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Selling Advertising 2013

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Selling Advertising 2013

  1. 1. 6 — Selling Advertising From Code to Product gidgreen.com/course
  2. 2. Million Dollar Homepage From Code to Product Lecture 6 — Selling Advertising— Slide 2 gidgreen.com/course
  3. 3. Aversion therapy From Code to Product Lecture 6 — Selling Advertising— Slide 3 gidgreen.com/course
  4. 4. Tempted? From Code to Product Lecture 6 — Selling Advertising— Slide 4 gidgreen.com/course
  5. 5. Lecture 6 •  Introduction •  Types of targeting •  Price models •  Ad formats •  Ethical issues •  Web Sudoku From Code to Product Lecture 6 — Selling Advertising— Slide 5 gidgreen.com/course
  6. 6. Traditional advertising •  Mass media – Newspapers, magazines, TV, radio, outdoor – Local or national, not global •  Big one-time purchase •  One message to all recipients – No filtering or personalization •  Success measured indirectly – Did sales increase this month? From Code to Product Lecture 6 — Selling Advertising— Slide 6 gidgreen.com/course
  7. 7. Digital advertising •  Digital media – Web, mobile, email, desktop – Global in scope •  Pay as you go, small increments •  Messages targeted by recipient – Filtering, personalization •  Success measured directly – Views, clicks, actions From Code to Product Lecture 6 — Selling Advertising— Slide 7 gidgreen.com/course
  8. 8. Underlining the difference “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” — John Wanamaker, store owner “Ninety-nine percent of advertising doesn't sell much of anything..” — David Ogilvy, advertising executive From Code to Product Lecture 6 — Selling Advertising— Slide 8 gidgreen.com/course
  9. 9. US ad spending (+projected) From Code to Product Lecture 6 — Selling Advertising— Slide 9 gidgreen.com/course 0 $10B $20B $30B $40B $50B $60B $70B 1996 2001 2006 2011 2016 Web Mobile (world totals approximately double)
  10. 10. Media and advertising From Code to Product Lecture 6 — Selling Advertising— Slide 10 gidgreen.com/course
  11. 11. Online ad breakdown From Code to Product Lecture 6 — Selling Advertising— Slide 11 gidgreen.com/course • Search has remained the leading format since 2006, having strong sequential growth through the period depicted. After losing some of its overall share in 2010 to Display/Banners, Search increased its market share in the first half of 2011 to 49% of advertising revenues. • The past six years have seen Classified advertising losing more than half of its market share of revenues, with sharp declines over the past five years. Classified revenues stabilized in 2010 but have declined in 2011, with a market share of 8%, down from the 18% of advertising revenues the format commanded in 2006. Advertising format share (% of total revenue)* 60% 2006 2007 2008 2009 2010 HY 2011 * Format definitions may have changed over the time period depicted, both within the survey process and definitionally by survey respondents. 0% 10% 20% 30% 40% 50% Search Display/ Banners Classifieds Rich Media & Digital Video Lead Generation Sponsorships 2006 2007 2008 2009 2010 HY 2011 IABInternetAdvertisingRevenueReport,Sept2011
  12. 12. How it works •  Direct sales – Hard to find advertisers – Transaction cost vs volume •  Ad networks – Aggregate 1000s of publishers + advertisers – Copy-paste code snippet – Take 20%—50% of revenue •  Big sites use both From Code to Product Lecture 6 — Selling Advertising— Slide 12 gidgreen.com/course
  13. 13. Top US online ad networks From Code to Product Lecture 6 — Selling Advertising— Slide 13 gidgreen.com/course
  14. 14. Top US mobile ad networks AdMob (Google) 24% iAd (Apple) 15% Millennial Media 17% Other 44% From Code to Product Lecture 6 — Selling Advertising— Slide 14 gidgreen.com/course 2011 figures from IDC
  15. 15. Lecture 6 •  Introduction •  Types of targeting •  Price models •  Ad formats •  Ethical issues •  Web Sudoku From Code to Product Lecture 6 — Selling Advertising— Slide 15 gidgreen.com/course
  16. 16. Geography From Code to Product Lecture 6 — Selling Advertising— Slide 16 gidgreen.com/course
  17. 17. Demographics From Code to Product Lecture 6 — Selling Advertising— Slide 17 gidgreen.com/course
  18. 18. Traffic source From Code to Product Lecture 6 — Selling Advertising— Slide 18 gidgreen.com/course
  19. 19. Contextual From Code to Product Lecture 6 — Selling Advertising— Slide 19 gidgreen.com/course
  20. 20. Contextual From Code to Product Lecture 6 — Selling Advertising— Slide 20 gidgreen.com/course
  21. 21. Behavioral From Code to Product Lecture 6 — Selling Advertising— Slide 21 gidgreen.com/course
  22. 22. Behavioral From Code to Product Lecture 6 — Selling Advertising— Slide 22 gidgreen.com/course
  23. 23. Affiliate advertising From Code to Product Lecture 6 — Selling Advertising— Slide 23 gidgreen.com/course •  Direct sales – But no transaction costs •  Payment on sale only – Open to all
  24. 24. Affiliate advertising From Code to Product Lecture 6 — Selling Advertising— Slide 24 gidgreen.com/course
  25. 25. Real-time bidding (RTB) •  Most online ads bought in advance – Volumes and targeting predefined •  RTB ads bought in real-time – User visits page with RTB ad – Impression auctioned to buyers – Highest bid wins •  Works like an ad network •  10% of display ads, projected 27% in 2015 From Code to Product Lecture 6 — Selling Advertising— Slide 25 gidgreen.com/course
  26. 26. Lecture 6 •  Introduction •  Types of targeting •  Price models •  Ad formats •  Ethical issues •  Web Sudoku From Code to Product Lecture 6 — Selling Advertising— Slide 26 gidgreen.com/course
  27. 27. Fixed price •  Predefine: – Where ads will show – Proportion of time – Time period (week/month) •  Direct sales only •  No tracking required – Advertiser can monitor performance •  Money left on table? From Code to Product Lecture 6 — Selling Advertising— Slide 27 gidgreen.com/course
  28. 28. Cost per impression •  Priced in CPM = cost per mille (1000) •  Advertiser sets: – CPM rate – “Above the fold”? – Limits per day, per user •  Popular for display advertising – Viewing ad builds brand recognition •  Impression tracking From Code to Product Lecture 6 — Selling Advertising— Slide 28 gidgreen.com/course
  29. 29. Pay per click •  Priced in CPC = cost per click •  Advertiser more flexible – Click = user intent •  Popular for search advertising – Auction between advertisers •  Impression and click tracking – CTR = click-through rate From Code to Product Lecture 6 — Selling Advertising— Slide 29 gidgreen.com/course
  30. 30. Pay per action •  Priced in CPA = cost per action (sale) •  Suits advertiser perfectly – Only pay if you get paid •  Popular for affiliate advertising – Any publisher will do •  Impression, click and conversion tracking – CR = conversion rate – Publisher forced to trust advertiser From Code to Product Lecture 6 — Selling Advertising— Slide 30 gidgreen.com/course
  31. 31. Total revenue Revenue = Fixed price Impressions × CPM/1000 Impressions × CTR × CPC Impressions × CTR × CR × CPA From Code to Product Lecture 6 — Selling Advertising— Slide 31 gidgreen.com/course
  32. 32. Total revenue Revenue = $1,000 500k × $2/1000 500k × 2.5% × $0.08 500k × 2.5% × 2% × $4 From Code to Product Lecture 6 — Selling Advertising— Slide 32 gidgreen.com/course
  33. 33. Defaults and thresholds •  Defaults – What to show if there’s no ad •  eCPM = equivalent CPM – All you really care about •  Threshold – Minimum required eCPM •  Fill rate •  Check the definitions! From Code to Product Lecture 6 — Selling Advertising— Slide 33 gidgreen.com/course
  34. 34. Ad network example From Code to Product Lecture 6 — Selling Advertising— Slide 34 gidgreen.com/course
  35. 35. AdSense example From Code to Product Lecture 6 — Selling Advertising— Slide 35 gidgreen.com/course
  36. 36. Real-world eCPMs Type of site Example 300x250 eCPM Forum $0.25 Gaming $1.50 Fashion $4.00 Real estate $8.00 Local newspaper $10.00 Technology $15.00 Travel $20.00 Investments $40.00 From Code to Product Lecture 6 — Selling Advertising— Slide 36 gidgreen.com/course
  37. 37. Lecture 6 •  Introduction •  Types of targeting •  Price models •  Ad formats •  Ethical issues •  Web Sudoku From Code to Product Lecture 6 — Selling Advertising— Slide 37 gidgreen.com/course
  38. 38. Online banner sizes (IAB) From Code to Product Lecture 6 — Selling Advertising— Slide 38 gidgreen.com/course Medium rectangle 300 x 250 Full banner 468 x 60 Leaderboard 728 x 90 Wide sky- scraper 160 x 600
  39. 39. Banner ad code <!-- Casale Media: 336x280, 300x250 (Rectangle) --> <script type="text/javascript"> var CasaleArgs = new Object(); CasaleArgs.version = 2; CasaleArgs.adUnits = "6,4"; CasaleArgs.casaleID = 76546; </script> <script type="text/javascript" src="http:// js.casalemedia.com/casaleJTag.js"></script> <!-- DO NOT MODIFY --> From Code to Product Lecture 6 — Selling Advertising— Slide 39 gidgreen.com/course
  40. 40. Size vs CTR (AdSense) From Code to Product Lecture 6 — Selling Advertising— Slide 40 gidgreen.com/course Click-throughrate Banner area
  41. 41. Interstitials From Code to Product Lecture 6 — Selling Advertising— Slide 41 gidgreen.com/course
  42. 42. Pop-up ads From Code to Product Lecture 6 — Selling Advertising— Slide 42 gidgreen.com/course •  Hated by users •  Pop-up blockers common •  Also: pop- under
  43. 43. Other online formats •  Floating ads •  Mouseover ads – Expanding – Audio •  In-video – Pre, mid, post-roll •  In-map •  Advertorials From Code to Product Lecture 6 — Selling Advertising— Slide 43 gidgreen.com/course
  44. 44. In-app ad formats From Code to Product Lecture 6 — Selling Advertising— Slide 44 gidgreen.com/course Mobile banner 320 (or 300) x 50 Full screen (or almost) 320 x 480 (or 440)
  45. 45. In-app state of play •  Many other ad sizes – 320x250, 320x320, 320x350, … •  Landscape getting started – 480x50, 480x60, 480x70, … •  iPad/tablets to use web ad sizes? – 728x90, 300x250 •  Retina display scales x2 From Code to Product Lecture 6 — Selling Advertising— Slide 45 gidgreen.com/course
  46. 46. Ads in email From Code to Product Lecture 6 — Selling Advertising— Slide 46 gidgreen.com/course •  Past: text •  Now: images – Not always displayed •  Direct sales •  Some small networks
  47. 47. Lecture 6 •  Introduction •  Types of targeting •  Price models •  Ad formats •  Ethical issues •  Web Sudoku From Code to Product Lecture 6 — Selling Advertising— Slide 47 gidgreen.com/course
  48. 48. Core problems •  Ceding control of user experience – Weakens brand/message – Bad ads and bad sites •  Users don’t like ads – Can harm word of mouth •  An effective ad is clicked – User gone elsewhere – To competitor? From Code to Product Lecture 6 — Selling Advertising— Slide 48 gidgreen.com/course
  49. 49. Privacy and cookies •  Ad networks and cookies – Track users within sites – Worse: across sites – Enables behavioral targeting •  User’s identity not revealed – But: IP address – Google searches From Code to Product Lecture 6 — Selling Advertising— Slide 49 gidgreen.com/course
  50. 50. Bad ads: Ugly From Code to Product Lecture 6 — Selling Advertising— Slide 50 gidgreen.com/course
  51. 51. Bad ads: Offensive From Code to Product Lecture 6 — Selling Advertising— Slide 51 gidgreen.com/course
  52. 52. Bad ads: Misleading From Code to Product Lecture 6 — Selling Advertising— Slide 52 gidgreen.com/course
  53. 53. Bad sites: Spyware From Code to Product Lecture 6 — Selling Advertising— Slide 53 gidgreen.com/course
  54. 54. Bad sites: Gambling From Code to Product Lecture 6 — Selling Advertising— Slide 54 gidgreen.com/course
  55. 55. Bad sites: Scams From Code to Product Lecture 6 — Selling Advertising— Slide 55 gidgreen.com/course
  56. 56. User complaints “Your advertisement in support of Rick Santorum is enough to cause me to use some other website for this game. I will avoid coming here again!” “Why do you accept advertising from nomorerack? They are an out and out scam. Read the feedback.” From Code to Product Lecture 6 — Selling Advertising— Slide 56 gidgreen.com/course
  57. 57. Ad network filters From Code to Product Lecture 6 — Selling Advertising— Slide 57 gidgreen.com/course
  58. 58. Lecture 6 •  Introduction •  Types of targeting •  Price models •  Ad formats •  Ethical issues •  Web Sudoku From Code to Product Lecture 6 — Selling Advertising— Slide 58 gidgreen.com/course
  59. 59. Amazon ads From Code to Product Lecture 6 — Selling Advertising— Slide 59 gidgreen.com/course
  60. 60. Direct ad deals From Code to Product Lecture 6 — Selling Advertising— Slide 60 gidgreen.com/course
  61. 61. AdSense + our own products From Code to Product Lecture 6 — Selling Advertising— Slide 61 gidgreen.com/course
  62. 62. Banners on puzzle page From Code to Product Lecture 6 — Selling Advertising— Slide 62 gidgreen.com/course -8% -6% -4% -2% +0% +2% +4% 7 Aug 7 Sep 8 Oct 8 Nov Moving banners Bright static banners Quiet static banners
  63. 63. The big break From Code to Product Lecture 6 — Selling Advertising— Slide 63 gidgreen.com/course
  64. 64. AdSense + new affiliation From Code to Product Lecture 6 — Selling Advertising— Slide 64 gidgreen.com/course
  65. 65. Very highly targeted From Code to Product Lecture 6 — Selling Advertising— Slide 65 gidgreen.com/course
  66. 66. Where we are today •  Ads are biggest source of revenue – ~70% display ads after puzzle – ~20% AdSense above puzzle – ~10% direct deals •  3 big display ad networks – Monitor performance weekly – Rebalance in response – Ad quality a constant challenge From Code to Product Lecture 6 — Selling Advertising— Slide 66 gidgreen.com/course

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