Structural Analysis Of Influential Factors Of Online Advertising Pricing

This article summarizes the classification and advantages of online advertising, through the comparative analysis on traditional advertising and online advertising. While banner ads,pop-up ads,rich media,search engines are the forms inherited from traditional advertising,the innovation of online advertising includes link advertising and game advertising.At the same time,online advertising have the advantages traditional advertising can not match,for example:the diversification of the transmission of online advertising,organically combining text,images and voices through a variety of forms,strengthening the effect of visual impact;and the range of dissemination of online advertising is wide,while maintaining timeliness and low cost.In addition,the interactive nature of online advertising allows advertisers to disseminate a "one-on-one" mode of individual communication,to improve the selectivity of the target customers;what's more,online advertising also has advantages of the running precision and traceability.Because of these advantages of online advertising,online advertising has become the most active ad categories in advertising market,more and more to be adopted by enterprises interested in globalization and information technology.China's online advertising market soared all the way and has shown strong growth potential in the background that the global online advertising market has got through the hard times and begun to rebound strongly.Cost of advertising is an important component in the operating costs of modern business enterprises.The pricing levels of advertising are an important factor related to the smooth running of the entire economic environment.So the pricing of online advertising naturally becomes the focus of the development of online advertising industry.With the rapid development of the online advertising market,the research on the evaluation methods of the effectiveness of online advertising gradually deepens, and on this basis,a series of pricing methods of online advertising emerge,including PFP(pay-for-performance),CPL(pay according to the number of potential customers collected),monthly payment and many other charge mode of online advertising,in addition to CPM(cost per thousand impressions),CPC(per thousand people concerned about the cost),CPR(cost per response),CPA(cost per action). Those charging mode vary,but every pricing strategy has its own shortcomings,in which,CPM is to measure the effectiveness of online advertising through the times of viewing the page containing the online advertising.An impression is made when the page or ad images required by users is browsed once.This pricing strategy has been very popular for one time,but there are obvious defects that it is beneficial to the issuer of the site,but not fair to the advertisers;CPC is a charge mode based on every 1000 times clicked on the ad graphics and linked to related web site or details.For example,if advertisers buy 10 CPC,ads can be clicked 10000 times.This pricing strategy is the contrary of CPM,and harmful to the advertising issuer;the biggest drawback of CPA is that:while it clearly measures the sales effect of online advertising,it entirely denies the brand-building role to enterprise and products;and CPR also has its own shortcomings:it is very difficult to quantify the response measure of the target audience,causing the lack of feasibility.At the same time,the online advertising market is bound to develop with a standardized changing trend,when it has developed to a certain extent,which requires the pricing of online advertising must have a standardized pricing system;At the same time,new media are emerging,and existing online advertising pricing model are from single-factor model of consumer behavior,without a uniform standard to measure.On the one hand,it lacks generality;on the other hand,it does not have the feasibility to new media.Therefore,the establishment of a reasonable,common online advertising pricing strategy is a problem urgent of a solution to correctly measure the effectiveness of online advertising,and is a necessary precondition for the healthy and rapid development of China's online advertising industry.The author begins from the point of view of the characteristics of online advertising and network media,abstracts macro and micro factors that have impact on online advertising pricing.First of all,macron factors that affect the pricing,the types of network media,are expounded.User groups,network construction,and advertising environment of different types of network media,are different.And because operating costs and earnings are different thanks to the difference of operating ways of different network media,therefore,it is a prerequisite for ad pricing to distinguish between different types of network media.In the actual work of network media pricing,first of all the pricing level of the same type of advertising media is referred to,and then in accordance with the difference between them,the pricing for its own advertising is made and adjusted.The micro factors affecting the online advertising pricing begin from the page construction and the characteristics of the ads themselves, which are divided into:the brand value of online advertising,the value of online media,types of online channel,types of online advertising,and the location online ads.Different micro-factors have different impact on online media.The brand value of online advertising can be transformed into to the value of online media on a certain extent;and the value of online media is judged by the number of users owned by media as well as other factors as popularity.The value of online media can be measured by the index of visiting volume,and the index of visiting volume and the ad pricing have a positive linear correlation,in other words,the value of online media has a positive impact on pricing of online advertising.Types of network channels are measured through the values of different levels of channels.A-type channels in the network has the largest number of users,so the corresponding traffic is also the largest;B category is after A category,C-type and D-type are with the same analogy.It can be seen that different levels of index of channel types can be determined by adding up the visiting volume index.The higher index of channel types,the higher levels,the higher advertising prices;the difference of online advertising type determines different froms as well as the amount of information carried,resulting in the different production costs,affecting the price of online advertising;in addition,the impact of the screen and the location of the online advertising ads on the pricing is also analyzed here. We make assumptions of our model based on the single-factor analysis,extract and analyze the data of four different network media with different value of media values.By calculation,significant degree of impact of various factors on the online advertising pricing is found and a multi-factor model with three factors is established: y=-251.5562+0.725076x₁+0.966513x₂+0.406569x₃On this basis,several other factors are further analyzed and it is found that their impact on the pricing of online advertising is on the basis of certain indicators, therefore,in accordance with this idea,the hierarchical model of the factors that affect the pricing of online advertising is finally established.The hierarchical model can be separately calculated according to adjusted factors,and has a very big help on the pricing of new media,providing another idea and direction for the comprehensive pricing of online advertising.