web basics 101

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Web Advertising Basics 101

Krysta Nevin

Client Sales Specialist

knevin@godengo.com

510-863-8724

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Agenda

• Why should I sell my website

• Basic Ad Units

• How Websites Monetize

• Glossary

• What is SEO

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Why Sell the Web

• Print budgets are declining. Online budgets are growing.– If an advertiser tells you they don’t have money to

advertise in print then sell them online.

– Online budgets are more than $100’s of dollars. See here: West Penn Allegheny

– Online offers customized solutions to fit your advertisers needs.

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The Internet has continued to grow

Sources: IAB Internet Advertising Revenue Report; PwC

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Why Sell The Web

• It’s a great compliment to your print ads– Advertisers get placement in your magazine and online.

– Bundle print and online when you sell.

– Don’t sell as “added value”.

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Why Sell The Web

• People are going mobile– $1.2 billion will be spent on mobile marketing this year.

(Borrell and Assoc.)

– More and more people continue to purchase smart phones and tablets.

– Smartphones now make up 40% of all mobile phones in the US. (Neilsen)

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Why Sell The Web

• Online only content that the advertiser might want to be associated with.– Special Sections

– Directories

– Online only content

– Ads can be targeted to run only on the pages the client wants to be associated with.

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Standard Ad UnitsThe following ads are standard

ads across your sites:

1. Leaderboard (728x90)

2. Wide Skyscraper (160x600)

3. Medium Rectangle (300x250)

4. Half Page (300x600)*Click for Live 300x600 Example

Wide

Sky(160

x600)

Leaderboard (728x90)

MediumRectangle(300x250)

* Not Shown

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How Websites Monetize

Advertising agencies and clients may ask for ads to be

served these ways:• CPM (Cost-Per-Thousand)

• CPC (Cost-Per-Click)

• CPA (Cost-Per-Action)

What is an impression?The number of times an ad is viewed.

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Cost-Per-Thousand (CPM)

Cost-Per-Thousand: Advertising bought on the basis of impression.

The total price paid in a CPM deal is calculated by multiplying the CPM rate

by the number of CPM units. For example, one million impressions at $10

CPM equals a $10,000 total price.

Examples:

1,000,000 / 1,000 = 1,000 units

1,000 units X $10 CPM = $10,000 total price

An advertiser requests 25,000 impressions

Take 25,000/1,000 = 25

CPM= $8 = $200 TOTAL SALE

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Cost-Per-Click (CPC)

Cost-per-click (CPC)

The cost or cost-equivalent paid per click-through.

The terms pay-per-click (PPC) and cost-per-click (CPC) are sometimes

used interchangeably. PPC indicates payment based on click-throughs,

while CPC indicates measurement of cost on a per-click basis for contracts

not based on click-throughs.

Examples:

1000 impressions x 2% CTR = 20 click-throughs

$10 CPM / 20 click-throughs = $.50 per click

The average cost per click is .50 to $1.

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Cost-Per-Action (CPA)

Cost-Per-Action:

Online advertising payment model in which payment is

based solely on qualifying actions such as sales or registrations.

The actions defined in a cost-per-action agreement relate directly to some

type of conversion, with sales and registrations among the most common.

In a CPA model, the publisher is taking most of the advertising risk, as

Their commissions are dependant on good conversion rates from the

advertiser’s creative units and Web site.

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GlossaryAd Campaign:

When a specific advertiser buys internet advertising for a set amount of time. Each

Time an advertiser chooses to be on your site is considered a new ad campaign.

Ad Trafficking:

Also called Ad Scheduling. Ad Trafficking defines where (targeting), when

(scheduling) and how often (impressions) ads appear on the site.

Ad Server:

Ad serving technology makes it possible to serve the right ad at the right

time to the right person.  That means your advertising is being as

productive as possible.

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Glossary

Click-Through Rate:

A way of measuring the success of an online advertising campaign, the

click-through rate is the number of clicks on an ad verses the number of

times the ad was downloaded. For example, if one in ten people who

downloaded a page clicked on a certain ad, the clickthrough rate would be

10%.

Bookend Ad: A small ad that displays the client's logo, typically above or below the content it's sponsoring. I will refer to a bookend ad in future presentations. It’s a key sponsorship ad unit.

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Glossary Cont.IAB:

Internet Advertising Bureau The Internet advertising guideline site. www.iab.net/

IAB Ad units:

Industry standard ad sizes. Godengo uses IAB standards for:

• Leaderboards (728x90)

• Wideskyscrapers (160x600)

• Medium Rectangles (300x250)

Impression:

The number of times an ad is delivered directly to a viewer.

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GlossaryExclusive Ad:

Appears in one location exclusively for the duration of the campaign or ad run. No

other clients' ads appear in that location. Works great for selling exclusive

sponsorships to particular sections of your site.

Inventory:

Inventory is the number of ads available for sale on a Web site.

ROS (Run-of-Site):

An ad campaign in which banner ads are scheduled to appear in various places all

over a site. This is similar to a rotating and is the opposite of an exclusive ad.

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What is SEO?

SEO = Search Engine Optimization

• What is SEO?

SEO is a process which helps search engines find and rank your site higher than the millions of other sites in response to a search query. SEO helps you get traffic from search engines.

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Thank you

Questions?

Future Sessions include:

How to monetize your website

Basic Sponsorships

My Site is too small

How do I get ads on my site

Where to find a Prospect

If you want further information please contact me:

Krysta Nevin

knevin@godengo.com

510-863-8724