By: Daniel Coelho

Introduction

Definitions

Statistics

Google

Facebook

YouTube

On The Bright Side

Conclusion

Traditional advertising such as; TV, radio, billboards, etc, don’t compare to

internet advertisement.

Companies like Google, Facebook, and YouTube gather statistics of their

users that other companies/advertisers would pay large amounts of

money to know.

Google, Facebook, and YouTube also provide advertising space

throughout their site where these advertisers can put these user statistics

to use.

Have we become a marketing tool for these companies?

Demographic:

the statistical data of a population, especially

those showing average age, income, education, etc.

a specific segment of a population having shared characteristics:

Marketing:

the total of activities involved in the transfer of goods from the

producer or seller to the consumer or buyer, including advertising,

shipping, storing, and selling.

Tool:

a person manipulated by another for the latter's own ends;

anything used as a means of accomplishing a task or purpose:

Google, Facebook, and YouTube are the three most popular and visited

sites.

Google gets about 1.2 trillion searches a year.

Facebook has about 1.4 billion active monthly users and 890 million daily

users.

YouTube has over 1 billion users and over a million advertisers.

“The internet is so big, so powerful and pointless that for some people it is a

complete substitute for life.” ~ Andrew Brown

Google gets billions of searches a day and thus a large audience for

advertisers to market towards.

Google generates a revenue through its Google Adwords.

Google Adwords are a set of keywords that you choose that someone

might search on Google. Then your ad will be displayed when someone

enters those keywords.

There is no min or max amount an advertiser can pay for their ad.

However, the more they pay the more likely they’re ad will be shown.

In 2012 Facebook generated roughly $6 billion.

Facebook’s ARPU (average revenue per user) was $5.32

($5.32 x an average of 1 billion users)

How? Advertisers.

The average time spent per user a day is 21 minutes.

That’s about 18.7 billion total minutes being spent on Facebook a day.

The ads you see on Facebook are based on what you like on Facebook,

what you post, what you share, basically anything you do on Facebook.

Facebook also uses your browser history to find out even more

information about you.

All of these statistics are what get advertisers interested in advertising on

Facebook.

Advertisers have two options when they decide to advertise through

Facebook:

Cost Per Click (CPC)

The average cost per click for these ads, calculated as the amount spent

divided by the number of clicks received.

You (the advertiser) only have to pay for the ad when someone clicks on it

Cost Per 1,000 Impressions (CPM)

The average cost you've paid to have 1,000 impressions on your ad.

You (the advertiser) have to pay for the ad every time someone sees it

1000 times.

Facebook also gives you the option to choose a broad audience or a

specific audience, the schedule, and the budget (min is $1 a day)

“The aim of marketing is to know and understand the customer so well the

product or service fits him and sells itself.” ~ Peter Drucker

With 300 hours of video uploaded every minute and billions of views

generated a day, advertisers love YouTube.

Advertising on YouTube costs about .10 to .30¢ per ad view.

There are 4 types of YouTube ads:

In-search:

Ads that show up above the YouTube search results.

In-slate:

Ads that show up in the suggested videos section after your video ended.

In-display:

Ads that show up in the suggested videos section beside the video you’re

watching.

In-stream:

Ads that play before your video.

YouTube also provides advertisers with the option to target their ads at a

specific audience.

However, YouTube gives majority of its ad revenue to its YouTube

partners.

YouTube partners earn about .80¢ to $5 per 1000 views on their videos.

Psy’s Gangman Style video had about 2.2 billion views and earned about

$6 million.

“There was a time when people felt the internet was another world, but now

people realise it’s a tool that we use in this world.” ~ Tim Berners-Lee

All three of these sites are free.

Google provides us with the ability to easily find information.

Facebook allows us to connect with friends and family around the world.

YouTube does give most of its ad revenue to its YouTube partners.

YouTube partners can make up to hundreds of thousands up to even

millions a year depending on how popular they are.

Hours of entertainment.

So how do we stop technology and advertisers from using us as

marketing tools?

There isn’t much you can do to stop it. There will always be advertisers

and ads. They will try to use us to make a profit.

A few things you could do are:

Installing the browser extension Adblock Plus will prevent ads from

showing up.

85% of in-stream YouTube ads can be skipped. So skip them if they

bother you.

Check your privacy and security settings on social media sites.

Using this site http://www.aboutads.info/choices/ allows you to choose

which sites can access your browser history to help prevent specific ads

targeted towards you.

So have we become a marketing tool?

Does it bother you?

Are you okay with indirectly giving Facebook $5.32/yr to use their site,

Or watching a short ad on YouTube to watch a video?

The internet is a great and powerful place. Be aware. Make sure

you know what goes on behind the scenes of what you do on the

internet.

200 Amazing Facebook User Statistics (January 2015). (2014, March 13). Retrieved from

http://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/2/

Facebook. (n.d.). Retrieved from https://www.facebook.com/help/214319341922580

FB-12.31.2012-10K. (n.d.). Retrieved from

http://www.sec.gov/Archives/edgar/data/1326801/000132680113000003/fb-

12312012x10k.htm#s2CF2FBF368CC675F388BD7A5A237234A

Google Search Statistics. (n.d.). Retrieved from http://www.internetlivestats.com/google-search-

statistics/

How Facebook, Twitter, Social Media Make Money From You (TWTR,LNKD,FB,GOOG). (2014,

March 21). Retrieved from http://www.investopedia.com/stock-analysis/032114/how-

facebook-twitter-social-media- make-money-you-twtr-lnkd-fb-goog.aspx

How Much Money Do YouTube Stars Make? [Infographic]. (n.d.). Retrieved from

http://www.adweek.com/socialtimes/money-youtube-partners-2013-infographic/129426

The Conversation Starter. (n.d.). Retrieved from http://www.pennapowers.com/how-much-do-

ads-on-youtube-cost/

Top Sites. (n.d.). Retrieved from http://www.alexa.com/topsites

Top 15 Most Popular Websites | April 2015. (n.d.). Retrieved from

http://www.ebizmba.com/articles/most-popular-websites

What is Google AdWords and how does it work? (n.d.). Retrieved from

https://econsultancy.com/blog/65682-what-is-google-adwords-and-how-does-it-work/

YouTube Statistics. (n.d.). Retrieved from https://www.youtube.com/yt/press/statistics.html