A Quick Journey Through The World of Online Advertising
Can you imagine a world without advertisements? When you think about it, you’ll probably think that a would without advertisements would have been amazing. But, the truth is if ads didn’t exist, the web world just not be the same. Traditional advertisement fundamentally is unidirectional — a company advertised its products/services and receivers received it without having a say. But, today advertisements are built on an impressive network of technology that people appreciate and enjoy. They have become bidirectional, people get to decide what they want to see and the results for marketers are more effective.
Let’s take a quick journey on how online advertising works.
They key players of online advertising
Online advertising starts with an advertiser who creates an advertising campaign to promote his brand. The advertiser pays for this promotion. Let’s say a car dealer wants to promote his dealership through automotive ads. He as an advertiser with a car advertising agency with the know-how to make his campaign a success.
Then the process is taken over by the publisher which is an organization or individual that places the ads on digital platforms. A lot of work is done by affiliate networks as well. Affiliate networks provide virtual spaces where advertisers find publishers and vice versa. Advertisers sign up and choose the most suitable affiliate program. Publishers, in turn offer their services in exchange of revenue. A car marketing agency can manage your marketing campaign from planning to publishing and beyond.
Have you ever thought how tech giants like Facebook and Google are able to offer their services free of cost?
This is made possible through Ads. Ads account for a large share of profits earned by these giants. For Google this done through Adwords, the platform where websites bid money on specific search queries to appear higher on search results. For instance, if your search for “Buy cars”, the top four automotive ads belong to the highest bidding websites. Advertising on Facebook is a little different. The idea being Facebook ads is to target specific personality traits of people.
How online advertising works?
It all starts with the user. When a user visits a website, the browser collects a pretty detailed data profile which consist information like which webpages he recently visited, his location, gender and other similar info. This digital profile is sent to server automatically every time a user visits a particular website. This information is sent to ad publishers. The ad publisher will check his inventory and check if the user’s profile matches up with any of the ads in his database. If there’s a match, the relevant ads will be shown to the user and if there isn’t, the profile data is sent to an ad exchange. This ad exchange is operated by giants like Abode or Facebook. These ad exchanges already have data on the user which they use to serve more relevant ads. Third parties compete to find relevant ads based on the user’s profile and the highest bidder gets to show his ads to the user.
How businesses pay for online ads?
Business pay for online ads in two ways Pay-per-click or fixed rate. PPC is a mechanism in which businesses make payments based solely on the amount of clicks their ads get. In fixed rate, businesses set the payment amount upfront. In both cases, clicking on an ad takes the user to the respective businesses’ home page or some other landing page.
While online advertising is a proven way to target potential buyers, the myriad of options available make it tough for businesses to know which avenue will be most effective. Advertising agencies offering digital advertising services for automotive can help automotive dealers leverage the benefits of this robust marketing platform.
