CHAPTER 5 Display Advertising The Basics Agenda Display
CHAPTER 5 Display Advertising: The Basics
Agenda Display advertising overview The evolution of display advertising How display advertising works Ad networks, ad serves, and ad exchanges Digital display options Getting the most out of display © Wessex Press, Inc. 2
Key Terminology Check Impressions Viewthrough Attribution and engagement Ad exchanges Ad networks IAB and IAB standards Viewability and targeting Retargeting and remarketing © Wessex Press, Inc. 3
Display Advertising © Wessex Press, Inc. 1 The second largest channel by revenue (after search) 2 An extremely versatile channel that can be used for branding and awareness 3 Innovations and nuances behind targeting, demographic, contextual, and behavioral 4
Display Advertising – the 2 nd largest channel Growth projections for digital marketing © Wessex Press, Inc. 5
Market Sizing by Ad Format © Wessex Press, Inc. 6
But Display Could be First Very Soon US Digital Ad Spending by Format, 2014– 2019 ($ billions) 2014 2015 2016 2017 2018 2019 Search $23. 44 $26. 53 $29. 24 $32. 32 $36. 41 $40. 60 Display $21. 07 $26. 15 $32. 17 $37. 20 $41. 87 $46. 69 Source: e. Marketer, September 2015. © Wessex Press, Inc. Some researchers expect Display to overcome Search in 2018 with $42 B spent 7
The First Online Banner Ad Many early online display ads weren’t clickable Hotwired decided to make money from their website in 1994 Created a 468 x 60 banner for AT&T © Wessex Press, Inc. 8
The First Interactive Ad Appeared in 1996 from HP Enabled the user to play a simple game of “Pong” associated with the HP brand © Wessex Press, Inc. 9
Evolution of the Ad Tech Landscape In the early days there were only a handful of technologies required to get an ad from an advertiser onto a publisher’s website Ad market was a relatively small pie split between a few industry segments with a handful of players Double. Click launched in 1996, scaling ad operations and performance Ad Operations Ad Agency Ad Serving © Wessex Press, Inc. 10
Evolution of the Ad Tech Landscape (c. 2005) The addition of ad networks helped grow display advertising pay by helping brands achieve greater audience reach along with competitive pricing It also required stronger tools for measurement and analytics Ad Agency Analytics Ad Operations Ad Networks Ad Serving © Wessex Press, Inc. 11
Evolution of the Ad Tech Landscape Today Many companies have developed new technologies to improve market efficiencies and drive costs lower – a much bigger pie! Ad Networks Ad Exchange Ad Agency Data Optimization $46+ billion Creative Optimization Yield Optimization Data Aggregator Ad Serving Ad Operations Analytics © Wessex Press, Inc. DSP Verification 12
Why is Online Display Important? Display will grow at a faster rate than search Video display ads are growing at a 29% CAGR Display is one of the few online mechanisms which can consistently deliver branding impact as well as direct sales Easiest medium for clients to understand – the perfect medium to drive engagement and brand equity Expected to be driven more quickly as clients move marketing budgets online © Wessex Press, Inc. 13
The Complexity of the Display Ad Ecosystem © Wessex Press, Inc. 14
Display Measurement – Attribution – most current measurement systems don’t go beyond the last referrer Conversion User path 1 Display Interaction Aggregator Search Conversion User path 2 Search Conversion User path 3 © Wessex Press, Inc. Search Display 15
Display Measurement Funnel Measuring impressions and interactions © Wessex Press, Inc. 16
How Display Advertising Works Deploying the ad Marketers planning an ad campaign need to identify their audience, select the appropriate publishers, and develop their creative assets © Wessex Press, Inc. 17
Ad Standards and the IAB The Interactive Advertising Bureau (IAB) empowers the media and marketing industries responsible for selling, delivering, and optimizing digital advertising or marketing campaigns The trade group fields critical research on interactive advertising – educating brands, agencies, and the wider business community on the importance of digital marketing In affiliation with the IAB tech lab, it develops technical standards and best practices © Wessex Press, Inc. 18
Digital Display Options IAB standards first introduced in 2003 © Wessex Press, Inc. 19
Digital Display Options The IAB Universal Advertising Package (UAB) © Wessex Press, Inc. 20
New Digital Display Options The new IAB New Standard Ad Portfolio showcases revised standards that include: Flexible and LEAN Ads Flexible Size Ad Specifications Guidance for LEAN Ad Experience Native Ads New Media Ads (emoji, video, 360 degree, virtual and augmented reality) https: //www. iab. com/newadportfolio/ © Wessex Press, Inc. 21
What is an Ad Exchange? An open and transparent marketplace to facilitate buying and selling on online ads The ideal exchange provides every buyer and seller with the tools and controls they need to reduce risk and maximize return for every single impression More often used to sell display, video, and mobile ad inventory © Wessex Press, Inc. 22
Ad Exchanges vs. Ad Networks Ad exchanges are transaction platforms that help match buyers and sellers. Ad networks typically act on behalf of a buyer or seller to get the highest return or revenue respectively, using proprietary network information to maximize yield. © Wessex Press, Inc. 23
Ad Exchanges – Who Do They Benefit? Sellers: As much as 80% of a site’s ads goes unsold. Exchanges help maximize the yield on ad inventory by enabling sites to sell more of it and at a higher price. Buyers: Buyers struggle to find enough of the best inventory. An advertising exchange brings together multiple sellers of inventory (including ad networks) so buyers can access and target the inventory that meets their campaign needs. © Wessex Press, Inc. 24
Display Pricing Models by Type © Wessex Press, Inc. 25
Double Click Ad Exchange Model In a survey conducted by Forrester Research, Inc. , 72% of online advertising professionals who were not already using an ad exchange indicated that they intend to do so soon. © Wessex Press, Inc. 26
What Are Online Ad Networks? An IAB video that explains the increasingly complex environment with data now powering real time bidding and selling. This video aims to demystify the display landscape in 3 minutes! Source: IABUK, https: //www. youtube. com/watch? v=1 C 0 n_9 DOlw. E. © 2018 Interactive Advertising Bureau. All rights reserved. © Wessex Press, Inc. 27
Banner Ad Best Practices Careful thinking is necessary to get attention and cut through the clutter Incentives are crucial to getting attention Testing by Jakob Nielson (UI guru) found 4 rules that can help grab attention for banners: Integration into the editorial content Rich media Annoying stuff High relevance of message © Wessex Press, Inc. 28
Rich Media Examples Polite banners allow the campaign banner to be almost unlimited file size as a small image file is shown during the site loading and only after the site has fully loaded does the rich media banner load in its place. Push down banners push website content down to make room for more banner advertising space. Good for accommodating video player. Floating expandable banners are similar to push downs except as noted, they cover up website content rather than move it out of the way. © Wessex Press, Inc. 29
Impact Intrusion Matrix: You Don’t Have to Annoy to Be Effective © Wessex Press, Inc. 30
Survey Data on Intrusive Ad Types: Users Like Control Exciting Different Memorable © Wessex Press, Inc. Clear Relevant Concise Informative 31
Getting the Most out of Display Creative Most viewable ad positions © Wessex Press, Inc. 32
Using Display Features Data capture If users rollover the ad it expands to present a form for them to fill in. © Wessex Press, Inc. 33
Using Display Features Banner ad expansions If users rollover the ad it expands to present additional content. © Wessex Press, Inc. 34
Using Display Features IKEA jams an entire store catalog into its ad © Wessex Press, Inc. 35
Targeting is the Key to Success Targeting provides deeper levels of segmentation SEGMENTS / PERSONAS ENHANCED SEGMENTATION (behavioral, attitudinal, value) Life Stage Just married New Baby Menopause Interests/ Lifestyle Road Warrior Home Mom Active Wanabe Life-event Triggers Starting Job New Job Interview Other… SEGMENTS / PERSONAS evolve based on: § Improving attitudinal insights from research § Improving overall data quality § Adoption patterns emerging from modeling § Improving value insights from modeling © Wessex Press, Inc. § Behaviors – online and offline § Attitudes – about life, family, etc. § Value – current, potential value long term value …to create detailed sub-segments that will benefit form highly targeted messaging, offers, etc. 36
Targeting is the Key to Success Data helps advertisers better meet specific goals Category of Data Context Behavior Interests-Intent Personal Identity © Wessex Press, Inc. Why is it valuable? Specific data types Provides insight on the setting in which a consumer views an ad (e. g. , while reading a laptop review). Some think context really matters. § Contextual (what content are they Allows marketers to direct ads to consumers based on actual behavior (e. g. , in the market for a house) § Actions (purchases, click/buy Allows identification of demographic & psychographic segments viewing) § Day Part (when) § Geographic (where are they) § System (with what device) history, views) § Preferences (affinities, interests, intentions) § Demographic (who) § Psychographic (market segment) 37
Targeting is the Key to Success The theory behind using data for targeting – good for all (new media versus old media targeting) © Wessex Press, Inc. 38
Retargeting and Remarketing © Wessex Press, Inc. 39
Different Types of Targeting © Wessex Press, Inc. 40
Horrible Ad Placements Despite best practice in development and targeting, sometimes things just go wrong… © Wessex Press, Inc. 41
Horrible Ad Placements © Wessex Press, Inc. 42
Horrible Ad Placements And they happen in the real world too! © Wessex Press, Inc. 43
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