online advertising overview - lecture for cmis542 - mcgill university

Digital vs. Traditional Advertising

Digital Ad Formats Y/Y

Mobile & Video ads lead growth…

Digital Ad Revenue Share by Company

Source: Invesp

http://www.invesp.com/blog/ecommerce/digital-ad-spending.html

Goals of Online Advertising

• Create brand awareness

• Generate engagement

• Open: Create consumer demand

• Close: Satisfy consumer demand

• Direct response – Drive traffic & sales

Benefits of Online Advertising (vs. traditional media)

• Interactive medium = immediate response

• Advertisers can create immersive brand

experiences using rich media

• Digital media offers sophisticated capabilities

o Tracking

o Targeting

o Measurement

o Testing & Optimization

Steps to Planning an Online Campaign

• Define goals

• Research target audience

• Develop marketing & media strategy

• Develop media plan

• Websites or networks will affect format and payment models

• Brief the creative team

Keys to a successful ad

• Attract attention: Be the signal, not the noise.

• Be relevant and timely

• Communicate a key message in a creative and concise manner

• Include a clear call to action

• Deliver on its promise

Some of the (many) types of online ads…

• Rich Media display ads

• Pop-ups & Pop-Unders

• Modals (Pop-Ins)

• Rollover / Expando Units

• Page Takeovers & Wallpapers Ads

• Interstitial Ads

• Video Ads (Pre-roll, Interstitial)

• Maps & Paid Listings

• Sponsored editorial

• In-Game Ads

IAB Ad Guidelines: http://www.iab.net/iab_products_and_industry_services/1421/1443/1452

THE NAME GAME

CPM

CPM

Cost Per Thousand Impressions.

Best for branding where eyeballs & impressions are the main goal.

CPC

CPC

Cost Per Click.

Best for direct response advertising when the goal is to drive traffic. Sometimes referred to as Pay

Per Click (PPC)

CPA

CPA

Cost Per Acquisition.

Best for direct response advertising when the

goal is to acquire a lead or a customer.

CPM vs. Performance-based Ads

Banner Ads

Banner Ads

Also known as online display media, these

are typically image-based and come in

standard and non-standard formats

Source: http://www.iab.net/guidelines/508676/508767/UAP

SEM

SEM

Search Engine Marketing

Displaying advertising in search results in relation to a search query.

Impressions

vs.

Unique Impressions

Impressions

vs.

Unique Impressions

Total # of times displayed

vs.

Total unique users displayed to in a given time period (24 hours, 30 days, etc.)

CTA

CTA

Call to Action

Click Here, Buy Now, Learn More, Share with a Friend, Go

CTR

CTR

Clickthrough Rate

Rate at which users click through your ad displayed as a percentage.

Unique Visitors vs.

Visits

Unique Visitors vs.

Visits

Unique users to your site in a given time period

vs.

Number of visits by anyone to your site in a given time period

Landing Page

Landing Page

The post-click destination that a user

arrives at after clicking on an ad.

Conversion Rate

Conversion Rate The rate at which a user that lands on a page

converts to a lead or customer.

For example:

Customers / Unique Visits = Conversion Rate (CVR)

15 customers / 1,500 unique visits

=

1% Conversion Rate (CVR)

KPI

KPI Key Performance Indicator

A type of performance measurement used to

evaluate the success of a particular marketing

activity or initiative.

i.e. CTR, CVR, Revenue, CPA, etc.

ROI

ROI Return on Investment

The net benefit generated from an advertising campaign, usually measured as a percentage based on costs such as

ad spend and benefits such as revenue.

i.e.

Ad Spend: $100

Revenue: $500

ROI: 500% or 5x

A / S

A / S Advertising to Sales Ratio

A measurement of the effectiveness of an

advertising campaign calculated by dividing total

advertising expenses by sales revenue.

A low A / S indicates a more efficient campaign.

Behavioural Targeting

Behavioural Targeting

Behavioural Targeting The ability to track a users click behaviour and

web browsing activity and target advertising

accordingly.

Demographic Targeting

• Geography

• Age

• Gender

• Education

• Income

Contextual Targeting

• Website

• Topic

• Content Type

• Keyword

• Timing

• Etc.

Types of Behavioral

Targeting

• Browsing History (Ad Network, On Site)

• Device (Desktop, Tablet, Mobile)

• Operating System (iOS, Android, etc.)

Day Parting

Facebook Ad Targeting

• Demographic

• Platform (Desktop vs. Mobile)

• Interest-Based (Likes, Keyword, Broad Category,

Partner Data)

• Connections (Friends, Apps)

• Relationship Status

• Education

• Language

• Custom Audiences (Email, Phone # or Device ID)

• Re-Targeting (Facebook Exchange or FBX)

Facebook Page

Page Posts

Page Post Ads

Page Post Ads

• Promoting content published by a Page

• Formats: o Status

o Photo

o Video

o Link

o Other (Events, Questions, etc.)

• Promote to Fans, Friends of Fans, or Non-Fans

• Display in Newsfeed, Right Hand Side (RHS), or Mobile

Page Like Ads

Mobile App Install Ads

Domain Ads

Custom Audiences

Facebook Exchange (FBX)

Facebook Advantages

- Versatile, native ad products for branding, engagement, direct response marketing

- Precise targeting and re-targeting ability drives relevance

- Measure every aspect of the experience

- Test & optimize tactics in real-time

- Ongoing tracking and targeting of campaign participants.

Disadvantages

- More complexity requires more resources, time &

money.

- Native ad platform implies unique strategy and creative

- Unlike search, most users are not actively seeking products, services and offers on Facebook

- Users are continually finding ways to avoid advertising.

Other social ad platforms…

Miscellaneous

C2C

C2C Customer to Customer

Markets in which a business facilitates an

environment where customers can sell goods and

or services to each other.

C2B

C2B Customer to Business

Business model in which consumers (individuals)

create value, and firms consume this value.

(i.e. Blogs, Stock image services)

SEO

SEO Search Engine Optimization

The process of affecting the visibility of a website

or a web page in a search engine's "natural" or un-

paid ("organic") search results.

AOV

AOV Average Order Value

=

Total Revenue / Total Orders

TOS

TOS Terms of Service

Rules which one must agree to abide by in order to use a service.

Terms of service can also be merely a disclaimer, and is mainly used for legal purposes by websites and

internet service providers that store a user's personal data, such as e-commerce and social networking

services.

NPS

NPS Net Promoter Score

A customer loyalty metric that measures customer satisfaction based on the question:

How likely are you to recommend our company/product/service to your friends and

colleagues?

A/B

A/B A/B Testing

Simple, randomized experiments with two

variants, A and B, which are the control and

treatment in the controlled experiment.

Thanks.