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Online Advertising Ayça Turhan Hacettepe University Department Of Business Administration
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
• It can consist of:
– images
– Text
– Videos
– interactive elements, etc.
Online Advertising
• Some examples:
– Display Ads on websites
– Ads on Search Engines
– Ads on Social Networks
Online Advertising
• Some objectives of online advertising
are:
– improve brand awareness
– create engagement
– increase sales
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
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:
– The power of segmentation & targeting
• Geotargeting
• Site specific targeting
• Behavioral targeting
• Demographic targeting
• Retargeting
• Possibility of instant sales and conversion
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
Social Media
Advertising
Facebook Advertising
Twitter Advertising
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
CPC is $0.50
Sales Price of Motorcycle = $1.000
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
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.
• 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
Ad CPC
• Site A:
– Banner 1: $1.52
– Banner 2: $1.88
• Site B:
– Banner 1: $1.35
– Banner 2: $1.38
Sales price of car is $100.
Programmatic Advertising
• “Programmatic” ad buying typically
refers to the use of software to
purchase digital advertising, as
opposed to the traditional proceses.
• It’s using machines to buy ads,
basically.
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.
PRESENTATION GROUPS!!!
• You are required to form groups of 4 students and make a 15-20 minutes of presentation in the last two weeks of the semester. You can create the presentation in any format (PPT, PDF, Slideshare, Prezi, etc.) .
• You are expected to present it to the class in English and share it with me via e-mail on the day of your presentation. All the members of each group has to present some part of the presentation as it will affect your grade.
• Project’s subject is analyzing a company’s digital presence, digital marketing strategies and tactics and making some recommendations to the company based on the topics we covered throughout the semester.
• You can select any company you want.
• You are required to share the names and numbers of your group members by e-mail ([email protected]) today!
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/emarketingtextbo
ok/
