Understanding Online Advertising Processes and Acronyms

Intro - What Is Online Advertising?

Online advertising also widely known as online marketing or internet advertising and it is a technique of advertising and marketing which depends on the internet to convey promotional marketing messages to both potential and existing clients. It is practically used across all global industry sectors and can offer substantially better ROI than any other online media.

The Process Of Internet Marketing

The basics of internet marketing depends on two variables, that is, the publisher who is responsible for integrating online advertisement content and the advertiser who delivers the advertisements to the publisher. However, other advertising agencies may assist to venerate and place a duplicate of the same ads provided to the publisher. They use technology to deliver ads to the server, monitor ads statistics and advertising affiliates and referrals that entirely depend on promotional work for other advertisers.Internet marketing relies on various systems to deliver the advertisements. They include:

Social Media Marketing

This is a commercial promotion that is practically conveyed via social media websites. Many firms promote their products through updating their company’s social media profile. Besides, social media like Facebook allows the advertisers to create promotional banners that are displayed on Facebook users’ page.

Mobile Advertising

This is a marketing principle used to deliver duplicate ads through wireless mobile gadgets such as tablets and smartphones. The advertisement may be delivered in form of SMS, MMS, mobile search ads, ads within mobile applications such as games and advertisement in mobile websites.

Web Banner Advertising

Essentially, this refers to graphical ads displayed within a web page. The banners are generated by a central ad server. The ads can use buttons, animations, videos, audios or other elements using HTML5 and Adobe Flash among others.

Email Marketing

Email marketing is ad copy which entails part of an email or an entail mail. The mail contains sophisticated ads links. The links are generally meant to increase site’s traffic includes both affiliate and referral programs.

Search Engine Optimization (SEO)

This is a technique used to maximize the visibility of a website in the Search Engine Results Pages (SERPs). Depending on the web searcher’s query, search engines provide both organic and sponsored results. However, Search Engine Optimization (SEO) is designed to enhance website’s non-sponsored search ranking on the SERPs. The ranking are produced according to the content relevance. The search engines optimizes moving target to advertisers by updating their algorithms regularly and penalize poor quality websites who attempt to game their rankings.

Search Engine Marketing (SEM)

Sponsored links allow advertisers to be available in sponsored results depending on the keywords selected. The ads in such links are sold in real-time auction where advertisers are allowed to bid on keywords. other factors that determine keyword price include language, geographical location, and duration among other constraints.

The said online marketing comes with a number of benefits to the advertisers, the publisher and the target willing clients/customers.

The Benefits Of Online Marketing

The Cost

Online Marketing is relatively cheaper than marketing a product through physical contact. One does not have recurring expenses of property rental and maintenance services. Maintenance cost may only be felt when improving the website and other minimal activities. The cost is normally valued in terms of years. You will not be required to purchase stock to display in the store and you have an opportunity to order with demand to keep the inventory at lower cost.

Efficiency And Convenience

Online marketing allows you to open the business any time of the day without limitations. You do not have to worry about overtime payment of staff. Offering your business on the internet is much convenient reaching vast number of customers worldwide. Customers can simply place an order with just a click. This explains how the niche is productive.

Social Experience And Relationships

Online advertising allows the advertiser to take advantage of social platforms. Social media has millions of people compared to other websites. Therefore, posting a sponsored link in your profile will attract numerous users to find out the content of the link. The influence of social networks generally increases both sales and traffic at a higher rate. You can integrate social networking tools to enhance your internet marketing campaigns.

Social networks and the internet provide vital platforms for building up customer relationship and improve on customer retention rate. You can build your network by sending vast mails to inform your clients about a coupon on the way or confirming a certain transaction. Emailing clients with special customized offers helps to maintain the relationship.


Through internet marketing, one can overcome some barrier such as distance and time management. Your ads are distributed all over and most of clients from different parts of the world will access the info at any time of the day. You can decide to sell your products both internationally and locally.

Marketing Automation In Online Advertising

Marketing automation refers to software platforms developed for marketing purposes. The process targets to deliver the advertisement message to various online channels. It executes personnel commands, specific tasks and processes in real-time. It is commonly used to generate sales and marketing organizations by replacing manual processes with automated solutions.

Online marketers apply marketing automation tools to outsource effective and efficient data, content creation, messaging, segmentation and digital assets. They can retarget display ads and manage paid search campaigns to optimize email strategies or sending a simple post. It is recommended to consider merits and demerits of automation before applying it.

In a digital realm, marketers can respond to messages and view the content and how people have interacted with their product. Incorporating all that data together and mapping various consumer paths provides the marketers an opportunity to automate personalized content to their potential prospects.

Marketing automation generally enhances building relationships, content personalization, and ability to engage in a smart business and predict future analytics.

Online Marketing Compensation Methods

The ability to measure performance and examine returns on investment is the key benefit in online marketing. Internet advertising is associated with a number of different compensation methods. These methods help you to effectively plan, manage and report your online activities in terms of returns. They are briefly discussed below to improve your understanding in internet marketing.

Cost Per Mille (CPM)

It is a regular variation used by all major forms of advertising including newspapers, televisions, radio and online advertising. Ad space is bought depending on showing the ad to a thousand viewers. In online marketing this is known as an impression.

CPM is most form of purchase in online marketing when buying space for particular high quality and traffic websites. Total number of impressions depends on the advertiser’s needs, the volume of website traffic and campaign timeline.

Cost Per Click (CPC) Or Pay Per Click (PPC)

It is widely used by popular search engines advertising like Google or Yahoo for keyword bidding. The cost paid is agreed on bid based or flat rate. This means advertisers compete for advertising space.

Cost Per Acquisition (CPA) Or Cost Per Action/Pay Per Action (PPA)

This is an online buying method where advertisers pay for a particular action. It is a risky method to the advertisers because the available run activities may be less targeted, maybe of low quality and the cost is higher.

Page Impressions (PI)

This is a request to load a single web page. Volume of impression indicates how many pages visitors are viewing.

Run Of Site (ROS)

The method allows the advertiser to post online ads on a chosen website within a publisher’s network.

Click Through Rate (CTR)

This is used to measure the success of online advertising campaign. It analyzes number of clicks received in relation to the number of impressions delivered. It is calculated as clicks per impression multiplied by 100 (Clicks/Impressions x 100).

Real-Time Bidding (RTB)

This is the most modern method of buying and selling online display advertising in real-time in one impression at a time.

Share Of Voice (SOV)

It refers to the rate of ads showing up within a particular ad position in relation to other advertisers. It presents the portion of ad stock available to the advertiser within a determined position over a specified duration of time.

These are just a few marketing methods used in online advertising. You can always research more to equip and prepare yourself to venture in this unique business.

Retargeting And Other Involved Technologies

Data driven online advertising strategies provides a user interface that can manage prospecting, data enrichment, real-time bidding and retargeting. The data is analyzed to provide action on digital marketing campaigns thus facilitating dynamic advertising.


This is a process by which ads of potential interest are displayed to the user based on their past browsing of products. The consumer may be targeted with featured such products in the same segment. For instance, a banner may pop up featuring customized attires which is displayed on the user’s screen that he/she may have showed interest in such a product.

Data Management Platform (DMP)

This tool may involve mobile targeting, dynamic personalization or advanced segmentation. It provides a variety of consumer data that is useful for advertising. Data ingestion and normalization is provided through channels such as emails, display, search, online and offline party sources. The data can be used to translate and execute campaigns across the targeted products.

Ad Server

This robust technology can be used to boost leads and can be integrated into digital advertising pillars to optimize productivity of each impression.

Demand Side Platforms (DSP)

This technology allows publishers and advertisers to buy digital marketing stock for their customers through real-time auction mechanism. It can optimize product campaigns according to various and particular properties.

Data Exchange

This is a traditional technique applied in marketing to buy data in order for online marketers and publishers to improve their inventory and campaigns. Publishers can integrate data into their partners private exchange platform to avail the campaign data. This enables other partners to activate their connected inventory data campaign.

Dynamic Display/Video

This technology enables the publishers and advertisers to create and customize their own advertising templates. They are linked together to campaign over a specific product data. Product information and prices are dynamically generated in real time targeting maximum relevance and display engaging advertising.

In summary, online advertising in an interactive and a compelling business opportunity to invest in because it offers a number of benefits compared to physical marketing. Incorporating the mentioned marketing techniques, strategies, technologies and other methods can practically reward your efforts in the niche very fast. Nonetheless, you are recommended to always engage intensive research before investing in any business to understand benefits, down falls and principles used in the niche.