How Much Does Online Advertising Really Cost?

By Brown Articles Published 04/8/2011 | Online Advertising

Nowadays with the Internet taking a firm advantage over the more traditional forms of advertising, there are hundreds of tools and abbreviations to come to terms with if you want to fully understand and appreciate the power of online advertising.

These tools and different marketing abbreviations and techniques will take a while to research and to become familiar with and although at first this advertising strategy will appear complicated, it is pretty straightforward and definitely worthwhile implementing to boost your business in the forefront.

The first online tool you will be meeting is the Google AdWord program that offers four main advertising systems. You may advertise on a site that uses Googles search program, advertise in Googles search results, use the Google Content Network or use placement targets.

If you decide to use the Google search engine strategy, this system will prompt you to insert keywords once you have added a text advertisement. Then you may choose the Cost Per Click, and decide how much you should pay every time someone clicks on your advertisement. This will be determined by what Google suggests and the budget of your advertisement.  The Cost Per Click can vary considerably depending on many factors, so make sure you study this option in detail.

If you intend to use Googles placement targeting strategy, then you will be choosing amongst the Googles network of AdSense publishers. These publishers will permit you to display your advertisement on their websites. This kind of strategy uses CPM pricing, which refers to Cost per Thousand impressions.

The third most common form of advertising abbreviation is the CPA, which stands for Cost Per Action. This strategy is usually used by direct response marketers as well as affiliate marketers and means Cost Per Action. It is also referred to Cost Per Lead. Each marketer knows precisely how much he or she is prepared to spend for each action in order to make a profit.

When using CPA strategies a marketer may have a budget of about a thousand dollars and buy display advertising on Googles ad network hoping to sell a certain number of products. With the CPA campaign you may also buy CPM inventory on a website with Cost per Thousand Impressions.

The objective with these type of campaigns is to advertise while selling products at the same time. You may either make more money than you expected or simply look for another campaign type through which to sell and advertise next time, if the one you used did not seem profitable enough.