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Online Display Advertising

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Online Display Advertising
Võ Ngọc Trí Dũng

Publicada em: Marketing
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Online Display Advertising

  1. 1. ONLINE DISPLAY ADVERTISING
  2. 2. DIGITAL CHANNEL FOR PROMOTION (COMMUNICATION)  Online Display Advertising  Search Advertising  Social Media Advertising  Mobile Advertising
  3. 3. ONLINE DISPLAY ADVERTISING  Digital Advertising Overview  Types of Display advertising  The Effectiveness of Banner ads  Online Advertising Ecosystem (how to fit it all in one)
  4. 4. Digital advertising overview#1
  5. 5. COMMUNICATION PROCESS SENDER ENCODING MESSAGE DECODING RECEIVER RESPONSEFEEDBACK NOISE MEDIA Identify the Target Audience Determining the Communication Objective Collecting Feedback Selecting the Message Format Source: Principles of Marketing Advertising Evaluation Choosing Media Designing a Message
  6. 6. DETERMINING THE COMMUNICATION OBJECTIVE: ADVERTISING RESPONSE MODELS Source: Principles of Marketing Cognition Attention Awareness Knowledge Affect Interest Desire Liking Preference Conviction Behavior Action Purchase Stages AIDA (1898) Hierarchy of Effects (1999) Advertising communication may not lead to immediate behavioral response or purchase; rather, a series of effects must occur, with each step fulfilled before the consumer can move to the next stage in the hierarchy.
  7. 7. MESSAGE FORMATS & COMMUNICATION CHANNEL Base on IAB Ad Format definition • Banner advertising & Rich media • Sponsorship • Digital Video advertising • Email & Classifieds • Search & Social media ads • Mobile advertising Base on WHAT the message is served • Text • Image • Video • Rich media Base on HOW the message is served • Standard ad • Floating ad • Pop-up/pop-under • Wallpaper • Expandable Base on WHERE the message is served • Display & PR • Search & Portals • Mobile (+wifi) & Map • In Game • Email (Spam & Opt-in) • Viral marketing • Online Partnerships Base on Philip Kotler definition • Personal communication channels • Word-of-mouth • Buzz marketing • Non-personal communication channels • Mass media • Atmospheres • Event Base on WHO the message is served • Owned Media • Paid Media • Earned Media Formats Channel
  8. 8. SENDER ENCODING MESSAGE DECODING RECEIVER RESPONSEFEEDBACK NOISE MEDIA Customer-Centric Approach Digital Activitive/Landscape Aida (1898) Hierarchy of effects (1999) Advertising objectives (Kotler) Customer Decision Journey Advertising Ecosysterm Advertising Format Advertising Effectiveness Phân bổ ngân sách Phân bổ ngân sách Thấu hiểu khách hàng Xác định mục tiêu truyền thông
  9. 9. Types of display advertising#2
  10. 10. REVENUE BY AD FORMAT Internet advertising revenue by ad format: 1998 – 2003, US (Percent) 1998 1999 2000 2001 2002 2004 Banner ads 56 56 48 36 29 21 Sponsorships 33 27 28 26 18 10 Interstitials 5 4 4 3 5 2 Email 0 2 3 3 4 3 Classifieds 0 0 7 16 15 17 Rich media 0 0 2 2 5 8 Keyword search 0 0 1 4 15 35 Rreferrals 0 0 4 2 1 1 Slotting fees 0 0 0 8 8 3 Other 6 11 3 0 0 0 Source: IAB 56% 21%
  11. 11. REVENUE BY AD FORMAT Internet advertising revenue by ad format: 1998 – 2003, US (Percent) 2008 2009 2010 2011 2012 2013 Keyword search 46 47 46 47 46 43 Banner ads 21 23 24 21 21 19 Classifieds 13 9 10 8 7 6 Rich media 7 7 6 4 3 3 Lead generation 7 6 5 5 5 4 Digital Video 3 5 5 6 6 7 Email 2 1 1 1 0 0 Sponsorships 1 2 3 4 2 2 Mobile 0 0 0 5 9 17 Source: IAB ~ 20%
  12. 12. 1. Interstitial Banners 2. Pop-up and Pop-under 3. Map Advertisement 4. Floating Advertisement 5. Wallpaper Advertisement 6. Banner Advertisement
  13. 13. Interstitial banners are shown between pages on a Web site. As you click from one page to another, you are shown this advertisement before the next page is shown. INTERSTITIAL BANNER Source: saylor.org
  14. 14. These are advertisements that pop up, or under, the Web page being viewed. They open in a new, smaller window. POP-UNDER POP-UP POP-UP & POP-UNDER
  15. 15. A map advertisement is advertising placed within the online mapping solutions available, such as Google Maps. Source: saylor.org MAP ADVERTISEMENT
  16. 16. A floating advertisement appears in a layer over the content, but is not in a separate window. Floatingbanner Floatingbanner Source: saylor.org FLOATING ADVERTISEMENT
  17. 17. A wallpaper advertisement changes the background of the Web page being viewed. Usually, it is not possible to click through this advertisement. Source: saylor.org WALLPAPER ADVERTISEMENT
  18. 18. A wallpaper advertisement changes the background of the Web page being viewed. Usually, it is not possible to click through this advertisement. Source: saylor.org WALLPAPER ADVERTISEMENT
  19. 19. A banner advertisement is a graphic image or animation displayed on a Web site for advertising purposes. STATIC BANNERS are graphics interchange format (GIF) or Joint Photographic Experts Group (JPEG) images, but banners can also employ RICH MEDIA such as Flash, video, JavaScript, and other interactive technologies. Source: saylor.org BANNER ADVERTISEMENT
  20. 20. BANNER ADVERTISEMENT: EXAMPLE BY FORMAT GIF/JPG/Flash Banner Box-AppExpandable Source: Moore.vn Text Banner (Classified) Banner with TVC Banner with Mouse Tracker
  21. 21. SPONSORSHIP Adpage Sponsored contest
  22. 22. The effectiveness of banner ads#3
  23. 23. High CTR Ads viewability Reach to right audiences Create high impact HOW DO YOU ESTIMATE THE EFFECTIVENESS OF BANNER ADS? A B C D WHICH OPINION IS SIMILAR WITH YOUR?
  24. 24. THE EFFECTIVENESS OF BANNER ADS  The effectiveness is “viewability”  The effectiveness is “higher ctr”  The effectiveness is “higher impact”  The effectiveness is “credibility”  The effectiveness is “acquire the right customer”
  25. 25. The effectiveness is “viewability”
  26. 26. VIEWABILITY INSIGHT  56.1% of all the impressions served on the Google display platforms could never have been actually seen. Google conducted a study of our display advertising platforms, including Google and DoubleClick, to better understand ad viewability. WHAT GOOGLE FOUND: Source: Google 2014 *According to the Media Rating Council and IAB standards, a viewable impression occurs when 50% of an ad’s pixels are on screen for one second.  The most viewable position is right above the fold, not at the top of the page.  Page position isn’t always the best indicator of viewability. Not all above-the-fold impressions are viewable, while many below-the-fold impressions are.  On average, publishers have 50% viewability rates, but some publishers have much lower viewability.
  27. 27. VIEWABILITY INSIGHT Source: Google 2014 *According to the Media Rating Council and IAB standards, a viewable impression occurs when 50% of an ad’s pixels are on screen for one second.
  28. 28. VIEWABILITY INSIGHT Source: Google 2014 *According to the Media Rating Council and IAB standards, a viewable impression occurs when 50% of an ad’s pixels are on screen for one second.
  29. 29. VIEWABILITY INSIGHT Source: Google 2014 *According to the Media Rating Council and IAB standards, a viewable impression occurs when 50% of an ad’s pixels are on screen for one second. Viewability varies significantly across content verticals, with the highest viewability belonging to sites associated with more captive engagement.
  30. 30. The effectiveness is “higher ctr”
  31. 31. THE IMPACT OF ADS CHARACTERISTICS BANNER ADS TYPE (STATIC OR ANIMATED) Animated banner ads cause better recall and faster click- throughs than static banner ads. BANNER ADS SIZE (SMALL OR LARGE) Large banner ads generate higher and faster click- throughs than small banner ads. Source: Hariong Li (2004) RICH MEDIA BANNER The CTR of rich media ads higher than conventional online ads (~ 10x, Admicro.vn).
  32. 32. EMOTIONAL APPEAL AND INCENTIVE OFFERING INCENTIVE OFFERINGS Banners ads with incentive offerings have CTR higher than banner ads without incentives INCENTIVE OFFERINGS + POSITIVE EMOTIONAL Banners ads with incentive offerings + positive emotional appeals have CTR higher than banner ads with no incentive offerings + positive emotional appeals The impact of incentives was enhanced by positive emotions in banner ads. Ads with negative or no emotions seem to work better only when no incentives are offered. Source: Frank Tia Xie, Naveen Donthu, Talai Osmonbekov(2004)
  33. 33. The effectiveness is “higher impact”
  34. 34. THE DUAL ROLE OF BANNER ADS Banner ads have been used primarily for direct response, and their CTR declined from an average of 3% (mid- 1990s) to 0.5% (2000s) and to 0.28% (2003). “…without CTR, banner ads resulted in heightened ad awareness, brand perceptions and attitudinal shifts for apparel and technology brands”, Brigg and Hollis (1997). BANNER ADS = DIRECT RESPONSE + IMAGE BUILDING Source: Hariong Li (2004)
  35. 35. RESEARCH FIDING: OVERALL BRANDING IMPACT FOR ONLINE DISPLAY ADS Source: Millward Brown & Google (2012)
  36. 36. RESEARCH FIDING: CPG CHECKLIST Source: Millward Brown & Google (2012) To improve performance of CPG campaigns, make sure that branding does not appear only within the product shot.
  37. 37. RESEARCH FIDING: RICH MEDIA WITH VIDEO IS GENERALLY THE FORMAT WITH THE MOST IMPACT Source: Millward Brown & Google (2012)
  38. 38. The effectiveness is “credibility”
  39. 39. CREDIBILITY AND ACQUISITION Source: Steffen Zorn, Ahmad Fareed Ismail & Jamie Murphy (2009) In helping prospects gather product information, increase knowledge and form product expectations, firms reduce uncertainty and increase the conversion likelihood from prospect to customer. One objective of firms in the acquisition phase is to reduce customer uncertainty. However consumers often tune out advertising messages, especially when the perceived source credibility is low. Low credibility therefore can hinder customer acquisition and retention due to increased uncertainty. For assessing credibility, the information source is important to consumers. As well known news sites such as Google, Yahoo have a higher perceived credibility than less known sites. Higher Credibility Lower Credibility
  40. 40. The effectiveness is “ACQUIRE THE RIGHT CUSTOMER”
  41. 41. THE IMPACT OF ACQUISITION ON RETENTION Source: Steffen Zorn, Ahmad Fareed Ismail & Jamie Murphy (2009) Rather than trying to acquire every customer and an illusion of profitable growth, firms should focus on valuable prospects. Acquiring new customers influences the long- term profitability of a firm. A valuable prospect has a high revenue and retention potential at low costs. An acquisition strategy should have a long-term focus and link closely to retention to increase profitability. Metrics such as CTR and conversion rates have a short- term focus. Customer lifetime value (CLV), the discounted difference between a customer’s revenue and sales costs across a customer’s lifetime measures long-term profitability.
  42. 42. Phân bổ ngân sách #4
  43. 43. RESEARCH FIDING: MỨC PHÂN BỔ NGÂN SÁCH HIỆU QUẢ CHO CPD & GDN VẤN ĐỀ Nên phân bổ ngân sách quảng cáo với cơ cấu như thế nào để đạt hiệu quả tốt nhất. Source: Moore (2015) Ý TƯỞNG Nhà đầu tư không đầu tư vào 1 tài sản tài chính, anh ấy sẽ phân bổ vốn vào danh mục đầu tư gồm nhiều tài sản tài chính để đa dạng hóa rủi ro, tối đa hóa suất sinh lợi kỳ vọng. GIẢI PHÁP 1) Thu thập số liệu Impression và Click của 32 đợt quảng cáo CPD và 22 đợt quảng cáo GDN của 25 nhãn. 2) Tính CTR trung bình cho hình thức CPD và GDN 3) Tính mức rủi ro về CTR cho hình thức CPD và GDN 4) Xây dựng các mức phân bổ ngân sách quảng cáo: bắt đầu với 100% ngân sách cho CPD, kết thúc với 100% ngân sách cho GDN 5) Tính CTR và mức rủi ro cho các mức phân bổ ngân sách 6) Trình bày trên đồ thị và xác định những mức phân bổ hiệu quả KHÁI NIỆM Hiệu quả: Một trong những thước đo hiệu quả quảng cáo là CTR. Rủi ro: sự khác biệt giữa CTR đề xuất/ước tính với CTR thực chạy. Một trong những thước đo rủi ro phổ biến là độ lệch chuẩn
  44. 44. RESEARCH FIDING: MỨC PHÂN BỔ NGÂN SÁCH HIỆU QUẢ CHO CPD & GDN Source: Moore (2015) CTR trung bình Mức rủi ro CPD 0.12% 0.10% GDN 0.34% 0.2% CÁC MỨC PHÂN BỔ NGÂN SÁCH CPD Adnetwork Rủi Ro CTR trung bình 100% 0% 0.10% 0.12% 95% 5% 0.09% 0.13% 90% 10% 0.09% 0.14% 85% 15% 0.09% 0.16% 80% 20% 0.09% 0.17% 75% 25% 0.09% 0.18% 70% 30% 0.09% 0.19% 65% 35% 0.09% 0.20% 60% 40% 0.10% 0.21% 55% 45% 0.10% 0.22% 50% 50% 0.11% 0.23% 45% 55% 0.12% 0.24% 40% 60% 0.12% 0.26% 35% 65% 0.13% 0.27% 30% 70% 0.14% 0.28% 25% 75% 0.15% 0.29% 20% 80% 0.16% 0.30% 15% 85% 0.17% 0.31% 10% 90% 0.18% 0.32% 5% 95% 0.19% 0.33% 0% 100% 0.20% 0.34% 0.09%, 0.18% 0.10%, 0.21% 0.20%, 0.34% 0.10%, 0.12% 0.09%, 0.17% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% Hiệu Quả Không Hiệu Quả Rủi ro CTR
  45. 45. 0.09%, 0.18% 0.10%, 0.21% 0.20%, 0.34% 0.10%, 0.12% 0.09%, 0.17% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% Hiệu Quả Không Hiệu Quả Rủi ro CTR Kết quả phân tích cho thấy, phân bổ ngân sách cho CPD & GDN hiệu quả khi ngân sách CPD từ 0% – 75%. 100% GDN 0% CPD 25% GDN 75% CPD 0% GDN 100% CPD 20% GDN 80% CPD 40% GDN 60% CPD A B C D E
  46. 46. Advertising ecosystem #5
  47. 47. ADVERTISING ECOSYSTEM Source: IAB
  48. 48. ADVERTISING ECOSYSTEM - ADNETWORK Source: OpenX
  49. 49. ADVERTISING ECOSYSTEM - ADNETWORK Source: OpenX Ad network Publisher A Publisher B Advertiser Audience • Ad network is an online advertising business that matches up advertisers with websites looking to host advertisements • Ad network accumulate large ad inventory from websites based on its content category, then sell them in packages (CPM / CPC) for advertisers • Ad network focus on reach & price rather than insight quality of ad inventory • The campaigns of media buyers often involve either run-of-category or run-of-network, but ad network rarely offer site-specific- buying
  50. 50. ADVERTISING ECOSYSTEM - ADEXCHANGE Source: OpenX Ad network Publisher A Publisher B Advertiser Audience Ad network Publisher C Publisher D Ad Exchange An ad exchange is a sales channel between Advertisers and ad networks that can also provide aggregated inventory to advertisers. They provide a technology platform that facilitates automated auction based pricing and buying in real-time (RTB)
  51. 51. ADVERTISING ECOSYSTEM – DEMAND SIDE PLATFORM Source: OpenX Audience Publisher Ad Exchange Ad network Publisher Publisher Publisher Publisher Publisher Advertisers Demand Side Platform • A demand side platform or DSP is an online advertising technology that allows digital advertisers/agencies to manage multiple ad exchange and data exchange accounts through one interface. • Advertisers/agencies often use DSP to access both ad inventory of an ad exchange and their specific targeting capabilities on market • DSP is the interface that allows advertisers to manage their bids, create targeting criteria, aggregate all their user solid data, do retargeting, optimize their campaigns in real-time, and have access to results and data from DMPs
  52. 52. ADVERTISING ECOSYSTEM COMPARISON Ad Network Ad Exchange DSP Definition A closed controlled network of privately traded ads offers package deals between ad buyer & seller Opened Network offers variety ad placements A software interface helps purchase auction-based online advertising through different ad markets Function Ad network provides technology to aggregate, categorized & offer inventory to run optimized campaigns. Ad exchange integrates separating ad network to transact with greater efficiencies. Advertisers use DSP to manage their bids, create targeting criteria, aggregate data, do retargeting, optimize campaigns in real-time, and have access to results. Advantages Ad Network leads to better automated monitoring campaign Ad Exchange brings more transparency, stabilization & more ads inventory to market DSP allows budget flexibility, transparent data, purchase efficiencies, cost effectiveness & better customers targeting Disadvantage Ad Network lacks of power equality for advertisers Complicated Execution Need for clear budget & targeting Not 100% Automation Pricing Pricing is based on negotiation of media inventory Pricing is based on market competition (Per Impression) - RTB Real Time Bidding Targeting Ad targeting is mainly based on contextual Ad targeting is based on behavioral (Can access to 3rd Party data to understand user behavior) DPS is able to accurately target on demographics also
  53. 53. Further reading #6
  54. 54. ELEMENT OF AN EFFECTIVE COMMUNICATION CAMPAIGN Source: Communication Campaign Best Practives, Glaad & Map, 2008 Campaign Element The question you need to answer If You only remember one thing, remember this Campaign objective or goal What are you trying to accomplish? If you try to do too much, you won’t do anything well. Target audience Who are you trying to reach? If you try to reach everyone, you’ll end up reaching no one. Messages and research What are you going to say to your audience so they’ll take notice, listen, and hopefully become supportive? The difference between messaging that you like and messaging that is effective can be huge. Media communications plan How are you going to reach your audience? People generally need three exposures to a message before they hear it. Messengers or spokespeople Who’s going to say it? There’s often a big difference between who you like and trust, and who your target audience likes and trusts. Budget How much money do you have to make it happen? If you don’t have enough money to launch an effective campaign that’s based on research, you’re better off not doing it. Campaign evaluation How will you know what worked and what didn’t? Investing in campaign evaluation is worthwhile. It helps you gain credibility with funders and ensures that money is well spent in the future.
  55. 55. THE DEFINITIVE GUIDE TO THE DIGITAL DISPLAY AD ECOSYSTEM Source: http://marketingland.com/digital-simplified-new-advertising-supply-chain-104734 Tiếng Việt: http://conversion.vn/he-sinh-thai-quang-cao-hien-thi/

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