Week-9 Tutorial Digital Advertising By, Dr. Yuvaraj

AIDA is augmented in digital world Interest Awareness Desire ResearchReferral Action 9/19/2015Dr. Yuvaraj 2

Internet Advertising  Digital agencies offer services to address these trends through advertising:  1. Natural Search Engine optimisation  2. Contextual advertising (pay per click)  3. Conversion enhancement plans  4. Web analytics Further details at: 9/19/2015Dr. Yuvaraj 3

 Banner ads (Double click)  Standardized ad shapes with images  Normally not related to content  Context linked ads (Google Ad Sense)  Related to content on page  Search linked ads (Google Ad words)  Related to search terms Online advertising

Banner Ads

Keyword Matching Exact match: keyword phrase equals search phrase Phrase match: keyword phrase appears in search (“red roses” matches to “red roses for valentines”) Broad match: each word of keyword phrase appears in search (“red roses” matches to “red and white roses”) Issues:  Tradeoff between relevance and competition  How to handle spelling mistakes

Typical Parameters Keyword Price in 3 rd slot# of Keywords $20-$502 $ $ $ $ $ $ $ $2.993,566 $ $0.994,946 $ $0.495,501 $ $0.245,269 PPC of most popular searches in Google, 4/06

Typical Parameters KeywordTop Bid2 nd Bid mesothelioma$100 structured settlement$100$52 vioxx attorney$38 student loan consolidation$29$9 Bids on some valuable keywords

Bidding Process 4 Targeting Populations Advert Creation Keyword Selection Bids and Budget “You don’t get it, Daddy, because they’re not targeting you.”

Bidding Process 4 Targeting Populations Advert Creation Keyword Selection Bids and Budget “Here it is – the plain unvarnished truth. Varnish it.” 3 2 1

Ad title Ad text Display url

Bidding Process 4 Targeting Populations Advert Creation Keyword Selection Bids and Budget “Now, that’s product placement!” 3 2 1

Bidding Process 4 Targeting Populations Advert Creation Keyword Selection Bids and Budget 3 2 1

Daily Budget

Internet Advertising  Digital consumers use digital channel for research even if they do not buy online (see report on local classifieds at: Classifieds.aspx) Classifieds.aspx  “Engagement” and encouraging consumers to distribute content is a holy grail but hard to achieve See Heineken example and commentary here: gaging-doesnt-mean-interactive.html Viral cannot be created nor guaranteed – campaigns can only be optimised for viral 9/19/2015Dr. Yuvaraj 23

Internet Advertising  A good example of an established brand using the web and social media as part of its wider advertising is Benetton  In My Time is a global casting which includes elements of online competitions, web voting and traditional advertising  The competition attracted 65,500 entries, wide media coverage and consumer engagement 9/19/2015Dr. Yuvaraj 24

Benetton 9/19/2015Dr. Yuvaraj 25

Benetton 9/19/2015Dr. Yuvaraj 26

Benetton 9/19/2015Dr. Yuvaraj 27

Benetton 9/19/2015Dr. Yuvaraj 28

Benetton 9/19/2015Dr. Yuvaraj 29

Benetton 9/19/2015Dr. Yuvaraj 30

Benetton 9/19/2015Dr. Yuvaraj 31

Internet Advertising  Print owners continue to struggle with digital advertising (only 20% of internet advertising is banner/display) and struggle to get click-though and demonstrate value.  By contrast, the contextual nature of search and the ROI of click- through means advertisers are buying leads not ads (see  So advertisers want an integrated approach with social media publishing (typically via PR) and other digital engagement  ( future-for-ad-industry-is-simples.do) future-for-ad-industry-is-simples.do  Cadbury’s Wispa campaign is an ongoing example of this approach but raises ethical issues (need for disclosure under new ASA rules) 9/19/2015Dr. Yuvaraj 32

Cadbury’s Wispa 9/19/2015Dr. Yuvaraj 33

Cadbury’s Wispa 9/19/2015Dr. Yuvaraj 34

Internet Advertising: Summary of Campaign Options Campaign AimCampaign Tools Brand awarenessOnline ads, viral, content sponsorship Enhance brand image and sentimentWebsite, online ads, marketing, online competitions, mobile competitions Product trialMobile, marketing, online competitions, e-coupons and e- sampling Brand loyalty marketing, website, online newsletters, social media and networking Sales or lead generationSearch marketing, online advertising 9/19/2015Dr. Yuvaraj 35

Media Sponsorship  Broadcast media vehicles have been subject to sponsorship, with the US leading Europe and EU  Soap operas were radio and TV dramas sponsored by soap brands in the USA  TV remains tightly regulated, particularly in the EU  State/public service broadcasters, the BBC in particular, have an almost reverent view of the need for independence, particularly in the area of news  In the early days of television, for example it was seen as a breach of trust and independence for a news announcer’s face to be seen on the screen in case his facial expressions gave away emotion  In the US it was less clear who would pay for development of programmes. Who did pay? 9/19/2015Dr. Yuvaraj 36

The regulator said "no" on 11 March 2009 ITV has suffered another regulatory blow after the Government said it will not allow product placement in home-made programmes despite the collapse in advertising  The commercial broadcaster, which reported losses of £2.7bn last week, said it will fight the decision which will mean that Boddingtons bitter on tap at the Rover's Return and Coca-Cola cans on the X-Factor will not become a reality  /ITV-suffers-placement-blow.html 9/19/2015Dr. Yuvaraj 37

On 1 March, product placement became possible on UK television In US and Australia, placement accounts for 5% of advertising spend (so could go as high as £170m in UK) No rush of early deals and Ofcom suggests a figure of £25- 30m Products high in fat, salt and sugar (“beer, coke and crisps“) are not allowed under Ofcom rules Broadcasters are not allowed to run product placement in children's programming, news and current affairs, religious and consumer advice shows Revenues will have to be split between programme makers and media owners (issues of openness) 9/19/2015Dr. Yuvaraj 38

Other Digitals 9/19/2015Dr. Yuvaraj 39

Other Digitals 9/19/2015Dr. Yuvaraj 40

Other Digitals 9/19/2015Dr. Yuvaraj 41

Mobile Advertising 9/19/2015Dr. Yuvaraj 42

 Scale  Large, complex system: keeping it running and improving it is a challenge  Advertising guidelines  Detection and enforcement  Regulatory issues  Fraud  Credit card  Click fraud  Advertiser relations Business challenges

Digital Advertising and Law 9/19/2015Dr. Yuvaraj 44

Questions? 45 9/19/2015Dr. Yuvaraj