Online advertisement is quite hot since people nowadays are used to receiving information from the Internet. All kinds of merchants and brands are conducting online advertisement campaigns for exposure. It is a part of digital marketing.
As we know, there are two major roles in the digital marketing industry. They are advertisers and publishers.
An advertiser is looking for opportunities to advertise its product or service to increase its publicity or sales volume.
A publisher has traffic which can be a good advertising platform. It can be a blogger, a network platform, social media, an exhibition, a conference event, or any website with traffic.
Usually, an advertiser will look for publishers whose audience shares common attributes with its customers. For example, a fitness product may publish ads on body health or sports-related website.
Besides the above way of direct advertising, there is another way that an advertiser finds the right publisher. It is through a third party called a network. Through a network, an advertiser can distribute its ads to multiple publishers. It is typical cooperation between the advertiser and publisher.
There are 4 pricing models for a publisher to calculate the profit.
1. Cost per click (CPC)
In this model, an advertiser pays for each click on the ad. This pricing model is not popular among advertisers since most advertisers expect real results from an ad. Advertisers that choose this model are confident about their products. If a CPC is low, the advertisers may consider it too.
As the CPC model is not favored by advertisers, it is advantageous for publishers. Under this model, a publisher has the incentive to create an attractive ad to increase the clicking rate.
2. Cost per install (CPI)
This model is the most popular choice for app advertisers. They want more people to download its app, and the CPI model can meet this requirement accordingly. It is also called the mobile user acquisition (UA) model.
3. Cost per action (CPA)
This model counts the ad fees after the user completes a designated task. It could be making a purchase, signing up for the app, playing the first turn in a game, or buying a subscription.
4. Cost per mille (CPM)
In this term, mille means 1000 advertisement impressions on one web page. If the CPM is $2, the advertiser shall pay $2 for every 1000 impressions. A picture is worth a thousand words, especially in digital time. It's the belief of CPM publishers as well as advertisers.
How Can SMS Help An Advertiser?
An advertiser’s goal is to reach more audiences. Be it through a network or social media. The SMS message is also a way for an advertiser to reach its audience.
As an advertiser, you can hold events and activities to attract people to participate and gather customer information. In this way, you can build up an SMS campaign gradually. After you build up your SMS campaign, you can reach your audience at a stable frequency. Reach them if you have a new product launching, a promotion event, or simply send them birthday wishes.
SMS messages can be a good way for an advertiser to connect with its audience in an intimate way, which is an advantage. What's more, the audience can interact with the advertiser through SMS messages. Applying for a shortcode or long code from an operator, an advertiser can get a number through which people can text the brand directly. The advertiser can reply to the audience directly or set up an auto-reply system based on keywords.
With social media like WhatsApp and Skype, an advertiser can freely communicate with its audience online. These two social apps can also reach the audience through their phone numbers. It means, whether they are online or offline, you can always reach them through SMS messages. It's very convenient.
How Can SMS Help A Publisher?
A publisher also needs to reach its audience. Even though it has a platform with traffic, it still needs to grow new audiences. That's new traffic, too. As a publisher, it also has to operate its brand and increase its influence. That's how they grow profit on the advertisement.
Therefore, the SMS message can be a way for a publisher to build good relationships with its audience and promote new audiences.
As a publisher, the blogs, events, conferences, webinars, and other forms of activities it holds, already have an audience foundation. The SMS message can be a good tool for a publisher to promote these activities and serve its audience.