Online Advertising: Why is digital ad spending growing so rapidly?

Forecast is online ad spending is going to further upset TV ad spending balance sheet. Take a look at the internet ad revenues of 2013 which soared to $42.8 billion surpassing TV ad revenues of $40.1 billion! What does it suggest? Are the advertisers shifting their leanings towards online forms of advertising?

Ad experts are saying in its support. Online advertising is capable to promote ad materials via various forms of advertising, namely banner ads, search engine optimization, social networking, email marketing, online classified ads, site takeovers, and also SPAM! Facebook ads, YouTube ads, Sponsored Tweets, Rich Media Ads, Popup ads, Blogging, etc. do also come under the online advertising.

In fact, you may come across such ad materials present on almost every web page in a form or the other. Online advertising is thus one of the fastest ways to reach an audience.

As per various advertising models, three categories of them are more popular than the others. They are CPA or Cost per Action, PPC or Pay per Click, and CPM or Cost per Mille.

CPA model of advertising transfers all risk to the publisher. Advertisers pay the publishers only when the conversion is made via clicks. Advertising costs are quite high here.

PPC model of advertising is very common form of advertising. Advertisers pay their publishers when their ads get clicks, even if a purchase doesn’t take place. In this model, target keywords are highly important.

CPM model is popularly known as Cost per Thousand. The ‘M’ in CPM represents 1000. If a publisher charges $2 CPM, then the advertiser has to pay $2 per 1000 impressions of its ads.