Three links to the success of Internet advertising industry

As a result of the overall recession in the advertising industry, the total value of the Internet display advertising market has dropped from $23 billion trillion in 2008 to $20.8 billion this year. Many large media companies believe that advertising networks, as intermediaries, should not sell large amounts of cheap advertising. Advertising network is currently on the low-end of the teeth whitening products and slimming medicine ads, but also to help large companies such as Ford Advertising. However, some analysts believe that the Internet site itself to provide more and more advertising, which is leading to the decline in advertising prices another big reason.

Big internet companies such as Google, Microsoft, AOL and Yahoo are trying to get revenue from the tension between websites and advertising networks. These companies are developing online ad trading markets to replace ad networks. Advertising market allows advertisers to directly bid for the site ads. Google launched the service in Friday.

Websites that sell directly to advertisers often have higher prices. These ads are located in the larger traffic location, such as the home page, thousands of display costs of the price of even up to 50 U.S. dollars. However, according to analysts estimates, 90% of the site's advertising is not directly sold. In order to solve this problem, the website must cooperate with AD network. An ad network usually serves thousands of websites, and the cost of advertising is usually 1 dollars.

To ease the pressure on advertising prices, many sites are starting to shrink advertising, envision new sponsorship patterns and try to reach terms that are more conducive to their own dealings with ad networks. "Ad networks are large aggregation tools, and we need to emphasise our strengths," said Nada Stirratt, Nada Stinat of the executive vice president of digital advertising sales at Viacom's MTV. We create original content that attracts music enthusiasts rather than untrusted users. ”

In the advertising market slump, in order to increase the attractiveness of advertisers and visitors, the site added news and entertainment content pages. This further increases the advertising position, resulting in a Web site more reliant on ad networks.

The internet has two main sources of income, on the one hand, the sale of products or services, including sales sites, membership Web sites, and so on, on the other hand, to promote these sales sites to obtain advertising revenue. There is also the income between these links, but ultimately it comes down to advertising for the first form and earning income. From this analysis, it can be seen that all the income, the ultimate source is the product or service sales, but is also a redistribution. We can describe this chain, money from the consumer (including corporate consumers) in the pockets of the sale of goods or services to the site, and then these funds in various division of labor and functions of different sites to distribute.

Many industries are obviously able to see the chain mentioned above, we cite a strange example, steal QQ account to obtain revenue. First, money flows from people who buy QQ numbers into the hands of sellers. And how do these QQ numbers get? Trojan makers make a Trojan horse, and then find a variety of small web sites to buy traffic, hanging horse, steal QQ number. So it is clear that the sale of small Web sites to obtain income is actually into the chain of funds to redistribute.

Since this is how the industry works, it can be concluded that a Web site to earn advertising fees, he has to do only one, to provide sales of the site to bring more sales, can be said to be the ultimate advertisers to bring income, then you can from the chain of profits from the reallocation of funds. So the internet advertising, and even other forms of advertising, the essence is very simple, is that you want to give the business to bring income, and then the merchant part of the money to you. So the premise of making money is to make more money for the merchant.

Such a conclusion is simple, but without practical guidance, which means it is not feasible. So we have to start from here, do concrete analysis, that is, to solve the problem of how to do. Internet advertising has several important links, the premise is to be able to show the ads, that is, you have to control enough traffic, and then show the way, this step to solve how to show the ads to potential customers, not unrelated to the people, which is an important aspect of Internet advertising superior to ordinary advertising, Traditional advertising in the choice of targeted customers are low, cost is also high, the last is the billing method, this step determines a lot of content, and then do a specific analysis, this step more highlight the advantages of Internet advertising, you can take a variety of flexible billing methods, such as display, click, Sales effect, etc. And many of them can be accurately tracked, the traditional media basically only one billing method, is to show.