online advertising overview - lecture for cmis542 - mcgill university
DESCRIPTION
An overview of online advertising models, best practices, terminology and a deeper dive on social ads and Facebook advertising.TRANSCRIPT
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Digital vs. Traditional Advertising
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Digital Ad Formats Y/Y
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Mobile & Video ads lead growth…
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Digital Ad Revenue Share by Company
Source: Invesp
http://www.invesp.com/blog/ecommerce/digital-ad-spending.html
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Goals of Online Advertising
• Create brand awareness
• Generate engagement
• Open: Create consumer demand
• Close: Satisfy consumer demand
• Direct response – Drive traffic & sales
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Benefits of Online Advertising (vs. traditional media)
• Interactive medium = immediate response
• Advertisers can create immersive brand
experiences using rich media
• Digital media offers sophisticated capabilities
o Tracking
o Targeting
o Measurement
o Testing & Optimization
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Steps to Planning an Online Campaign
• Define goals
• Research target audience
• Develop marketing & media strategy
• Develop media plan
• Websites or networks will affect format and payment models
• Brief the creative team
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Keys to a successful ad
• Attract attention: Be the signal, not the noise.
• Be relevant and timely
• Communicate a key message in a creative and concise manner
• Include a clear call to action
• Deliver on its promise
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Some of the (many) types of online ads…
• Rich Media display ads
• Pop-ups & Pop-Unders
• Modals (Pop-Ins)
• Rollover / Expando Units
• Page Takeovers & Wallpapers Ads
• Interstitial Ads
• Video Ads (Pre-roll, Interstitial)
• Maps & Paid Listings
• Sponsored editorial
• In-Game Ads
IAB Ad Guidelines: http://www.iab.net/iab_products_and_industry_services/1421/1443/1452
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THE NAME GAME
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CPM
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CPM
Cost Per Thousand Impressions.
Best for branding where eyeballs & impressions are the main goal.
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CPC
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CPC
Cost Per Click.
Best for direct response advertising when the goal is to drive traffic. Sometimes referred to as Pay
Per Click (PPC)
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CPA
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CPA
Cost Per Acquisition.
Best for direct response advertising when the
goal is to acquire a lead or a customer.
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CPM vs. Performance-based Ads
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Banner Ads
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Banner Ads
Also known as online display media, these
are typically image-based and come in
standard and non-standard formats
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Source: http://www.iab.net/guidelines/508676/508767/UAP
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SEM
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SEM
Search Engine Marketing
Displaying advertising in search results in relation to a search query.
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Impressions
vs.
Unique Impressions
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Impressions
vs.
Unique Impressions
Total # of times displayed
vs.
Total unique users displayed to in a given time period (24 hours, 30 days, etc.)
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CTA
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CTA
Call to Action
Click Here, Buy Now, Learn More, Share with a Friend, Go
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CTR
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CTR
Clickthrough Rate
Rate at which users click through your ad displayed as a percentage.
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Unique Visitors vs.
Visits
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Unique Visitors vs.
Visits
Unique users to your site in a given time period
vs.
Number of visits by anyone to your site in a given time period
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Landing Page
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Landing Page
The post-click destination that a user
arrives at after clicking on an ad.
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Conversion Rate
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Conversion Rate The rate at which a user that lands on a page
converts to a lead or customer.
For example:
Customers / Unique Visits = Conversion Rate (CVR)
15 customers / 1,500 unique visits
=
1% Conversion Rate (CVR)
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KPI
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KPI Key Performance Indicator
A type of performance measurement used to
evaluate the success of a particular marketing
activity or initiative.
i.e. CTR, CVR, Revenue, CPA, etc.
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ROI
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ROI Return on Investment
The net benefit generated from an advertising campaign, usually measured as a percentage based on costs such as
ad spend and benefits such as revenue.
i.e.
Ad Spend: $100
Revenue: $500
ROI: 500% or 5x
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A / S
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A / S Advertising to Sales Ratio
A measurement of the effectiveness of an
advertising campaign calculated by dividing total
advertising expenses by sales revenue.
A low A / S indicates a more efficient campaign.
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Behavioural Targeting
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Behavioural Targeting
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Behavioural Targeting The ability to track a users click behaviour and
web browsing activity and target advertising
accordingly.
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Demographic Targeting
• Geography
• Age
• Gender
• Education
• Income
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Contextual Targeting
• Website
• Topic
• Content Type
• Keyword
• Timing
• Etc.
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Types of Behavioral
Targeting
• Browsing History (Ad Network, On Site)
• Device (Desktop, Tablet, Mobile)
• Operating System (iOS, Android, etc.)
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Day Parting
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Facebook Ad Targeting
• Demographic
• Platform (Desktop vs. Mobile)
• Interest-Based (Likes, Keyword, Broad Category,
Partner Data)
• Connections (Friends, Apps)
• Relationship Status
• Education
• Language
• Custom Audiences (Email, Phone # or Device ID)
• Re-Targeting (Facebook Exchange or FBX)
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Facebook Page
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Page Posts
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Page Post Ads
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Page Post Ads
• Promoting content published by a Page
• Formats: o Status
o Photo
o Video
o Link
o Other (Events, Questions, etc.)
• Promote to Fans, Friends of Fans, or Non-Fans
• Display in Newsfeed, Right Hand Side (RHS), or Mobile
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Page Like Ads
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Mobile App Install Ads
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Domain Ads
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Custom Audiences
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Facebook Exchange (FBX)
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Facebook Advantages
- Versatile, native ad products for branding, engagement, direct response marketing
- Precise targeting and re-targeting ability drives relevance
- Measure every aspect of the experience
- Test & optimize tactics in real-time
- Ongoing tracking and targeting of campaign participants.
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Disadvantages
- More complexity requires more resources, time &
money.
- Native ad platform implies unique strategy and creative
- Unlike search, most users are not actively seeking products, services and offers on Facebook
- Users are continually finding ways to avoid advertising.
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Other social ad platforms…
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Miscellaneous
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C2C
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C2C Customer to Customer
Markets in which a business facilitates an
environment where customers can sell goods and
or services to each other.
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C2B
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C2B Customer to Business
Business model in which consumers (individuals)
create value, and firms consume this value.
(i.e. Blogs, Stock image services)
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SEO
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SEO Search Engine Optimization
The process of affecting the visibility of a website
or a web page in a search engine's "natural" or un-
paid ("organic") search results.
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AOV
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AOV Average Order Value
=
Total Revenue / Total Orders
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TOS
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TOS Terms of Service
Rules which one must agree to abide by in order to use a service.
Terms of service can also be merely a disclaimer, and is mainly used for legal purposes by websites and
internet service providers that store a user's personal data, such as e-commerce and social networking
services.
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NPS
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NPS Net Promoter Score
A customer loyalty metric that measures customer satisfaction based on the question:
How likely are you to recommend our company/product/service to your friends and
colleagues?
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A/B
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A/B A/B Testing
Simple, randomized experiments with two
variants, A and B, which are the control and
treatment in the controlled experiment.