Monetization for Advertisers on Social Networks

The continued proliferation of the web as the primary starting point in marketing a business online and new channels of monetization are being evaluated to maximize publisher profits. Since other media sources such as television are becoming expensive and capital intensive, entrepreneurs are shifting towards the web to advertise and promote themselves.

Consumers are increasingly searching online. Sites such as ebay and craigslist have become popular hubs for trading, buying and selling. Users can conveniently purchase goods sitting right in their homes. This has revolutionized commerce as we know it.

Those looking to get exposure to their products publicize themselves on popular websites with significant traffic. Entrepreneurs put up their ads and banners on those sites just like you advertise on famous TV channels with maximum viewers.

This whole process of earning via converting web traffic into currency is known as monetization. Monetization on Social Networks:

Monetization efforts using social network channels involve generating revenue through ads and virtual currency. Here is an overview of the advantages of marketing on SNS.

* Its inexpensive
* Targeted audience according to the desired demographics
* No limitations of geography or time.

Monetization Techniques: Social networks act as third party advertisers for the brands. They use different revenue models listed below:

1. PPC/CPC:
Pay per Click is an advertising model in which advertisers pay to the third parties (SNS) whenever their ad is clicked. Also known as Cost per Click (CPC), it is the amount advertisers pay for a single click on their ad.

2. CPM/CPI:
Cost per Mile (CPM) also referred to as Cost per thousand impressions (CPI) charges advertisers for every thousand page impressions. There are ad networks that calculate the revenue for websites using this revenue model like for example Adsense.

3. Affiliate Marketing (CPA-Cost per Action):
This is a form of online advertising in which advertisers pay to third party publishers for every successful transaction such as when a customer purchases advertiser’s item.

This was about Monetization on Social networks with a perspective for advertisers. Next, I will discuss Monetization for Application developers on Social Networks.

 

Thanks for sharing. It's a pretty informative post specially for newbies. I enjoyed reading it.

 

thanks for your views on this