There are so many companies that provide services to internet users and from the media for free. that users get to ask what these companies or websites do to get money?
In many cases these revenue is earned by advertising, there is an income model, this is based on advertising, this refers to businesses that sell advertising space.
What is an advertising revenue model?
As the name implies, it is a business income model. where the company makes money by selling the advertising space.
This includes newspapers, magazines, television, radio, among others are the best examples to follow since they are the oldest. And its main sources of income is from the sale of your advertising space.
Internet companies that have acquired the model of newspapers, TV, among others, in order to generate income, in sites like Google and Facebook had to look for income methods other than those user subscriptions. In order to continue providing their services for free.
What is direct mail and contextual advertising?
According to the advertising-based revenue model, direct mail is the most widely used form, because Sales of ad space produce higher income.
This is based on companies selling advertising spaces directly to the user. How is it done in a web context? Normally through an agreement that is CPM AND CPC. This agreement is made between the company and the advertiser.
All transactions and interactions with the advertiser are handled by the company. you also have maximum control over how advertising is displayed and sold.
It is when a company uses a third party to sell the advertising space that we find on websites. Your content reflects what customers might be interested in, an example of this is Google AdSense, which promises to display Google’s contextual ads on a website.
The relevant contextual companies deal directly with GoogleNow what are the benefits? They don’t have to manage the relationships with the advertisers or the transactional part of the sales. They also have to pay the middleman, which decreases the revenue from this model.
Internet business model
These companies create business models for profitable and new ways to connect with consumers. this also generates income. These functions vary according to the particular form that the business model takes.
What is an Internet business model?
This model is the procedure by which a company tries to get more income, pay and continue growing, the internet is the main medium for growth and the creation of a company.
Many companies prefer a simple method when it comes to create online sales, for example, the models of the industries that allow them to sell their products to companies, as in the same way a physical store would.
Another method includes the subscription model that is through a company that offers multimedia content to any user, this is done in exchange for a single or monthly fee.
When creating a company or business on the internet you can see the difference between success and failure, create a presence on social networks and pay for a space in search engine results.
This will allow the results to appear when consumers search for something related to what the company offers this is advertising strategies.
The best thing is the cost of the website for the transaction of the online commercials, compared to a physical store is much cheaper.