DISPLAY ADVERTISING. Today’s class will cover: Display advertising Demographic and behavioural targeting ‘Native” advertising.

DISPLAY ADVERTISING

Today’s class will cover:

• Display advertising• Demographic and behavioural targeting• ‘Native” 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)

• “Interactive” display advertising means that the display ads actually do something in response to a user action

• 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)

Internet advertising formats (IAB report for 2014)

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

A couple of common sources to buy display ads

• Google – Adwords for Display

• Facebook – Advertising on Facebook

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)

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 behaviour and serves ads accordingly

Ad targeting

• Online advertising is creepy; it doesn't have to be. David Stillwell

• Facebook Ads – How advertisers target you with their ads online (Steve Dotto. 2015)

Ad blockers – the people fight back• A report last month from Adobe and PageFair,

an Irish start-up that monitors ad blocking, 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 iOS 9 will include ad blocking software

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

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

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

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

Final thoughts about web display advertising……

• 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

• Advertisers cautiously shifting to paid social media – useful survey from Neilsen (2013)

Integrated campaigns

• Campaigns that use a variety of marketing tactics that work together in a campaign (just like your team project campaign)

• MIXX Awards 2014 – a variety of interactive advertising featured as part of integrated campaigns (get some ideas for your team assignment campaign from here!)

“NATIVE” ADVERTISING

“Native” advertising• Also known as “content marketing” – basically it is

paid content (marketing messages) masquerading as organic content on news and other publishing websites (Buzzfeed is often named as the primary example) – it differs from the traditional “advertorial” because it is designed to blend in with the “real” content

• Increased use of native advertising is a response to the fact that traditional display ads don’t work at all well – but it is very controversial

• Native Advertising Examples: 5 of the Best (and Worst)• Last Week Tonight with John Oliver: Native Advertising (HBO)

(11 minutes)