The evolution of web advertising.
The evolution of web advertising has unfolded in front of our eyes these past few years. In fact, "Business Week" reports that U.S. advertisers will spend more on online advertising than on print for the first time this year (2010). This shift reflects not only the collective change of how our society consumes media, but also our acceptance of technology.
Past
It only took five years from the time that Tim Berners-Lee invented the World Wide Web in the late 1980s to having a website sell space on its site for banner ads to corporate advertisers in the mid 1990s. It's no surprise that the time span from the inception of the Internet to buying digital ad space was so minimal. Web advertising itself, like its history, is fast and efficient.
Types
Many types of web advertising available to marketers. Contextual advertising is one type that uses keyword searches to facilitate text based ads. Google was one of the first companies to introduce this model to marketers with AdSense. Banner ads are another form of web advertising. These ads appear on the web page that the user has navigated to and generally incorporates text and images to grab the user's attention. Email marketing is another well-used way to advertise to consumers. This type of advertising uses email address to directly communicate with the consumer.
Price Structure
Buying ad space on the web can be confusing if you're not familiar with the different revenue models available. The most used pricing structures are CPM, CPC and CPA.
CPM or "cost per thousand" is when an advertiser pays a fixed cost per thousand impressions. Impressions refer to the number of times the ad was displayed on the publisher's website.
CPC or "cost per click" is when an advertiser pays a fixed cost per click. Each time their link is clicked they get charged.
CPA or "cost per acquisition/action" is when the advertiser pays for the ad only when the desired action has occurred. Actions vary and are generally determined by the advertiser, but can include purchases or sign-ups.
Technology
Because advertising online is so deeply rooted in technology, as technology continues to advance, the ways in which companies communicate with consumers, will continue to advance with it.
Future
When digital advertising was introduced to the industry, it marked so much more than just a new vehicle to deliver the brand's message. It marked the beginning of the end of traditional one-way communication models. The popularity and use of social networking sites and smart phones, gives consumers a voice to share first-hand experiences with the brand directly, in addition to current and potential consumers, and allows them to decide when and where they consume media.
The future of advertising will incorporate smart technology into other media channels as well, making ads more engaging by being relevant to the user's location and likes. The advertising industry is no doubt changing before our eyes and being able to see it first-hand is pretty remarkable.
