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Online Advertising

Greg Lackey. Online Advertising. Advertising Life Cycle. The Past Mass media Current Media fragmentation The Future Target market Audio/visual enhancements. Source: www.webtvwire.com. Why Use Online Advertising?. Immediate Cost-effective Measurable Audio/visual responsive

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Online Advertising

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  1. Greg Lackey Online Advertising

  2. Advertising Life Cycle • The Past • Mass media • Current • Media fragmentation • The Future • Target market • Audio/visual enhancements

  3. Source: www.webtvwire.com

  4. Why Use Online Advertising? • Immediate • Cost-effective • Measurable • Audio/visual responsive • Grows the brand • Delivers sales

  5. Source: www.profy.com

  6. Types of Online Advertising • Banner ads (Double-click) • Audio/Visual Ads (Flash) • Search linked ads (Google Adwords) • Context linked ads (Google AdSense) • Social Advertising (Facebook)

  7. Audio Visual Advertisements • Rich media ads are viewed six times more often than non-rich media ads • More interactive than standard banners • Flash ads increased brand awareness by 71% for 3 different sized ads

  8. Search Linked Advertising • Very good performance • Rapid growth but small part of market • Highly effective • Relevant, yet not obtrusive • Has expanded rapidly in last few years • Expectation of further growth…

  9. Stock Market Evaluation

  10. How Google Ads Work • Advertiser bids on search terms • Traffic Estimator • Ordering • Ads ranked by bid multiplied by estimated CTR • Puts best ads on top of page

  11. Setting Up A Google Ad • Choose your creative text • Standardized size • Choose your keywords • Exact, broad, phrase, negative keyword • Choose your max CPC • Set daily budget

  12. Technology • Engine to match ads to queries • Choose most relevant ads using various criteria • Returns up to 10 ads to show on a page • Promotion policy: depends on CTR performance and CPC

  13. Payment • Price you pay depends on bidder below you • Pay minimum necessary to keep you above that person • Why not pay your actual bid? • Would then want to cut bid to just enough more than adv below you to keep your position

  14. Increasing Revenue • Increase CPC • Increasing coverage • Increase depth • Increase CTR

  15. Social Advertising • Reach millions of social networking site users • Micro-target select groups of people • Choose CPM or CPC • Create multiple ad campaigns

  16. Facebook Advertising • Image and text based ads • 175,000,000 active Facebook users • Target by demographics • Micro-targeted advertisements

  17. Advertiser Optimization • Gain insight • Track your progress • Determine your value per click • Make text/picture modifications to maximize your results

  18. The End

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