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Transcript of Online Advertising
different payment models
Types of ads
Tracking Ad Performance
advertisements which appear on websites matched with the visitors interests defined by cookies etc.
- CPM -> cost per thousand
- CPC -> cost per click
- CPA -> cost per action
- CPO -> cost per order
- CPL -> cost per lead
rate structure is based on agate lines and column incheshalf- and full-page ads
flexible to new technological development
measuring the success of your ad
quality and relevancy
higher quality score -> lower costs, better ad position
Efficiency of Investment
Advertisers choose webpage and place for their ad to minimalize wastage.
at what time
Programs which measure the efficiency of the advertisements
merchant: product provider
affiliate: operating company of external webshop
Cost per thousand
YOu have to pay for the times an ad is view on a page. Also used for TV, radio and print advertising.
cost per click
You have to pay for each click a customer make on the ad. This is just used for online ads.
Cost per action
You just have to pay for a special action of the customer.
Participation on a contest
Order of a newsletter
Request of information
cost per order
You just have to pay if the customer makes an order executed be the link. Very success oriented and protectes against high marketing fees.
cost per lead
increasing internet presence
contract difficult to cancel
advantagesminimal effortexpanding offerincreasing profit
fulfilling of needs
advertiser can start a campaign
programme shows where the online ads can be positioned
just websites, etc which are matched with the target group
fast access to the market
direct positioning in search results
opportunity for small budgets
advertisements in forums and social media
wide range for acquisition of new customers
constantly available for changing
minimum budget leads to minimal success
continous control of the ads
ads can just be found if the person put in the keywords
have to have qualified landing pages
amount you bid on the keywords
keywords bidding -> based on the quality score of keywords
different strategies related to type of business
Example: google AdWords
Focus on clicks
cost-per-click bidding (CPC)
daily budget, Google AdWords try to bring you the most possible clicks within your budget (Automatic bidding)
full control, set bids at the ad group level, individual keywords or ad placements (Manual bidding)
Focus on impressions
cost per thousand impressions (CPM)
pay the number of times the ad is shown
like CPC manual bidding
Focus on conversions
highest amount that a company is willing to pay for a conversion
conversion is often describes as a sale or an email sign up
have to turn on "conversion tracking"
return on ad spend:
(revenues - costs of ad * 100)/ costs of advertising = %
based on your keywords clickthrough rate (CTR)
relevance of your ad text
what happen after somebody clicked on your ad (selling, Newsletter, etc)
helpful to invest more carefully on "Stars" or "questionmarks"
Example: Google AdWords
Google Adwords - how it works
Advantages and Disadvantages
adjustment of the market
open legal position
receiving all information
to many informations
both benefit from it
customer: wider range of offers
customer: wider range of customers
easy to create
to attract attention of the user
basically simple to understand
ignored by users
blocked by websites
limited amount of information
--> little impressions, clicks, ect
Display ads are graphical advertisements featured on websites. They are available in many standard shapes and sizes, including: banners, leader boards, skyscrapers, large boxes and other sized graphical ads. They use eye-catching visuals to quickly grab catch the attention of website visitors browsing the pages on which they are featured.
Interstitial pages are a form of advertisement on the web that appears between web pages that the user requests. Because interstitial load in the background, they are a preferred way of delivering ads that contain large graphics, streaming media, or applets.
Pop up Ads
This are ads, that opens in a separate window in the back- or foreground. This kind of advertising is very pushy and annoying. They were stopped by pop-up blockers. Nowadays there are many methods to avoid pop-up blockers and to show the pop-up ads.
Pricing of Ads
There are different ways of pricing ads:
Selling ad space in various block sizes for fixed price and an agreed term
There are different types of banners, for example:
Skyscraper/ Wide Skyscraper (most left or right)
Available Online Ad Technologies
Social media (http://prezi.com/flrty97fzxit/social-media/ )
You just have to pay if you receive personal data from new customer. Used in the insurance sector, finacial services or online dating agencies.
Text Ads are text based Hyperlinks. They do not included graphic images.
You can see them for example on Google or Ebay
display network only - all features
display network only - remarketing
Steps in Google Adwords
1.) user starts a want ad
2.) ads will be filtered (keywords agreed)
3.) ads will be filtered (region, active, etc.)
4.) ads will be sorted (bid, quality)
5.) placing of the ad
6.) repeating the whole process
bid and relevance as same factors
relevant keywords --> higher ad position