Advertising revenue model

ADVERTISING REVENUE MODEL

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Model to handle volume of users:

Thanks to the popularity of the Internet since 2000, this method of monetising a business has become the most widely used by entrepreneurs.

Number of websites and blogs sell space to commercial brandsThe use of these media for the broadcasting of their advertising, including banners and displays, among others, has become a source, sometimes the main source, of revenue.

You have such a cool app that other companies come to your platform to promote their services. But what has to be attractive to them is that you have soooo many users.

You can't make a living from an advertising model, it is a clear complement to generate income. So if you are starting out, Don't even think about it.

  • Display advertisements 

    • It is about displaying ads on any website, the more traditional model. 
      • e.g. Yahoo!
  • Search Ads

    • The innovation popularised by Google, ads are displayed in search results that are relevant to the search. 
      • e.g. Google.
  • Contextual text ads

    • Text ads are displayed but are relevant to the content shown. 
      • e.g. Google.
  • Video advertisements

    • Small clips of advertisements are inserted into video content. 
      • e.g. Hulu.
  • Audio announcements

    • In a service based on audio (songs, podcasts...), announcements are introduced in the purest radio style. 
      • e.g. Pandora, Spotify.
  • Promoted content

    • It introduces and enhances the visibility of content for which advertisers have paid. 
    • Displayed on premium sites with a high volume of traffic and recommendations to an article or content. 
      • e.g. Outbrain.
  • Recruitment advertisements

    • Vertical ads in which a highly segmented database of profiles are shown relevant ads to recruit.
  • Lead generation

    • Clients pay for access to qualified work requests (leads) made by potential customers. 
      • e.g. MoneySuperMarket, Habitissimo.
  • Membership fees

    • A small percentage or fixed income (commission) is charged when you send a lead or customer who eventually buys. 
      • e.g. Amazon Affiliates, TradeDoubler
  • Classifieds

    • These are large groups of advertisements sorted by some criteria where you earn money with paid advertisements. 
      • e.g. Craigslist, Secondhand
  • Featured directories

    • These are usually segmented directories in which the listed company can pay for more visibility, more information or functionalities. 
      • e.g. Yelp, Pequelia
  • Email advertisements

    • These are companies that have free mail clients and in which the provider inserts (usually in the signature) advertisements for which it charges. 
      • e.g. Yahoo, MSN
  • Retargeting/ad remarketing

    • This is a special type of advertisement that, after visiting a product and thanks to cookies, is able to show you the advertisement of that product on other sites to encourage you to buy. 
      • e.g. Criteo, Google.
  • Location-based offers

    • The aim is to apply the geo variable, and is usually based on mobile platforms that make location-based offers or advertisements. 
      • e.g. Foursquare.
  • Sponsorships

    • This is a type of advertisement in which you pay to have a presence at a particular site or location without usually tying it to performance criteria (such as CPM...). 
      • e.g. Pandora.
  • Social payments

    • Increasingly common, it means that the customer does not pay with money only, but can get discounts or even free products/services in exchange for giving the product visibility in their circles.
      • e.g. PaywithaTweet

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Picture of Jaime Cavero

Jaime Cavero

Presidente de la Aceleradora mentorDay. Inversor en startups e impulsor de nuevas empresas a través de Dyrecto, DreaperB1 y mentorDay.
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