6 Selling Advertising From Code to Product gidgreen.com/course
Million Dollar Homepage From Code to Product Lecture 6 Selling Advertising Slide 2 gidgreen.com/course
Aversion therapy From Code to Product Lecture 6 Selling Advertising Slide 3 gidgreen.com/course
Tempted? From Code to Product Lecture 6 Selling Advertising Slide 4 gidgreen.com/course
Lecture 6 Introduction Types of targeting Price models Ad formats Ethical issues Web Sudoku From Code to Product Lecture 6 Selling Advertising Slide 5 gidgreen.com/course
Traditional advertising Mass media Newspapers, magazines, TV, radio, outdoor Local or national, not global Big one-time purchase One message to all recipients No filtering or personalization Success measured indirectly Did sales increase this month? From Code to Product Lecture 6 Selling Advertising Slide 6 gidgreen.com/course
Digital advertising Digital media Web, mobile, email, desktop Global in scope Pay as you go, small increments Messages targeted by recipient Filtering, personalization Success measured directly Views, clicks, actions From Code to Product Lecture 6 Selling Advertising Slide 7 gidgreen.com/course
Underlining the difference Half the money I spend on advertising is wasted; the trouble is I don't know which half. John Wanamaker, store owner Ninety-nine percent of advertising doesn't sell much of anything.. David Ogilvy, advertising executive From Code to Product Lecture 6 Selling Advertising Slide 8 gidgreen.com/course
US ad spending (+projected) $70B $60B $50B $40B $30B Web Mobile (world totals approximately double) $20B $10B 0 1996 2001 2006 2011 2016 From Code to Product Lecture 6 Selling Advertising Slide 9 gidgreen.com/course
Media and advertising From Code to Product Lecture 6 Selling Advertising Slide 10 gidgreen.com/course
Search has remained the leading format since 2006, having strong sequential growth through the period depicted. After losing some of its overall share in 2010 to Display/Banners, Search increased its market share in the first half of 2011 to 49% of advertising revenues. Online ad breakdown The past six years have seen Classified advertising losing more than half of its market share of revenues, with sharp declines over the past five years. Classified revenues stabilized in 2010 but have declined in 2011, with a market share of 8%, down from the 18% of advertising revenues the format commanded in 2006. Advertising format share (% of total revenue)* 60% 50% 40% 30% 20% 10% 0% Search Display/ Banners 2006 2007 2008 2009 2010 HY 2011 Classifieds Rich Media & Digital Video Lead Generation Sponsorships * Format definitions may have changed over the time period depicted, both within the survey process and definitionally by survey respondents. From Code to Product Lecture 6 Selling Advertising Slide 11 gidgreen.com/course IAB Internet Advertising Revenue Report, Sept 2011
How it works Direct sales Hard to find advertisers Transaction cost vs volume Ad networks Aggregate 1000s of publishers + advertisers Copy-paste code snippet Take 20% 50% of revenue Big sites use both From Code to Product Lecture 6 Selling Advertising Slide 12 gidgreen.com/course
Top US online ad networks From Code to Product Lecture 6 Selling Advertising Slide 13 gidgreen.com/course
Top US mobile ad networks Other 44% Millennial Media 17% AdMob (Google) 24% iad (Apple) 15% 2011 figures from IDC From Code to Product Lecture 6 Selling Advertising Slide 14 gidgreen.com/course
Lecture 6 Introduction Types of targeting Price models Ad formats Ethical issues Web Sudoku From Code to Product Lecture 6 Selling Advertising Slide 15 gidgreen.com/course
Geography From Code to Product Lecture 6 Selling Advertising Slide 16 gidgreen.com/course
Demographics From Code to Product Lecture 6 Selling Advertising Slide 17 gidgreen.com/course
Traffic source From Code to Product Lecture 6 Selling Advertising Slide 18 gidgreen.com/course
Contextual From Code to Product Lecture 6 Selling Advertising Slide 19 gidgreen.com/course
Contextual From Code to Product Lecture 6 Selling Advertising Slide 20 gidgreen.com/course
Behavioral From Code to Product Lecture 6 Selling Advertising Slide 21 gidgreen.com/course
Behavioral From Code to Product Lecture 6 Selling Advertising Slide 22 gidgreen.com/course
Affiliate advertising Direct sales But no transaction costs Payment on sale only Open to all From Code to Product Lecture 6 Selling Advertising Slide 23 gidgreen.com/course
Affiliate advertising From Code to Product Lecture 6 Selling Advertising Slide 24 gidgreen.com/course
Real-time bidding (RTB) Most online ads bought in advance Volumes and targeting predefined RTB ads bought in real-time User visits page with RTB ad Impression auctioned to buyers Highest bid wins Works like an ad network 10% of display ads, projected 27% in 2015 From Code to Product Lecture 6 Selling Advertising Slide 25 gidgreen.com/course
Lecture 6 Introduction Types of targeting Price models Ad formats Ethical issues Web Sudoku From Code to Product Lecture 6 Selling Advertising Slide 26 gidgreen.com/course
Fixed price Predefine: Where ads will show Proportion of time Time period (week/month) Direct sales only No tracking required Advertiser can monitor performance Money left on table? From Code to Product Lecture 6 Selling Advertising Slide 27 gidgreen.com/course
Cost per impression Priced in CPM = cost per mille (1000) Advertiser sets: CPM rate Above the fold? Limits per day, per user Popular for display advertising Viewing ad builds brand recognition Impression tracking From Code to Product Lecture 6 Selling Advertising Slide 28 gidgreen.com/course
Pay per click Priced in CPC = cost per click Advertiser more flexible Click = user intent Popular for search advertising Auction between advertisers Impression and click tracking CTR = click-through rate From Code to Product Lecture 6 Selling Advertising Slide 29 gidgreen.com/course
Pay per action Priced in CPA = cost per action (sale) Suits advertiser perfectly Only pay if you get paid Popular for affiliate advertising Any publisher will do Impression, click and conversion tracking CR = conversion rate Publisher forced to trust advertiser From Code to Product Lecture 6 Selling Advertising Slide 30 gidgreen.com/course
Total revenue Revenue = Fixed price Impressions CPM/1000 Impressions CTR CPC Impressions CTR CR CPA From Code to Product Lecture 6 Selling Advertising Slide 31 gidgreen.com/course
Total revenue Revenue = $1,000 500k $2/1000 500k 2.5% $0.08 500k 2.5% 2% $4 From Code to Product Lecture 6 Selling Advertising Slide 32 gidgreen.com/course
Defaults and thresholds Defaults What to show if there s no ad ecpm = equivalent CPM All you really care about Threshold Minimum required ecpm Fill rate Check the definitions! From Code to Product Lecture 6 Selling Advertising Slide 33 gidgreen.com/course
Ad network example From Code to Product Lecture 6 Selling Advertising Slide 34 gidgreen.com/course
AdSense example From Code to Product Lecture 6 Selling Advertising Slide 35 gidgreen.com/course
Real-world ecpms Type of site Example 300x250 ecpm Forum $0.25 Gaming $1.50 Fashion $4.00 Real estate $8.00 Local newspaper $10.00 Technology $15.00 Travel $20.00 Investments $40.00 From Code to Product Lecture 6 Selling Advertising Slide 36 gidgreen.com/course
Lecture 6 Introduction Types of targeting Price models Ad formats Ethical issues Web Sudoku From Code to Product Lecture 6 Selling Advertising Slide 37 gidgreen.com/course
Online banner sizes (IAB) Full banner 468 x 60 Leaderboard 728 x 90 Wide skyscraper 160 x 600 Medium rectangle 300 x 250 From Code to Product Lecture 6 Selling Advertising Slide 38 gidgreen.com/course
Banner ad code <!-- Casale Media: 336x280, 300x250 (Rectangle) --> <script type="text/javascript"> var CasaleArgs = new Object(); CasaleArgs.version = 2; CasaleArgs.adUnits = "6,4"; CasaleArgs.casaleID = 76546; </script> <script type="text/javascript" src="http:// js.casalemedia.com/casalejtag.js"></script> <!-- DO NOT MODIFY --> From Code to Product Lecture 6 Selling Advertising Slide 39 gidgreen.com/course
Size vs CTR (AdSense) Click-through rate Banner area From Code to Product Lecture 6 Selling Advertising Slide 40 gidgreen.com/course
Interstitials From Code to Product Lecture 6 Selling Advertising Slide 41 gidgreen.com/course
Pop-up ads Hated by users Pop-up blockers common Also: popunder From Code to Product Lecture 6 Selling Advertising Slide 42 gidgreen.com/course
Other online formats Floating ads Mouseover ads Expanding Audio In-video Pre, mid, post-roll In-map Advertorials From Code to Product Lecture 6 Selling Advertising Slide 43 gidgreen.com/course
In-app ad formats Mobile banner 320 (or 300) x 50 Full screen (or almost) 320 x 480 (or 440) From Code to Product Lecture 6 Selling Advertising Slide 44 gidgreen.com/course
In-app state of play Many other ad sizes 320x250, 320x320, 320x350, Landscape getting started 480x50, 480x60, 480x70, ipad/tablets to use web ad sizes? 728x90, 300x250 Retina display scales x2 From Code to Product Lecture 6 Selling Advertising Slide 45 gidgreen.com/course
Ads in email Past: text Now: images Not always displayed Direct sales Some small networks From Code to Product Lecture 6 Selling Advertising Slide 46 gidgreen.com/course
Lecture 6 Introduction Types of targeting Price models Ad formats Ethical issues Web Sudoku From Code to Product Lecture 6 Selling Advertising Slide 47 gidgreen.com/course
Core problems Ceding control of user experience Weakens brand/message Bad ads and bad sites Users don t like ads Can harm word of mouth An effective ad is clicked User gone elsewhere To competitor? From Code to Product Lecture 6 Selling Advertising Slide 48 gidgreen.com/course
Privacy and cookies Ad networks and cookies Track users within sites Worse: across sites Enables behavioral targeting User s identity not revealed But: IP address Google searches From Code to Product Lecture 6 Selling Advertising Slide 49 gidgreen.com/course
Bad ads: Ugly From Code to Product Lecture 6 Selling Advertising Slide 50 gidgreen.com/course
Bad ads: Offensive From Code to Product Lecture 6 Selling Advertising Slide 51 gidgreen.com/course
Bad ads: Misleading From Code to Product Lecture 6 Selling Advertising Slide 52 gidgreen.com/course
Bad sites: Spyware From Code to Product Lecture 6 Selling Advertising Slide 53 gidgreen.com/course
Bad sites: Gambling From Code to Product Lecture 6 Selling Advertising Slide 54 gidgreen.com/course
Bad sites: Scams From Code to Product Lecture 6 Selling Advertising Slide 55 gidgreen.com/course
User complaints Your advertisement in support of Rick Santorum is enough to cause me to use some other website for this game. I will avoid coming here again! Why do you accept advertising from nomorerack? They are an out and out scam. Read the feedback. From Code to Product Lecture 6 Selling Advertising Slide 56 gidgreen.com/course
Ad network filters From Code to Product Lecture 6 Selling Advertising Slide 57 gidgreen.com/course
Lecture 6 Introduction Types of targeting Price models Ad formats Ethical issues Web Sudoku From Code to Product Lecture 6 Selling Advertising Slide 58 gidgreen.com/course
Amazon ads From Code to Product Lecture 6 Selling Advertising Slide 59 gidgreen.com/course
Direct ad deals From Code to Product Lecture 6 Selling Advertising Slide 60 gidgreen.com/course
AdSense + our own products From Code to Product Lecture 6 Selling Advertising Slide 61 gidgreen.com/course
Banners on puzzle page +4% +2% +0% -2% -4% Bright static banners Quiet static banners -6% Moving banners -8% 7 Aug 7 Sep 8 Oct 8 Nov From Code to Product Lecture 6 Selling Advertising Slide 62 gidgreen.com/course
The big break From Code to Product Lecture 6 Selling Advertising Slide 63 gidgreen.com/course
AdSense + new affiliation From Code to Product Lecture 6 Selling Advertising Slide 64 gidgreen.com/course
Very highly targeted From Code to Product Lecture 6 Selling Advertising Slide 65 gidgreen.com/course
Where we are today Ads are biggest source of revenue ~70% display ads after puzzle ~20% AdSense above puzzle ~10% direct deals 3 big display ad networks Monitor performance weekly Rebalance in response Ad quality a constant challenge From Code to Product Lecture 6 Selling Advertising Slide 66 gidgreen.com/course