Online advertising

History of Online Advertising - Rise of digital advertising and decline of print media in advertising revenue as a percent of US GDP since 1995 - Early prohibition of online advertising on networks like ARPANET and NSFNet - Phasing out of commercial use ban by NSFNet in 1991 - Widely publicized example of online advertising via email by DEC in 1978 - Evolution of email marketing and the emergence of spam - Emergence of spam and its association with email marketing - Establishment of the first email marketing company by Mark Eberra in 1994 - Canter and Siegel's Green Card USENET spam raising the profile of online advertising - Introduction of online banner advertising in the early 1990s - Prodigy's use of banners to promote Sears products - First clickable web ad sold by Global Network Navigator in 1993 - Mainstream adoption of web banner advertising by HotWired in 1994 - AT&T's successful banner ad campaign on HotWired - Creation of the first search advertising keyword auction by GoTo.com in 1998 - Launch of Google's AdWords search advertising program in 2000 - Introduction of quality-based ranking allocation by Google in 2002 - Sorting of search advertisements based on bid price and click likelihood - Growing importance of search ads in online advertising - Integration of advertising messages into editorial content and valuable services - Examples of companies merging advertising with content or services (e.g., Red Bull, Coca-Cola, Nike) - Embracing of social media and mobile advertising - Significant growth in mobile ad spending from 2010 to 2013 - Digital work contributing over half of agency revenue in 2017 Types of Online Ads - Floating ads: appear superimposed over the requested website's content and may disappear after a pre-set time period - Expanding ads: change dimensions based on predefined conditions such as user interaction or time spent on a webpage - Trick banners: imitate common screen elements to induce ad clicks, often without mentioning the advertiser initially - News Feed Ads: blend into non-paid news updates on social media platforms, offering various types of content promotion - Interstitial ads: display before users can access requested content, often used during loading times Advertising Sales and Delivery Models - Simple publisher case: website publisher selects and serves the ads - Ad agency case: ads outsourced to an advertising agency and served from their servers - Online bidding case: ad space offered for sale in a bidding market using an ad exchange and real-time bidding - Programmatic advertising: automating the sale and delivery of digital advertising using software and targeting algorithms - Behavioral targeting: using data collected across multiple websites to create detailed user profiles for targeted advertising Programmatic Advertising Process - Advertisements selected and targeted to audiences via ad servers - Cookies used to track user behavior and enable retargeting - Contextual advertising delivers display ads related to the content of web pages - Geotargeting delivers ads based on a user's suspected geography - Real-time interaction between multiple parties in the ad serving process Data Management Platforms - First-party data: retrieved from CRM platforms and customer behaviors - Second-party data: statistics related to cookie pools on external publications and platforms - Third-party data: sourced from external providers and aggregated from numerous websites - Customer information combined and returned to the supply side platform - Ad exchange puts the offer out for bid to demand-side platforms - Demand-side platforms act on behalf of ad agencies, searching for users to view ads - Bidders decide how much to offer based on user information - Ad exchange picks the winning bid and informs both parties - Ad content delivered to the user's browser for confirmation - Mobile advertising process involves mobile carriers and handset software manufacturers Search Engine Marketing (SEM) - SEM increases website visibility in search engine results pages (SERPs) - Search engines provide sponsored and organic results based on search queries - Visual cues differentiate sponsored and organic results - SEM includes actions to make a website listing more prominent for keywords - Google popularized SEM with its PPC and Analytics tools Search Engine Optimization (SEO) - SEO improves a website's organic search rankings - Search engines penalize poor quality sites that try to game their rankings - SEO is a moving target for advertisers due to algorithm updates - Many vendors offer SEO services - Optimization aims to increase website relevance to search terms Sponsored Search - Sponsored search allows advertisers to be included in search results for selected keywords - Search ads are often sold via real-time auctions - Bids may include constraints such as time, language, and geography - Search engines originally sold listings based on highest bids - Modern search engines rank sponsored listings based on bid price, click-through rate, relevancy, and site quality Social Media Marketing - Social media marketing is commercial promotion on social media websites - Companies promote products through frequent updates and special offers - Videos, interactive quizzes, and sponsored posts are common in social media marketing - Ads are found on platforms like Facebook, Instagram, Twitter, and Snapchat - Social media profiles are utilized for promotion Mobile Advertising - Mobile advertising delivers ad copy through wireless mobile devices - It can be in the form of static or rich media display ads - SMS or MMS are used for mobile advertising - Mobile advertising targets smartphones, feature phones, and tablet computers - Ads are designed to be compatible with mobile devices.