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Display advertising is what most people think of when they hear the words online advertising.
It is the typical banners you see on nearly every website on the internet. Display banners come in a range of standard formats – such as 300 pixels wide by 250 pixels high – and can either be animated of static. Many websites have multiple display banners per page to multiply their earnings.
The website screenshot above shows two examples of display advertising – the Rip Curl Pro banner at the top of the page, and the same advertiser on the right side of the page.
Display advertising is what you might know as Banner Ads. They are the standard, run of the mill, boring adverts you see on most websites.
This is how display advertising makes you money:
- Option 1: The website owner will receive a small amount (typically 25 cents to $1) every time the banner is clicked. If the banner isn’t clicked, you make no money despite how many times it is viewed.
- Option 2: The website owner will receive a set amount of income for every 1000 times the banner is viewed on their website. This is called the CPM. So if an advertiser is offering an $8 CPM – they are offering you $8 every 1000 times their banner is viewed on your website.
There is sometimes a third option as well, known as CPA.
- Option 3: CPA stands for Cost per Acquisition. It means that if someone clicks your banner, then goes to the advertisers website, and makes a purchase, you will get a set amount of money such as $5.
The role of Media and Advertising Agencies
When a big advertising, such as Coca Cola, decide they have $500,000 to spend on an online display campaign, there is multiple ways they can allocate that budget,
Typically what they will do is give it to their media agency who will plan what websites to spend it with. They might either call up 5 of the leading websites which match their target audience and offer them $100,000 for an advertising campaign on their website, or they can give the $500,000 to a company such as Google who will then display the advert on tens of thousands of websites simultaneously around the globe until the Budget has been depleted.
This example shows that it is much more lucrative to make direct contact with advertisers and media agencies to try to get allocated some of the advertisers advertising budget before it is spent through channels such as Googles display network.
Not every website owner has time to track down advertisers directly, and for this reason services such as Google AdSense were created. To get a banner on your website you have two options. The first is calling up potential advertisers and selling them advertising.
Obviously this can be time consuming, ego destroying, and a full time job depending on how much traffic you have available to sell. The second, and easier option, is to sign up with a service like Google Adsense, who will display banners on your website and give you a portion of the money they make. These two distinct types of display advertising are covered later below.
Summary of Display
- Display advertising is generally either CPM or CPC
- CPM – You get paid per 1000 banner views
- CPC – You get paid every time the banner is clicked
- You can get banner ads placed on your website by any of the following”
- Calling/Emailing a potential advertiser directly
- Getting in front of media/advertising agencies and hoping they choose to place ads on your website on behalf of their clients
- Using a third partner provider such as Google to display ads on your website