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Internet Advertising

Internet Advertising. Advertising Mr. Yates. What Type of Web Advertisements Are There?. Banners (static, animated and interactive) Interstitial (pop ups and similar pages that   interrupt the user) Rich Media

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Internet Advertising

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  1. Internet Advertising Advertising Mr. Yates

  2. What Type of Web Advertisements Are There? • Banners • (static, animated and interactive) • Interstitial • (pop ups and similar pages that  interrupt the user) • Rich Media • (Advanced technology, incorporating video, audio, animation and photographs) • Sponsorships, events and corporate sites • Opt-ins • (forms, newsletters push technologies) • Viral marketing and email campaigns • Spam, malware and cookies

  3. Online advertising • Banner ads (Doubleclick) • Standardized ad shapes with images • Loosely related to content • Context linked ads (Google AdSense) • Related to content on page • Search linked ads (Google Adwords) • Related to search terms

  4. Examples banner ad Content ads

  5. Search ads Promoted ad RHS ads Search results

  6. Search linked advertising • High relevance • Results in very good performance in cost-per-acquisition (adv expenditure per sale) • Rapid growth but still small part of advertising market • Total US adv spend ~ $220 billion, growth ~ 1-2% per year • Online advertising: ~ $10 billion, growth ~ 26% last year

  7. Advertising spending

  8. How does Google work? • Advertiser bids on search terms • Can use “Traffic Estimator” to see how many clicks they will get • Can choose “exact” or “broad” match • Ordering • Overture: high bidder gets first position, 2nd highest bidder second position, and so on, with exact match first. • Google: rank by bid x predicted CTR. Puts best ads on top of page.

  9. Aligning incentives • Google sells ad impressions (views) • Seller generally wants clicks and ultimately conversions (purchases) • Rank ads by how much advertisers are willing to bid for impressions • Value/click * clicks/impr = value/impr • Disable added if there are too few clicks per impression (CTR)

  10. The Wheels of Viral Marketing Action Planning and Implementation Content and Relevancy Price

  11. A Tidbit on Pop-Ups • Pop-ups are the single biggest annoyance on the Internet • Yet pop-up advertising is growing faster than any other form of online advertising. ``Any survey we've seen shows that users dislike pop-ups more than almost any other ad format,'' said David Hallerman, senior analyst at marketing-research firm eMarketer. ``[But] we see online advertising growing 25% this year, and [ad ware] surpassing it by 10%.'‘

  12. How Do Advertisers Pay For It? • Rates are quoted in cost per thousand (CPM), meaning the cost for every thousand times the ad is served; • Each time an impression (someone sees the ad on a site) is said to have occurred. • Type of Ads Buys • Run-of-Site • Specific Pages • Keyword Searches • Targeted Users

  13. Ad Buys: Understanding Them • Pay-For-Placement (PFP) • As long as you bid the top two or three positions, you are guaranteed to be displayed in the top of the results for the search engine and its partners • Pay-For-Inclusion (PFI) • A search engine includes your website pages in its index in exchange for payment, generally six months to one year. This does not mean your page will appear in the top position • Google Adwords • Keywords you pick for your site are matched against those products or services people have expressed an active desire to get information on Thurow, S. (2003) Search Engine Visibility. P. 159 Stone, B. (2003) Blogging: Genius Strategies For Instant Web Content. P. 196 (for Google Adwords)

  14. The Battle For Space • Paid search results are the hottest business on the Web, so it's little surprise the two titans of search are colliding • Google's revenues were $390 million in the first quarter, up 118% from a year ago • Yahoo moved into the business forcefully when it acquired a paid search company called Overture last year • The hottest spots include the home pages of the Big Three: Yahoo, MSN, American Online • Marketers generally buy the home-page ad for 24-hour periods • Space on these sites they may have to be booked up to a year in advance VS. • Woolley, Scott. (6/7/04) “No More Nice Guys.” Forbes: Vol. 173 Issue 12, p62

  15. A New Form Of Web Advertising: Adware • Adware is an advertising supported software that is available for free and in exchange displays advertising banners within the software interface • Instead of you having to pay for the software, the company creates revenue by selling advertising space in the software product • Adware will usually install additional third party components on your system and may exchange statistical data with a remote location over the internet • Usually, taking advantage of these free products involves providing some information about yourself that is used to target content and measuring effectiveness on behalf of paying advertisers Definition found athttp://www.webattack.com/Adwarepop.html Elgin, B. (6/28/04) “Guess What -- You Asked For Those Pop-Up Ads.” Business Week: Issue 3889, p94

  16. Adware: The Controversy So, what’s the big deal? • Proponents argue that by monitoring a user's Web surfing, the technology can serve up ads that are relevant and timely • They pooh-pooh fears that adware invades privacy, saying they keep no records or profiles of customers on their computers • Both houses of Congress are considering anti-spyware legislation. They may draw guidelines for appropriate adware practices as well • The state of Utah passed a tough law in March that would ban spyware outright, along with most forms of adware • Several companies, from Hertz and Wells Fargo to L.L. Bean, angered by pop-ups from competitors appearing on their Web sites, are suing the adware vendors and, in some cases, the advertisers themselves • Several studies show that between 60% and 90% of people with adware on their machines aren't sure how it got there or are confused about what it does Mullaney, T. (6/28/04)“Claria: The Napster of Pop-Up Advertising?” Business Week; Issue 3889, p96 Advertisement: For Men Only "The Chicago Executive." 1954: United Air Lines

  17. After All This, Do You Still Want To Get In The Business? It is an industry that is exponentially growing: • U.S. advertisersthis year will spend a record $9.1 billion on online advertising, according to a new report from eMarketer • Online's share of U.S. media spending in 2007 reached 3.4% • U.S. online spending as a percent of media advertising total reached $16.0 billion Editorial. (8/16/04) “Web worth more than mere 3.4%” Advertising Age: Vol. 75 Issue 33, p13, 1/5p Oser, K. (8/16/04) “Net players say marketers still give Web short shrift.” Advertising Age: Vol. 75 Issue 33, p8 Advertisement: Does Your Husband Look Younger Than You Do? 1951: Dorothy Gray Salon: New York Herald Tribune

  18. GameSpot Ad Units (Example) Leaderboard 728x90 Big Screen 458x160 Messaging Plus Unit (MPU) 300x250

  19. GameSpot Ad Units (Example 2) Skyscraper 160x600 Widescreen 620x190

  20. #1 – Encourage the Visuals to POP • Heighten Contrast • Avoid Monochromatic Images • Be Visually Aggressive • (Don’t Pull Back)

  21. Findings • Ads emphasizing the contrast between foreground and background are those that very often attract the most attention and earn high Noted scores. • The inverse is also true: Monochromatic ads, which by their nature are low in contrast, tend to fare poorly both online and in print. • Ads that present the action (either words or images) coming toward the viewer fare better than those in which the action recedes to the back. Ads that appear to be literally “in your face,” are those that tend to attract attention.

  22. #2 – Avoid Exaggerated Cartoons and “The Monty Python” Effect

  23. Observations Ads with photographs have historically earned higher Noted scores than ads with drawings. Ads with exaggerated cartoons tend NOT to attract a great deal of attention either. In online advertising, where illustrations are much more the norm, there seems to be a particular attraction and appreciation for realistic presentations. By the “Monty Python Effect” we refer to a creative device in which static images, often exaggerated drawings, float across a screen in a foreign (or visually incompatible) environment.

  24. #3 – Beat ’em Up…With Benefits: Testimonials are Particularly Effective

  25. Observations Remember that the consumer’s most pressing question is, “What’s in it for me?” Many of the highest scoring ads display the benefits – very often in the forms of testimonials from third-party sources – very clearly and powerfully. Offering benefits – like price information, new features, quotations extolling the virtues of a product will not do any harm, and for lesser known products, may be the difference between advertising success and failure.

  26. #4 – That Old Devil, Sex, Still Attracts AttentionBut it’s not Always Enough

  27. #5 – Give Them Something to Look at Focal Points and Holistic Images are Important

  28. Observations The eye wants to see and to see clearly. Ads that do not have a clear focal point – a single element that stands out and holds the reader’s attention Images that move too quickly or fade in and out too rapidly leave the eye with not much to see

  29. #6 – Keep it Simple

  30. Observations The more cluttered the ad, the lower the readership. There are some busy online ads in this study that earned high scores, but it is notable that many of the top twenty ads are remarkable for their simplicity. In this visual medium, it appears that an advertiser sometimes does not need too many bells and whistles. An eye-filling picture is very often sufficient for the task of attracting a viewer’s attention.

  31. Increasing revenue • Increase CPC • Create higher conversion prob for advertiser • “Advertiser optimization” • Capture more value by increasing competition • Acquire more advertisers • Increasing coverage • Get more keywords • Match more broadly (affects CTR – like precision/recall tradeoff) • Increase depth • Get more advertisers, more ads via optimization/marketing • Increase CTR • Show more relevant ads

  32. References Ads-On-Q (viewed 9/25/04) http://www.quiconnex.com/channel/item/5742 Barnet, N. (viewed 9/25/04). Web Advertising: An Overview. www.int-evry.fr/lfh/ressources/ads/webad/webad.PPT Editorial. (8/16/04) “Web worth more than mere 3.4%.” Advertising Age; Vol. 75 Issue 33, p13 Elgin, B. (6/28/04) “Guess What -- You Asked For Those Pop-Up Ads. Business Week; Issue 3889, p94 Federal Trade Commission Consumer Alert. (6/2/04) “How Not To Get Hooked By A Phishing Scam.” http://www.ftc.gov/bcp/conline/pubs/alerts/phishingalrt.htm Legon, J. (1/26/04). 'Phishing' scams reel in your identity: Feds pursue culprits, warn consumers.” CNN.com: Posted: 11:21 PM EST (0421 GMT) Kerekes, Z. (viewed 9/25/04). “Web Advertising as Signposts.” Marketing Views: http://www.marketingviews.com/webadsassignposts.html. Mullaney, T. (6/28/04)“Claria: The Napster of Pop-Up Advertising?”Business Week; Issue 3889, p96 Nielsen, J. and Tahir, M. (2002) Homepage Usability: 50 websites deconstructed. p. 29. Oser, K. (6/28/04). “Money, mayhem to be found with pop-ups.” Advertising Age, Vol. 75 Issue 26, p51 Oser, K. (8/16/04) “Net players say marketers still give Web short shrift.” Advertising Age; Vol. 75 Issue 33, p8 Ramasastry, A. (8/16/04). “Ramasastry: Hooking phishermen.” CNN.com: Posted: 4:09 PM EDT (2009 GMT) Snapfiles.com (viewed 9/25/04) Adware Definition found at http://www.webattack.com/Adwarepop.html Stone, A. (6/22/04). “Tangled in the Phishing Lines.” Business Week Online; pN.PAG, 00p Stone, B. Blogging: Genius Strategies For Instant Web Content. (2003). P. 196 Tauber, D. and Kienan, B. (2001). Webmastering For Dummies. (2nd Ed.) Thurow, S. (2003) Search Engine Visibility. P. 159 Woolley, S. (6/7/04) “No More Nice Guys.” Forbes; Vol. 173 Issue 12, p62

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