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The Basics of
Advertising Online
        Sophie Galante
       Katya Bogdanov
       Natasha Brainerd
           Tomi Salami
           Obaid Amjad
What is Online Advertising?


  Social Media   Search Advertising



  Rich Media     Affiliate Networks
Objectives

 Brand-Building   Direct-Response

 • Awareness      • Purchase-related
 • Knowledge      • Provide purchase
 • Liking           motives

 • Preference     • Buy now!
Brand Awareness
Brand Knowledge and Liking
Brand Loyalty
Direct Response through Search
Direct Response through Banners
Website
The Internet delivers…
• Info distribution


• Precision targeting


• Interactivity
Info Distribution

• Relevant for high involvement products
  – Electronics
  – Cars
  – Financial services
Financial Services
Precision Targeting

• Very effective for audience that spends the
  most time online
  – Under 45
  – Top income quartile
• Effective also for niche markets
• Targeted sales promotions
Reached perfect audience!
Interactivity

• Suitable for influencing affective responses:
  – Social Presence
  – Telepresence
  – Involvement
  – Interactivity
Brand-Building
Measuring Effectiveness

• Click through rates (CTR)
• Website visits
• Conversion rates
• Number of views/likes/shares
• Google Analytics
• And more…
Measuring Effectiveness

• Very convenient
• Highly accountable
• Can help demonstrate ROI
• Quantifies reach
• Highly suitable for direct response objectives
• But…
Limitations

• At any time, very few net users are actively
  thinking of purchase
• Passive users tend to not respond!
And
• Views/clicks do not measure nature of
  response
• Additional measures required
Measuring Effectiveness

• Traditional brand equity measurement
  studies


• Social media-based research
Budgeting


• Budget to be set based on objectives


• Adjusted based on success as rated based
  on quantitative and other data
Thank you

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