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The Internet is one of the most important media for advertising. It not only complements your other forms of advertising, but also reaches a unique, distinctive class of audience. Consumers on the Internet are generally the most sought after because of their purchasing power.

Online advertising is a form of advertising that uses the Internet and World Wide Web in order to deliver marketing messages  and attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, Rich  Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including  e-mail spam.

The Complete Guide to Online Advertising
Advertisements are a great way for online publishers to be make money. However, for someone getting started with online  advertising it can be extremely confusing. There are lots of different advertisers, types of ads which you can display,  payment models such as CPM, CPA and CPC, and different ways of getting paid.

Payment Models
There are basically three different ways in which advertisers reimburse publishers for displaying their ads. These are known  as CPM, CPC, and CPA.

CPM means Cost Per Thousand Impressions (M being the Roman numeral for thousand). An impression means your ad is being seen  by a a visitor to your site. Therefore if you’re being paid on a CPM basis the more people that see the advertisements the  more you earn. CPM advertising is generally a good choice for websites that receive a high volume of traffic in a general  niche where it is difficult to cater your advertisements to one set of targeted demographics.
Because CPM offers a good metric for comparison you’ll also see eCPM, which means equivalent CPM. So if you’re displaying ads  on a CPA or CPC basis you can quickly and easily see how much your making per 1000 impressions.

CPC means Cost Per Click. This is where advertisers display ads on your site, often through a medium such as Google Adsense,  and you get paid every time a visitor clicks on an ad. This is a great way to put up advertisements that are relevant to the  content of your websites. Many webmasters have found success by driving targeted traffic to their websites monetized with CPC  advertising.
When displaying CPC ads an important metric is your CTR, or Click Through Rate, meaning the percentage of visitors that click  on the ads. Obviously the higher this number is, the higher your earnings.

CPA means Cost Per Action. An action can mean different things depending on the offer being advertised, with the action  usually coming in the form of a lead or a sale. Affiliate Marketing is considered CPA, and while it is difficult to master  the profit potential for professional affiliate marketers is virtually unlimited. CPA advertising generally works the best  when you have highly targeted traffic searching for the products that you are advertising.

Types Of Advertisements
There are many different types of ads that we can display, from simple text links to full page interactive banners.

Ad Formats
Text ads
Advertisements displayed as simple, text-based hyperlinks are known as Text Ads. As their name suggests, text ads they do not include graphic images. Text ads are sold on non-search websites and can be served either by individual websites, or a publisher’s own ad servers.

Display Ads
Graphical advertisements featured on websites are known as Display Ads. Display ads are often available in many standard shapes and sizes, including: banners, leader boards, skyscrapers, large boxes, and other sized graphical ads. Display ads use eye-catching visuals to quickly grab catch the attention of website visitors browsing the pages on which they are featured. Display ads are sold on non-search websites and can be served either by individual websites, or a publisher’s own ad servers.

Pop-Up Ads
Advertisements that appear to “pop up” in a new window as users browse a website are known as Pop-Up Ads. Hover ads, floating ads and slide-in ads ads are all considered pop-up ads. (Sometimes these ads are also known as Pop-Under Ads, depending on whether they are displayed over or underneath the current web content being browsed.) The use of Flash and DHTML ads has risen in recent years in an effort to counter the increased usage of pop-up blockers.

Flash / DHTML Ads
These kinds of ads incorporate Flash animation or other motion graphics. Ads may be animated display ads in more traditional shapes and sizes, or, as of late, they can be sophisticated ads that function similarly to pop-up ads but with much deeper integration into the overall design of the site.

Interstitial Ads
Interstitial ads appear between web pages that the user requests. For example, an interstitial ad may appear after you click on a link in an excerpt to view the full content of news story. Because interstitial ads load in the background and do not interrupt the users immediate browsing experience, they are a preferred method of delivering ads with rich media, streaming video, and/or large graphics.

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