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Online Advertising Overview - Lecture for CMIS542 - McGill University

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An overview of online advertising models, best practices, terminology and a deeper dive on social ads and Facebook advertising.

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Online Advertising Overview - Lecture for CMIS542 - McGill University

  1. 1. Digital vs. Traditional Advertising
  2. 2. Digital Ad Formats Y/Y
  3. 3. Mobile & Video ads lead growth…
  4. 4. Digital Ad Revenue Share by Company Source: Invesp http://www.invesp.com/blog/ecommerce/digital-ad-spending.html
  5. 5. Goals of Online Advertising • Create brand awareness • Generate engagement • Open: Create consumer demand • Close: Satisfy consumer demand • Direct response – Drive traffic & sales
  6. 6. Benefits of Online Advertising (vs. traditional media) • Interactive medium = immediate response • Advertisers can create immersive brand experiences using rich media • Digital media offers sophisticated capabilities o Tracking o Targeting o Measurement o Testing & Optimization
  7. 7. Steps to Planning an Online Campaign • Define goals • Research target audience • Develop marketing & media strategy • Develop media plan • Websites or networks will affect format and payment models • Brief the creative team
  8. 8. Keys to a successful ad • Attract attention: Be the signal, not the noise. • Be relevant and timely • Communicate a key message in a creative and concise manner • Include a clear call to action • Deliver on its promise
  9. 9. Some of the (many) types of online ads… • • • • • • • • • • Rich Media display ads Pop-ups & Pop-Unders Modals (Pop-Ins) Rollover / Expando Units Page Takeovers & Wallpapers Ads Interstitial Ads Video Ads (Pre-roll, Interstitial) Maps & Paid Listings Sponsored editorial In-Game Ads IAB Ad Guidelines: http://www.iab.net/iab_products_and_industry_services/1421/1443/1452
  10. 10. THE NAME GAME
  11. 11. CPM
  12. 12. CPM Cost Per Thousand Impressions. Best for branding where eyeballs & impressions are the main goal.
  13. 13. CPC
  14. 14. CPC Cost Per Click. Best for direct response advertising when the goal is to drive traffic. Sometimes referred to as Pay Per Click (PPC)
  15. 15. CPA
  16. 16. CPA Cost Per Acquisition. Best for direct response advertising when the goal is to acquire a lead or a customer.
  17. 17. CPM vs. Performance-based Ads
  18. 18. Banner Ads
  19. 19. Banner Ads Also known as online display media, these are typically image-based and come in standard and non-standard formats
  20. 20. Source: http://www.iab.net/guidelines/508676/508767/UAP
  21. 21. SEM
  22. 22. SEM Search Engine Marketing Displaying advertising in search results in relation to a search query.
  23. 23. Impressions vs. Unique Impressions
  24. 24. Impressions vs. Unique Impressions Total # of times displayed vs. Total unique users displayed to in a given time period (24 hours, 30 days, etc.)
  25. 25. CTA
  26. 26. CTA Call to Action Click Here, Buy Now, Learn More, Share with a Friend, Go
  27. 27. CTR
  28. 28. CTR Clickthrough Rate Rate at which users click through your ad displayed as a percentage.
  29. 29. Unique Visitors vs. Visits
  30. 30. Unique Visitors vs. Visits Unique users to your site in a given time period vs. Number of visits by anyone to your site in a given time period
  31. 31. Landing Page
  32. 32. Landing Page The post-click destination that a user arrives at after clicking on an ad.
  33. 33. Conversion Rate
  34. 34. Conversion Rate The rate at which a user that lands on a page converts to a lead or customer. For example: Customers / Unique Visits = Conversion Rate (CVR) 15 customers / 1,500 unique visits = 1% Conversion Rate (CVR)
  35. 35. KPI
  36. 36. KPI Key Performance Indicator A type of performance measurement used to evaluate the success of a particular marketing activity or initiative. i.e. CTR, CVR, Revenue, CPA, etc.
  37. 37. ROI
  38. 38. ROI Return on Investment The net benefit generated from an advertising campaign, usually measured as a percentage based on costs such as ad spend and benefits such as revenue. i.e. Ad Spend: $100 Revenue: $500 ROI: 500% or 5x
  39. 39. A/S
  40. 40. A/S Advertising to Sales Ratio A measurement of the effectiveness of an advertising campaign calculated by dividing total advertising expenses by sales revenue. A low A / S indicates a more efficient campaign.
  41. 41. Behavioural Targeting
  42. 42. Behavioural Targeting
  43. 43. Behavioural Targeting The ability to track a users click behaviour and web browsing activity and target advertising accordingly.
  44. 44. Demographic Targeting • • • • • Geography Age Gender Education Income
  45. 45. Contextual Targeting • • • • • • Website Topic Content Type Keyword Timing Etc.
  46. 46. Types of Behavioral Targeting • Browsing History (Ad Network, On Site) • Device (Desktop, Tablet, Mobile) • Operating System (iOS, Android, etc.)
  47. 47. Day Parting
  48. 48. Facebook Ad Targeting • Demographic • Platform (Desktop vs. Mobile) • Interest-Based (Likes, Keyword, Broad Category, Partner Data) • Connections (Friends, Apps) • Relationship Status • Education • Language • Custom Audiences (Email, Phone # or Device ID) • Re-Targeting (Facebook Exchange or FBX)
  49. 49. Facebook Page
  50. 50. Page Posts
  51. 51. Page Post Ads
  52. 52. Page Post Ads • Promoting content published by a Page • Formats: o o o o o Status Photo Video Link Other (Events, Questions, etc.) • Promote to Fans, Friends of Fans, or Non-Fans • Display in Newsfeed, Right Hand Side (RHS), or Mobile
  53. 53. Page Like Ads
  54. 54. Mobile App Install Ads
  55. 55. Domain Ads
  56. 56. Custom Audiences
  57. 57. Facebook Exchange (FBX)
  58. 58. Facebook Advantages - Versatile, native ad products for branding, engagement, direct response marketing - Precise targeting and re-targeting ability drives relevance - Measure every aspect of the experience - Test & optimize tactics in real-time - Ongoing tracking and targeting of campaign participants.
  59. 59. Disadvantages - More complexity requires more resources, time & money. - Native ad platform implies unique strategy and creative - Unlike search, most users are not actively seeking products, services and offers on Facebook - Users are continually finding ways to avoid advertising.
  60. 60. Other social ad platforms…
  61. 61. Miscellaneous
  62. 62. C2C
  63. 63. C2C Customer to Customer Markets in which a business facilitates an environment where customers can sell goods and or services to each other.
  64. 64. C2B
  65. 65. C2B Customer to Business Business model in which consumers (individuals) create value, and firms consume this value. (i.e. Blogs, Stock image services)
  66. 66. SEO
  67. 67. SEO Search Engine Optimization The process of affecting the visibility of a website or a web page in a search engine's "natural" or unpaid ("organic") search results.
  68. 68. AOV
  69. 69. AOV Average Order Value = Total Revenue / Total Orders
  70. 70. TOS
  71. 71. TOS Terms of Service Rules which one must agree to abide by in order to use a service. Terms of service can also be merely a disclaimer, and is mainly used for legal purposes by websites and internet service providers that store a user's personal data, such as e-commerce and social networking services.
  72. 72. NPS
  73. 73. NPS Net Promoter Score A customer loyalty metric that measures customer satisfaction based on the question: How likely are you to recommend our company/product/service to your friends and colleagues?
  74. 74. A/B
  75. 75. A/B A/B Testing Simple, randomized experiments with two variants, A and B, which are the control and treatment in the controlled experiment.
  76. 76. Thanks.

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