This article was written by Ted Dhanik
Marketers can buy and sell ad space through a network, or directly through a media purchase deal with a website. There are advantages to doing both, of course, but the purchase of ad space keeps the web going. Buying traffic from websites that fit your niche is also better for your ROI. This is how you buy ad space on the Web.
Some marketers will work directly with a webmaster to place an ad. They can negotiate their own rates, and form a relationship with the blogger over time. It may be a preference for the audience, or for that website, that drives the sale. You might get a lower rate when you pay upfront, but you are also stuck with the placement that you negotiate. So if the ad or the placement doesn’t work, you still foot the bill. Direct buys are also quite time consuming in addition to the risk. This is why so many advertisers go with a display advertising network that buys traffic from multiple sources. It gives you a wider net of potential visits to choose from, and you can discover which campaigns are working. If you make a deal directly with a webmaster, you may be stuck paying for space that doesn’t convert well for you.
Networks have relationships with multiple bloggers and webmasters to provide a marketer with plenty of traffic for a campaign. Networks have a lot of unused inventory, and may cost less than using a major network like Google Adwords. These networks also allow marketers to group their traffic by demographic, and by geographic location. Those targeting settings allow advertisers to score more conversions for a lower cost. Networks also have dedicated support staff, and more tools to use for tracking purposes.
An affiliate network relies on other marketers buying ad space for a particular campaign. You have little control over where the ad is shown, beyond some parameters you set at the outset. For instance, you might limit advertisers to using only your banner ads, or your copy. You might make suggestions on the targeting settings you find most effective, but it will be up to the advertiser to place the ad as he sees fit. These campaigns typically provide a boost of traffic, and can be beneficial if executed properly. You should exercise some foresight and interview potential advertisers if you can, especially when you’re looking to launch a new banner advertising campaign.
Marketing an affiliate program requires premium traffic to effectively scale. There are different methods of purchasing this traffic, each with its own set of advantages. The most successful marketers use a combination of these methods to build the profits of a campaign.
Bio: Ted Dhanik was a business development specialist for big brands like MySpace and LowerMyBills.com. Ted Dhanik has over fifteen years of experience in direct marketing online. Find out how to improve the returns on your digital advertising with tips from Ted Dhanik.