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Online Advertising Greg Lackey 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 Grows the brand Delivers sales Source: www.profy.com 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) 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 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… Stock Market Evaluation 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 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 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 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 Increasing Revenue Increase CPC Increasing coverage Increase depth Increase CTR Social Advertising Reach millions of social networking site users Micro-target select groups of people Choose CPM or CPC Create multiple ad campaigns Facebook Advertising Image and text based ads 175,000,000 active Facebook users Target by demographics Micro-targeted advertisements Advertiser Optimization Gain insight Track your progress Determine your value per click Make text/picture modifications to maximize your results The End