Online Media:An Overview

03.26.12

Agenda

• What is digital media– Interesting statistics

• Digital media spotlight: Display– Types of display advertising– How it’s bought• Publishers vs. networks• Impression vs. performance

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Different Types of Digital Media

Source: IAB, “IAB Internet Advertising Revenue Report - 2011 First Six Months Results September 2011”

Media Consumption vs. Spending

Source: January 2012 eMarketer

Source: IAB, “IAB Internet Advertising Revenue Report - 2011 First Six Months Results September 2011”

Digital Spending Growth

DISPLAY ADVERTISING

What is Display Advertising

• Banner• Rich Media• Video• Sponsorships• Content Integration

Rich Media

Video

Content Integration

How is Online Bought?

• Pricing models– CPM: cost per 1,000 impressions.

• Pro: Guaranteed & premium placement• Con: No control over response, typically costs more• Best use: branding campaigns or predictable performance driven situations.

– CPC: cost per click.• Pro: guaranteed level of response, greater control• Cons: remnant inventory, not guaranteed to deliver• Best use: DR campaigns and as an add on to awareness campaigns.

– CPA: cost per acquisition AKA CPL (cost per lead)• Pro: only pay for a lead, control cost per lead• Con: limited scale and control over placement• Best use: DR campaigns/brands

Online Spending by Pricing Model

How is Online Different?

• Price model options• You buy bucket of impressions, clicks, etc. not

whole sites (Sponsorships excluded)– Focus is on buying audience subsets NOT sites

• Greater opportunity to achieve scale while limiting waste– Advanced targeting– Performance placements

• Real-time data

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Targeting Options

Low Relevancy

High Relevancy

Weather Triggers

Demographics

Site Content

Technographic Targeting

Day Parts

Centrographic Targeting

Contextual Targeting

Behavioral Targeting

Cost

per

CPM

Retargeting

Who’s Who in Online Media