1. How did this online ad find me?
Digital Advertising 101

2. INVENTORY
You go online or open an app.
Publishers (and advertisers) now have the opportunity to show you ads.
Advertisers bid in a real-time auction to show you their ad.
Publishers sell the ad space to the highest bidder.
You see the ad.
You may or may not do anything, now or in the future.
Lather. Rinse. Repeat.
Feedback!
The basics.

3. Differing Goals and Objectives
Advertisers want to move hearts and minds
Publishers/networks want traffic to keep coming to their site

4. How do both parties achieve these goals simultaneously?
Focus on the customer and the user experience
Right ad shown to the right person at the right time.
How do both parties achieve these goals simultaneously?

5. Audience Targeting Demographic:
Based on age, gender, relationship status, and other demographics
Rose Cooper:
Female
Millennial / Xennial
Married
Catholic
Mom
Sister
Aunt
College grad with master’s degree
iPhone user

6. Audience Targeting
Behavioral: Based on user behavior – online, offline, on devices. Uses cookies and pixels. “In- market” and “affinity” targeting are a subset of behavioral targeting. “Search behavior” is also included here.
Rose Cooper:
Likes to craft
Shops for shoes
Loves to travel
Eats a lot of cake

7. Audience Targeting
Psychographic Based on user attitudes, perceptions, and values. Advertisers generally figure these out by monitoring user behavior.
Rose Cooper:
Thinks voting is important
Values family above all else

8. Audience Targeting
Geographic: Based on user location. Can be broad, e.g. “East Coast” or specific, e.g Blossom Rd.
IP Targeting: Target users’ at a specific IP address.
Time-based: During a specific time of day
Contextual: Show your ad alongside specific content

9. Precision Targeting
Customer match: Use existing customer information, such as or purchase history, to target audience
Retargeting/remarketing: Target users’ who have visited your website or seen your digital ad previously

10. Broad or Precise Audience?
Generally more persons in the audience, which creates more ad inventory
Tend to be less expensive to reach
May have waste
Precise
Less persons in the audience, so less potential ad inventory
Less inventory can drive up the cost of ads
Highly targeted to your consumers

11. Bidding and Optimization Methods
Cost-per-Thousand (CPM)
Cost is based on number of impressions ad generates
Ads are optimized to be shown to your target audience as many times as possible
You “get charged” each time your ad is shown
Good for generating awareness and driving reach/frequency
Cost-per-Action (CPA)
Cost is based upon a user taking a specific action, such as a click
Ads are shown to those in your target audience who are likely to take the desired action
You “get charged” each time the user completes the desired action
Good for generating web traffic (clicks), conversions, video views, form submissions, etc.
Some Notes on Bidding
Can set a maximum bid, e.g. max cost-per-click of $4.00
Or, you can have platform optimize your bid to achieve your desired results, based upon a fixed budget

12. Ad Placement Models Site Direct
Ads are purchased and placed on specific sites
Controls where your ad is placed
Can be great for niche targeting
May be more expensive compared to other methods
Programmatic
Ads are placed on a network of site(s)
Ads enter into an auction, or ad exchange
Can be lower cost
No guarantee your ad will be shown
Less control over where your ad is shown
Ad Placement Models

13. Digital is a continual feedback loop
Have you ever…
Clicked an ad?
Clicked on an ad and immediately left the page it took you to?
Skipped an ad on YouTube?
Watched a whole :30 ad on Youtube?
Used the “hide ads like this” feature?

14. Ad Quality Scores Strong performing ad  high quality score
Low performing adlow quality score
Good quality scores amplify your bid in the ad auction:
Advertiser X is willing to bid $3.00 and has an ad quality score of 6
Advertiser Y is willing to bid $4.00 and has an ad quality score of 2
Who wins the ad auction?

15. Ad Optimization and Testing
Bid and buying method
Audience
Creative

16. Remember…
Data makes people dangerous!