• WHAT IS ONLINE ADVERTISING REVENUE MODEL
• HOW WEB SITES EARN MONEY THROUGH ADVERTISING
• AD NETWORKS
• PRICING /REVENUE MODELS
• TYPES OF ADVERTISEMENTS
• EXPLAIN WITH REAL EXAMPALES
• ADVANTAGES AND DISADVANTAGES OF ADVERTISING REVENUE MODEL
• THREATS AND BARRIER TO ENHANCE THIS MODEL
Online advertising is a very popular revenue model for e-
commerce businesses. In this method, companies or
organizations buy advertising space on your site, provide a
designed ad or written message, and then pay you for
promoting their messages. Media sites, such as magazines,
newspapers, and television channels typically use online
What is online advertising revenue
Display advertising branch of AOL advertising
Offer types CPA, CPC, CPM
500,000 monthly impressions need for publisher
Publisher website shouldn’t content with hate, firearms, bombs, weapons, illegal activities,
pornography, links to indecent matter, illegal file sharing.
Offer types CPC
Network size -2 million publishers
No traffic requirement for publishers
Publisher website shouldn’t content with Pornography, Violence, Racial Intolerance, Excessive
Profanity, Hacking/Cracking, Illicit Drugs, Drug Paraphernalia, Sales Of Beer Or Hard Alcohol
Yahoo’s worldwide net digital ad revenues $3.28 billion in 2015.
They have new ads site called yahoo gemini for publishers
Yahoo does not allow for get-rich-quick schemes & offers
Pay to bid sites
Questionable legality products & services
Tobacco products etc
Minimum Traffic: 2000 uniques per day , Publisher language requirements: English only
Publishers will not display the company’s advertisements on sites containing download, adult, streaming,
violence, guns, gambling, bitcoin faucet, and any illegal content. Free sites such as Blogspot and Weebly
are not accepted either.
Offer types: CPM, CPC, CPA
Advertising Types: Display, Text. Pop-ups not allowed
Network Size: “Over 100,000 websites and mobile applications” according to Wikipedia, 150,000 according
to Adcash website.
Advertising Types: Display
Offer Types: CPM, CPC, CPA, CPL, CPV
Doubleclick ad exchange (adx)
CPM (Cost Per Mille), also called "Cost Per Thousand (CPT), is where advertisers pay for
exposure of their message to a specific audience. "Per mille" means per thousand
impressions, or loads of an advertisement. Ex - liveintent , clickadu , buysellads
CPV (Cost Per Visitor) or (Cost per View in the case of Pop Ups and Unders) is where
advertisers pay for the delivery of a Targeted Visitor to the advertisers website. ex –
CPC (Cost Per Click) is also known as Pay per click (PPC). Advertisers pay each time a user
clicks on their listing and isredirected to their website. They do not actually pay for the listing,
but only when the listing is clicked on. Ex – media.net , google adsense, infolinks , chitika ,
CPA (Cost Per Action) or (Cost Per Acquisition) advertising is performance
based and is common in the affiliate marketing sector of the business. In
payment scheme, the publisher takes all the risk of running the ad, and the
advertiser pays only for the amount of users who complete a transaction,
as a purchase or sign-up.
EX - Rakuten linkshare , sourcengo , adcombo , cj affiliate
CPL (Cost Per Lead) › CPO (Cost Per Order) › CPE (Cost Per Engagement)
EX - wow trk, coregmedia
Thousands of advertisers do campaigns in adnetworks to enhance their sells
advertisers In tourism industry
Airlines –Srilanakan Airline, Ethihad airways etc
Hotels – Cinnoman Hotels, Jetwing, Hilton,Shrangila
Traval agencies- Priceline, Travalocity…
Destination web – Aruba.
online money web sites,
Food and beverage sellers,
Cosmetics items sellers,
Mobile phone companies,
Types of Ads
• Floating ad: An ad which moves across the user's screen or floats above the
• Expanding ad: An ad which changes size and which may alter the contents of the
• Polite ad: A method by which a large ad will be downloaded in smaller pieces to
minimize the disruption of the content being viewed
• Wallpaper ad:An ad which changes the background of the page being viewed.
• Trick banner: A banner ad that looks like a dialog box with buttons. It simulates
an error message or an alert.
• Pop-up: Anew window which opens in front of the current one, displaying an
advertisement, or entire webpage.
• Pop-under: Similar to a Pop-Up except that the window is loaded or sent behind
the current window so that the user does not see it until they close one or more
• Video ad: similar to a banner ad, except that instead of a static or animated image,
actual moving video clips are displayed.
• Map ad: appearing in or over, a location on an electronic map such as on Google
• Mobile ad: an SMS text or multi-media message sent to a cell phone.
Types of Ads
• If ad network is google adsense or ad words, most of
publisher sites are blogs. Word press
• For another ad network sites most of sites that fulfill
requrements of the ad networks.
• Ex : expected traffic for site
• Language that include
• Content should’nt the prohibited things
• Other polices…
Example 1: priceline.com publish latam airline advertisement on their website
Example 2: youtube.com publish facebook ad on their web
Example 3: baiscope.lk put heritance Ayurveda mahagedara as sponsored link on
their web site
Example 4: kikass.to web insert iflix web ads
Example 5:priceline.com ad advertisement about promote aruba destination
Benefits of advertisement revenue
Advertiser can analyse the progress of campaign through account.
You can easily test the market.
The ad campaign is less expensive.
The ad works 24 hours a day, 7 days a week, 365 days a year.
Can change online ad much more easily than change ads in other media.
Customers can see ad, shop, and buy, (if you sell your goods online) all without leaving
Can target our audience effectively.
The ability to set daily spend limits .
The ability to track, test and evaluate the effectiveness of campaigns compared to other
The ability to run multiple campaigns
easy to implement and easy to withdraw,
Disadvantages of advertisement
Ad blocking softwears, addones are major restrict to this model.
Don’t know if they actually get what they pay for.
Don’t know if they can trust the visitor and/or traffic profile online media owners and publishers claim
their sites have.
Have the feeling there is a lot of click fraud. Bux sites, most of ptc sites.
Don’t know if their ads appear in the sites and/or sites’ sections where they should appear.
Surfers who are on the net for a specific purpose may ignore your ads.
Surfers may notice your ads but choose not to click.
Low-net penetration of your target markets. This will push up cost per contact.
There is an absence of sufficient research on the effectiveness of web ads.
The web is a highly competitive environment and it’s easy to get lost.
Poorly managed campaigns can be expensive and ineffective.
By not evaluating what you’re doing you’re likely to waste money.