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a.k.a. online advertising,  internet advertising and  interactive advertising Digital Advertising
Class Objectives Discuss the pros and cons of digital interactive media Define the various kinds of digital advertising Explain how interactive advertising is sold and how it is priced Describe who uses the internet and how they use it
Who’s Online?
Who’s Online?
Top U.S. Websites Source:  ClickZ.com, data from comScore Media Metrix
Search Engine Ads Email Ads Social Media Classified Ads Mobile Ads The Digital Advertising Landscape Display Ads
Current & Future Online Spending Online advertising is expected to grow at a double-digit pace for the foreseeable future.
Current & Future Online Ad Spending Only television will commands a greater share of media spending than online advertising.
Digital Ad Spending by Ad Type Source:  http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-101210
Pros of Online Advertising Active users.  The internet is the only medium that requires users to be actively engaged to receive with it to receive ads. Measurability.  Almost every action taken in response to an online advertising campaign is measurable. Cost.  Online advertising costs very little to produce and implement. Variable scope.  Advertisers can use online advertising as a mass medium to reach millions, or they can target small numbers of users via niche sites. Photo c/o watblog.com
Cons of Online Advertising Constant change. Technology advances continuously and can make staying on top of advertising opportunities difficult for the average business. Intrusive ads. Some types of online ads are more annoying than interesting to web users. Clutter.  Some web sites and search engines have so many ads that differentiation is difficult. Recall.  Most internet users have trained themselves to ignore ads on a web page. Photo c/o community.microsoftadvertising.com
Online Advertising Metrics Page views. A measure of web traffic, the number of total pages downloaded by users of a web site in a given month. Unique visitors.  A measure of web traffic, the number of individuals who visit a specific web site within a given month. Impressions.  Each time an online ad serves, it represents an ad impression.   Click-through:  When a user clicks on an online ad and is directed elsewhere, that is a click-through. Click-through rate:  The percentage of click-throughs to impressions served for an online ad campaign. Avg = 0.10%
SEARCH ENGINE ADVERTISING Search engines:  web sites that are devoted to finding and retrieving requested information from the World Wide Web.
Search Engine Marketing (SEM)
Buying SEM Keyword:   A word (or phrase) that a user inputs into an internet search engine to request information similar in subject matter to that word. Advertisers may buy keywords from search engines so that their advertisements appear in premium positions on the page when a user inputs the purchased word. ,[object Object]
Advertisers bid on keywords.
The more popular the keyword, the more expensive.Google keyword tool:  https://adwords.google.com/o/Targeting/Explorer?__c=1000000000&__u=1000000000&ideaRequestType=KEYWORD_IDEAS#search.none 
Search Engine Optimization
EMAIL ADVERTISING Email advertising:   A direct marketing tactic whereby an advertising message is delivered to recipients’ email addresses. Emails may be permission based or spam.   Email photo c/o messagingtimes.com		Spam photo c/o likelihoodofconfusion.com
Email Advertising in the Marketing Mix Businesses continue to increase spending on email advertising because of its significant return on investment (ROI).
Buying Email Advertising Email advertising is bought on a CPM (cost-per-thousand) addresses basis.   Average rates vary from $50 to $250 per M for acquisition lists. Advertisers may also build their own databases.
MOBILE WEB ADVERTISING ,[object Object]
56% of smart phone users access the mobile internet weekly
68% of smart phone users feel positively engaged while using the mobile internet
Most mobile sites allow one ad unit per page, offering high visibility for the advertiserMobile ad photo c/o mobilemarketingwatch.com
Smartphone Penetration
MOBILE WEB ADVERTISING
Mobile Ad Examples
Buying Mobile Web Advertising Mobile web advertising can be purchased on a cost-per-click basis or a cost-per-thousand impressions basis, depending on the goal of the campaign. The average U.S. CPM for mobile advertising ranges from $10-$15. Mobile ad photo c/o inmobi.com
ONLINE CLASSIFIED ADS Online classified ads allow individuals to buy and sell products and services. They also allow businesses to advertise real estate, autos, jobs and services. Best known site: Craigslist.  Other sites include real estate, auto and job sites like Cars.com, Monster and Trulia. Image c/o mslater.com
Buying Classified Online Ads For individual consumers, most online classifieds are free.  For businesses, they may pay per posting or a monthly subscription fee, depending on ad volume. Photo c/o techcrunch.com
SOCIAL MEDIA ADVERTISING Social media are the dominant force in digital advertising today.   More than 6 in 10 U.S. internet users can be found on social media websites.
Social Media Revolution Social Media Revolution http://www.youtube.com/watch?v=lFZ0z5Fm-Ng
Social Media User Info
Social Media Ad Spending Of the $3.08 billion expected to be spent in U.S. social media advertising this year, 2/3 will go to Facebook.
Buying Ads on Facebook These ads may be purchased on a cost-per-clickor cost-per-thousand impressions basis. Average CPM = $1-$5.
“Free” Ads on Facebook, Twitter Fan pages can be used to send exclusive offers directly to people who like or follow that company or brand.
YouTube Video display ad on site’s homepage. “Free” ad for SmartWater: http://www.youtube.com/watch?v=Rc47LcvIxyI
DISPLAY ADVERTISING Display advertising allows businesses to have an interactive presence on content sites where users seek information.   There are 3 types: ,[object Object]
 Rich media

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Mcom 341-15 Digital Advertising

  • 1. a.k.a. online advertising, internet advertising and interactive advertising Digital Advertising
  • 2. Class Objectives Discuss the pros and cons of digital interactive media Define the various kinds of digital advertising Explain how interactive advertising is sold and how it is priced Describe who uses the internet and how they use it
  • 5. Top U.S. Websites Source: ClickZ.com, data from comScore Media Metrix
  • 6. Search Engine Ads Email Ads Social Media Classified Ads Mobile Ads The Digital Advertising Landscape Display Ads
  • 7. Current & Future Online Spending Online advertising is expected to grow at a double-digit pace for the foreseeable future.
  • 8. Current & Future Online Ad Spending Only television will commands a greater share of media spending than online advertising.
  • 9. Digital Ad Spending by Ad Type Source: http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-101210
  • 10. Pros of Online Advertising Active users. The internet is the only medium that requires users to be actively engaged to receive with it to receive ads. Measurability. Almost every action taken in response to an online advertising campaign is measurable. Cost. Online advertising costs very little to produce and implement. Variable scope. Advertisers can use online advertising as a mass medium to reach millions, or they can target small numbers of users via niche sites. Photo c/o watblog.com
  • 11. Cons of Online Advertising Constant change. Technology advances continuously and can make staying on top of advertising opportunities difficult for the average business. Intrusive ads. Some types of online ads are more annoying than interesting to web users. Clutter. Some web sites and search engines have so many ads that differentiation is difficult. Recall. Most internet users have trained themselves to ignore ads on a web page. Photo c/o community.microsoftadvertising.com
  • 12. Online Advertising Metrics Page views. A measure of web traffic, the number of total pages downloaded by users of a web site in a given month. Unique visitors. A measure of web traffic, the number of individuals who visit a specific web site within a given month. Impressions. Each time an online ad serves, it represents an ad impression. Click-through: When a user clicks on an online ad and is directed elsewhere, that is a click-through. Click-through rate: The percentage of click-throughs to impressions served for an online ad campaign. Avg = 0.10%
  • 13. SEARCH ENGINE ADVERTISING Search engines: web sites that are devoted to finding and retrieving requested information from the World Wide Web.
  • 15.
  • 16. Advertisers bid on keywords.
  • 17. The more popular the keyword, the more expensive.Google keyword tool:  https://adwords.google.com/o/Targeting/Explorer?__c=1000000000&__u=1000000000&ideaRequestType=KEYWORD_IDEAS#search.none 
  • 19. EMAIL ADVERTISING Email advertising:   A direct marketing tactic whereby an advertising message is delivered to recipients’ email addresses. Emails may be permission based or spam. Email photo c/o messagingtimes.com Spam photo c/o likelihoodofconfusion.com
  • 20. Email Advertising in the Marketing Mix Businesses continue to increase spending on email advertising because of its significant return on investment (ROI).
  • 21. Buying Email Advertising Email advertising is bought on a CPM (cost-per-thousand) addresses basis. Average rates vary from $50 to $250 per M for acquisition lists. Advertisers may also build their own databases.
  • 22.
  • 23. 56% of smart phone users access the mobile internet weekly
  • 24. 68% of smart phone users feel positively engaged while using the mobile internet
  • 25. Most mobile sites allow one ad unit per page, offering high visibility for the advertiserMobile ad photo c/o mobilemarketingwatch.com
  • 29. Buying Mobile Web Advertising Mobile web advertising can be purchased on a cost-per-click basis or a cost-per-thousand impressions basis, depending on the goal of the campaign. The average U.S. CPM for mobile advertising ranges from $10-$15. Mobile ad photo c/o inmobi.com
  • 30. ONLINE CLASSIFIED ADS Online classified ads allow individuals to buy and sell products and services. They also allow businesses to advertise real estate, autos, jobs and services. Best known site: Craigslist. Other sites include real estate, auto and job sites like Cars.com, Monster and Trulia. Image c/o mslater.com
  • 31. Buying Classified Online Ads For individual consumers, most online classifieds are free. For businesses, they may pay per posting or a monthly subscription fee, depending on ad volume. Photo c/o techcrunch.com
  • 32. SOCIAL MEDIA ADVERTISING Social media are the dominant force in digital advertising today. More than 6 in 10 U.S. internet users can be found on social media websites.
  • 33. Social Media Revolution Social Media Revolution http://www.youtube.com/watch?v=lFZ0z5Fm-Ng
  • 35. Social Media Ad Spending Of the $3.08 billion expected to be spent in U.S. social media advertising this year, 2/3 will go to Facebook.
  • 36. Buying Ads on Facebook These ads may be purchased on a cost-per-clickor cost-per-thousand impressions basis. Average CPM = $1-$5.
  • 37. “Free” Ads on Facebook, Twitter Fan pages can be used to send exclusive offers directly to people who like or follow that company or brand.
  • 38. YouTube Video display ad on site’s homepage. “Free” ad for SmartWater: http://www.youtube.com/watch?v=Rc47LcvIxyI
  • 39.
  • 41.
  • 42. Rich Media Rich media ads use a full range of animation and sound and often involve user interaction. Video ads can take place in the context of rich media. They may run with other video content or static content. Image c/o meydad.com
  • 43. Rich Media Yahoo! examples of rich media: http://advertising.yahoo.com/media-kit/rich-media.html
  • 45. Average CTR by Industry
  • 46.
  • 48. Sponsorship: the advertiser pays a flat fee over a period of time for the ad position(s)