Chapter 6: Online Advertising

Chapter Objectives Describe the role of publishers and advertisers in an ad network. Distinguish among CPC, CPM, and CPA bidding strategies. Use the Google Ad Planner to identify target audiences for your ads. Create a test to determine which of two ads is more effective.

Technical Terms Display/Banner Ads=image & text ads that appear on websites Display Network=consists of a group of online publishers that agree to a set of advertising standards & it pays the publishers to run ads on their websites and reports the ad performance metrics to the advertisers Display Network Publishers=get paid each time the ad network charges an advertiser for displaying an advertisement on the publishers site & they have control over which sites they allow to show ads Display Network Advertisers=create and upload ads that meet the specifications of the display ad network and earn traffic to their website from these displayed ads CPM=Cost Per Mille or Cost Per Thousand Impressions Google Display Ad Planner=can run banner & text ads to the right audience – Keyword Targeting=ads show up on webpages that use selected keywords – Interest Targeting=shows ads to web users who have a given interest regardless of the webpage they are viewing – Topics Targeting=matches broad topics being targeted – Placement Targeting=placing ads on specific websites, apps or video channels Remarketing/Retargeting=downloads a cookie on the ad network where the advertiser is paying for clicks Anticippointment=anticipating specific information on a loading page but being disappointed because it seems unrelated to the ad

Display/Banner Ads

What is a Display Ad Network RW0

Some Display Ad Networks Adwords / Double Click Ad Exchange (Google) TribalFusion OpenX Specific Media Evolve Media / Crave Media.net Yahoo/Bing Ad Network AdBlade Advertising.com

JoesTireStore.com – Persona Activity Each group will create a persona for one of the following four market segments: Group 1: Women age 40 – 65 Group 2: Women age 18 – 39 Group 3: Men age 30 – 49 Group 4: Men age 18 – 29 What are some websites where these personas are spending their time online?

Google Display Ad Planner tells the advertiser where the target audience is spending its time online

Take a Look at Some Real Ads

Remarketing Downloads a cookie on the browser The consumer goes to a site within the ad network where the advertiser is paying for clicks

Remarketing Remarketing Campaigns typically have higher Click Through Rates and Higher Conversion Rates Groups that you can target: Everyone that has visited any page on the advertiser’s site Anyone that has visited only the advertiser’s homepage Visitors that did NOT make a purchase Visitors that added an item to the shopping cart Customers that made a previous purchase that the advertiser would like to up-sell or cross-sell Visitors that have been to the advertiser’s site within a specific time period (usually days)

A/B Testing Banner Ads Version A Impressions: 20,000 Clicks: 160 CTR: 0.8% Conversions: 4 Conversion Rate: 2.5%

A/B Testing Banner Ads Version B Impressions: 20,000 Clicks: 185 CTR: 0.925% Conversions: 5 Conversion Rate: 2.7%

A/B Testing Banner Ads Version C Impressions: 20,000 Clicks: 225 CTR: 1.125% Conversions: 8 Conversion Rate: 3.55%

Consistent Messaging Three ways to stay consistent with ads and landing pages: Tout the same value propositions. Use similar calls to action. Enact the same design elements (color scheme, characters, fonts, imagery, etc.)