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The Online Advertising Industry

What is the Online Advertising Industry?

With the rise of the internet as an interactive networking medium over the last decade, companies have realized the potential that it has to offer in terms of bringing about awareness about their products. The Online Ad industry has undergone a lot of changes and it has become a good income generating medium for many websites. In fact, the bulk of Google’s income comes through online advertising. Listed below are some of the popular forms of Online Advertisements.

1.  Display Ads – These are the huge flashy banners with pictures that you usually see online. They come in various shapes and sizes and are built to be visually attractive and catch the user’s attention immediately. You do not find such ads on search websites. The ads can be served by the publisher’s ad server. These include banners, leader boards, skyscrapers, large boxes etc.

2. Pop up Ads – These are the ads that open in a separate browser window whenever you click on a link or visit a website.

3 .Text Ads – Whenever you perform a search on Google or Bing, you will observe that apart from your search results, the search engine displays ads relevant to your search. These are the text ads. Most of the revenues of companies like Google and Microsoft (Bing.com) come from Text Ads. There is a highly complex delivery mechanism which ensures that every user sees the right ads and it is very interesting to study it. A lot of analytical work can be done in the area dealing with online text advertising. These ads can be served by the publishers directly.

4. Flash Ads – These are the animated ads that you generally see and they are a reply to pop-up blockers. They can come in a diverse variety of shapes and sizes and can be well integrated with their respective websites

5. Interstitial Ads – Ads that appear during a transition from one page to another. These user generally has to click continue to skip the ad.

6. Video Ads – With the increase in popularity of watching streamed videos on websites like youtube, these ads have become more popular of late.

7. Email Ads – These ads are distributed by the publishers to all recepients by email. The recipient generally opts-in to receive the ads from the publisher.

Though there are a variety of online advertisements, most of the analytics work of late happens on the display and text ads. There are again many ways by which these ads can be delivered

1. Content based delivery – Content based delivery happens when the ads displayed on a webpage are relevant to the content displayed in the page. There are certain algorithms which assess how relevant an ad is to the content displayed and then display the ads. Companies like Google, Yahoo and Microsoft offer such ads

2. Search based delivery – Depending on the search query entered by the user on a search engine, text ads are displayed on the browser. The advertiser usually bids on keywords and based on the presence of the keyword in the search query entered by a user, the ads may be displayed.

The takeaway from this is that online advertising is still in its very nascent phases. There is still a lot of work required to be done in terms of delivering the relevant ads to the user, so that the user, the advertiser and the publisher benefit. Any analyst whose expertise lies in this domain would be in high demand. This said, there is still a lot to be done in this domain with regard to organizing the rich data that is available and reading patterns from it.

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  1. http://www.fleewe.com
    September 26, 2011 at 5:27 am

    Yes, you are right Free Internet advertising is a very important method to promote your online business. One very effective way to do this is by using free classified ads. This method of website promotion is very often overlooked by Internet business owners.

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