The Fundamentals of Online Advertising

Is one good way to get eyeballs is to pay for them.

And that’s where online advertising comes in.

So in this article, I am going to teach you the fundamentals of the system so that you can use this as a part of your growth hacking tool belt.

There are basically three components to the online advertising lifecycle.

The Fundamentals of Online Advertising

An impression of an ad is made hopefully somebody clicks it and then hopefully they take some action

and usually, just action is tracked by whichever organization has sold you the ad.

And the basic two fundamental kinds of ads that you need to know about.

  • A search Ad where you sponsor a search result based on somebody’s query into an engine or a display
  • the ad where some kind of image video or rich media has been popped to the user and you should know that empirical data shows that search ads are about 40 percent higher R-N.Y then display ads.

Moving on here are some key metrics for you to know OK.

CPM means cost per 1000 impressions of the ad and you can think about CPM like this.

The more valuable and precise your audience is the higher your CPM is going to be.

The second metric you need to know about is the

CTR: – click-through rate and so on average the click through the rate is somewhere between like point 0 5 percent and at the very high end it would be like 1 percent

So you’re not going to get that many clicks through is based on the number of impressions that you buy

Now one metric you’re going to see in your AD server is

CTC: – click through conversions that means how many people saw the ad. Got the impression and then made it click.

But there’s something else you need to know about it’s called

VTC: – View through conversions. Now some ad platforms most of them calculate this in because what this is that somebody saw your ad in their first instinct was to search for your company or organization.

And actually, this happens a lot in the ad you know platform to track this because they want to show you that somebody saw the ad they didn’t click the ad but then they went in search your company.


You can think of online advertising as the short cycle between impressions clicks and

then some kind of action search ads are sponsored search results whereas display ads pop users some

kind of image or video that they can click in a small fraction of people who see the ads are going

to click and the more precise and valuable the audience that you’re targeting is the more expensive

that CPM is probably going to be.

If you have any queries regarding the topic feel free to contact me through the comments section or you can fill out the form in the contact us area.

Thank You.

Source:  –


Published by AnmolGogia

"Write when drunk. Edit when sober. Marketing is the hangover." -Ashwin Sanghi The perfect quote for a Digital Marketer and a Growth hacker. I am a highly motivated student with a goal driven work ethic. I have a strong curiosity for Growth Hacking and Entrepreneurship. I have some amount of experience in business world working with real world Data and producing results, having interned this summer since this was my first year in college, this was my first Internship experience. I am a Google certified digital marketer and Eazl certified Growth Hacker also knowledge about blockchain, data analysis and automated analytics results. I hope to become a valued Growth Hacker in this field and Someday have my own successful running company. I have interest outside of work I love to read books and being healthy and fit is my way of living. At the end I aspire to be the happiest, the most successful and the best version of myself.

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