Slowly but surely advertising is coming into its own. Many people are now realizing the scope of advertising and are opening advertising agencies or are investing money in big advertising firms. The companies have also realized that advertising is the only medium through which they can interact with the masses and the customers. Advertising helps companies market their brand and make it famous. Advertisements attract customers and can help in increase of the products sale. Advertisements also tell the people about the product, its applications, its features, and its importance or use in the daily life. Advertisements are of various types like news paper ads, TV commercials, internet ads, pamphlets, hoardings, etc. TV commercial ads are the costliest ad and a single ad can even cost you a few million dollars.

With more and more companies trying to advertise their products and more and more ads being released every day, the cost of advertising is sky rocketing. Even small scale local companies are trying to advertise their product. In today's high take world, and things like animation, graphics, special effects, advertising has improved a lot and so has the concept and its presentation.

Internet ads do not cost as high as TV or radio ads nor do they cost as low as news paper ads. Internet advertising is the latest form of advertising and its cost is moderate as compared to other types of advertising. The internet ads are pay per click ads or permanent ads. Pay per click ads are cheaper and more beneficial as compared to permanent ads. The pay per click ads are performance based, and the advertiser needs to pay to the publisher depending on the number of clicks that the ad has got in that stipulated time period. There is target number of clicks, if that is not achieved by the publisher then one pay not pay to the publisher. The cost of a single click called as cost per click is decided by considering factors like number of popular key words used in the ad, the popularity of the web site, the popularity of the search engine on which the web site is listed, the search engine ranking of the web site, the ROI rating, etc.

Permanent ads do not work like pay per click ads and the advertiser has to pay a monthly rental to the web site or to the publisher. The cost of the monthly rental is fixed by taking into consideration the size of the ad. The size of the ad is measured in pixels, higher the number of pixels used higher is the advertising cost. The cost of a single pixel is decided by factors like the position of the ad i.e. top right, top left, etc; the number of visitors that the web site gets in a day, the popularity and efficiency of the web site.

Hoardings is the cheapest form of advertising. The cost of a hoarding ad is decided by the size of the ad and the cost of making the poster as well as the monthly rental of the hoarding board that is being used.

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Article Submitted By: James Copper
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