Ecommerce Advertising Techniques
If you own an online business you are severely limiting your chances of maximizing your profits if you do not use an ecommerce advertising program.
Ecommerce advertising is where you place adverts for other companies and services on your site in the form of banners or, more discretely, using a contextual advertising program such as Google Adsense.
Each different type of advertisement you display will have advantages and disadvantages.
This can get confusing since there are so many different aspects of ecommerce advertising because of the revenue models they use for the ads.
Ecommerce advertising using the cost per impression model
If you use a cost per impression ecommerce advertising solution, you are making use of the simplest type of ad revenue generation.
This is the best system as you will be paid a certain amount of money for a certain amount of ads being displayed on your website.
Advertisers will vary with how much they will pay, but a good example is $1.00 CPM.
If they had the ad campaign set at 500 views, you would get $1.00 for every 500 ads that are displayed on your website.
You don't need to drive potential customers to these advertisers' online businesses in order to benefit from this type of ecommerce advertising. Your job is just to display the advert to your visitors.
You certainly won't get rich making money off this type of advertisement, but it could bring in enough money to pay for your website hosting every month.
Ecommerce advertising using the cost per click model
As opposed to just displaying the adverts in the cost per impression model above, cost per click ecommerce advertising demands that your visitors click on the advert to visit the advertiser's site.
You only get paid if a visitor clicks through to the advertisers site so why use the cost per click model?
Simply, you stand to gain more money particularly in the more competitive niches where advertising budgets are larger.
You can earn anything from a nickel up to even $70 per click and this has made the cost per click model very attractive.
In addition, ecommerce advertising using pay per click usually allows you to blend in the adverts into your site.
This makes them less obtrusive and a better fit with your content.
Anything that screams 'I'm an advert click me' such as those flashing banners you commonly see, usually gets ignored by visitors anyway.
The best, most flexible, cost per click advertising program is Google Adsense, probably the most popular ecommerce advertising program of all time.
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