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Online Advertising
Ayça Turhan Hacettepe University
Department Of Business Administration
Online Advertising
• In simple terms, it is advertising on the internet. • It can be anywhere on internet and can consist of
images, text, videos, interactive elements, games, etc.
• Some examples: – Display Ads on websites – Ads on Search Engines – Ads on Social Networks
Online Advertising
• The main objectives of online advertising are: – to increase sales – improve brand awareness – raise share of voice in the marketplace
Online Advertising
Source: http://www.pwc.com/gx/en/global-entertainment-media-outlook/assets/2015/internet-advertising-key-insights-1-advertising-segment.pdf
Online Advertising
• The biggest strenght of online advertising is the fact that everything is measurable.
• “The Internet will transform advertising because of its trackability, not its beauty.”
-Eric Schmidt, Former CEO of Google
Track All Interactions
• Number of impressions • Number of unique users reached • Number of clicks • Post-click and view data • Much more...
Strenghts of Online Advertising
• In addition to tracking: – Possibility of instant sales and conversion – The power of targeting
• Geotargeting • Site specific targeting • Behavioral targeting • Demographic targeting • Retargeting
Different Types of Online Advertising
• Search Advertising • Display Advertising • Video Advertising • Social Media Advertising
Search Advertising
PAID PAID
ORGANIC
Display Advertising
Banners
Banners
• Some standart ad sizes: – 300x250 – 336x280 – 728x90 – 300x600 – etc.
728px
90px
Rich Media Banners
Video Advertising
Pre-Roll/Mid-Roll/Post-Roll
Video Rich Media – Extended Preroll
Extended Preroll with Social Integration
Content Branding
Social Media Advertising
Facebook Advertising
Facebook Advertising
Facebook Advertising
For Details Go To: https://www.facebook.com/business/learn/facebook-create-ad-basics/
Facebook Advertising
Twitter Advertising
Twitter Advertising
Twitter Advertising
Linkedin Ads
Linkedin Ads
Linkedin Ads
Key Terms
• Clickthrough Rate (CTR): Clicks/Impressions % • Conversion: A visitor completing a target action.
Key Terms Explained
• CTR: 5.473/100.000= 5.47%
• Conversion Rate: 675/5.473 = 12.33%
Ad gets 100.000 impressions and 5.473 clicks. Total number of orders
as a result of the ad is 675.
Payment Models for Digital Ads
• CPM: (Cost per mille - Cost per thousand impressions) – Payment when ad is seen. – The advertiser pays for every thousand times the
advert loads on the publisher’s page.
• CPC: Cost-per-Click – Payment when ad is clicked. – The advertiser pays only when their ad is clicked on.
CPM vs. CPC
• Assume that: – CPM price is $3.00 – CPC price is $0.05
• Two possibilities: – If we are paying in CPM;
• $3.00x100= $300
– If we are paying in CPC; • $0.05x5.473=$273.65
Ad gets 100.000 impressions and 5.473 clicks.
Payment Models for Digital Ads
• CPA: (Cost-per-action) – Payment when action is taken. – The advertiser pays only when a desired action is
achieved.
• Usually, CPM favours the publisher, while CPA favours the advertiser.
CPM vs. CPC vs. CPA • Assume that:
– CPM price is $3.00 – CPC price is $0.05 – CPA price is $1.00
• Three possibilities: – If we are paying in CPM;
• $3.00x100= $300.00 – If we are paying in CPC;
• $0.05x5.473=$273.65 – If we are paying in CPA;
• $1.00x675=$675.00
Ad gets 100.000 impressions and 5.473 clicks. Total number of orders
as a result of the ad is 675.
Key Terms
• Key performance indicator (KPI): A metric that shows whether an objective is being achieved.
• Return on investment(ROI): The ratio of profit to cost.
An Example
We are a company which is selling motorcycles on our website. We are running an online ad campaign.
Our KPI is number of orders.
An Example
Our ad was shown 10.000 times Our ad received 525 clicks
CTR 5.25%
Impressions 10.000
Clicks 525
An Example
Our site received 500 sessions as a result of ad clicks 5 session resulted in sales Conversion Rate 1%
Sessions 500
Conversions 5
An Example
CPC = $0.50 Sales Price of Motorcycle = $1.000 # Clicks = 525 # Sales = 5 ROI 1805%
Cost 262.5
Revenue 5000
Landing Page Optimization
• The primary goal of display advertising is to drive clicks back to your landing page or website so you can deliver your key brand messages and convert visitors to take specified actions leading towards a purchase.
Source: WSI (2013-07-31). Digital Minds: 12 Things Every Business Needs to Know About Digital Marketing (p. 80). FriesenPress. Kindle Edition.
Landing Page Optimization • A landing page is the page that greets your users, the
first page the user sees on your site. • Landing pages can be specific to a campaign being
run. • You can consider testing:
– Headline – Images – Calls-to-action – Text – Social Proof – Etc.
Another Example
Site A
Site B
Using URL Builder • The URL builder helps you add parameters to URLs
you use in custom web-based or email ad campaigns. • A custom campaign is any ad campaign not using the
AdWords auto-tagging feature. • When users click one of the custom links, the unique
parameters are sent to your Google Analytics account, so you can identify the URLs that are most effective in attracting users to your content.
• Go to: https://support.google.com/analytics/answer/1033867?hl=en
Using URL Builder • Instead of:
– www.oursupercoolecommercesite.com/red-car • We must use:
– 2 different URLs for Site A: • www.oursupercoolecommercesite.com/red-
car/?utm_source=sitea&utm_medium=banner&utm_campaign=v1 • www.oursupercoolecommercesite.com/red-
car/?utm_source=sitea&utm_medium=banner&utm_campaign=v2 – 2 different URLs for Site B:
• www.oursupercoolecommercesite.com/red-car/?utm_source=siteb&utm_medium=banner&utm_campaign=v1
• www.oursupercoolecommercesite.com/red-car/?utm_source=siteb&utm_medium=banner&utm_campaign=v2
Site A
Site B
Sales price of car is $100.
Retargeting/Remarketing
• People who have already shown interest in your product or service are more valuable.
• In remarketing, when someone visits your site, a tracking cookie is placed in their browser.
• As they visit other sited supported by specific chosen advertising partners, your ad is shown to them.
Retargeting/Remarketing
• People who have already shown interest in your product or service are more valuable.
• In remarketing, when someone visits your site, a tracking cookie is placed in their browser.
• As they visit other sited supported by specific chosen advertising partners, your ad is shown to them.
Programmatic Advertising
• Programmatic advertising helps automate the decision-making process of media buying by targeting specific audiences and demographics.
• Programmatic ads are placed using artificial intelligence (AI) and real-time bidding (RTB) for online display, social media advertising, mobile and video campaigns, and is expanding to traditional TV advertising marketplaces.
Source: http://marketingland.com/library/display-advertising-news/display-advertising-programmatic-media-buying
Step-By-Step Guide • Determine the Goal of your campaign • Identify your key performance indicators (KPIs). • Investigate your target audience. • Research potential websites to host your adverts. • Set a budget. • Create your adverts. • Choose or create a landing page. • Run your adverts. • Track, measure, optimise.
Search Advertising
Ayça Turhan Hacettepe University
Department Of Business Administration
Search Advertising
• Search advertising, also called pay-per-click (PPC) advertising, is a way to advertise your business or product directly on search engine results pages, where the advertiser pays only for each click on their advert.
Extensions
https://support.google.com/adwords/answer/2375499?hl=en
Search Engine Advertising • People who are searching for something usually have
a specific intent – they are looking for information, guidance, comparisons, tools, or solutions to their problems.
• It’s important to understand why somebody would look for your brand or product – and what keywords they would use to find it – when crafting your search ads.
• Look at the considerations for choosing keywords that are covered in the Search Engine Optimisation chapter – these often overlap.
Gooogle Adwords
• Google’s online advertising platform is Google Adwords. (http://adwords.google.com)
• With Google AdWords, you can reach people as they search for words or phrases (which we call keywords) or browse websites with themes related to your business.
• Your ad can appear on Google and its partner websites. With cost-per-click (CPC) bidding, you're charged only when someone clicks your ad.
Targeting Options
• Keyword Targeting
Targeting Options • Location and Language Targeting Example: If you run a dog daycare center in San Francisco, California, you could add the keyword "doggie daycare," and "San Francisco and nearby cities," as the target location for your AdWords campaign. Then, when people in San Francisco type "doggie daycare" on Google, they could see your ad next to the search results.
https://support.google.com/adwords/answer/1704368?hl=en
Targeting Options
• Device Targeting – Show your ads to the right people across all devices,
based on their specific location, time of day, and device type.
• Audience targeting – Show your ads to people who have previously visited
your site by using remarketing lists for search ads(RLSA).
https://support.google.com/adwords/answer/1704368?hl=en
Remarketing Lists
What is Remarketing? – A feature that lets you reach people who have
previously visited your website. – Your ads can show to these customers when they visit
other websites in the Google Display Network or when they search on Google using your keywords.
https://support.google.com/adwords/answer/2701222
The Long Tail
The Long Tail
• Moz (a well known SEO blog) claims that 70% of searches on the web are unique.
• Discovering those low volume niche search terms can generate amazing results in SEM.
• Long tail keywords are generally cheaper and lead to higher rates of conversion.
How does Adwords Work?
• Adwords is an auction. • Adrank: A value that's used to determine your ad
position (where ads are shown on a page) and whether your ads will show at all.
• Ad Rank is calculated using: – Your bid amount – The components of Quality Score (expected clickthrough
rate, ad relevance, and landing page experience) – The expected impact of extensions and other ad formats
Source: https://support.google.com/adwords/answer/1752122?hl=en
How does Adwords Work?
• Even if your competition has higher bids than yours, you can still win a higher position at a lower price by using highly relevant keywords, ads, and extensions.
Structure of Ads
Structure of Ads
• Account: Our Cool Shoe Company Account • Campaign: Summer Sale • Ad Group 1: Sneakers • Ad Group 2: High Heel Shoes • Ad Group 3: Kids Shoes
The Elements of an Ad
The Elements of an Ad
• Headline: maximum of 25 characters • Ad Text Line 1: maximum of 35 characters • Ad Text Line 2: maximum of 35 characters • Display URL: maximum of 35 characters
Search Advertising
Testing
• Just like everything else in digital marketing, testing is vital in search engine marketing.
• Ex: Testing various calls-to-actions: – Summer sale on sneakers. Buy now! – Summer sale on sneakers. Choose yours now! – Summer sale on sneakers. Claim your offer now!
Testing
The Importance of Landing Page
• If you are targeting for keyword «buy canon eos 450d», the target url must be the page that the customer can buy that camera right away.
• It shouldn’t be your homepage. • It shouldn’t be the category page of cameras.
Conversion and CTR
Conversion and CTR
Conversion Tracking
Planning and Setting Up a Search Campaign
• Market research & Analysis • Define your goals • Budget, cost per action (CPA) and targets • Keyword Research • Write the Adverts • Place your bids • Tracking • Measure, analyse, test, optimise!
Sources
• emarketing: The Essential Guide To Marketing In a Digital World 5 Ed.» by Rob Stokes and and Minds of Quirk which is available at: http://www.quirk.biz/emarketingtextbook/