Types of Advertising Supported by the Internet… … And How this Advertising Supports the Needs of Different Types of Business Jodie Josey April 2009

Outline of Presentation Needs of Business Types of Business Types of Online Advertising Relating the Types of Advertising to the Different Types of Online Business Benefits of Online Advertising Summary

Needs of Business

Types of Business

Types of Online Advertising

Relating the Types of Advertising to the Different Types of Online Business

Benefits of Online Advertising

Summary

Needs of Business From an advertising context… Businesses Buy Advertising to: Attract potential customers to their business Generate a measurable response from those potential customers that eventually leads to a sale. Subscription to a mailing list Immediate sale Businesses Sell Advertising to: Generate revenue

From an advertising context…

Businesses Buy Advertising to:

Attract potential customers to their business

Generate a measurable response from those potential customers that eventually leads to a sale.

Subscription to a mailing list

Immediate sale

Businesses Sell Advertising to:

Generate revenue

Types of Business Purely Internet Based Business Their “shop front” is solely online, there is no physical address e.g. www.Amazon.com

Purely Internet Based Business

Their “shop front” is solely online, there is no physical address

e.g. www.Amazon.com

Types of Business Purely Internet Based Business Their “shop front” is solely online, there is no physical address e.g. www.Amazon.com Clicks-and-Mortar Business Models A traditional bricks and mortar business that uses the internet as an extension of its physical business e.g. www.Borders.com.au

Purely Internet Based Business

Their “shop front” is solely online, there is no physical address

e.g. www.Amazon.com

Clicks-and-Mortar Business Models

A traditional bricks and mortar business that uses the internet as an extension of its physical business

e.g. www.Borders.com.au

Types of Business Purely Internet Based Business Their “shop front” is solely online, there is no physical address e.g. www.Amazon.com Clicks-and-Mortar Business Models A traditional bricks and mortar business that uses the internet as an extension of its physical business e.g. www.Borders.com.au Both types of business can adopt a variety of internet business models

Purely Internet Based Business

Their “shop front” is solely online, there is no physical address

e.g. www.Amazon.com

Clicks-and-Mortar Business Models

A traditional bricks and mortar business that uses the internet as an extension of its physical business

e.g. www.Borders.com.au

Both types of business can adopt a variety of internet business models

Internet Business Models There are 8 different online business models: Virtual storefront Information brokers Transaction brokers Online marketplace Content provider Online service provider Virtual community Portal They use advertising to either: Generate Revenue through Selling Advertising Generate Customers through Buying Advertising

There are 8 different online business models:

Virtual storefront

Information brokers

Transaction brokers

Online marketplace

Content provider

Online service provider

Virtual community

Portal

They use advertising to either:

Generate Revenue through Selling Advertising

Generate Customers through Buying Advertising

Types of Online Advertising - Paid Advertising Pay Per Click (PPC) Advertiser pays when their ad is clicked e.g. Google Adwords, Yahoo Search Marketing, Google Adsense i

Pay Per Click (PPC)

Advertiser pays when their ad is clicked

e.g. Google Adwords, Yahoo Search Marketing, Google Adsense

Types of Online Advertising - Paid Advertising Pay Per Click (PPC) Advertiser pays when their ad is clicked e.g. Google Adwords, Yahoo Search Marketing, Google Adsense i

Pay Per Click (PPC)

Advertiser pays when their ad is clicked

e.g. Google Adwords, Yahoo Search Marketing, Google Adsense

Types of Online Advertising - Paid Advertising Pay Per Impression (PPM) Advertiser pays for every appearance of their ad on a web page e.g. banner ads or popup ads

Pay Per Impression (PPM)

Advertiser pays for every appearance of their ad on a web page

e.g. banner ads or popup ads

Types of Online Advertising - Paid Advertising Pay Per Impression (PPM) Advertiser pays for every appearance of their ad on a web page e.g. banner ads or popup ads

Pay Per Impression (PPM)

Advertiser pays for every appearance of their ad on a web page

e.g. banner ads or popup ads

Types of Online Advertising - Paid Advertising Pay Per Action (PPA) e.g. pay per sale, e.g. affiliate programs

Pay Per Action (PPA)

e.g. pay per sale, e.g. affiliate programs

Types of Online Advertising - Paid Advertising Pay Per Action (PPA) e.g. pay per sale, e.g. affiliate programs

Pay Per Action (PPA)

e.g. pay per sale, e.g. affiliate programs

Types of Online Advertising - “Free” Advertising Article Submission “Content is king” online Submit magazine style articles to other websites, in return for a link to your website

Article Submission

“Content is king” online

Submit magazine style articles to other websites, in return for a link to your website

Types of Online Advertising - “Free” Advertising Article Submission “Content is king” online Submit magazine style articles to other websites, in return for a link to your website

Article Submission

“Content is king” online

Submit magazine style articles to other websites, in return for a link to your website

Types of Online Advertising - “Free” Advertising Natural Search Engine Ranking Key is to rank highly for the keywords that your target market will search for Search Engine Optimization (SEO)

Natural Search Engine Ranking

Key is to rank highly for the keywords that your target market will search for

Search Engine Optimization (SEO)

Types of Online Advertising - “Free” Advertising Natural Search Engine Ranking Key is to rank highly for the keywords that your target market will search for Search Engine Optimization (SEO)

Natural Search Engine Ranking

Key is to rank highly for the keywords that your target market will search for

Search Engine Optimization (SEO)

Relating the Types of Advertising to the Different Types of Online Business - Virtual Storefront Sells physical products directly to consumers or other businesses

Sells physical products directly to consumers or other businesses

Relating the Types of Advertising to the Different Types of Online Business - Virtual Storefront Sells physical products directly to consumers or other businesses e.g. www.Amazon.com Affiliate Program to generate traffic

Sells physical products directly to consumers or other businesses

e.g. www.Amazon.com Affiliate Program to generate traffic

- Information brokers Provide information to individuals and businesses Revenue is generated from selling advertising space or from a commission by directing buyers to sellers

Provide information to individuals and businesses

Revenue is generated from selling advertising space or from a commission by directing buyers to sellers

- Information brokers Provide information to individuals and businesses Revenue is generated from selling advertising space or from a commission by directing buyers to sellers e.g. www.Edmunds.com Banner Ad to generate revenue

Provide information to individuals and businesses

Revenue is generated from selling advertising space or from a commission by directing buyers to sellers

e.g. www.Edmunds.com Banner Ad to generate revenue

- Transaction brokers Saves the user time and money by providing transaction options Revenue is generated from a fee generated by directing a buyer to a seller

Saves the user time and money by providing transaction options

Revenue is generated from a fee generated by directing a buyer to a seller

- Transaction brokers Saves the user time and money by providing transaction options Revenue is generated from a fee generated by directing a buyer to a seller e.g. www.BoutiqueWineries.com.au - Natural Ranking to generate traffic

Saves the user time and money by providing transaction options

Revenue is generated from a fee generated by directing a buyer to a seller

e.g. www.BoutiqueWineries.com.au - Natural Ranking to generate traffic

- Online marketplace A digital marketplace where buyers and sellers meet Revenue is generated from transaction fees between the buyers and sellers

A digital marketplace where buyers and sellers meet

Revenue is generated from transaction fees between the buyers and sellers

- Online marketplace A digital marketplace where buyers and sellers meet Revenue is generated from transaction fees between the buyers and sellers e.g. www.GraysOnline.com.au – Embedded Content and Affiliate Marketing Generates traffic for www.GraysOnline.com.au Generates revenue for www.RealEstate.com.au

A digital marketplace where buyers and sellers meet

Revenue is generated from transaction fees between the buyers and sellers

e.g. www.GraysOnline.com.au – Embedded Content and Affiliate Marketing

- Content provider Provides digital content, such as music, photos, videos Revenue is generated by sales of the digital content or by selling advertising space

Provides digital content, such as music, photos, videos

Revenue is generated by sales of the digital content or by selling advertising space

- Content provider Provides digital content, such as music, photos, videos Revenue is generated by sales of the digital content or by selling advertising space e.g. www.iStockPhoto.com – PPC advertising to generate traffic

Provides digital content, such as music, photos, videos

Revenue is generated by sales of the digital content or by selling advertising space

e.g. www.iStockPhoto.com – PPC advertising to generate traffic

- Virtual community Provides an online meeting place where people with similar interests can meet. Revenue is generated by selling advertising space.

Provides an online meeting place where people with similar interests can meet.

Revenue is generated by selling advertising space.

- Virtual community Provides an online meeting place where people with similar interests can meet. Revenue is generated by selling advertising space. e.g. www.Facebook.com – PPC or PPM advertising to generate revenue

Provides an online meeting place where people with similar interests can meet.

Revenue is generated by selling advertising space.

e.g. www.Facebook.com – PPC or PPM advertising to generate revenue

Benefits of Online Advertising Cost effective: Online advertising is results-driven advertising, i.e. you pay only after the pre-determined “success” Targeted: You can easily reach a specific reader based on geography, areas of interest and context of the content. Search: The internet is predominantly used for information; people are looking for answers about their problems, a particular type of product or solution Reach: You can reach a much wider audience online Measurable: Online advertising is transparent. Reporting and analysis gives comprehensive evidence of the return on investment for all advertising activities. Act now: Consumers can immediately click on a link to access more information, make a direct purchase or register for newsletters or services.

Cost effective: Online advertising is results-driven advertising, i.e. you pay only after the pre-determined “success”

Targeted: You can easily reach a specific reader based on geography, areas of interest and context of the content.

Search: The internet is predominantly used for information; people are looking for answers about their problems, a particular type of product or solution

Reach: You can reach a much wider audience online

Measurable: Online advertising is transparent. Reporting and analysis gives comprehensive evidence of the return on investment for all advertising activities.

Act now: Consumers can immediately click on a link to access more information, make a direct purchase or register for newsletters or services.

Summary Online advertising is an effective means of generating revenue and generating traffic to a business The types of advertising include: Paid advertising models Free advertising models A business will utilize a variety of the advertising mediums to suit their needs

Online advertising is an effective means of generating revenue and generating traffic to a business

The types of advertising include:

Paid advertising models

Free advertising models

A business will utilize a variety of the advertising mediums to suit their needs

Thank you! Any Questions?

Any Questions?