What is online advertising? Getting started. Concepts explained by our Engineer at WhiteHedge.

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Online Advertising
Anand Karwa
Akarwa@WhiteHedge.com

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Agenda
• What is online advertising ?
• Why online advertising is important?
• Types of advertising?
• Components
• Pricing
• How does it work?

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What is online advertising
?
• Online advertising is a form of marketing and
advertising which uses the Internet to deliver
promotional marketing messages to consumers.
--Wikipedia

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Why online advertising is
important?
• More effective than Traditional media
• Intended to specific audience
• Cost is inexpensive as compared to other medium
• Easy to analysis, monitor and modify ad campaigns
• Currently, more than 400 billion global monthly
impressions are up for bid to online (i.e 1,50,000 ads/
second)

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Interesting Statics
• It’s estimated that by 2016, online ad spend in the US
will be 67.4 billion dollars/ year (13.7% compound
annual growth).
• YouTube In 2015 “adidas: Take It” – 3,06,31,817 views
• The average click-through-rates for retailers who use
Facebook Ads are up 375%.
• At least 95% of Google’s total revenue comes from
advertising

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Types of advertising
• Contextual
o Parsing the website through keywords
• Semantic
o Contextual + smart analysis
• Behavioral
o Tracing the past behavior of the visitor

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Components
• Audience/Targeted user
• Publisher
• Advertiser
• Ad Exchange
• Supply Side Platform (SSP)
• Demand Side Platform (DSP)
• Data Management Platform (DMP)
• Ad verification

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Payment Calculation
• CPC – Cost Per Click
• CPM – Cost Per Mile (Cost per thousand impression)
• CPA – Cost Per Acquisition (poll, sign-up etc)
• CPV – Cost Per View

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Who makes money and
how much?
• For Advertising with Google (Double Click)
o Publisher – 68%
o Network – 32%

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Publisher with Ad Server
Publishers
Ad Server
Publishers
Content
Server
Web
Page

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Agenc
y Ad
Server
Data
Management
Platform
Supply
Side
Platform
Demand
Side
Platform
DSP
DSP
Agency
Bran
d
Publishers
Ad Server
Publishers
Content
Server
Ad ExchangeWeb
Page
Complete Flow

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Verification
• Online advertising verification– A system that ensures
every ad impression is a quality impression, every
impression is compliant, and every ad was served and
displayed exactly as intended.

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Frauds
• Bot Generation
o artificially generating traffic from thousands of infected zombie PC
• AdWare
o Inject unwanted ads
• Impression Laundering
o Cases in which ads appear to display on legitimate sites, but through a complex
number of re-directs are ‘laundered’ on to sites with high user traffic but low
brand interest (i.e. adult content, illegal downloads).
• Proper Ad Placements

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Questions?
Contact me at:
Akarwa@WhiteHedge.com