Advertising on the Internet

1. Advertising on the Internet “It isn’t creative until it sells” in other words…. Creativity (and technologies too) don’t matter if the ads don’t perform Angela D’Auria Stanton, Ph.D.

2. A Little History • First Internet advertisement sold in 1994 • Hotwire.com sold the ad for $30,000/year to AT&T – the annual cost to run its web site • Early advertisers included: AT&T, Sprint, MCI, Volvo, Club Med and Zima • In the early days, clickthrough rates were 25% • Today Internet advertising is a $21+ billion dollar business (as of end of 2007)

3. http://www.youtube.com/watch?v=VSwWyNFjdXI

5. Internet Advertising • It is one component of advertising • It must be integrated with other advertising media to provide a coordinated campaign • Traditional advertising is the foundation for the development of Internet advertising models

6. Reasons to Use Interactive Advertising* • Generate and increase awareness • Generate trial • Provide information • Increase usage • Up-sell to premium product or service • Cross-sell other brands from company • Improve customer’s attitudes/image • Increase repeat purchase • Encourage loyalty/increase customer involvement – customer retention • Develop database of customers/prospects • Reduce excess/obsolete inventory • Test different copy concepts, pricing models, promotions, product/service offerings • Reach target audience missed by other media • Drive traffic to web site or retail location * Source: http://www.iab.net/resources/pdf/reasons_to_use.pdf

7. U.S. Advertising Market-Media Comparisons – 2007 ($ Billions)

8. Online Advertising is Still a Very Small Part of all Advertising

9. Internet Advertising Revenues by Ad Format Source:http://www.iab.net/media/file/IAB_PwC_2007_full_year.pdf

10. Nielsen NetRatings • U.S. Internet Advertising Metrics • Leading Industry Advertisers • Top Site Genres • Largest Creative Portfolio • Leading CPG Advertisers

11. Types of Online Advertising • Traditional Banner Advertising • The dominant online advertising method • A rectangular box, usually horizontal on the page, that contains advertising material • Banners often rotate, although there are sponsorships that constitute “permanent banners” • They are not large in size so info is limited

12. Traditional Banner Example According to the Internet Advertising Bureau (www.iab.net), the standard banner size is 468 pixels wide and 60 pixels high.  This takes up approximately 10% of a normal sized web page.  There is enough room for text, graphics or animation.

13. Other Common Forms • Buttons – typically 120 x 90 or 120 x 60

14. Other Common Forms • Mini/Micro Buttons – 88 x 31The most underrated of banner ads. Used properly, they are every bit as effective as full banners in delivering the message.

15. Other Common Forms • Rectangle – 336 x 280 or 180 x 150

16. Other Common Forms • Skyscraper – 120 x 600

17. Most Popular Ad Sizes • http://www.adrelevance.com/intelligence/intel_dataglance.jsp?flash=true&sr=89654 • http://www.iab.net/standards/adunits.asp • Something fun: http://www.bannerreport.com/html/gallery.php

20. Rich Media • Catch-all term for online advertising technologically enhanced by motion, sound or some sort of interactive element. • Allows online ads to approach television in dynamic terms – designed to catch the eye, distract or intrude • They can float above content, animate, integrate video, a jingle, and include interactive elements like pull-downs for more information or content tailored to a user profile • Has become the de facto standard

21. The First Rich Media Ad • In the early days, rich media ads required special programming skills and their formats lacked common industry standards. • Larger file sizes also created problems in the age of slow dial-up connections. • Today Macromedia’s Flash platform underpins almost all rich media ads today. Hewlett Packard, 1996

22. Rich Media Formats • Pop-ups/Pop-unders • In-page: standard IAB ad unit shapes that may include advanced rich media functionality such as embedded games, animation, video, registration forms, or other forms of interactivity • Expandable: similar to in-page but they expand in size when moused over or clicked • Floating: ads that appear as a layer on top of the user’s current page that move across the page and resolve into an in-page ad on the same page (or sometimes a smaller floating reminder ad which continues to float above the page) • Transitionals: “between-page ads” or “interstitials” appear between one page and another as a user clicks through a site

23. Rich Media Guidelines • http://www.iab.net/iab_products_and_industry_services/1421/1443/1467

24. Pop-Ups • Ad that appears in a separate window on top of content already on-screen • Designed to get your attention for a few moments • Can be effective for branding although some people find them irritating

25. When this page loads This ad pops under, unnoticed Pop-Under(Behind) • Ad that appears in a separate window beneath an open window • concealed until the top window is closed, moved, resized or minimized. • Can be irritating but often have high recall

26. Pop-Up Guidelines Source: http://www.iab.net/iab_products_and_industry_services/1421/1443/1461

27. Expandable Ads • Pointroll: • http://www.pointroll.com/showcase.html • Eyeblaster Expandables: http://demo.eyeblaster.com/CreativeShowcase/feb_05/redlobster/redlobster.htmhttp://demo.eyeblaster.com/demos/eyeblaster_demofiles/Panasonic/panasonic.htm • DoubleClick:http://www.doubleclick.com/insight/gallery/examples/old-spice-with-original-video.asp • EyeWonder Expandable Adhttp://cdn.eyewonder.com/100125/adWdrDemos/103356/103356_93075_1279_Demo_web.html

28. In-Page • Pointroll Tom Boyhttp://www.pointroll.com/AdGallery/travelocity_subgnomeOnLorem/lorem.asp • DoubleClickhttp://www.doubleclick.com/insight/gallery/inpage/index.asp • EyeWonderhttp://cdn.eyewonder.com/100125/adWdrDemos/103354/103354_88948_1244_Demo_web.htmlhttp://cdn.eyewonder.com/100125/adWdrDemos/103342/103342_88948_2156_Demo_web.htmlhttp://demo.eyeblaster.com/Demos/videoclip/levis/start.htmlhttp://demo.eyeblaster.com/Demos/VideoStrip/VideoStrip.htmhttp://demo.eyeblaster.com/Europe/OfflineDemo/colgate/start.htmhttp://demo.eyeblaster.com/demos/eyeblaster_demofiles/sprite_remix/launch.htm

29. Floating Ads • Pointroll Bad Boyhttp://www.pointroll.com/AdGallery/friskiescatdreamerOnLorem/lorem.asphttp://www.pointroll.com/AdGallery/usnavyenlistmentOnLorem/lorem.asp • Eyeblaster • Floating Adshttp://demo.eyeblaster.com/demos/eyeblaster_demofiles/shakira_166761/launch.htmhttp://demo.eyeblaster.com/demos/eyeblaster_demofiles/WallaceGromit_UK/start.htm • Full Page Overlay – ad appears layered over web pagehttp://demo.eyeblaster.com/Demos/nike_free_DK/launch.htmhttp://www.eyeblaster.com/website/new_archive/2003/september_03/Hulk_FullPage_on_Blackplanet/Hulk_Launch.htm • Wallpaper - takes the place of a Web page's background and plays for a set duration http://demo.eyeblaster.com/demos/eyeblaster_demofiles/Bounty_wallpaper/Bounty_Launch.htmhttp://demo.eyeblaster.com/demos/eyeblaster_demofiles/iMedia_Brand_Summit/imedia_Launch.htm • DoubleClick http://www.doubleclick.com/insight/gallery/floating/index.asp • EyeWonderhttp://cdn.eyewonder.com/100125/adWdrDemos/122413/122413_97027_3497_Demo_web.html • United Virtualities Shoskeleshttp://www.unitedvirtualities.com/demo/wireless2/http://www.unitedvirtualities.com/demo/rhinocort5/http://www.unitedvirtualities.com/demo/holland/http://demos.unitedvirtualities.com/shoshtv_hd5/http://www.unitedvirtualities.com/shoshkeles.htm

30. Interstitial • Ads that appear while a publisher’s content is loading. Also known as transition ads, intermercial ads, splash pages and Flash pages. • An interstitial is usually designed to move automatically to the page the user requested after allowing enough time for the message to register or the ad(s) to be read. • All interstitials have in common the use of unused space and time online, where an ad is shown while the user is waiting for the next expected action. • Trademarked as Superstitial by Unicast • Examples • http://www.eyeblaster.com/website/new_archive/2003/september_03/AlaskaAirlines_NYTimes/AlaskaAirlines_Launch.htm

31. Interstitials • Advantages • The ad creative uses "dead time" to show an ad message, at a time when the site visitor is on hold and attentive to the message that appears. • Their ability to incorporate sound and video. Many sites that accept interstitial ads can take them in a form reminiscent of TV ads. • Disadvantages • Users often don't understand that the interstitial they see on their screen while they're waiting for a page to load is using "dead time"; instead, there's a tendency to think the interstitial is slowing the arrival of the page they've requested. And this translates to annoyed users -- users, moreover, who might "blame" the product or service advertised for their annoyance! • While they can attract a lot of attention, this does not always generate a large number of clicks. It's that "branding" vs. "direct response" issue again. If an ad's effectiveness is going to be evaluated on the basis on click-throughs, interstitials may not be the best vehicle to sell an advertiser.

32. Test Extensively For these banner ads, which background color led to the highest click-through rate?

33. 1. 0.075% 2. 0.069% 3. 0.067% 4. 0.058% 5. 0.051% Test Extensively

34. Ask for Immediate Action • It is more than just saying, “Click Here.” Instead provide a specific “Call To Action” • “Free Shipping if You Order Today” • “Click to Apply” • The word “free” works well, but you don’t always get qualified customers • If you convince visitors to click on your ad… Where do they end up? • A good, functional Landing Page is a must! • Completes the selling process • Converts browser to buyer • Goal of Landing Page: Achieve your Most Wanted Response (MWR).

35. Principles of Good Landing Pages • Request necessary information only! • Not the time for a customer survey • The shorter the form, the better • Make sure the form is on the first page • Give an incentive and restrict time horizon • Example: “Free shipping, if you order today” • Make the next step clear • When arriving on landing page, what must the person do? • Keep focused on the MWR! • Track ad effectiveness to determine what percentage of click-throughs result in your MWR.

36. Clicking on this banner ad… …leads to this page Question 1: Is this a good example of a landing page? Why or why not?

37. Clicking this ad… …takes you here Question 2: Is this a good example of a landing page? Why or why not?

38. Clicking this ad… …takes you here Question 3: Is this a good example of a landing page? Why or why not?

39. Clicking here… …takes you here Question 4: Is this a good example of a landing page? Why or why not?

40. Clicking here… …first launches this superterstitial… …then takes you here Question 5: Are these effective landing pages? Why or why not?

41. Clicking this ad… …takes you here Question 6: Is this a good example of a landing page? Why or why not?

42. Clicking this ad… …brings you here Question 7:Is this a good example of a landing page? Why or why not?

43. Clicking here… …brings you here, where you must click here… …to bring you to this page, where you must scroll down to the bottom of the page so you can click here… …so you can finally arrive here. You must click, search, click, search, scroll, search, and click before you arrive (presumably) to the MWR page (where you must click again to register!) Question 8: Good landing page? Why or why not?

44. Petco Example • http://www.grokdotcom.com/2007/08/17/screencast-conversion-boosting-basics-for-petcocom/