Website Design: Advertising Business Models

Advertising has taken on new forms with the invention of the Internet. The amount of information available on the Internet is growing rapidly. When web developing an advertising business model, it is important to understand the needs of the business in order to target advertising to the right groups. It is necessary to understand the business model of the company so that the advertising model can mimic the wants and needs of the company.

A Basic Overview

Similar to television, online websites create revenue from advertising. Television uses the monies to create shows and news programs in designated areas. Advertising on websites is comparable to television advertising in that the website produces content and an advertiser pays for displays or banners next to the content with links to their own website in hopes of gathering revenue.


The following is some considerations when seeking to advertise your business, products or services on a website:

  1. How many visitors is the website getting?
  2. How many visitors are clicking on the links to the advertising business?
  3. What is the length of time being spent on the advertiser’s website?
  4. How quickly is the website growing?
  5. What are the payout rates?
  6. Are there any other methods for viewers to gain information from the advertiser’s website, such as joining a mailing list?

Another important issue is what is the target audience? Depending on the product you are selling, your target audience could range anywhere from 18-35 or 55+. It is difficult to track viewership on the television but the beauty of advertising on the Internet allows you to track how many people are searching your website, what their demographics are, and how many actually click on your advertisement.

Advertising on the Internet provides a significant advantage to target specific areas and demographics. You are able to track viewership and what they are accessing from a certain website, including advertisements. Having the ability to target specific areas allows for business to attempt for maximum profitability.

Published by Mitch Fraser

Mitch Fraser is currently the director of two successful Australian companies that provide time and money saving solutions for their customers: Tomorrow Finance and Drawstring. At Tomorrow Finance, Mitch helps people find the cheapest home loan products to bring Tomorrow's dream into today; while at his web development company, Drawstring, Mitch focuses on the outcomes for his clients by taking the time to understand each client's business and unique situation while maximising their return on investment. Mitch obtained his Bachelor of Science in Computing Science and Diploma in Information Technology and Professional practice with first class honours, from The University of Technology, Sydney, in 2005.

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