Online advertising

« Back to Glossary Index

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 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.

Online advertising (Wikipedia)

Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Advertisements are increasingly being delivered via automated software systems operating across multiple websites, media services and platforms, known as programmatic advertising.

Like other advertising media, online advertising frequently involves a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential participants include advertising agencies that help generate and place the ad copy, an ad server which technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser.

In 2016, Internet advertising revenues in the United States surpassed those of cable television and broadcast television. In 2017, Internet advertising revenues in the United States totaled $83.0 billion, a 14% increase over the $72.50 billion in revenues in 2016. And research estimates for 2019's online advertising spend put it at $125.2 billion in the United States, some $54.8 billion higher than the spend on television ($70.4 billion).

Many common online advertising practices are controversial and, as a result, have become increasingly subject to regulation. Many internet users also find online advertising disruptive and have increasingly turned to ad blocking for a variety of reasons. Online ad revenues also may not adequately replace other publishers' revenue streams. Declining ad revenue has led some publishers to place their content behind paywalls.

« Back to Glossary Index

Submit your RFP

We can't wait to read about your project. Use the form below to submit your RFP!

Gabrielle Buff
Gabrielle Buff

Just left us a 5 star review

Great customer service and was able to walk us through the various options available to us in a way that made sense. Would definitely recommend!

Stoute Web Solutions has been a valuable resource for our business. Their attention to detail, expertise, and willingness to help at a moment's notice make them an essential support system for us.

Paul and the team are very professional, courteous, and efficient. They always respond immediately even to my minute concerns. Also, their SEO consultation is superb. These are good people!

Paul Stoute & his team are top notch! You will not find a more honest, hard working group whose focus is the success of your business. If you’re ready to work with the best to create the best for your business, go Stoute Web Solutions; you’ll definitely be glad you did!

Wonderful people that understand our needs and make it happen!

Paul is the absolute best! Always there with solutions in high pressure situations. A steady hand; always there when needed; I would recommend Paul to anyone!

Vince Fogliani

The team over at Stoute web solutions set my business up with a fantastic new website, could not be happier

Steve Sacre

If You are looking for Website design & creativity look no further. Paul & his team are the epitome of excellence.Don't take my word just refer to my website ""that Stoute Web Solutions created.This should convince anyone that You have finally found Your perfect fit

Jamie Hill

Paul and the team at Stoute Web are amazing. They are super fast to answer questions. Super easy to work with, and knows their stuff. 10,000 stars.

Paul and the team from Stoute Web solutions are awesome to work with. They're super intuitive on what best suits your needs and the end product is even better. We will be using them exclusively for our web design and hosting.

Dean Eardley

Beautifully functional websites from professional, knowledgeable team.

Along with hosting most of my url's Paul's business has helped me with website development, graphic design and even a really cool back end database app! I highly recommend him as your 360 solution to making your business more visible in today's social media driven marketplace.

I hate dealing with domain/site hosts. After terrible service for over a decade from Dreamhost, I was desperate to find a new one. I was lucky enough to win...

Paul Stoute has been extremely helpful in helping me choose the best package to suite my needs. Any time I had a technical issue he was there to help me through it. Superb customer service at a great value. I would recommend his services to anyone that wants a hassle free and quality experience for their website needs.

Paul is the BEST! I am a current customer and happy to say he has never let me down. Always responds quickly and if he cant fix the issue right away, if available, he provides you a temporary work around while researching the correct fix! Thanks for being an honest and great company!!

Paul Stoute is absolutely wonderful. Paul always responds to my calls and emails right away. He is truly the backbone of my business. From my fantastic website to popping right up on Google when people search for me and designing my business cards, Paul has been there every step of the way. I would recommend this company to anyone.

I can't say enough great things about Green Tie Hosting. Paul was wonderful in helping me get my website up and running quickly. I have stayed with Green...