How does Internet advertising work?


Quick Answer

Internet advertising, also known as online advertising, is a marketing strategy that focuses on using the Internet as a method of generating traffic and targeting potential customers. Internet advertising delivers messages to potential customers and defines the marketplace via distinct strategies. These strategies provide instant promotion and detailed product information without the geographical boundaries associated with traditional forms of advertising.

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Full Answer

Internet advertising includes search engine results pages, pop-ups, banner ads, social networking ads and email spam. When advertisers purchase Internet advertising who want to pay for their message to reach a specific audience, it is referred to as Cost Per Thousand advertising, or CPM. When advertisers pay for advertising based on actions taken by users seeing the ads, including making purchases, it is known as Cost Per Action, or CPA advertising. Advertisers also sometimes pay each time users click on ads; this is known as Cost Per Click or CPC advertising.

Internet advertising is essential to modern businesses and is useful for businesses that need to target markets outside of their local communities, since the Internet allows organizations to reach a larger global audience. Internet advertising is less expensive than many other forms of advertising and targets audiences more easily than do traditional forms of advertising.

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