Online advertising: simple slides that explain how it works
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Online advertising: simple slides that explain how it works

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Online advertising: simple slides that explain how it works

Online advertising: simple slides that explain how it works

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Online advertising: simple slides that explain how it works Online advertising: simple slides that explain how it works Presentation Transcript

  • ADVERTISING A world behind a word  
  • Definition
  • •  From  the  La+n  words  “ad  vertere”  ("to  turn   toward”),  adver+sing  is  a  form  of  marke1ng   communica1on  used  to     OU NC E E   AG R PERSUAD E MANIPULATE   an  audience  (viewers,  readers  or  listeners)  to  take  or   con+nue  to  take  some  ac+on.  
  • Types of Advertising
  • •  •  •  •  •  Television  adver+sing   Music  adver+sing   Press  adver+sing   Radio  adver+sing   …   Online ADVERTISING     Increasingly,  other  media   are  overtaking  many  of  the   "tradi+onal"  media   because  of  a  shi:  toward   consumer's  usage  of  the   Internet    
  • Advertising Online
  • Search engine marketing Uses the Internet to deliver promotional marketing messages to consumers Social  media   marke1ng   Display advertising Mobile   advertising   Email   marke1ng  
  • It  involves   Publishers Advertisers Integrate   Provide  the   adver1sements  to  be   displayed  on  the   publisher’s  content   adver1sements  into   its  online  content     It’s  all  about  buyers  and  sellers,  and  how  they  transact!  
  • AND  IN  THE   MIDDLE?  
  • Publishers •  Popular  websites  and  portals   •  Sell  ad  units  on  their  proper+es   Advertisers •  Buy  ad  units  on  publisher’s  proper+es   •  Pay  for  each  ad  unit  “delivered”   Ad   Networks •  Aggregator  of  ad  spaces  supplied  by  publishers   •  Acts  as  a  “broker”,  buying  the  publisher’s  unsold,   aggrega+ng  data,  and  selling  the  packages  to  the   adver+sers   Ad affiliates Ad Exchanges •  “Sales  channel”  that  drives  traffic  to   adver+sers’  sites   •  Categorized  based  on  how  they  drive  traffic   •  Open  technology  plaWorm  for  trade  of  ad  units   •  Provides  a  transparent  forum  for  all  par+es  in   the  ecosystem  to  coordinate  and  transact  
  • ADVERTISER   Places  promo1ons  of  a  specific  product,  service  or  event  in  a  public   medium  to  aHract  poten+al  new  or  repeat  customers.   AGENCY   Represent  the  adver1sers,  and  helps  them  to  communicate  with  their   target  audience.  They  create  marke1ng  plans  and  adver+sing   campaigns,  considering  of  the  right  publishers  that  represent  the  right   audience.     MEDIA   PLANNERS   Within  the  agency,  they  work  directly  with  the  publishers  and  their   direct  sales.  Entails  finding  media  plaNorms  for  a  client's  brand  or   product.  It  involves  determining  the  best  combina1on  of  media  to   achieve  the  marke1ng  campaign  objec1ves.   NETWORK   Aggregates  and  buys  the  publisher’s  unsold  inventory,  and  categorizes   it  in  a  way  that  could  be  easily  consumed  by  media.  Similar  to   exchanges.     TRADING   DESKS   A  centralized,  service-­‐based  organiza+on,  typically  on  top  of  a  licensed   demand-­‐side  plaWorm  (DSP).  Manages  programma1c,  bid-­‐based   media  and  audience  buying  (so  it’s  connected  with  exchanges).  Works   as  an  agency’s  internal  “center  of  excellence”.  It’s  a  plaWorm  that  uses   data  and  technology  to  help  adver1sers  more  effec1vely  to  purchase   audiences  at  scale  across  digital  media.  A  trading  desk  is  integrated   with  ad  exchanges,  SSPs  and  networks.   DSP   Helps  the  buyers  (demand  side).  Demand  Side  PlaWorms  provide   centralized  (aggregated)  media  buying  from  mul+ple  sources,   leveraging  real  1me  bidding  capabili1es  of  said  sources.  
  • PUBLISHERS   A  person  or  company  that  makes  content  (in  any  form)   available  for  consump1on,  for  free  or  for  sale.   THIRD  PARTIES   (audience   networks)   They  work  with  publishers,  and  they  focus  on  the  WHO,   iden+fying  and  targe1ng  an  audience.  This  audience  was  target   based  on  a  wide  variety  of  data  points.  Ability  to  target  a   specific  audience  upon  specific  interests  &  demographic   aHributes.   EXCHANGE   Ad  exchange  trades  the  (correct)  audience  rather  than   inventory  (as  network)  à  opportunity  to  buy  the  specific   audience.  They  bring  a  technology  plaWorm  that  facilitates   automated  auc+on-­‐based  pricing  and  buying  in  real-­‐+me.  Born   because  of  the  efficiency  needed  a^er  the  “network’s  boom”.   Some  publishers  sell  directly  on  the  exchange.   SSP   Other  publishers  invested  in  SSP  à  Sell  Side  PlaWorms  provide   outsourced  media  selling  and  ad  network  management   services  for  publishers,  op+mizing  the  selling  points  for  the   publishers.  The  SSP  provide  a  way  for  publishers  to  gain  control   over  how  their  inventory  was  being  sold  and  delivered  to  the   networks.   DATA   AGGREGATORS   An  organiza+on  that  collects  and  compiles  data  from  individual   sites  to  sell  to  others.  
  • …HOW  TO   CONNECT  THE   WHOLE   THING??  
  • GOALS • Collect much more data as possible; • Get the ad in front of the right person at the right time.   RELEVANT ADS IN FRONT OF RELEVANT PEOPLE!
  • Data Aggregator gathers  data  from  the  desired   segment  across  various  networks.  From  there,  third-­‐party   data  companies  overlay  more  specific  informa1on  to  help  to   narrow  the  segment  to  its  most  ideal.       Once  the  Data  Aggregator  has  the  right  segment  for  the   Agency’s  client  (that  is,  the  segment  with  the  necessary  shared  a_tudes  to   meet  the  adver+ser’s  requirements)  the  agency  buys  the  segment.    
  • The Agency then  puts  that  affluent  travel   segment  into  its  own  Demand  Side  PlaNorm   (DSP)  which  is  then  plugged  into  the  Ad   Exchange.     The  DSP  cookie   matches  the   segment  purchased   from  the  Data   Aggregator,  using   exis+ng  cookies  to   match  the   audience  to  the  ad.  
  • The  DSP  is  used  to  FIND THE BEST USER Why? ADVANTAGE     DISADVANTAGE   Using  a  DSP  takes  less   The  agency  and  the   manpower,  since  it’s   adver+ser  won’t  typically   completely  automated  and   know  which  sites  the  ads   was  built  specifically  to  find   will  run  on.     the  best  audience.      
  • Everybody wins!  
  • The Agency did its job on behalf of its client, whose ads are now reaching their best audience;     The Publisher happily accepts more relevant advertising for their audience;     The users now get -and click on- a relevant ad, thanks to an advertising process based on relevance.
  • The (super complex) Ecosystem boxing
  • Goal: SIMPLIFICATION
  • Red  for  publishers   Blue  for  adver+sers  and  buyers     Purple  for  companies  that  sit  between  them  ("aggregators”)  
  • WHICH ARE THE DIFFERENT POSSIBLE FORMATS FOR ONLINE ADS?
  • www.ovk.de   Boring
  • www.ovk.de   Super Boring  
  • THE FUTURE: transforms boredom into pleasure
  • Irene De Nicolo Business intern at Pixelplant GmbH Twitter: @irenelladn89 Email: irene@uxebu.com