats as pets. No matter how obscure someone's interest, it's very likely that there are websites and other media catering to that interest. This is why pay per click internet advertising appeals to businesses. By bidding on relevant keywords, the advertisements for the company's products and services will appear on the websites that the target market is most likely to visit. Company management can feel confident that the advertising budget is being used wisely to reach those people who are most likely to be interested in buying what they offer. Even a tiny mom-and-pop operation out in the wilderness can set up a website selling something unusual such as pinecone pastries and use online advertising solutions to find potential customers.

The pinecone pastries example, admittedly, is far-fetched. But it is amazing how many different ideas that entrepreneurs can come up with for their ventures. With a website and online advertising solutions that include the purchase of relevant keywords, they can market their goods and services clear around the globe. However, that kind of market outreach isn't always an advantage. A plumber or a mobile dog groomer probably wants their customers to be within a reasonable distance from their own place of operation. The pay per click internet advertising selected by these sole proprietors can ensure that the ads they place are within specific geographical boundaries. Another benefit is that the programs are designed to track visits. From the statistics provided by the pay per click program, the business owner knows how many visitors have come to his website via a particular ad, how long the visitor remained on the site, and whether the visitor made any purchases. With this data, the owner can calculate such important figures as the cost per visitor and the conversion rate (when a visitor becomes a customer) for each ad. By determining which ads have higher conversion rates, the owner can make intelligent decisions regarding his promotional campaigns.

A great deal of money is spent by companies trying to persuade customers to purchase goods and services. In 2005, $12.5 billion was spent on internet advertising just in the United States. Experts estimate that $29 billion will be spent for online marketing in the year 2010. This kind of spending means that website ads are the fastest growing part of the ad industry. The internet has proven, in just a few years, to be a remarkable medium for bringing together buyers and sellers. The potential for growth continues to astonish as more entrepreneurs start up new ventures and more customers feel comfortable and secure making online purchases. "Riches profit not in the day of wrath: but righteousness delivereth from death" warned the writer (Proverbs 11:4). Any time large amounts of money are involved, the greedy and unscrupulous find ways to get some of it. In the case of fraudulent pay per click internet advertising, even the naive seem to get caught up in what really is cheating. It's common for the large search-engine companies to recycle ads to other sites. Unfortunately, some of these sites are not legitimate and the people behind them set up what are known as paid to read (PTR) rings. Individuals get paid to click on one ad after another, all day long, allowing the site's owner to gain a fraction of the pay per click dollar. Those fractions add up enough, however, that it can be a lucrative enterprise. Academics and consultants studying this issue estimate that between ten and fifteen percent of ad clicks are fraudulent, costing companies approximately a billion dollars a year. Company managers need to be aware of both the benefits and pitfalls of online advertising solutions to ensure the marketing budget reaches the legitimate target market for the products and services being offered.

Add to: File Insurance Business article Teen Photo Images