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Website Advertising Online

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How does a website earn through online advertising?

From banners, side panels, to links, how does online advertising work?

Companies pay the website owner to advertise on their page. First they buy a set number of times their ad will be shown, these are called “impressions”. There are numerous cost models that can apply. Sometimes you pay a cheap amount for certain number of impressions, but have a larger amount to pay for each time the ad was actually clicked. Sometimes your ad will run endless number of times but you’ll only be charged each time the ad is shown to a different user, these are called “uniques”. Sometimes, more rarely, you can purchase unlimited ad serving for a set period of time, say 1mos. A common cost model is called CPM, which stand for “cost per thousand”.

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