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Debra Johnson
Dept. of Journalism & Public Relations
@DebraJChico • [email protected]
http://dejohnsonblog.me/
Ad Categories
See the DMI Advertising PowerPoint Deck for specific examples.
1. Traditional Digital Ad
 Banners ads, popups, etc.
 Monetized via impressions and click-through (See ad formula below)
 Data: least effective ad method
2. Native Ads
 Ads designed for one channel only; typically social media
 Monetized via impressions and click-through
 Data: some levels of effectiveness because it’s based on infomediary/remarketing
3. Sponsored Content
 Ads that are designed to look like authentic content for a specific news channel.
 Monetized in lots of ways depending on distribution method.
 Data: can be highly effective but also expensive to produce.
4. Branded Journalism or Branded Content
 Content created by companies and presented as news or other authoritative formats
 Monetized in lots of ways including paid ads within the content.
 Data: can be highly effective because audiences don’t see it as advertising.
Advertising Terminology
Sources:
 Mark Briggs, Entrepreneurial Journalism: How to Build What’s Next for News
 My notes from the Scripps Howard Entrepreneurial Journalism Program at ASU, Jan. 2012
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Creative:
o The graphics, words and overall concept. Sometimes this will also involve who is responsible for
creating the ad.
Fulfillment:
o This refers to the process of delivering the ads a consumer sees (getting them online), billing the
company for the ads, providing a report stating when each ad ran.
Ad Network
o A collection of publishers sold together as a group by a third party.
 Digital First Media: buy ads that run in all DFM products
o Most online ads are handled through these types of networks.
Impression:
o Each time an ad is displayed online = 1 impression.
o It doesn’t mean that readers saw it, just that it appeared on screen.
o The more page views your site gets, the more impressions you have to sell.
Display vs. classified:
o Classifieds are mostly text and run in advertising heavy areas only.
o Display advertising tends to be artistic and runs next to stories.
Click-through rate:
o The rate users click on a specific ad.
o Industry average: 1 person in 1,000 people who see an ad will click on it.
Pay-per-click campaigns
o Advertiser only pays when a customer clicks on the ad
Debra Johnson
Dept. of Journalism & Public Relations
@DebraJChico • [email protected]
http://dejohnsonblog.me/
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o Advertiser can set a maximum payment rate ($500)
o Often a good choice for startups because you can control cost
CPM:
o Cost per thousand impressions
Remnant:
o Leftover space (impressions) not sold by sales staff. Typically low cost, annoying sales.
The Monthly Ad Revenue Formula
CPM Advertising (Cost Per Thousand)
Traffic of the site divided by 1,000 X CPM X # of ad units = Revenue
 CPM = $1 (premium site with premium content may charge $10 CPM for a top of page ad)
o CPM rates are dropping big time because advertisers are not seeing their return
o Why?
 People don’t click on ads (if 1,000 people come to your site only 1 person will click on it) yet
that is what Internet advertisers want users to do.
 There is a lot of inventory (lots of web pages that your users go to)
 Tracker blockers and ad blockers are growing due to users being irritated by the advertisers
shenanigans (spyware, tracking, sharing data, selling data)
o CPMs on mobile are lower than on traditional web
 # of ad units: how many ads on a page
Quantcast: allows publishers voluntarily get their sites measured or it guesses.
EXAMPLE: Cosmopolitan.com
1,137,560 (mobile and web visitors in Sept. 2013)
1,137,560 divided by 1,000 = 1137.56 X $1 X 4 = $4,550.24 per month via advertising
 A website that gets 1 million page views per month = $4,000 for four ads