Online advertising USA
Types of online advertising. Which internet advertising tools are relevant in the USA.
Internet advertising: content
What is online advertising - definition
Online advertising is a branch of digital marketing that uses the internet as a communication channel to deliver advertising messages to a target audience. Typically, the term “online advertising” refers to any paid mass non-personalized brand communication online.
Online advertising emerged in 1994 and quickly gained popularity. Today, more than 50% of all advertising budgets are allocated to online advertising, surpassing the combined expenditures on TV, radio, print, and outdoor advertising. This statistic holds true for the USA, the UK, Germany, and many other countries.
Online advertising is classified based on payment models (CPM, CPC, CPA, flat fee) and types of advertising materials (text, static image, animated image, video, audio, etc.). Additionally, online advertising encompasses various types, or as marketers call them, internet advertising tools.
Types of online advertising
Types of online advertising refer to various formats and types of advertising materials used in internet marketing to promote products, services, or brands on the internet. These types of advertising can include formats such as banner advertising, contextual advertising, video advertising, mobile advertising, social advertising, and others. Each of these types has its own features and advantages that can be utilized depending on the objective and target audience of the advertising campaign. Let’s take a closer look at them.
Search Contextual Advertising
Search contextual advertising (Search PPC) is advertising that is displayed on search engine results pages based on the user’s interests. This type of advertising is most commonly associated with the user’s search query.
The most popular search engine in Ukraine and the world is Google. The advertising system, Google Ads, supports two types of search ads: text ads (for all advertisers) and shopping ads (only for online stores).
The primary payment model for search contextual advertising is cost per click (CPC).
Search contextual advertising is the most popular among all types of online advertising. It has high effectiveness and allows advertisers to attract visitors interested in their products or services to their website.
Search Engine Optimization (SEO)
Search Engine Optimization (SEO) is an internet marketing tool that aims to increase the number of website visitors from organic search results. The essence of SEO work is to align the website with search engine requirements, eliminate technical errors, create valuable and unique content, and enhance the website’s authority.
Advantages of Search Engine Optimization:
- The ability to generate a large number of targeted visits at a relatively low cost per visitor.
- A tool for addressing established demand.
Disadvantages of Search Engine Optimization:
- It takes a significant amount of time to achieve results (at least 3 months).
- Not suitable for short-term advertising campaigns.
- Search engines change their ranking algorithms multiple times a year.
- SEO cannot create new demand.
Display advertising, also known as banner advertising, is an internet advertising tool that utilizes static, animated, or video banners on websites and mobile applications to promote products, services, or brands.
Display advertising originated on October 24, 1994, and remains one of the key instruments in online advertising. The largest display advertising network in the USA and worldwide is Google Ads (Google Display Network).
The key advantage of display advertising is the ability to reach a large target audience within a short period of time and with a relatively small budget.
Video advertising, also known as online video advertising (OLV), is an internet advertising tool that utilizes promotional video content.
Video advertising is most commonly used on video hosting platforms (such as YouTube), social media platforms, other websites, and mobile applications. The most popular platforms for video advertising in the USA are YouTube and Instagram.
The key advantage of video advertising is the ability to use videos of varying lengths, convey advertising messages of different complexity, and create an emotional connection with the target audience.
Targeted advertising, also known as social media advertising or social PPC (pay-per-click), is an internet advertising tool in which ads are placed on social media platforms, utilizing user information from their profiles and social signals during campaign setup.
Advantages of targeted advertising include the ability to accurately target the desired audience, different types of campaign goals, and various payment models.
Advertising on social media has become one of the most popular tools for mass communication. The choice of social media platforms for advertising should align with the target audience’s profile, campaign goals, and geographical targeting. For example, in the USA, advertisers predominantly utilize Facebook, Instagram, Twitter, LinkedIn, and TikTok.
Teaser advertising involves placing text, text-image, or graphic advertisements on informational or entertainment websites. Typically, these advertisements have small dimensions, are displayed with a cost-per-click payment model, and the advertising message is independent of the content of the page where it is displayed.
Teaser advertising is often used as an additional tool to attract users to a website. Its advantage lies in its low cost per click.
Email marketing is an internet advertising tool that allows for regular communication with a target audience with the goal of informing or increasing sales.
Email marketing is considered the most effective internet advertising tool in terms of return on investment.
Advantages of Email Marketing:
- An ideal tool for customer retention.
- Suitable for promoting both mass-market products and working with small target audiences, including the advertising of complex products.
- Low cost of communication.
Affiliate marketing is an internet advertising tool based on the principle of rewarding partners for each referred customer or desired action (such as a phone call, lead, etc.). The reward can be a fixed amount or a percentage of the transaction value.
The key advantage of affiliate marketing is that the advertiser can independently set the reward model, ensuring the profitability of this tool.
Among the disadvantages are the complexity of forecasting and scaling, technical complexity in using the tool, and the potential for fraud.
There are two approaches to using affiliate marketing:
- Creating your own affiliate program.
- Utilizing popular CPA networks (Cost Per Action).
Other types of advertising on the Internet
Other types of online advertising, in addition to the aforementioned internet advertising tools, are also actively used by advertisers, including:
- Mobile marketing and ASO (App Store Optimization).
- Presence on Google Maps and other mapping services.
- Listings on specialized websites (company directories, industry-specific directories).
- Advertising on price aggregators, marketplaces, and classified ad boards.
- In-game advertising.
- Advertising in streams.
- Audio advertising.
- And much more.
PR on the Internet
PR in the internet (online PR, digital PR) is the process of strategic communication through digital channels, aimed at building mutually beneficial relationships between organizations and their target audiences. Online PR encompasses several distinct areas and tools:
- Working with online media outlets and industry-specific websites.
- Engaging with opinion leaders (influencers).
- Engaging with online forums.
- Monitoring brand mentions on the internet.
- Search Engine Reputation Management (SERM).
- Managing reviews and reputation.
- Content marketing, including:
- Social Media Marketing (SMM).
- Email newsletters.
- Creating other valuable content.
Directions of Internet Advertising
Modern classification of internet advertising defines three directions based on the advertiser’s goals.
Performance marketing is a direction of internet advertising where the advertiser’s goal is to generate leads, calls, orders, online transactions, mobile app installations, or other measurable user actions that are important for the business.
Brand advertising is a direction of internet advertising where the advertiser’s goal is to build brand awareness, increase purchase intent, and create or boost demand.
Brandformance marketing is the most contemporary direction of internet advertising where the advertiser simultaneously pursues performance and brand goals, utilizing the full range of internet advertising tools. Within the scope of brandformance marketing, a specialist must determine the optimal budget allocation between the two types of objectives and calculate the cumulative effect of employing all the tools.
Advantages of Internet Advertising
- Ability to address various types of objectives.
- No budget entry barrier (unlike television advertising).
- Real-time statistics and the ability to optimize advertising campaigns on the fly.
- High effectiveness when used correctly.
- Ability to drive online conversions, shortening the user’s path.
Features of Internet Advertising
The two essential rules that allow for effective use of internet advertising and achieve the best results are:
- You should have at least one person on your team who is well-versed in digital marketing.
- Choose professionals and contractors who are always eager to acquire new knowledge. Internet advertising is constantly evolving, with new tools emerging monthly and existing ones evolving.
Online Advertising — price
The cost of online advertising depends on the profile and size of the target audience, competitive environment, and other less significant factors.
For example, the cost per click for different search queries is as follows:
- $0.5 – “buy a football ball”
- $1-20 – queries related to the names of various dental clinic services
- $3-50- queries related to the names of various legal firm services
The price of advertising on social networks, banner ads, and video ads can vary significantly depending on the description of your target audience: from 0.5 USD CPM for mass-market brands to 20 USD CPM for advertisers targeting a niche specialized audience (e.g., B2B industrial equipment).
The budget for online advertising depends on the goals of the advertising campaign, the marketing model of the specific company, and the cost of advertising to reach your target audience.
To determine the cost of advertising, it is necessary to first specify which media channels and types of advertising you are interested in, as well as the goals of your advertising campaign.
If you are interested in calculating the optimal budget for your advertising campaign, please reach out to us, and we will provide you with a consultation.
The cost of advertising in Google is determined through an auction model and depends on the industry and type of advertising.
Google search advertising typically ranges from 0.3 to 5 USD for most industries, but can reach up to 100 USD in specific niches.
Google display advertising (banners) typically costs between 0.5 and 4 USD per thousand impressions.
YouTube video advertising is priced at approximately 1 to 5 USD per thousand video views.
If you would like to learn about the pricing for advertising in Google specific to your business, please contact our agency. We will provide you with a consultation. UAMASTER is an official Google partner.
When we talk about the cost of contextual advertising, it’s important to distinguish between “price” and “budget.”
The price of contextual advertising is determined for each click on each search query separately.
For example, let’s consider a company that sells laptops and smartphones.
The cost per click for the query “buy laptop” is 2 USD, and for the query “buy smartphone” it’s 1 USD.
The budget for contextual advertising is calculated as the cost per click multiplied by the number of clicks.
If we receive 1000 clicks for the “buy laptop” query and 500 clicks for the “buy smartphone” query, the total budget will be:
$2500 = ($2 * 1000) + ($1 * 500).
If you need a budget calculation for contextual advertising, please contact our agency. We will provide you with consultation. UAMASTER is an official Google partner.
The price of banner advertising depends on the specific website or advertising system you choose for placement. The price range can vary widely, from 0.3 to 25 USD per thousand banner impressions.
If you need consultation regarding website selection, advertising systems, and determining the optimal budget, please reach out to us. We will be happy to assist you.
The cost of advertising on social media, also known as “targeted advertising,” depends on the specific social media platform and the ad format you choose.
The price of advertising on Facebook, Instagram, LinkedIn, TikTok, and Twitter can vary significantly.
Currently, for Ukrainian advertisers, the lowest advertising costs are typically found on Facebook and Instagram, starting from 0.1 USD per click and 2.5 USD per thousand ad impressions.
If you need assistance in calculating the budget for advertising on Facebook or Instagram, please reach out to us. We are an official partner of Meta (formerly Facebook).
The budget for advertising on Instagram can start from hundreds of dollars per month for small businesses, such as a coffee shop. Larger companies may spend millions of dollars per month on advertising on Instagram.
The cost of advertising on Instagram can be determined based on clicks or impressions and depends on the target audience. Here are approximate indicators:
CPC (Cost Per Click) – ranges from 0.1 to 0.8 USD. CPM (Cost Per Thousand Impressions) – ranges from 1 to 5 USD.
Why choose us
We have experience working with your industry. Since 2004, we have worked with various legal industries, including Automotive, E-commerce, HoReCa (Hotel/Restaurant/Café), FMCG (Fast-Moving Consumer Goods), retail, healthcare, pharmaceutical companies, construction, real estate, B2C and B2B services, esports, NGOs, fuel and energy sector, financial sector (banks, insurance companies, CUAs, microcredits, blockchain projects, payment services), and many others.
Please reach out to us, and we will share our experience and case studies relevant to your industry.
We focus on achieving long-term goals for your business in our work. Tell us about your goals, and together we will find the optimal path to reach them.
Contextual and targeted advertising do not tolerate unnecessary haste. To launch an advertising campaign, it is necessary to develop a clear plan of action and structure for the future account, have or create good creatives, check the landing page and web analytics settings. Depending on the complexity of your project, launching an advertising campaign can take from a few days to several weeks (for a large e-commerce project).
After the advertising campaign is launched, our specialists begin the process of optimization. At the same time, machine learning algorithms of Google Ads and Facebook Ads start working. Our experience shows that achieving significant results in regular projects requires 1-2 months of meticulous work, while for complex projects, this period ranges from 3 to 6 months. After that, we move on to the project scaling stage.
Contact our agency and get a roadmap for your advertising campaign.
At UAMASTER, we offer our clients transparent collaboration conditions that provide you with significant advantages:
We calculate an optimal advertising budget to meet your objectives. The agency’s service cost is not dependent on the size of the advertising budget.
The agency’s service cost is calculated based only on the actual time spent by specialists working on your project.
This collaboration model allows you to save 30-50% of the cost compared to agencies that use a different pricing model.
In addition to contextual or targeted advertising, you can request additional services at any time since we do not limit clients with any “package tariffs.” Do you need assistance from a web analyst, designer, email marketer, UX specialist, or SEO expert? We are always at your service.
Contact us today, and we will calculate the optimal budget for your contextual or targeted advertising.
How we are working
Getting to know your business and goals
Analysis of the current situation and competitors
Development of an advertising campaign plan
Web analytics check. Campaign setup.
Campaign optimization and reporting
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Managing online advertising is akin to architectural and engineering work during bridge construction.
Creativity and aesthetic appeal should always be guided by precise mathematical calculations. The outcome of our work is a sturdy bridge that connects your brand with its target audience.
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