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Traditional Online Media

Traditional online media placement features ads on commercial, personal, and blog web sites. The ads contain a defined message, call to action, and typically offer an incentive to the viewer. The ads are placed within traffic-heavy regions of the web site, such as the top and right/left-hand columns of the page, or between the page text.

Advertisers may select from several different ad platforms. Banner ads are a popular method for creating and displaying ad content. Banner ads take on many different forms, including rectangles, buttons, skyscrapers, as well as the traditional 468 x 60 horizontal display. Text ads are a more concise and cost-effective ad platform, and are typically portrayed on the right-hand side of the web site. One may also create audio/video ads, which are especially useful for instructional purposes. Finally, for larger budgets, rich media ads may be created and launched. Rich media ads often feature unique graphic outlays, interactive displays, and even online games.

Using a media buyer, an advertiser may purchase and place ads via an ad agency. The ad agency will negotiate with individual and group publishers regarding ad display, location, pricing, and duration. Larger web publishers (e.g., CNN.com, ABC.com) may have their own media buyers and ad agencies in place. Alternately, many publishers may choose to affiliate themselves with ad networks, which negotiate on their behalf and are paid a portion of the ad's revenue.

Depending on the advertiser's budget and advertising goals, several different ad pricing structures are possible. The most common is cost per mille (CPM), which charges the advertiser a fixed price per one thousand ad impressions. This is typically the desired price structure for advertisers seeking brand recognition and building, or association with a given web site. For advertisers seeking consumer response and product sales, a cost-per-click (CPC) pricing plan is preferred. In this case, the advertiser is not charged when the ad is displayed but only when it is clicked on. Other advertisers who might be seeking consumer information (e.g., surveys) will choose a CPA (cost-per-action) model.

Advertisers with larger ad budgets, such as credit card or mutual fund companies, may choose to pay per generated lead. Other advertisers, working through advertising networks that include many smaller web site publishers and affiliate marketers, prefer revenue sharing. Finally, for advertisers hoping to defray advertising costs and become synonymous with a separate product or service (such as the association of Budweiser with broadcast NFL games), the sponsorship pricing model is chosen.

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