The Basics of Advertising Online

Sophie Galante

Katya Bogdanov

Natasha Brainerd

Tomi Salami

Obaid Amjad

What is Online Advertising?

Search Advertising Social Media

Rich Media Affiliate Networks

Objectives

Direct-Response Brand-Building

• Awareness

• Knowledge

• Liking

• Preference

• Purchase-related

• Provide purchase motives

• Buy now!

Brand Awareness

Brand Knowledge and Liking

Bra

nd L

oyal

ty

Direct Response through Search

Direct Response through Banners

Website

The Internet delivers…

• Info distribution

• Precision targeting

• Interactivity

Info Distribution

• Relevant for high involvement products

– Electronics

– Cars

– Financial services

Financial Services

Precision Targeting

• Very effective for audience that spends the most time online

– Under 45

– Top income quartile

• Effective also for niche markets

• Targeted sales promotions

Reached perfect audience!

Interactivity

• Suitable for influencing affective responses:

– Social Presence

– Telepresence

– Involvement

– Interactivity

Brand-Building

Measuring Effectiveness

• Click through rates (CTR)

• Website visits

• Conversion rates

• Number of views/likes/shares

• Google Analytics

• And more…

Measuring Effectiveness

• Very convenient

• Highly accountable

• Can help demonstrate ROI

• Quantifies reach

• Highly suitable for direct response objectives

• But…

Limitations

• At any time, very few net users are actively thinking of purchase

• Passive users tend to not respond!

And

• Views/clicks do not measure nature of response

• Additional measures required

Measuring Effectiveness

• Traditional brand equity measurement studies

• Social media-based research

Budgeting

• Budget to be set based on objectives

• Adjusted based on success as rated based on quantitative and other data

Thank you