Basic Guide to Internet Advertising and Monetizing a Website

For website owners, web developers, and web publishers, advertising is a viable way of making money on the Internet, and monetizing the content of their site. From simple text links to outright sponsorship and complex affiliate programs, if there’s room on the page, and enough traffic to justify the costs, there will be an advertiser eager to serve the website’s readers.


Types of Internet Advertising

Of all the ways to make money on the Internet, the most common form of Internet advertising (and the easiest to implement on a large scale) is Pay Per Click Advertising (PPC). This web advertising model is so common because it distills the online advertising down to its most basic elements and offers a very clear revenue stream.

In PPC advertising, whenever someone clicks on a pay per click ad, the advertiser who placed that ad is charged a set fee regardless of who clicked on the ad, where they were when they “clicked through”, or the time of day that they clicked. The ad agency providing the ads typically mines the web page here the ads will be placed and places ads on the page deemed most relevant to the users likely to read the page’s content. The ad agency takes the lion’s share of that fee and passes a small percentage on to the owner of the site where the ad was clicked.

Because the advertiser has little control of where their ads are placed, and in what order, the fees for this type of advertising are fairly low, and the revenue stream that trickles down to the site owner/web publisher can be quite small. The upside is that these ads are easy to set up and implement on a site, and can be put on just about every page. While a single click won’t generate much income, a site with heavy traffic may generate thousands of pay per click fees a day.

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Though there are other firms that offer pay per click advertising programs, the most commonly implemented PPC advertising system is Google’s pay per click program known as Google Adsense.

One Internet specific nuance to this form of advertising is Paid Placement Advertising. In this advertising and revenue generation model pay-per-click advertisers pay higher rates to be placed higher on the page when listed within a group of ads or search results. The reasoning here is that many user won’t scroll down every page, and those ads that are placed higher on the page are likely to be seen and clicked on by more users.

Ultimately Pay Per Click Advertising(PPC) is not as lucrative per transaction as other forms of Internet advertising, but over the “long tail” it can be quite profitable.

Another common form of Internet advertising follows the traditional advertising model. In this form of advertising, advertisers pay a fee to have their ad paced in a particular place on a website (top of every page, top right sidebar, etc.)

Yet another form of “advertising” and a revenue generator for website owners/publishers is Affiliate Advertising. In this advertising model, once a website owner places an ad or service box on their site, any time a user buys that company’s service by clicking through that service box the site owner/publisher receives a commission on the user’s purchase.

While all of these new media advertising models help web publishers leverage unique aspects of the Internet to monetize their website, the ultimate form of Internet advertising remains outright sponsorship. When a site becomes large enough and has enough traffic, it’s possible for the site owner to license one particular advertiser (or a complimentary group of advertisers) to advertise exclusively on their site. The trade off here is that by favoring one client’s products and priorities, the publisher often sacrifices a measure of control over the site’s content.


Internet Ad Shapes, Sizes, and Placement

Because most webpage are laid out in columns and rows, Internet advertising tends to follow the newspaper and magazine standard for banner and sidebar ads. Also, Internet ads tend to be placed in high visibility areas of the page (top, upper right, center, etc.) they standout and intersect with the average users method of scanning a webpage.

Given the way that Internet users scan content and look for the elements of a website in particular places on the page, decisions about ad placement, affiliate marketing, sponsorship, and branding visuals should be incorporated into websites during the process of web design, layout, and publishing.

Advertisers offer savvy web publishers a variety of ways to make money on the web using ads placed in various high-traffic areas of their site. The result is an opportunity for advertisers to reach their market, and for web publishers focused on a unique market segment to further serve the needs and wants of their users. 

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