Digital Advertising – Display, Search, Video, Mobile, Social, Affiliate

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  • 1. Digital Advertising – Display, Search, Video, Mobile, Social, Affiliate April 1st 2014 Vinogradovo, Russia
  • 2. 1. Traditional vs digital media advertising 2. Digital advertising terminology 3. Digital advertising format basics 4. Digital ad pricing models 5. Audience metrics and targeting Agenda
  • 3. What are the most important differences? What are the main benefits and downsides? How has changed the way your sales department works? How will your sales department look like in a near future? Traditional vs digital media advertising
  • 4. Traditional vs digital media advertising Quantitative „Reach“ Model  spreading a commercial message to audience as large as possible in hopes of connecting with qualified customers who happen to be receptive to it Qualitative „Targeted“ Model  enables to target a selected prospects and to monitor their response rates Masses of unknown eyeballs VS Highly specific and traceable audience
  • 5. Digital media advertising: Pros & Cons Benefits • Cost • Measurability (real-time) • Formatting • Targeting • Coverage • Speed/Flexibility Concerns • Banner blindness • Fraud on the Advertiser • User annoyance • Ad-blocking • Privacy Concerns • Spam
  • 6. Traditional media advertising: Pros & Cons Benefits • Recipients are accustomed to ads • Reach to local audience that is not online • Special training/device not required Concerns • Cost (high overhead costs are outweighed by high profit margins) • Difficult to measure and target • Static (pre- produced/scheduled) • No interaction, one-way communication
  • 7. Digital Advertising Terminology Ad rotation Ad view/Ad impression Capping Clickthrough (CTR) Click rate Cookie Display ads Filtering Inventory Native advertising Targeting Unique visitor Visit KB Glossary: http://www.kbridge.org/ru/glossary/
  • 8. Digital media advertising value chain Buy Side Infrastructure and Delivery Sell Side Media Agency Demand Side Platform Ad Exchange Ad Network Supply Side Platform Publisher
  • 9. Evolution of display ad trading Source: IAB UK, http://www.youtube.com/watch?v=1C0n_9DOlwE
  • 10. Digital Advertising Essentials Ad Types Text or Link Ads Display Ads Rich Media Ads On-Site Sponsorship Advertorial Directories Mobile Ads Affiliate Marketing Ads Search Advertising Social Media Ads Delivery Methods Display advertising Search Engine Marketing (SEM) Social Media Marketing Mobile Advertising Email Advertising Online Classified Advertising Affiliate Marketing
  • 11. Digital Advertising Formats source: IAB.net - http://www.iab.net/guidelines/508676/508767/displayguidelines
  • 12. Digital Advertising Pricing  Fixed costs (a flat fee over a specified period of time, irrespective of the ad's visibility or users' response to it)  CPM (Cost per mille) or CPT (Cost per thousand)  CPC (Cost Per Click) or PPC (Pay Per Click)  CPA (Cost Per Action)  CPV (Cost Per View)
  • 13. Digital Advertising Pricing  Fixed costs/time-based pricing - does not reflect growth in audience, easily overbooking ad inventory, adding new ad units  CPC (Cost Per Click) or PPC (Pay Per Click) – ads are shown, they increase awareness of advertiser, but you get paid only for clicks  CPA (Cost Per Action) – unpredictable income, you lose visibility into revenue earned, no control on conversions None of these is recommended pricing model for display ads on premium content sites
  • 14. Digital Advertising Pricing Recommended Pricing Model for Display Ads CPM (Cost per mille)/CPT (Cost per thousand)  for every display ad you serve you make money (regardless of clicks, leads, or other action), every visitor makes you earn money;  you know exactly how many ads you serve, and therefore exactly how much you’re owed from your clients;  stable stream of earnings; if you can predict your traffic, you can predict your revenue.
  • 15. Audience Measurement Site-Centric - Third-party technology (a tracking code) or self-reported website server logs collect audience metrics for a specific site, often by analyzing cookie/browser/log file data from each visitor. User-Centric - Each person studied has joined a panel and/or installed tracking software to allow a third-party to collect their usage statistics. Ad-Centric - Data are used to quantify the advertising exposures delivered to the audience of a single site by analyzing data from ad server logs.
  • 16. Audience Measurement Each measurement type has distinct advantages, though none alone captures the full range of market-relevant and media- relevant activities of consumers. No industry standard for online activity measurement yet exists. Hybrid approach to audience measurements - uses fusion or other techniques to incorporate findings from a variety of other sources, to correct errors and plug gaps (e.g. integrating both consumer panels and site-centric measurement). Leaders of research in Russia: TNS, comScore, Gemius
  • 17. Audience Measurement: Key Metrics Page Views - a request for a file that is defined as a page Visit / Session - is defined as a series of page requests or, in the case of tags, image requests from the same uniquely identified client. A visit is considered ended when no requests have been recorded in some number of elapsed minutes. Visitor / Unique Visitor / Unique User - uniquely identified client (device or browser) that is generating page views or hits within a defined time period (e.g. day, week or month). The identification is usually via a persistent cookie
  • 18. Online Advertising Targeting Methods Targeting options  date and time targeting  geographical location of users (up to city/district level – hyperlocal targeting)  number of hits per user (based on a cookie and IP) - capping  bandwidth, browser, languahe settings, OS, connection type, etc.
  • 19. Advanced Targeting Methods Retargeting - serving ads based on prior engagement, ads appear on a variety of other sites, keeping a campaign in front of bounced site visitors. Social Media Targeting - refers to the process of matching social network user’s profile to target groups that have been specified by the advertiser. Contextual Targeting ( “semantic” targeting) - Inferring the optimum ad placement from information contained on the page where the ad is being served. Behavioral Targeting - using prior behavior on the part of the viewer to determine which ad to show during a given visit.
  • 20. Work on a client brief