Working with Technology Seminar

Opportunities in

Online Advertising

VINOGRADOVO, October 9-10 2013

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1. Ad Delivery – New Formats

2. Online Ads Specification

3. Ad Serving

4. Latest Trends in Online Marketing

Agenda: What we will cover

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Online Ad Delivery Methods

Display advertising

Search Engine Marketing (SEM)

Social Media Marketing

Mobile Advertising

Email Advertising

Online Classified Advertising

Affiliate Marketing

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Display advertisingIAB Display Advertising Guidelines – Universal Ad Package(2003)

Display advertisingIAB Display Standard Ad Unit Portfolio

•released on Feb 2012, see: http://www.iab.net/guidelines/508676/508767/displayguidelines

•includes a new range of formats designed to meet marketers’ communications needs across the purchase funnel

•over 80 percent of display ads sold have followed IAB standards

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Source: Wikipedia

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Diplay advertising - IAB Rising Star

New Rich Media Ad Units introduced by IAB US in Feb 2012 - http://www.iab.net/risingstars (examples)

Display Rising Star – Billboard, Filmstrip, Portrait, Pushdown, Sidekick, Slider

Mobile Rising Star – Mobile Filmstrip, Mobile Pull, Mobile Adhesion Banner, Mobile Full Page Flex, Mobile Slider

Digital Video Rising Star – Filmstrip, Ad Control Bar, TimeSync, Extender, Full Screen

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Other forms of online advertising Video ads (pre-roll, post-roll, mid-roll, text ads)

Email marketing (direct mail, newsletters)

Online classified advertising (job boards, online real estate listings, automotive listings)

Affiliate Marketing (also called lead generation)

Sponsorships and Partnerships

Hybrid Ads

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Online Ads Specification Develop your own rules and recommendations for

advertisers (create a document available at your website that covers all area of online ads specification)

General Guidelines and Requirements(examples)

• An ad must be clearly marked with the word “ad” close to the ad location, with graphic separation from the content, to avoid confusion with the content

• Ads covering content are among the most aggressive formats. Should always be used with some limitation of display for the user and time (frequency). Ads covering content must contain a „Close X“ button

• All sound in ads must be click initiated

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Ad Unit SpecificationAd Type (use common terminology for each ad form to

avoid misunderstanding, e.g. square banner, leaderboard, overlay)

Dimensions (in pixels – in case of expandable formats, specify also dimmension of expanded ad unit)

File Size (initial data volume, including scripts, libraries, form data and associated graphics)

Video File Size (in case of video streaming, specify max. data volume)

Animation (e.g. up to XY seconds)

Serving Options (will you accept third party?)

Notes (e.g. auto-expands once per user per day, must be click to expand and click to close, frequency cap of 1 per user/ per 24 hours, max. amount of characters in case of text ads)

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Online Ad Submission Instructions

Creatives must comply with your reqs - examples:

Max of 5 individual ad codes in rotation at one time unless otherwise specified for a particular placement.Max of 1 instance of code or image changes per week unless otherwise specific for a particular placement.Submit all creatives to your account manager at least 3 days prior to campaign launch for standard creative. 5 days prior for rich media.Approved Ad Servers for Web/Mobile Web/Mobile Apps/Video Ads

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Online Technical Specifications(examples)Always create an alternative to Flash version, with the same dimensions and in GIF/JPEGNever insert target URL into Flash directly, but import it from the clickthru or clickTag variableTest and program banner behaviour in different browsers, provide alternative content for browsers where full functionality is not possible No ad can prompt the download of a plug-in, and must be coded to search for any required plug-ins and display an alternate ad to those who don't have it.Especially for Flash advertising, test for CPU load on slower machines (around 300 MHz processor speed)For commercials with a display time limit, ensure such limit will be observed on slower and less powerful machinesAdvertising content with sounds should always be tested with the sound on

See also (in Russian): https://rbc.medialand.ru/formats.html

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Advertising Platform What does Advertising Platform mean?An advertising platform (also called Ad Serving) is an intermediary

technology between publisher and advertisers that allows publisher to publish and manage text, graphic or animated advertisements on websites.

What are the main advantages of using Online Advertising Platform?

management and automated deployment of advertising on a website 

easy and fast creation and efficient control of the advertising campaigns

different targeting methods (on the site, geographic, by the context, behavior)

accurate and independent statistics for publisher and advertiser

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Ad Serving – decision criteriaBefore choosing an ad server platform, ask yourself:

What is your selling strategy?

Do you have any special ad serving requirements?

How much support do you need?

Ad Serving Platforms Functionality

Common functionsUploading advertisements and rich media.Trafficking ads according to differing business rules.Targeting ads to different users, or content.Tuning and optimization based on results.Reporting impressions, clicks, post-click & post-impression activities, and interaction metrics.

Advanced functionsFrequency capping so users only see messages a limited amount of time. (Advertisers can also limit ads by setting a frequency cap on money-spending)Sequencing ads so users see messages in a specific order (sometimes known as surround sessions).Excluding competition so users do not see competitors' ads directly next to one another. (Usually done by bidding on keywords)Displaying ads so an advertiser can own 100%

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Ad Serving Decision Criteria

Pricing: - usually based on number of served impressions per month, sometimes based on data volume transfered per month.

Free platforms:Rontarhttp://www.rontar.ua – free up to 100 million impps per monthGoogle DoubleClick Small Businesshttp://www.google.com/intl/en/dfp/info/sb/ - free up to 90 million impps per monthAdTech Lite http://www.adtechlite.com) - free up to 90 million impps per monthEpom http://epom.com - - free up to 250k impps per month

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Ad Serving Decision Criteria

Mobile/Video solution Ad exchange Demo Service and Support Real-time Trial period Targeting Database Creative types supported (Images, Flash, HTML, XML,

3rd-party, Rich Media, Video, etc.)

Campaign optimization (CPM, CPC, CPA, CPD, Fixed Cost, conversion tracking)

Reporting (Real time reporting + dashboard, Custom reports, report subscription , report export (xls, csv, pdf, html)

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Ad Serving Platforms

PROS Ad trafficking and delivery

Inventory management

Revenue optimization

Inventory forecasting

Reporting

Intuitive user interface

Mobile support

Significant cost savings (free up to 90 million impression per month)

CONS No Russian/Ukrainian

localization

Google is a competitor for digital advertising money

Everything runs against Google platforms

Less hands-on support as standard

Lack of rich media/video capabilities

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Ad Serving Platforms in RU

AdRiver (adriver.ru) the most developed system (since

2001) widely used by ad agencies A huge variety of advertising

formats supported  reporting system that includes a

large number of ready-made reports 

focus on Russian market, end-to-end localization and technical support in Russian

You can pay for using the system by showing ads for free – more: http://www.adriver.ru/publisher/trafficpaid/

disadvantage - quite complex interface, needs a lot of training

AdFox (adfox.ru) provides individual solutions for commercial ad networks of any complexity

affiliated with the publishinghouse "Kommersant". The system has only recently emerged and is quickly evolving

AdFox.Mobile – ad platform formobile devices and apps (iOS, Android)

NOTE: Both AdRiver and AdFox are quite expensive, for 100.000 pageviews approx. 100 RUB (first month free to test it)

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Ad Serving - comparison AdRiver AdFox Google

DFPOpenX

(Open Source)Rontar Holder

Free to use ✘ ✘ ✔ ✔ ✔ ✘Servers located in Ukraine/Russia ✔ ✔ ✘ ✘ ✔ ✔Auto advertising sales ✘ ✘ ✔ ✘ ✔ ✘Reservations for agencies ✔ ✔ ✔ ✘ ✔ ✔Phone support in Moscow/Kiev ✔/✘ ✔/✘ ✘ ✘ ✔ ✘Different types of targeting ✔ ✔ ✔ ✔ ✔ ✔Financial statements from the system ✘ ✘ ✔/✘ ✘ ✔ ✘

Flexible adjustment of the campaign ✔ ✔ ✔ ✔ ✔ ✔Rare banner formats ✔ ✔ ✔ ✘ ✘ ✔Independent statistics ✔ ✔ ✔ ✘ ✔ ✔Real-time Bidding (RTB) ✔ ✔ ✔ ✘ ✘ ✘

Source: http://adindex.ru/

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Ad Serving – TargetingTargeting options exist for a long time and are used in almost all campaigns/ad serving platforms: date and time targeting geographical location of users (up to city/district level – hyperlocal targeting) number of hits per user (based on cookie and IP) - capping bandwidth, browser, languahe settings, OS, connection type, etc.

Retargeting is the practice of serving ads based on prior engagement. Serving up ads to people who previously visit your website after they leave.

Social Media Targeting is a method of using social media profile data to deliver advertisements directly to individual users.

Contextual Targeting (also known as Semantic targeting) - Inferring the optimum ad placement from information contained on the page where the ad is being served.

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Retargeting providers in Russia

Source: diges.ru

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Advanced Targeting: BehavioralBehavioral Targeting - using prior behavior on the part of the viewer to determine which ad to show during a given visit.

Targeting thematic words - showing ads to users who have entered on the search engines certain search terms.

Targeting on thematic sites - showing ads to users who have visited certain sites. Ads will not show on the theme site, but on any other user to visit and where it can be shown banner system.

2 types of behavioral targeting: ad network behavioral targeting on site behavioral targeting (creating a profile to a user)

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Trends in Online Advertising - RTBRTB (Real-time bidding) is a specific methodology for creating a real-time/instantaneous marketplace for online ads (similar to High Frequency Trading on Stock Exchanges).

There are 3 groups of entities involved (just like in financial markets):

Demand Side Platforms (DSP)Data Management Platforms (DMP)Supply Side Platforms (SSP)

How RTB works

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1. Visitor enters publisher website URL. Publisher ad server sends request to ad exchange for 1 ad of particular spec (e.g. a banner)

2. Ad exchange makes available details of visitor, publisher site and ad unit to participating advertisers/agencies

Ad Exchange

Real-time auction

Ad Exchange

Real-time auction

I offer €2 for this impression because the visitor abandoned a shopping cart on my e-shop site 2 hours ago

I offer €1.8 for this impression because the visitor is 25-30 years old female with an interest in sport

II offer €1.65 for this impression because this is the most important local news site where we opened a new store

3. Advertisers respond with different bids based in the value of that impression to themselves, and the ad creative

4. Ad exchange selects highest paying advertiser and sends corresponding creative to publisher website

5. Visitor sees creative from highest paying advertiser. Complete process (steps 1-5) takes miliseconds

RTB market in Russia and Ukraine

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DSP = Demand Side Platforms SSP = Supply Side Platforms

Source: AdFox

RTB market in Russia and Ukraine

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DMP = Data Management Platform Source: AdFox