In the industry of online advertising, ultimately almost every website has the potential to carry promotional materials to advertise a product, service, or goods

1. How An Online Advertising
Agency Makes Money

2. The online advertising industry functions
pretty much like advertising using other mediums where clients pay
an
advertising agency or publisher for space on web pages to promote
products and
services. The only thing that is different is that the advertising agency
or
publisher has the right to negotiate the rate of advertising, which is
based on
the revenue generated for the clients. This leads to lucrative and
profitable deals
for popular and widely visited websites that yield millions in terms of
digital
traffic.

3. In the industry of online advertising,
ultimately almost every website has the potential to carry promotional
materials to advertise a product, service, or goods, in the form of
banner
advertisements and / or popup windows. Many clients yearn for
prime promotional
space on websites that generates high numbers of unique visitor
traffic on
their web page each and every day. Unique visitor traffic refers to the
number
of individual web browsers who visit web pages over certain or given
period of
time. Web pages with a great number of unique visitor traffic are
considered
prime advertising space compared to a web page that simply has
high traffic
numbers.

4. You might be asking how web pages are able
to generate revenue through advertisements.
Well, it depends on the computation method utilized to track users
that
were able to view and click on the ads. A client can use several
available
tracking systems. These include but are not limited to:

5. Cost per
Thousand method (CPM)
- requires the
client to pay the website publisher a negotiated amount per 1,000
impressions
or ad views by users. This method does not require the user to actually
visit
the client’s own web page for the website publisher to get the
necessary fees.
Cost per Click
(CPC) and Pay per Click systems (PPC)
- requires the
client to pay the website publisher a negotiated amount for each time a
user
clicks on the client’s advertisement materials and visits the client’s own
web
page.

6. A hit rate or conversion rate is the
percentage of web page visitors who take on the desired
action upon seeing the
advertisements. The desired action is usually clicking on
the advertisement and
visiting the client’s web page to check and browse the
client’s goods and /or
services. The client monitors the traffic as well as the click
rates on their
web page and advertisement material to determine and
compute the conversion
rates for both publisher websites and individual materials
as a whole

7. Advertising agency:
http://www.optikal.com