Transcript Types of Online Advertising

Advertising: Options & Trends
Team Six
Olivia
Stephanie
Michael
Daniel
Kevin
The Fall of Traditional Media
The Ad Networks
Types of Online Advertising
Web Analytics
Monetization
Emerging Markets
The Fall of Traditional Media Publishers
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Like many of the nation's biggest newspapers, the
Boston Globe is threatening to fire workers and cut
costs as advertising sales and circulation numbers
decline.
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Newspapers that flourished for over a hundred years
are now going out of business. In March 2009, the 146year-old Seattle Post-Intelligencer put out its last print
edition and Denver's Rocky Mountain News shut down
its presses after close to 150 years of putting out a daily
paper.
Economy, Online Trends Threaten
Newspaper Industry
 As more Americans turn to online news
and the recession eats away at
advertising dollars, some newspapers
are going out of business and others are
struggling to stay afloat.
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Newspapers Adapting to the Web
 Newspapers are having trouble
adapting to the Internet
 Although newspapers like the
New York Times have successful
Web sites with free content, they
have trouble collecting enough
revenue through online
advertising.
•What about a new way to read news?
•The Kindle can display books and newspapers on
its large screen.
•Amazon has made a deal with the Washington Post
and the New York Times to give people discounts
on the device if they sign up for a Kindle
subscription to one of their newspapers.
Key News Audiences Blend Online and
Traditional Sources
• Overall, 37% of public get news online.
• 35% of internet users went online at least three days a week.
Source: 2008 survey,
Pew Research Center
for the People and
Press
New Media
The Evolution of Online Advertisement
The Ad Networks
The Middle Man – Bridge between advertisers & publishers.
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Advertisers – Can be any company that needs to advertise online
Publishers – Typically online portals such as yahoo.com but can be any website
The Middle Men - Google, Yahoo!, ValueClick and LinkShare
The Major Networks
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Google Double Click and Google AdSense
Yahoo! Publisher Network
Link Aggregators
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ValueClick
LinkShare
Commission Junction
The Long Tail –
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Many, many, Smaller ad networks.
OpenX Ad Platform – Create your own ad network
The Major Ad Networks
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Acquired by Google for $3 billion
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Offers technology product (DART) & website services to advertisers and
publishers
Geared towards business
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For blog & small website owners.
Offers ad serving application.
Advertisements are administered by Google.
Generate revenue on per-click or per-impression basis.
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Publisher Network – A closed network.
Provides ad serving cost per-click.
Provides various tools & services to publishers/business related.
The Link Aggregators
 They operate in four segments:
 Media
 Affiliate Marketing
 Comparison Shopping
 Technology
 Provides a programmable pay-per-action, average
earning per 100 clicks, marketing network & patented
technology.
 Provides advertising channels of affiliate marketing and
managed search.
The Smaller Ad Networks
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www.openx.com
An Open Source company
Currently the world’s leading independent ad server.
Provides free software to create your own ad network.
Also provides a free hosted service up to 100 million ad
impressions per month.
Through OpenX:
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Publishers can maximize revenue for their ad space.
Advertisers can access targeted, premium ad inventory.
Technology providers can integrate with an independent monetization
platform.
Types of Online Advertising
 Banner Ads – Most popular, Many Shapes and Sizes
 Text Ads – Google Adsense, links, etc
 Pop Up Ads – Annoys web surfers, drives traffic away
 Pop Under Ads – Opens underneath the browser
 Contextual Ads – Within content and targeted
 Site Takeovers – MySpace Promotions
 Application space – Facebook, Myspace,
 Mobile Applications – iPhone & Blackberry
Common Forms
Banner Ads
Text Ads
Site Takeovers
Application Ads
Mobile Applications Ads
Web Analytics
 Analytics - measurement, collection, analysis and
reporting of internet data for purposes of
understanding and optimizing web usage.
 Gives web publishers and advertisers a criteria to
settle on price
 Users – The number of users a site or network has.
Measured by unique ip addresses or site membership statistics
 Generally lots of users can mean lots of revenue for web publishers
 Generally advertisers love lots of users but are more concerned
with page views and impressions
 Can be misleading
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More Analytics…
 Pageviews – Pages rendered by a website
Generally lots of users means lots of pageviews
 A common quantifiable measurement
 Can help guage how “sticky” a site is
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 Impressions - The number of times an advertisement
was rendered in a page view
One page view may contain as many impressions as the web
publisher wants
 b) Impressions are another quantifiable meausurement and are
directly tied to monetization
 c) Impressions are typically counted by the mil (1000). For every
1000 impressions a site recieves the CPM (Cost per Mill)
 d) CPM's vary widely from pennies to dollars depending on the
type of site.
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The Analytics Companies
 Measures pageviews and impression and site trends
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Google Analytics –
 Provides code to enter into any website to track its pageviews
Omniture - Just purchased by Adobe for $1.8 billion last month
No Coincidence largest anlytics companies are largest ad networks
SEO - Search Engine Optimization
 SEO - Search Engine Optimization
 1.) Optimizing web sites for higher ranks in search engines to
generate higher page views
 2.) Niche Markets - Small community oriented web sites
a) Targeted Audiences - (Music Sites, Gaming Sites, Poker Sites,
etc...)
 b) Can command large CPM,CPC,CPA’s if the analytics are right
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Monetization
 Monetization process begins with
evaluating possibilities.
 Players involved are:
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advertisers,
publishers,
and the middlemen
 Possible payouts in micropayments
• CPM (Cost per Mil, 1000)
• CPC (Cost per Click)
• CPA (Cost per Action)
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Signups, Surveys, etc…
• Or fixed pricing.
Methods of Monetization
• Sponsorship
• Cross Advertisement
• Paid Content and
Advertorials
• Syndication of Content
• Affiliations
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Links
Less Aggressive Methods
 Donations
 Loyalty
 Responsibility
 Conversion
 Indirect Revenue
 Generate Interest from
Activities that Eventually
Result in Sales
Emerging Markets
 Globalization – China and India
 Mobile Space
 Nano Technology
China and India
 Critical mass of online users in the next 10
years
•Monetizing these markets will be tricky but will have
huge rewards
•New millionaires and billionaires will be made in this
space
Mobile Space: The Next Big Platform
 New cell phone
technology
 E-Commerce
 Internet on-the-go
Nanotechnology
 Dictionary: Any fabrication
technology in which objects are
designed and built by the
specification and placement of
individual atoms or molecules or
where at least one dimension is on a
scale of nanometers.
 In their ongoing quest to improve
existing products by creating smaller
components and better performance
materials, all at a lower cost, the
number of companies that will
manufacture "nanoproducts" will
grow very fast and soon make up the
majority of all companies across
many industries.
Other Technology
 Who knows what the
future will bring…
Closing Thoughts
QUESTIONS?