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How does display advertising actually work?

So you've decided to advertise online. You now need to choose how much inventory (advertising impressions) to buy and over which period of time you would like to run your campaign. You can also decide if you want to run your campaign across a whole network of sites or only on a specific section such as Business, Travel, Automotive or Entertainment. For example, if you had a business selling Cars, then it would make sense to advertise more heavily in the Automotive section than across the whole network.

You can also target Geographically – so if your business is only applicable to people in the Southwestof England, or the Northeast or London or Cornwall or Plymouth, you can target your advertising so it is only displayed to people in those areas. This is done using something called an I.P address.

Adverts are served into these placements by a piece of software whose job it is to deliver advertising to the right sites at the right times. As there is likely to be more than one person advertising on a website at any given time this software will manage delivery to make sure that everyone's campaigns serve at the correct levels.

It's probably easiest to run through an example to show you how this works. Continuing the Car Sales example you might choose 100,000 advertising impressions over four weeks on the Automotive section only. We would then serve roughly 25,000 each week to the Automotive section across the length of the campaign which will provide you with the optimum response.

How can I monitor the effectiveness of my campaign?

One of the major advantages of online advertising is that it is fully accountable. You can tell exactly how many people have had a chance to see your advert and also see the exact figures for how many people took action over it ( i.e. clicked on the advertisement to be taken through to a landing page or website of your choice). This is supplied in the form of a click through ratio (CTR) – so if 1000 people see your ad and 10 click on it the CTR would be 1%.

What's the price?

The price of the campaign is dependent on the volume of advertising booked. Put simply, the more you book the cheaper the price will be per advertisement. The price is also dependent on where the campaign is actually booked. This is because some Websites and Channels are more popular than others and tend to sell out far more quickly. You can realistically have an effective campaign that will deliver results from as little as £250.

What's the catch?

There isn't one! The Internet's flexibility, creativity and unique accountability along with the rapidly expanding UK and international online market have made it the fastest growing advertising medium in history.

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