Display advertising.

Paid media on social

MARK 430 Week 6

Advertising dollars continue to

shift to the internet

http://www.kpcb.com/internet-trends

DISPLAY ADVERTISING

Definition of display advertising

• "a form of online advertising where an advertiser's message is shown on a destination web page, generally set off in a box at the top or bottom or to one side of the content of the page."The Internet Advertising Bureau (IAB)

• Display advertising is usually purchased on the basis of the number of “impressions” (CPM) that an ad has (not on the basis of performance or CTR)

• Brand advertising and direct response (DR)

IAB report for 2016

Internet advertising formats (IAB report for 2015)

Web site advertising formats

• Display ads began in 1994 with static banners on Hotwired.com for AT&T

• Then in the search to catch people’s attention added animation, then moved to the use of “rich media”

• Interactive formats, including:– Banners– Buttons– Skyscrapers– Pop-ups, pop-unders, interstitials– Pre-rolls– Video

– For examples of web advertising formats, go to• DoubleClick Media Gallery

• IAB Guidelines for interactive advertising

How do you buy display

advertising?

• Buying direct from a network. For example:

– Google – Adwords for Display

– Facebook – Advertising on Facebook

• We will look at this in more detail later

• Advertising exchanges – in recent years a big shift to “programmatic” ad buying using Real Time Bidding (RTB)

How are ads bought and sold?

• Shift from Ad Exchanges to “Programmatic Advertising”

• “Programmatic” ad buying typically refers to the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations and manual insertion orders. It’s using machines to buy ads, basically.” Digiday

• The Evolution of Online Display Advertising (3 minute video from IAB)

• 200 milliseconds: The life of a programmatic real time bidding (RTB) ad impression(Media Crossing)

• Shift from selling space on publisher’s website to selling visitor’s attention

Problems with web advertising

• Seen as more intrusive - consumers complain more about web advertising than about other forms of advertising– Related to the nature of the medium

• Spyware and tracking cookies• Privacy concerns

– Social networking sites– Behavioural targeting and retargeting – may be subject to

regulation

– Use of cookies by advertising networks• Opting out – Network Advertising Initiative• DoubleClick Opt-Out• Do Not Track initiatives

• Pop-up blockers and Ad Blockers• Very low click-through rates…..

http://www.businessinsider.com/its-more-likely-you-will-survive-a-plane-crash-or-win-the-lottery-than-click-a-banner-ad-2011-6?op=1

How successful is online display

advertising?

• Click-through rates are very low

– Average is around 1 click every 1000 impressions

– Research from Dave Chaffey on variance in CTR for display ad types

– Click-through rates on Facebook and Twitter (from Larry Kim)

• Beyond demographics : Behavioural targeting and re-targeting are being tried in an effort to improve CTR

Types of ad targeting

• Search targeting – based on terms typed into search engine – marketers bid on search terms. Ads appear on SERPS. Costing is PPC

• Context targeting – based on textual content of the webpage on which the ad appears (often plus demographics). Costing is CPM (impressions)

• Behavioural targeting (and retargeting / remarketing) - monitors online behaviourand serves ads accordingly

Ad blockers – the people fight

back• A report in 2015 month from Adobe and

PageFair projected that the software would lead to nearly $22 billion in lost revenue for advertisers this year.

• Roughly 200 million people globally now use ad-blocking software; global usage increased 41 percent in the last year.

• Apple’s latest OS for mobile includes ad blocking software

http://blog.pagefair.com/2015/ad-blocking-report/

http://blog.pagefair.com/2015/ad-blocking-report/

http://www.pressboardmedia.com/wp-content/uploads/2014/06/An-Example-of-Traffic-Fraud.png

Ad fraud – Bots inflate monetized audiences by 5-50%

Where is web display

advertising going?

• Advertising is less and less about interruption and trying to grab attention –make ads that people actually want to watch

• More and more about attempting to engage a willing audience

• Big shift to the use of mobile by users so advertisers are following

PAID MEDIA ON SOCIAL

Social media services – revenue

from advertising / paid media

• For the majority of social media services, advertising is the major source of revenue

• We are seeing more and more advertising on Facebook, Instagram, Twitter, Snapchat and Pinterest

• Remember who the customer is for these social media services– They are buying our attention via very

sophisticated targeting using the personal data that we provide

http://www.iab.com/wp-content/uploads/2016/04/FY2015-PwC-IAB-Webinar-Presentation.pdf

Typically, social media ads are geared

to specific objectives, such as:

• App engagement• App installs• Brand awareness• Clicks to website• Event responses• Lead generation• Local awareness• Offer claims• Page Likes• Page post engagement• Video views• Website conversions

FACEBOOK: PAID MEDIA

Facebook: the safe choice..

• Facebook has over 3 million advertisers

• Marketers use Facebook for owned, earned, and paid media because….

– “Familiarity breeds acceptance.” Vaynerchuck

– “Hard to dismiss a platform as skewing too young, or too experimental, or too trendy, when your niece, your brother, your seventy-two-year-old dad…are on it” Vaynerchuck

Gary Vaynerchuck. Jab, Jab, Jab, Right Hook: How to Tell Your Story in a Noisy Social World. Harper Business. 2013

Paradoxically, it is the size of

the platform that causes the

problem for marketers

• With that massive amount of content streaming into a users Newsfeed, it is almost impossible to get and keep attention.

• Facebook decides what people get to see (and don’t see) in their Newsfeed

• Marketers need to understand how Facebook manages the Newsfeed algorithm, called Edgerank

Recent significant Edgerank

changes

• Aimed at reducing spam– “Likebaiting” – asking “News Feed readers to like,

comment, or share the post in order to get additional distribution beyond what the post would normally receive” is now being targeted

– Frequently circulated content (ie. Reposting of memes etc)– Spammy links (deceptively phrased)– Facebook is encouraging authentic conversation and

relationship building not begging or bribing fans

• Aimed at balancing posts from friends and posts from Pages in newsfeed– Posts that look like ads or “promotional posts” will be

downgraded– Further reduction in organic reach for brands and other

publishers

Example given by Facebook of a “Promotional

Post” that would be penalized

So now it is PAY-to-PLAY Organic reach continues to decline

The Edgerank algorithm tweaked to

reduce organic reach

• Analysis of more than 100 brand pages - organic reach was around 6 percent, a decline of 49 percent from October 2013

• For large pages with more than 500,000 Likes, organic reach hit 2 percent in February 2014

• “Organic reach of the content brands publish in Facebook is destined to hit zero. It’s only a matter of time.”

• Marketers being pushed to paid media – in particular “Promoted Posts”

http://social.ogilvy.com/facebook-zero-considering-life-after-the-demise-of-organic-reach/

Facebook advertising products

• Build a page, not a personal account

• Facebook advertising products – targeted by demographics, psychographics, and behaviour –Direct Response advertising

• Boosted posts (video on how it works)

• Video on course website about Facebook Pixel

Facebook for business

TWITTER – PAID MEDIA

Twitter – paid media

• Twitter for Business: Advertising– Promoted

accounts

– Promoted tweets

– Promoted trends

• Most of these advertising solutions are “pay-per-action”

Twitter cards: other in-stream paid media

https://social.ogilvy.com/key-trends-in-social-media-for-2015/

INSTAGRAM: PAID MEDIA

Instagram for business

• Instagram now has an algorithmically controlled feed

• Instagram is owned by Facebook, so the two are being increasingly integrated in terms of targeting and advertising solutions

• The only way to get a direct hyperlink out from an Instagram post is via paid advertising

Instagram advertising solutions

• Photo ads

• Video ads

• Carousel ads

• Not (yet) any way to boost organic Instagram posts

https://business.instagram.com/advertising/

PINTEREST: PAID MEDIA

Pinterest

https://business.pinterest.com/en/promoted-pins

• Promoted pins –appear natively in the feed

• Work just like ordinary pins

• Charged on the basis of engagement or clicks to website

• Click through directly to buy the product

SNAPCHAT: PAID MEDIA

Snapchat advertising products

• Snap video ads (approx $20 CPM)

• Sponsored geofilters(cost depends on size of the geofence, but $$$)

• Sponsored lenses ($$$$$ so used by big brands)

• May 2017 introduced a new tool for business to self-manage ads

https://www.snapchat.com/ads