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Advertising is an audio or visual form of marketing communication that employs an openly sponsored, nonpersonal message to promote or sell a product, service or idea.:465 Sponsors of advertising are often businesses who wish to promote their products or services. Advertising is differentiated from public relations in that an advertiser usually pays for and has control over the message. It is differentiated from personal selling in that the message is nonpersonal, i.e., not directed to a particular individual.:661,672 Advertising is communicated through various mass media, including old media such as newspapers, magazines, Television, Radio, outdoor advertising or direct mail; or new media such as search results, blogs, websites or text messages. The actual presentation of the message in a medium is referred to as an advertisement or "ad".
Commercial ads often seek to generate increased consumption of their products or services through "branding," which associates a product name or image with certain qualities in the minds of consumers. On the other hand, ads that intend to elicit an immediate sale are known as direct response advertising. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Non-profit organizations may use free modes of persuasion, such as a public service announcement. Advertising may also be used to reassure employees or shareholders that a company is viable or successful.
Modern advertising was created with the techniques introduced with tobacco advertising in the 1920s, most significantly with the campaigns of Edward Bernays, considered the founder of modern, "Madison Avenue" advertising.
In 2015, the world spent an estimate of US$529.43 billion on advertising. Its projected distribution for 2017 is 40.4% on TV, 33.3% on digital, 9% on newspapers, 6.9% on magazines, 5.8% on outdoor and 4.3% on radio. Internationally, the largest ("big four") advertising conglomerates are Interpublic, Omnicom, Publicis, and WPP.
In Latin, ad vertere means "to turn toward".
An online advertising network or ad network is a company that connects advertisers to web sites that want to host advertisements. The key function of an ad network is aggregation of ad space supply from publishers and matching it with advertiser demand. The phrase "ad network" by itself is media-neutral in the sense that there can be a "Television Ad Network" or a "Print Ad Network", but is increasingly used to mean "online ad network" as the effect of aggregation of publisher ad space and sale to advertisers is most commonly seen in the online space. The fundamental difference between traditional media ad networks and online ad networks is that online ad networks use a central ad server to deliver advertisements to consumers, which enables targeting, tracking and reporting of impressions in ways not possible with analog media alternatives.
The advertising network market is a large and growing market, with Internet advertising revenues expected to grow from $135.42 bn in 2014 to $239.87 bn in 2019. This growth will result in many new players in the market, and encourage acquisitions of ad networks by larger companies that either enter the market or expand their market presence. Currently there are hundreds of ad networks worldwide and the landscape changes daily.
The inventory of online advertising space comes in many different forms, including space on desktop and mobile websites, in RSS feeds, on blogs, in instant messaging applications, mobile apps, adware, e-mails, and on other media. The dominant forms of inventory include third-party content websites, who work with advertising networks for either a share of the ad revenues or a fee, as well as search engines, mobile, and online video resources.
An advertiser can buy a run of network package, or a run of category package within the network. The advertising network serves advertisements from its central ad server, which responds to a site once a page is called. A snippet of code is called from the ad server, that represents the advertising banner.
Large publishers often sell only their remnant inventory through ad networks. Typical numbers range from 10% to 60% of total inventory being remnant and sold through advertising networks.
Smaller publishers often sell all of their inventory through ad networks. One type of ad network, known as a blind network, is such that advertisers place ads, but do not know the exact places where their ads are being placed.
Large ad networks include a mixture of search engines, media companies, and technology vendors.
Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing.
It is estimated that mobile app install ads accounted for 30% of all mobile advertising revenue in 2014, and will top $4.6bn in 2015, and over $6.8bn by the end of 2019. Other ways mobile advertising can be purchased include working with a Mobile Demand Side Platform, in which ad impressions are bought in real-time on an Ad exchange.
Some see mobile advertising as closely related to online or internet advertising, though its reach is far greater — currently, most mobile advertising is targeted at mobile phones, that came at an estimated global total of $4.6bn as of 2009. Notably computers, including desktops and laptops, are currently estimated at 1.1 billion globally. Moreover, mobile advertising includes SMS and MMS advertising units in addition to the advertisement types served and processed via online channels.
It is probable that advertisers and media industry will increasingly take account of a bigger and fast-growing mobile market, though it remains at around 1% of global advertising spend. Mobile media is evolving rapidly and while mobile phones will continue to be the mainstay, it is not clear whether mobile phones based on cellular backhaul or smartphones based on WiFi hot spot or WiMAX hot zone will also strengthen. However, such is the emergence of this form of advertising, that there is now a dedicated global awards ceremony organised every year by Visiongain.
According to the research firm Berg Insight the global mobile advertising market that was estimated to €1 billion in 2008. Furthermore, Berg Insight forecasts the global mobile advertising market to grow at a compound annual growth rate of 43 percent to €8.7 billion in 2014.
Online advertising, also called online marketing or Internet advertising or web advertising, is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. Consumers view online advertising as an unwanted distraction with few benefits and have increasingly turned to ad blocking for a variety of reasons.
It includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential participants include advertising agencies who help generate and place the ad copy, an ad server which technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser.
In 2011, Internet advertising revenues in the United States surpassed those of cable television and nearly exceeded those of broadcast television.:19 In 2013, Internet advertising revenues in the United States totaled $42.8 billion, a 17% increase over the $36.57 billion in revenues in 2012.:4–5 U.S. internet ad revenue hit a historic high of $20.1 billion for the first half of 2013, up 18% over the same period in 2012. Online advertising is widely used across virtually all industry sectors.:16
Many common online advertising practices are controversial and increasingly subject to regulation. Online ad revenues may not adequately replace other publishers' revenue streams. Declining ad revenue has led some publishers to hide their content behind paywalls.
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