Internet Advertising

For most people, the Internet is now their main source of information. It's where they go to look for the things they want and need. If they can't find you there, your business is going to suffer. The only way to make sure your company shows up where your potential customers can see it is to pay to put it there – to advertise. The trick is to get the greatest return for the least expense. To help you do that, we've put together this little guide that describes some of the more important aspects of Internet advertising ands also explains how Thizizit fits in.

Search or Keyword-Related Ads: These are ads that appear on a search engine or directory as a result of a user entering a particular search term or "keyword" that has been associated with the ad. For example, a company that sells wall coverings might want its ads displayed whenever someone searches for "wallpaper." Search ads may appear as display ads that incorporate some kind of distinctive graphic elements, but more commonly they will be "sponsored results" which look virtually identical to the rest of the search results.

Search ads are considered to be one of the most effective forms of advertising because they reach users who are actively pursuing the product or service they promote. Unfortunately, competition for desirable keywords can force prices so high that the ads lose their cost-effectiveness. Also the space and formatting restrictions of "sponsored results" severely limit their design.

Subject or Content-Related Ads: These are ads that are placed on sites or web pages whose content is thought to be related to the product or service the ads promote. For example, ads for the wall coverings company might be shown on a site devoted to home remodeling. Content ads may appear as display ads or in the same form as search results (called "sponsored links" in the example below) even though they are not on a search engine. Content ads are generally less costly than search ads, but they are also less effective.

Pay-Per-Click or "PPC" Ad Rates: This term refers to a rate or method of charging for internet advertising. PPC ads promote one or more links (usually to the advertiser's website) that must be clicked before the advertiser is charged for the ad. Advertisers are not charged when a PPC link is displayed, only when someone clicks it. Advertisers usually agree ahead of time to the cost per click based on how, when, and where the ad will be displayed. One of the many advantages of a PPC campaign is that advertisers can easily evaluate its performance because the clicks can be recorded and the behavior of the users tracked once they reach the advertiser's site. It is important to understand, however, that PPC ads are designed to refer leads to a web site. If the advertiser has a different goal (for example a direct response to the ad itself) then PPC may not be the best choice. PPC rates are closely associated with search ads, but they may be applied to content ads as well. They are discussed in greater detail in following sections.

Cost-Per-Impression or "CPI" Ad Rates: This type of ad rate (also abbreviated as "CPM" for cost per thousand) resembles the way advertising is sold in other mediums. Advertisers are charged for the number of "impressions," or times their ad is displayed on a web page, which should roughly correspond to the number of people exposed to it. Unlike the PPC approach, CPI rates do not depend on users clicking a link or taking some other action that might indicate the effectiveness of the ad. As with radio, television, newspaper, and other traditional mediums, there's no guarantee people will even notice an ad, only that it is put in front of them. Impression-based ads are often fairly inexpensive, and they can be useful for branding. However, their performance is difficult to track, and they have not proven to be as effective on the Internet as in other mediums.

Flat Rate Ads: With this much rarer type rate, advertisers are charged a set amount no matter how many impressions or clicks their ad receives over a period of time. Usually, these ads will appear every time a certain page or set of conditions occurs. For example, Thizizit offers a one-year flat-rate search ad that will display an advertiser's listing whenever a user searches for particular terms or keywords chosen in advance by the advertiser. So our hypothetical wall covering company could have its listing displayed every time users search for "wallpaper" for an entire year for this single fixed price.