{"id":244,"date":"2018-06-14T19:05:02","date_gmt":"2018-06-14T19:05:02","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/bus3060\/chapter\/ch14-6\/"},"modified":"2026-02-17T19:24:56","modified_gmt":"2026-02-17T19:24:56","slug":"ch14-6","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/bus3060\/chapter\/ch14-6\/","title":{"raw":"14.6 More Ad Formats and Payment Schemes","rendered":"14.6 More Ad Formats and Payment Schemes"},"content":{"raw":"
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Learning Objectives<\/span><\/p>\r\n\r\n<\/header>\r\n

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After studying this section you should be able to do the following:<\/p>\r\n\r\n

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  1. Know the different formats and media types that Web ads can be displayed in.<\/li>\r\n \t
  2. Know the different ways ads are sold.<\/li>\r\n \t
  3. Know that games can be an ad channel under the correct conditions.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n \r\n\r\n<\/div>\r\n

    Online ads aren\u2019t just about text ads billed in CPC. Ads running through Google AdSense, through its DoubleClick subsidiary, or on most competitor networks can be displayed in several formats and media types, and can be billed in different ways. The specific ad formats supported depend on the ad network but can include the following: image (or display) ads<\/a><\/span> (such as horizontally oriented banners, smaller rectangular buttons, and vertically oriented \u201cskyscraper\u201d ads); rich media ads<\/a><\/span> (which can include animation or video); and interstitials<\/a><\/span> (ads that run before a user arrives at a Web site\u2019s contents). The industry trade group, the Internet Advertising Bureau (IAB)<\/a><\/span> sets common standards for display ads so that a single creative (the design and content of the advertisement) can run unmodified across multiple ad networks and Web sites1<\/sup>.<\/p>\r\n

    And there are lots of other ways ads are sold besides cost-per-click. Most graphical display ads are sold according to the number of times the ad appears (the impression<\/em>). Ad rates are quoted in CPM<\/a><\/span>, meaning cost per thousand impressions (the M representing the roman numerical for one thousand). Display ads sold on a CPM basis are often used as part of branding campaigns targeted more at creating awareness than generating click-throughs. Such techniques often work best for promoting products like soft drinks, toothpaste, or movies.<\/p>\r\n

    Cost-per-action (CPA)<\/a><\/span> ads pay whenever a user clicks through and performs a specified action such as signing up for a service, requesting material, or making a purchase. [pb_glossary id=\"661\"]Affiliate programs[\/pb_glossary]<\/span> are a form of cost-per-action, where vendors share a percentage of revenue with Web sites that direct purchasing customers to their online storefronts. Amazon runs the world\u2019s largest affiliate program, and referring sites can earn 4 percent to 15 percent of sales generated from these click-throughs. Purists might not consider affiliate programs as advertising (rather than text or banner ads, Amazon\u2019s affiliates offer links and product descriptions that point back to Amazon\u2019s Web site), but these programs can be important tools in a firm\u2019s promotional arsenal.<\/p>\r\n

    And rather than buying targeted ads, a firm might sometimes opt to become an exclusive advertiser on a site. For example, a firm could buy access to all ads served on a site\u2019s main page; it could secure exclusive access to a region of the page (such as the topmost banner ad); or it may pay to sponsor a particular portion or activity on a Web site (say a parenting forum, or a \u201cclick-to-print\u201d button). Such deals can be billed based on a flat rate, CPM, CPC, or any combination of metrics.<\/p>\r\n\r\n

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    Ads in Games?<\/h4>\r\n

    As consumers spend more time in video games, it\u2019s only natural that these products become ad channels, too. Finding a sensitive mix that introduces ads without eroding the game experience can be a challenge. Advertising can work in racing or other sports games (in 2008 the Obama campaign famously ran virtual billboards in EA\u2019s Burnout Paradise), but ads make less sense for games set in the past, future, or on other worlds. Branding ads often work best, since click-throughs are typically not something you want disrupting your gaming experience.<\/p>\r\n

    Advertisers have also explored sponsorships of Web-based and mobile games. Sponsorships often work best with casual games, such as those offered on Yahoo! Games or EA\u2019s Pogo. Firms have also created online mini games (so-called advergames<\/a>) for longer term, immersive brand engagement (e.g., Mini Cooper\u2019s Slide Parking and Stride Gum\u2019s Chew Challenge). Others have tried a sort of virtual product placement integrated into experiences. A version of The Sims, for example, included virtual replicas of real-world inventory from IKEA and H&M.<\/span><\/p>\r\n\r\n

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    Figure 14.11<\/span> Obama Campaign\u2019s Virtual Billboard in EA\u2019s Burnout Paradise<\/p>\r\n

    \r\n\"Obama's\r\n<\/a><\/p>\r\n\r\n

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    Hyperakt \u2013 Billboard for Obama in NYC<\/a> \u2013 CC BY NC-SA 2.0.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n

    In-game ad-serving technology also lacks the widely accepted standards of Web-based ads, so it\u2019s unlikely that ads designed for a Wii sports game could translate into a PS3 first-person shooter. Also, one of the largest in-game ad networks, Massive, is owned by Microsoft. That\u2019s good if you want to run ads on Xbox, but Microsoft isn\u2019t exactly a firm that Nintendo or Sony want to play nice with.<\/p>\r\n

    In-game advertising shows promise, but the medium is considerably more complicated than conventional Web site ads. That complexity lowers relative ROI and will likely continue to constrain growth.<\/p>\r\n\r\n<\/div>\r\n \r\n\r\n<\/div>\r\n

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    Key Takeaways<\/span><\/p>\r\n\r\n<\/header>\r\n

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