Page 201 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 11: Unconventional Promotional Media

downloading a website by the user. Advertising Age has reported that this type of ad is Notes
twice as effective as ad banners at generating higher levels of brand awareness.
6. Classified Ad: This type of Internet advertising offers an excellent opportunity for local
advertisers and is becoming popular among advertisers. Many of the classified websites
offer free classified advertising opportunities as ad banners of other advertisers already
support these sites. A classified ad is quite similar to the ones that are seen in the newspapers.
7. E-mail: Many Internet advertisers send e-mails that contain text and video, streaming
video, newsletters, and news releases.
8. Pop up Advertising: They are ads that are displayed in a new browser window. Pop up
windows come in many different shapes and sizes, typically in a scaled-down browser
window with only the Close, Minimize and Maximize commands. There is a strong
resentment by some Web surfers towards pop-up ads. Marketers often do not realize the
ill-will generated by pop-ups because it is easier to click the "close" button than send an
email to complain.

Two basic questions that concern advertisers are the same as ever: "Do people see our ads?" and,
"Are they effective?" Internet Advertising Bureau (IAB) has recently provided some practical
definitions.
A simple measurement is the ad request to answer the first question. IAB has defined it as "an
opportunity to deliver an advertising element to a Web site visitor." When a visitor loads a web
page with ads on it, the browser pulls the ad from a host server and shows them as banners,
buttons, or interstitials. The number of such ad requests received can then be translated into the
familiar CPM form.
Another unique measurement of the Internet is the click rate (also called click through rate). A
click occurs when a user moves the pointer of the mouse to a web link and "clicks" the mouse
button to reach another page. "The click rate is the number of clicks on an ad divided by the
number of ad requests."
Revenue Models

The revenue types are as follows:
1. Cost per Mille (CPM): It is also called "Cost per Thousand (CPT). It is where advertisers pay
for exposure of their message to a specific audience. "Per mille" means per thousand
impressions, or loads of an advertisement. However, some impressions may not be
counted, such as a reload or internal user action. The M in the acronym is the Roman
numeral for one thousand.
2. Cost per Visitor: It is where advertisers pay for the delivery of a Targeted Visitor to the
advertiser's website.
3. Cost per View: It is when an advertiser pays for each unique user view of an advertisement
or website (usually used with pop-ups, pop-under and interstitial ads).

4. Cost per Click (CPC): It is also known as Pay Per Click (PPC). Advertisers pay each time a
user clicks on their listing and is redirected to their website. They do not actually pay for
the listing, but only when the listing is clicked on. This system allows advertising specialists
to refine searches and gain information about their market. Under the Pay per click pricing
system, advertisers pay for the right to be listed under a series of target rich words that
direct relevant traffic to their website, and pay only when someone clicks on their listing
which links directly to their website. CPC differs from CPV in that each click is paid for
regardless of whether the user makes it to the target site.

LOVELY PROFESSIONAL UNIVERSITY 195