Three R's of Online Advertising

The three "R's" of online advertising are three important aspects that all advertisers need to consider when developing an advertising campaign.

This article will discuss the three "R's" of online advertising and why they are important.



3 R's of Online Advertising

Below is a list of the three R's of online advertising as well as a description and explanation of why they are important.


Reach

The reach of an advertisement refers to the portion and frequency the population of users are exposed to the ad. For example Google has a reach of approximately 150 million American Internet users which is approximately 80% of the US Internet user population.

The reach of an advertisement is important information for advertisers because it allows them to determine if the reach available is enough or not enough for their advertising needs.

Relevance

The relevance of an ad refers to the degree the ad is similar, useful, or "like" the content, needs, and interest of the user and what the user is currently doing. For instance, a advertisement for a divorce lawyer is relevant to Ralph a mechanic and a current search user who is researching divorce attorneys. That same advertisement is not going to be a relevant to Ralph three years from now when he is viewing the NYTimes.com story on Ford Motors.

The relevance of an advertisement is going to a big impact on the performance of the advertisement.

ROI - Return On Investment

The ROI or Return On Investment is the value or benefit that is received by the advertiser per dollar the advertiser spends or invest in the advertisement.

If the advertiser spends $200.00 on content network advertisements through Google and that advertising generated $10,000 dollars worth of revenue, then one can most likely say that given the cost of the product or service is not to outrageous that advertiser should probably turn up the dial on their content network advertising budget.





4 comments:

  1. Thanks for the post. The lifeblood of marketing is the 3R's. I feel like sometimes people get wrapped up in all this internet Seo, off-site/on-site seo services, and social media stuff they forget the basic principles of marketing. A good reminder that people need to continue to apply the 3 R's to everything they do.

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    1. I think the most interesting and unique quality of online advertising is the ability to measure relevance and return of any given advertising effort. how business advertisers of the 60's 70's and even the 80's would have begged to have access to the information online advertising provides it's users. Just a decade or so ago advertisers knew they were wasting parts of the advertising budget but were simply unable to know which advertising efforts were in vain and which efforts were profitable. Those days of darkness are now starting to fade with the performance tracking capabilities utilized by today's online advertisers and marketers.

      Thank you for your comment. Yes I to agree that advertising online can misdirect people to advertising fads and this often distracts even professionals from looking at the bottom line effectiveness of different online advertising strategies.

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  2. Advertising is one of the most influential mediums to promote your product across the globe.Advertising is always present, though people may not be aware of it. In today's world, advertising uses every possible media to get its message through.

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