P1 D

P1 D- Sources of Revenue in Social Media

 

Pay-Per-Click Advertising

‘Pay per click’ is an internet advertising model which is used to direct traffic to websites, in which an advertiser pays a publisher when the ad is clicked. This is used greatly through social media sites such as Facebook, Twitter and Instagram as it is an easy way to target people’s accounts and persuade them into buying products from their complete interest. For instance, if someone had posted through their Facebook account about an interest in the fashion industry, Advertisers may use this as a skill to post products of a similar interest onto that person’s wall. This is usually very successful, although some people are still unaware that this is happening to them.

Pay per click is commonly associated with first-tier search engines such as Google and Microsoft Bing Ads. With search engines, advertisers typically bid on keyword phrases that are relevant to their target market. In contrast, content sites commonly charge a fixed price per click rather than use a bidding system.

 

Impression Advertising

Impression advertising is when an ad is fetched from its source, and is countable. This means that whether or not the ad is clicked is not taken into account. Each time an ad is fetched, it is counted as one single impression. Counting impressions is the method by which most Web advertising is accounted and paid for, and the cost is quoted in CPI (cost per impression).

 

Above is a graph to show the top categories by % share of display ad impressions. It is clear how this is used generally through Social Media, as it is ranked 33% on the graph.

 

 Banner Advertising

banner, or display advertising, is advertising on websites. This includes many different formats and contains items such as text, images, audio, flash and video. The main purpose of display advertising is to deliver general advertisements and brand messages to site visitors.

According to Emarketer, Facebook and Twitter will take 33% of display ad spending market share by 2017. Also, desktop display advertising has eclipsed search ad buying in 2014, with mobile ad spending to overtake display in 2015.

Above I have added a screen shot to illustrate the use of Banner Advertisements. It is clear on this how the social media site Facebook is being used for advertisements to be featured on the page. This is clearly to deliver clear advertisements across to social media users as a way of gaining more consumers.



Demonstrated above is a screenshot of when a Pay- Per Click advertisement is being used through Google. This is clearly an easy way for a company to make money, as consumers are often tricked into paying for things they are unaware of. As shown in the screenshot, this is commonly associated with first- tier search engines such as Google.