online advertising overview - lecture for cmis542 - mcgill university
DESCRIPTION
An overview of online advertising models, best practices, terminology and a deeper dive on social ads and Facebook advertising.TRANSCRIPT
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.