Advertising is one of the key facets of a business, particularly for online set-ups. This vertical which is currently valued at Rs. 5000 crore, is made up of various crucial components, the most important being – ‘traffic’ (number of visitors to a particular page or link) For example, a single visit to an average web site might generate 3 Page ‘Views’ and 45 ‘Hits’. These figures effectively translate into the web page’s ‘traffic’. This phenomenon follows the trail of the proverbial chicken and egg story. What comes first on a site? Paid Traffic or Free/Brand Traffic? Now for brands like Amazon, gathering traffic is a cinch, whereas a new name surfacing in the industry would most likely require a major push through pumping of funds in order for traffic to come in.
Another fundamental constituent for advertising is the actual scale your business plans to achieve in the foreseeable future. The segment your business aims to extend its services to, along with the category of products your business intends to cater also play a vital role. The more generic the product, the larger is your scope for being able to advertise for it and eventually acquire traffic.
Marketers need to keep a track of traffic and leads. There are gamuts of metrics available to work with to get these in place.
A start-up also needs to take into consideration the privacy of its advertising content. Safeguarding its interests (by working on a more down the funnel metric – CPL, CPA, etc) where the deliverer of the advertisement would want to work on upfront metrics (CPM, CPC, etc). It is only rational that both ends would want to maximize their returns while safeguarding against the downsides.
Online advertising can be seen with two entirely opposing standpoints; one where you look at it as being exclusively performance based advertising and second where you are willing to pass off some portion of the spend as ‘Brand Spend’. What it essentially does is that it allows the online marketer to reduce perceived performance inefficiencies.