Three Revenue Models for Online Advertising

By Chris Sturk

Some helpful hints on generating revenue through online advertising

What comes to mind when you think about revenue models online? Is it a relatively new model that was designed specifically for the Internet? Or do you think of traditional business models that have transformed from the physical world to the digital world?

That may have been a trick question, but if you answered "both", you are correct. The Internet offers an array of revenue models, which in turn have their own subsets of revenue-generating models. This means revenue can be generated in many ways. As you read on, the intricacies should become more understandable.

The core of online business models

Online business models can be first broken into two main categories: conventional business models adapted to the Internet and Internet-specific business models.

There is an array of conventional business models, ranging from direct sales to the brick and mortar business model. These businesses may have started in the physical realm, with many ending up online. These models did not develop on the Internet, although they have transitioned to this medium.

Internet-specific business models are ones that did not, or could not exist without the Internet. Many of these revolutionized the way online businesses generated revenue as many traditional business models operating on the Internet also adopted some of these Internet-specific models.

The following examples are of Internet-specific revenue models that are valuable components of online advertising strategies.

Register today for our 90-minute webinar Maximizing Online Advertising Revenue and discover new opportunities for making money with your online content.

Three Internet revenue models

Web and email banners: These images can be included on websites or in email newsletters. They should have attractive copy and inviting imagery in order to get viewers to click on the advertisement, which links back to the advertiser's website.

These banners can come in an array of shapes and sizes and can be placed in different locations on a website. Leaderboard banners typically run across the top of a website and are seen as soon as users enter the site. Skyscraper banners typically run along the sides of the screen. They are long and tall, like their namesake.

Sponsored downloads: If you are following Mequoda Best Practices, then you are engaging in content marketing by offering free downloadable products in exchange for a user's email address. Free, downloadable products are intriguing to visitors due to the associated price point, and therefore, are downloaded often.

In the B2B segment, sponsored downloads are common. Download forms are typically longer, requesting lots of information from the user, as the user data is then provided back to the sponsor.

Sponsored webinars: Webinars are popular these days because business professionals can learn emerging practices and theories without having to constantly travel around the country or across the world. Webinars are typically educational while using a medium that incorporates both audio and visual enhancements.

Due to the popularity of webinars, sponsorships can be offered. Some companies avoid charging customers to view the webinars and instead operate a sponsorship model.

Sponsors could be sought for paid webinars as well, but in that instance it's important to take into account the amount of external promotion for the sponsor. It's important to not over-promote if you are charging viewers. This could irritate them and question the content's credibility.

These Internet revenue models and additional ones will be discussed tomorrow, November 2^nd during our Maximizing Online Advertising Revenue. Internet advertising guru Dan Ambrose will be the featured speaker for this must-attend digital event.

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