Chapter 6 – Digital Marketing

Display Network
a group of online publishers (typically media websites) that agree to a set of advertising standards dictated by the company managing the ad network

-Pays publishers to run ads on their websites
-Creates standard ad sizes they agree to display
-Charges the advertisers to run the ads on the network of websites
-Reports ad performance metrics to the advertisers

Publishers
-must create an account, submit correct ad sizes, chooses content they wish to display, paid a percentage of the revenue the display ad network charges advertisers
-Gets paid a percentage of revenue made each time the display network charges an advertiser
-Only has to coordinate with ad network rather than lots of advertisers
Advertisers
-Makes money from traffic to their website coming from 100s/1000s of diff websites
-Only has to coordinate the ads with the one ad network
-earn traffic from display ads
-receive reports on where their ads are displayed
-Choose sites where they want their ads to appear
-Manage budgets on display ad platform
-Create & upload ads
What is the difference between the bidding systems on the Search Network and the Display Network?
Display advertisers can pay CPC, CPM (cost-per-mille or cost-per-thousand impressions), or CPA

Search advertisers pay CPC or sometimes use CPA (cost-per-acquisition) basis.

How can Google compare a CPM bid and a CPC bid?
Ad networks compare bids in order to determine which advertisers has the highest bid.
To do this, ad networks track the click-through rates (CTR) of advertisers so they can convert CPC bids into CPM bids.
-High CPM= get ad space
Google Display Ad Planner
what advertisers in the Google ad network use to find appropriate placement for their ads
Universal rule of advertising
The better an advertiser can target the right audience, the more the advertiser is willing to pay for advertiser
Four Targeting methods for Display Ads
1) Keyword Targeting
2) Interest Targeting
3) Topic Targeting
4) Placement Targeting
Keyword Targeting
Placing online display ads based on keywords

Shows up on webpages that use the selected keyword

Choose ad group and your ad will be displayed on webpages using the selected keywords that relate to the keywords you entered

Interest Targeting
-Shows ads to web users who have a given interest regardless of the webpage they are viewing.
-Infers web users’ interests based on their past browsing behavior.
Topic Targeting
Shows ads based on the topic of the website that match the broad topic being targeted.
Placement Targeting
An advertiser can choose to buy ads on specific website(s) that they wish to advertise with by clicking on that ad group and selecting/deselecting websites.
Effective Ad Display
1) Attract attention
-attract visitors attention away from main content of page
2) Communicate a value proposition
-Communicates why the product/service being advertised is worth purchasing/adopting
3) Invite Action
-Features a CTA (call-to-action) to click on the ad
Remarketing
The practice of displaying ads to web users who have already visited that site
EX–> You visit Zappos.com and visit another website and Zappos ads are displayed featuring the product(s) you just viewed

PURPOSE: Hope to induce return visits from customers.

Remarketing: How it works
-Occurs through an ad network
-Instruct its ad network to display ads to previous visitors
-Previous visitors have cookies i their browsers, placed from website
-user navigates to a website within ad network and the ad is displayed
-Targeting previous website visitors doesn’t occur through the website but the ad network
Remarketing Profitability
-Profitable advertising technique.
-Able to target visitors with a demonstrated interest in the site resulting in his/her conversion rate and profitability
-Ad network make more money because it can charge advertisers a higher rate to target these visitors.
-Publisher make more money (ad network shares ad revenue with web publishers)
Remarketing Settings
AdWords provides remarking options can target specific audiences such as:
-Everyone who has visited any page of the advertiser’s site
-Anyone that has visited only the advertiser’s home pg
-Vistors that didn’t make a purchase
-Visitors that added an item to shopping cart
-Customers that made a previous purchase
-Visitors that have been to the advertiser’s site within a specific time period (30-90 days)
Online Display Advertising
Effectiveness of the ads can be directly measured. Can receive reports of where the ads were shown up and amount of clicks.
Return on Ad Spent (ROAS)
Calculates how much revenue a company’s ads generated.
A/B Testing
Creating 2 versions of an ad showing both at random across the ad network & allowing the numbers to determine which ad is more effective
3 Ways for Consistent Messaging
1) Communicate the same value propositions
2) Use similar calls to action
3) Enact the same design elements (color scheme, characters, fonts, imagery)
1) Display Network
2) Types of Ads on Display network
3) Bidding Types
4) Best practices of display advertising
(look below)
Search Ads
better for driving traffic to your site
Display Ads
Good for:
– brand awareness
-remarketing/ retargeting
$2 CPM
50,000 impressions
80 clicks
What is the corresponding CPC?
How much Google will get paid from that CPM bid?
Reduce 50,000 to 50
CPM x Impressions = ?
2 x 50= $100

CPC x clicks = $100
CPC x 80 = $100
(100/80)= 1.25
CPC= $1.25

4 advertisers
$2 = CPC
$2.60 = CPC

$2.50 = CPM w/ click-through rate of 2%
$3.10 = CPM w/ click-through rate of 1%
Which one will pay the most per click?

Make them into CPC to tell who’s the highest and the lowest bid.
Divide 1
1/0.02= 50 =impressions I need to get per click
50 impressions = 1 click
1000 impression = 20 clicks

2.50/20 clicks = 0.12 per click
CPC per click = $0.12

(1/0.01)= 100
100 impressions = 1 click
1000 impression = 10 clicks

3.10/10= 0.31

$2.00 CPC
$2.60 CPC
$0.12 CPC
$0.31 CPC

Publishers that participate in a display ad network
get paid each time an advertiser is charged by the ad network for displaying advertisements on the publisher’s site.
Advertisers buy ad space through display ad networks
-so they don’t have to buy ad space from each publisher individually.
-but can pick what types of sites they will allow to show their ad.
If an advertiser bids a $1.50 CPM, receives 40,000 impressions, and gets 80 clicks, the equivalent CPC bid would be
$0.75
With the Google Display Network, you can run
banner ads & text ads
Which advertiser is going to pay the most per click?
$2.50 CPC
The Google Display Ad Planner tells you
where your target audience is spending their time online.
Remarketing ads are displayed:
After visitors to the advertiser’s site have downloaded a cookie on their browser and they go to a site within the ad network where the advertiser is paying for clicks.
When compared to a typical online ad campaign, remarketing campaigns typically have
higher CTR and higher conversion rates
After 100 impressions, ad A has a CTR of 1% and a conversion rate of 100%, and ad B has a CTR of 2% and a conversion rate of 0%. Which ad is better?
100 impressions is not enough data to know which ad is better.
To have consistent messaging online, all of your ads should
– use a similar color scheme
-use similar calls to action
-highlight the same value propositions