Economics of Online Advertising.What are the numbers?<br />Javier Arroyo<br />Survey of Professional Media<br />COM130<br />
What is Online Advertising?<br />Online advertising is a form of promotion that uses the Internet and World Wide Web for t...
Types of Online Ads<br />Banners<br /> (static, animated and interactive)<br />Interstitial<br />(pop ups and similar page...
How they pay for it(Common acronyms of online advertising)<br />CPM - cost is calculated by impression. You are paid when ...
Payments in search engines<br />Pay-For-Placement (PFP)<br />As long as you bid the top two or three positions, you are gu...
Why Advertising online?Internet usage<br />
Revenues<br />IAB Internet Advertising Revenue Report 2009 Full Year Highlights<br />Internet advertising revenues in the ...
Explanation to success<br />While web advertising is important, other investments by marketers, like a company's own Web s...
Online Ad Market Share<br />There are many different web advertising companies, some very large such as Google provide tex...
Sources<br />iab. (Revenues internet advertising, graphs per quarters) <br />Statistics of online advertising in the last ...
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Javiero onlinead

  1. 1. Economics of Online Advertising.What are the numbers?<br />Javier Arroyo<br />Survey of Professional Media<br />COM130<br />
  2. 2. What is Online Advertising?<br />Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages using online advertising tools, techniques and methods proven to attract customers.<br />
  3. 3. Types of Online Ads<br />Banners<br /> (static, animated and interactive)<br />Interstitial<br />(pop ups and similar pages that  interrupt the user)<br />Rich Media <br />(Advanced technology, incorporating video, audio, animation and photographs)<br />Sponsorships, events and corporate sites<br />Opt-ins <br />(forms, newsletters push technologies)<br />Viral marketing and email campaigns<br />Spam, malware and cookies<br />
  4. 4. How they pay for it(Common acronyms of online advertising)<br />CPM - cost is calculated by impression. You are paid when an ad is shown. <br />CPC - cost of ads are calculated based on number of clicks. You are paid when someone clicks on an ad.<br />CPA - cost per action. You are paid when the visitor does something -- for example, filling out a form or buying a product. <br />
  5. 5. Payments in search engines<br />Pay-For-Placement (PFP)<br />As long as you bid the top two or three positions, you are guaranteed to be displayed in the top of the results for the search engine and its partners<br />Pay-For-Inclusion (PFI)<br />A search engine includes your website pages in its index in exchange for payment, generally six months to one year. This does not mean your page will appear in the top position<br />Google Adwords<br />Keywords you pick for your site are matched against those products or services people have expressed an active desire to get information on<br />
  6. 6. Why Advertising online?Internet usage<br />
  7. 7. Revenues<br />IAB Internet Advertising Revenue Report 2009 Full Year Highlights<br />Internet advertising revenues in the United States totaled $22.7 billion for the full year of 2009, with Q3 2009 accounting for approximately $5.5 billion and Q4 2009 totaling approximately $6.3 billion. Internet advertising revenues for the full year of 2009 decreased 3.4 percent over 2008.<br />Search advertising dominated, with 45 percent of total Internet advertising market share. It also grew 20 percent for the year. The only category which grew as fast was rich media and video. Online video advertising grew faster than any other sub-category, with 123 percent annual growth (going from $324 million in 2007 to $724 million in 2008). <br />
  8. 8. Explanation to success<br />While web advertising is important, other investments by marketers, like a company's own Web site, are often more critical to making strong connections with consumers<br />75% of the U.S. population now has Internet access at home, according to NetRatings<br />29% of U.S. homes have a broadband connection, says eMarketer<br />
  9. 9. Online Ad Market Share<br />There are many different web advertising companies, some very large such as Google provide text and image advertising and have huge markets, other smaller companies provide more niche advertising management.<br />Google Adsense is the most used advertising system found on BuiltWith scanned sites, DoubleClick, the second most tracked technology, was finally approved for purchase (by the FTC and EU) by Google in 2008 making Google control the majority of the non-search specific internet advertising.<br />Top ProvidersAdvertising<br />Google Adsense 13.43%<br />DoubleClick.Net 11.67% <br />Google Ad Partner Services 4.27%<br />Atlas 3.46%<br />Revenue Science 2.12%<br />Advertising.com 1.83% <br />Yield Manager 1.81% <br />ValueClick Inc. 1.81%<br />Open AdStream 1.79% <br />Vibrant Advertising 1.6%<br />Openads/OpenX 1.44% <br />Yahoo Small Business 1.19%<br />Exponential 0.97%<br />[…]<br />
  10. 10. Sources<br />iab. (Revenues internet advertising, graphs per quarters) <br />Statistics of online advertising in the last years, in terms of revenue.<br /> http://www.iab.net/insights_research/iab_news_article/339798<br /> <br /> BusinessWeek(E-loans, analysis, buying "keywords"; interview with Imran Khan)<br /> If we can get one dollar out of an auto loan, we can get $20 if we do a mortgage loan," Khan says. "A keyword like 'loan' can deliver either of the two products. So should we buy the keyword based on potential of auto loan or mortgage loan?" He has his team do the math.<br />  <br />About.com (List of Ad Networks and Affiliate Programs)<br /> Profiles of 60+ advertising networks and affiliate programs that you can use to make money with your website.<br /> http://onlinebusiness.about.com/od/affiliatemarketing/tp/online-advertising-networks.htm<br /> <br /> Internet World Stats (Internet usage, internet population and penetration statistics)<br /> http://www.internetworldstats.com/stats.htm<br /> <br />Website Magazine (2005 Online Advertising Numbers Explode)<br /> http://www.websitemagazine.com/content/blogs/posts/archive/2006/04/25/advertising-online-report-2005-IAB-PWC.aspx<br /> <br />OnWallstreet(Online advertising rates 2010)<br /> Real prizes of specific online advertising, such banners (prizes and sizes), pop-outs, and others.<br />http://media.onwallstreet.com/adinfo/OWS_OnlineRates.Specs2010.pdf<br /> Builtwith (Advertising usage statistics)<br />Advertising distribution, market share.<br />http://trends.builtwith.com/ads/<br />

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