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Basics Of Online Advertising

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My talk at IIM Shillong on Online Advertising.

My talk at IIM Shillong on Online Advertising.

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Transcript

  • 1. WHY DO
    WE NEED
    ONLINE ADVERTISING?
    January 30, 2011
    Arpit Dhariwal | For IIM, Shillong
  • 2. “Half of my advertising spend is wasted; I just don't know which half ”
    ~ John Wanamaker
  • 3. #1.
    Better Targeting.
  • 4. Advertising
    On Facebook
  • 5. #2.
    Accuracy in measurement (Better ROI)
  • 6. Omniture – Analytics Tool
  • 7. #3.
    Less Wastage.
  • 8. Cost Per Click (CPC)
    The advertiser pays on a per click basis; a click being a user clicking on the ad, to visit the advertiser’s site.
    Cost Per Action (CPA)
    The advertiser pays a fixed amount per user action; the action can be an inquiry or lead (CPI, CPL), a sale (CPS), or any other kind of transaction.
    Cost Per Impression (CPM)
    The advertiser pays a fixed amount per thousand impressions; an impression being a user seeing the ad.
  • 9. #4.
    User Engagement.
  • 10. The amount of content (web links, news stories, blog posts, notes, photos, etc) shared each month on Facebook.
    25 BILLION.
    4 BILLION.
    The number of images hosted on Flickr.
    2 BILLION.
    The number of YouTube videos viewed per day.
    27 MILLION.
    The average number of “tweets” per day on Twitter.
  • 11. #5.
    Immediate Response &
    Message Tailoring.
  • 12. Now,
    Exactly How To
    Do It?
  • 13. Ads directly placed by Advertiser
    Publisher
    Advertiser
    Outsourced
    Ads placed with Ad Network
    AD Network
    AD Agency
    Ads displayed to clients by publishers
    AD network connected to an Exchange
    AD Exchange
    Advertisers/AD Agencies connected to an Exchange
    User/Customer
  • 14. Display Advertising
  • 15. PAID LISTINGS
    SEM is effectively paid advertising in search engines, where you 'Pay Per Click' (PPC). It is text advertising delivered in response to 'trigger' words typed into the search box.
    Search Engine Marketing (SEM)
    & Search Engine Optimization (SEO)
    ORGANIC LISTINGS
    These listings are influenced by SEO. SEO is defined as the process of building pages in a manner which enables the pages to rank highly in 'algorithmically' determined search results, which are generally displayed on the left hand side of the page.
  • 16. Affiliate Marketing is also known as Performance Based Marketing. A publisher receives a commission for generating a transaction, such as a lead or sale, for an advertiser that the publisher is promoting.
    Affiliate Advertising
  • 17. Email Marketing
  • 18. Social Media is a conversation
    supported by online tools
    Social Media Marketing
    and many more…
  • 19.
  • 20. Case Study: Nike+
  • 21. Nike’s market share (running shoes) jumped from
    48% in 2006 to 61% in 2008. A significant
    amount of the growth comes from Nike+.
    Business Week.
  • 22. Nike Plus community website:
    • tracks each run, pace, distance
    • 23. comparison with other runs, runners
    • 24. offline running communities
    • 25. Competitions – Human Race 10k Run (800k people)
    Blogging Network
    Flickr (4,000+ photos for Human
    Race)
    Youtube (1,000+ videos for Nike+)
  • 26. Facts: Dell
  • 27. Dell has made $3 Million in 2 years as a result of
    delloutlet on Twitter (650k+ followers) by sending
    coupons, tweeting about clearance events, new
    arrival information etc.
  • 28. THAT’S
    ALL
    FOLKS!
    Arpit Dhariwal
    E: arpit.dhariwal@gmail.com