Online advertising vs offline advertising
There are two different types of advertising; online advertising and offline advertising. Let's take a closer look at the differences here:
- Online advertising. Online advertising is about digital advertising. Marketing that takes place on the Internet. General examples of this are SEA (Search Engine Advertising) and SMM (Social Media Marketing).
- Offline advertising. Offline advertising is all other advertising that is not done digitally. Examples include bus advertising, a newspaper advert and events.
Design of an ad
The design of an advertisement can be very different.
Below are a few different examples of how a message can be communicated:
- Image. An example of image advertising is a banner. A banner is what is called display advertising. Here your message is graphically designed, within a given format, to suit the place you are advertising.
- Text. Ad text is simply a text in which your message is formulated. It can be on Google Ads, for example. It can also be in a newsletter or a blog post written by yourself or someone else, about your company, your products/services or that gives potential buyers valuable knowledge that makes you build an interest with them.
- Video. Advertising can also be done via video. For example, a video of one of your customers saying something about your business. It can also be a TV commercial.
- Sound. Participating or having your own podcast has become very popular. For example, an audio-only ad can be used to communicate. In addition, advertising via audio can be a radio advertisement.
Payment methods for online advertising
The price of advertising depends very much on the type of advertising. It is clearly much more expensive to have a TV ad shown on TV just before a wild dance than to advertise with a Facebook campaign over a few days.
Below we list different ways to pay for advertising.
- CPC stands for Cost Per Click. When choosing the form of payment CPCyou pay a price per click on the ad. This means that if you have an ad running on e.g. Facebook and you pay via a CPC agreement, then you will have to pay money to Facebook every time Facebook Users click on your ad.
- CPM stands for Cost Per Mile = price per 1,000 impressions. When choosing the form of payment CPMyou pay a price per 1,000 views on the ad in question. This means that if you have an ad running on a medium and you pay via a CPM agreement, you will have to pay a certain amount per 1,000 impressions.
- CPA stands for Cost Per Action = Price per action / sale. When choosing the form of payment CPAthen you pay a price per action or sale on that ad. This means, for example, that if you run a lead ad on a medium, you pay the medium every time a customer places an order in your shop.
CPC is the most used form of payment right now, followed by CPM and finally CPA. The profitability of your payment method can be measured by whether you pay more or less for your ad compared to what you earn from it.