Online

Ayça Turhan Hacettepe University Department Of Business Administration

• In simple terms, it is advertising on the internet. • It can be anywhere on internet • It can consist of: – images – Text – Videos – interactive elements, etc.

Online Advertising

• Some examples: – Display Ads on websites – Ads on Search Engines – Ads on Social Networks

Online Advertising

• Some objectives of online advertising are: – improve brand awareness – create engagement – increase sales Online Advertising

Source: http://www.pwc.com/gx/en/global-entertainment-media- outlook/assets/2015/internet-advertising-key-insights-1-advertising- segment.pdf

Online Advertising

• The biggest strenght of online advertising is the fact that everything is measurable. • “The Internet will transform advertising because of its trackability, not its beauty.” -Eric Schmidt, Former CEO of Google

Track All Interactions

• Number of impressions • Number of unique users reached • Number of clicks • Post-click and view data • Much more...

Strenghts of Online Advertising

• In addition to tracking: – The power of segmentation & targeting • Geotargeting • Site specific targeting • Behavioral targeting • Demographic targeting • Retargeting • Possibility of instant sales and conversion

Different Types of Online Advertising • • Display Advertising • Video Advertising • Social Media Advertising

Search Advertising PAID PAID

ORGANIC Display Advertising Banners Banners

• Some standart ad sizes: – 300x250 – 336x280 – 728x90 – 300x600 – etc.

90px

728px

Rich Media Banners Rich Media Banners Video Advertising Pre-Roll/Mid-Roll/Post-Roll Video Rich Media – Extended Preroll Social Media Advertising Facebook Advertising Twitter Advertising Linkedin Ads Linkedin Ads Key Terms

• Clickthrough Rate (CTR): Clicks/Impressions % • Conversion: A visitor completing a target action.

Key Terms Explained

• CTR: 5.473/100.000= 5.47% • Conversion Rate: 675/5.473 = 12.33%

Ad gets 100.000 impressions and 5.473 clicks. Total number of orders as a result of the ad is 675.

Payment Models for Digital Ads

• CPM: (Cost per mille - Cost per thousand impressions) – Payment when ad is seen. – The advertiser pays for every thousand times the advert loads on the publisher’s page. • CPC: Cost-per-Click – Payment when ad is clicked. – The advertiser pays only when their ad is clicked on.

CPM vs. CPC

• Assume that: – CPM price is $3.00 – CPC price is $0.05 • Two possibilities: – If we are paying in CPM; Ad gets 100.000 impressions • $3.00x100= $300 and 5.473 clicks. – If we are paying in CPC; • $0.05x5.473=$273.65

Payment Models for Digital Ads

• CPA: (Cost-per-action) – Payment when action is taken. – The advertiser pays only when a desired action is achieved. • Usually, CPM favours the publisher, while CPA favours the advertiser.

CPM vs. CPC vs. CPA

• Assume that: – CPM price is $3.00 – CPC price is $0.05 – CPA price is $1.00 • Three possibilities: – If we are paying in CPM; Ad gets 100.000 impressions • $3.00x100= $300.00 and 5.473 clicks. Total number of – If we are paying in CPC; orders as a result of the ad is • $0.05x5.473=$273.65 675. – If we are paying in CPA; • $1.00x675=$675.00

Key Terms

• Key performance indicator (KPI): A metric that shows whether an objective is being achieved. • Return on investment(ROI): The ratio of profit to cost.

An Example

We are a company which is selling motorcycles on our website. We are running an online ad campaign. Our KPI is number of orders.

An Example

CPC is $0.50 Sales Price of Motorcycle = $1.000 Our ad was shown 10.000 times Our ad received 525 clicks CTR 5.25% Impressions 10.000 Clicks 525 An Example

Our site received 500 sessions as a result of ad clicks 5 session resulted in sales

Conversion 1% Rate Sessions 500 Conversions 5 An Example

CPC = $0.50 Sales Price of Motorcycle = $1.000 # Clicks = 525 # Sales = 5

ROI 1805 % Cost 262.5 Revenue 5000 Another Example Site A

Site B Using URL Builder

• The URL builder helps you add parameters to URLs you use in custom web-based or email ad campaigns. • When users click one of the custom links, the unique parameters are sent to your Google Analytics account, so you can identify the URLs that are most effective in attracting users to your content. • Go to: https://support.google.com/analytics/answer /1033867?hl=en

Using URL Builder

• Instead of: – www.oursupercoolecommercesite.com/red-car • We must use: – 2 different URLs for Site A: • www.oursupercoolecommercesite.com/red- car/?utm_source=sitea&utm_medium=banner&utm_campaign=v1 • www.oursupercoolecommercesite.com/red- car/?utm_source=sitea&utm_medium=banner&utm_campaign=v2 – 2 different URLs for Site B: • www.oursupercoolecommercesite.com/red- car/?utm_source=siteb&utm_medium=banner&utm_campaign=v1 • www.oursupercoolecommercesite.com/red- car/?utm_source=siteb&utm_medium=banner&utm_campaign=v2

Site A

Site B Ad CPC

• Site A: – Banner 1: $1.52 – Banner 2: $1.88 • Site B: – Banner 1: $1.35 – Banner 2: $1.38

Sales price of car is $100. Getting Your Ads Online Programmatic Advertising

• “Programmatic” ad buying typically refers to the use of software to purchase digital advertising, as opposed to the traditional proceses. • It’s using machines to buy ads, basically.

Step-By-Step Guide

• Determine the goal of your campaign • Identify your key performance indicators (KPIs). • Investigate your target audience. • Research potential websites to host your adverts. • Set a budget. • Create your adverts. • Choose or create a landing page. • Run your adverts. • Track, measure, optimise.

PRESENTATION GROUPS!!!

• You are required to form groups of 4 students and make a 15- 20 minutes of presentation in the last two weeks of the semester. You can create the presentation in any format (PPT, PDF, Slideshare, Prezi, etc.) . • You are expected to present it to the class in English and share it with me via e-mail on the day of your presentation. All the members of each group has to present some part of the presentation as it will affect your grade. • Project’s subject is analyzing a company’s digital presence, digital strategies and tactics and making some recommendations to the company based on the topics we covered throughout the semester. • You can select any company you want. • You are required to share the names and numbers of your group members by e-mail ([email protected]) today! Contact Me

• e-mail: [email protected] • Course Page: www.aycaturhan.com/man423

Sources

• emarketing: The Essential Guide To Marketing In a Digital World 5 Ed.» by Rob Stokes and and Minds of Quirk which is available at: http://www.quirk.biz/emarketingtextbo ok/