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Dr S V N Sreenivasu, Prof in CSE DM- Unit-2

DIGITAL MARKETING

UNIT-2

Internet Marketing and Digital Marketing Mix

Internet Marketing, Opportunities and challenges, Digital marketing framework,

Digital Marketing mix, Impact of digital channels on IMC Search Engine
Advertising, Pay for Search Advertisements, Ad Placement, Ad Rank ,Creating Ad
Campaigns, Campaign Report Generation Display marketing ,Types of Display Ads,
Buying Models, Programmable Digital Marketing, Analytical Tools and examples,
YouTube marketing with examples

Internet marketing, also called digital marketing or online marketing, involves promoting
a brand and its products or services to online audiences using the Internet and digital
media. With Internet marketing, you use a combination of online strategies to help you
build better relationships with your audience and attract more interested leads.

Digital Marketing, Internet Marketing,online marketing, content marketing online

marketing, online marketing, internet marketing is the process of promoting a business or
brand and its products or services over the internet using tools that help drive traffic,
leads, and sales.

Content marketing is a strategic marketing approach focused on creating and

distributing valuable, relevant, and consistent content to attract and retain a clearly
defined audience — and, ultimately, to drive profitable customer action. Content
marketing is a type of marketing that involves the creation and sharing of online material
(such as videos, blogs, and social media posts) that does not explicitly promote a
brand but is intended to stimulate interest in its products or services.

Digital Marketing, It is a complete term in itself as it comprises a set of marketing

processes, making use of all available digital channels in the best possible way for
building a brand image or promotion of a product or service. The resources used for
digital marketing are computers, laptops, smartphones, tablets, mobiles, DTvs,
digital billboards, digital magazines, etc.

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Dr S V N Sreenivasu, Prof in CSE DM- Unit-2

Digital Marketing and Internet Marketing- opportunities

 Easy consumer Reach

 Direct Advertising
 perpetually Displaying Ads
 Global Advertisements
 Easy Brand promotion
 cost Effective channel
 consumer,s convenience to shop online
 Accountability of Marketing Activity
 Helping Marketers, career
 Reaching out to new set of prospects and leads
 Improving customer connect
 Increasing availability
 Multiple pricing option
 Reaching international market

Digital Marketing and Internet Marketing - challenges

 Limitation of Internet Access

 Limited consumer Link and conversation
 High competition of Brands
 Risk of Hacking strategies
 Anti-Brand Activities
 Advertisement for Limited products
 Investment: IT
 Adoption: clear strategy adoption by all the departments
 Resources: HR, to be hired or groomed internally
 Training: HR training
 Integration: with various functions across departments
 Establishing ROI: cause and effect to each marketing activities
 proving Impact on Revenue
 Staffing Teams - The Right Blend
 personalization
 Marketing-IT Alignment
 Marketing RoI: An ongoing Challenge

Digital Marketing Framework

Understanding concept of OVP (Online Value Proposition)

Market opportunity analysis and digital service development

ASCOR digital marketing framework

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Market opportunity analysis and digital service development

. ASCOR Digital Marketing Framework

. For any type of company to move into digital marketing, be it a traditional firm with
more physical products and services mix or one that has transformed itself to a large
degree to tweak its products for the internet generation, there needs to be an underlying
framework which helps to map the process and its progress.

. whereASCOR is an acronym standing for the five phases:

. Assessment phase

. strategy phase

. Channel and communication plan

. Digital marketing operations

. Refinement phase

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ASSESSMENT – Phase 1

The first phase involves any firm’s or individual’s assessment and analysis of their
present external/internal market place environment to ascertain that they have clearly
assessed their current Digital Presence state to develop high-level digital marketing
objectives and review criteria. This stage involves executing all the necessary market
research to assess present market trends impacting them.

Key activities involved in the Assessment Stage include:

a) External Analysis

Includes the analysis of Macro-Micro Environment (entities that surround and influence
the firm, its products, operations and opportunities) and Market situation analysis
(includes market and competition analysis, specific to the industry where the firm and its
product are operating)

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Dr S V N Sreenivasu, Prof in CSE DM- Unit-2

b) Internal Analysis

Involves an analysis of factors that are internal to a company and within their control to
influence their goal setting and create successful and realistic Digital Marketing
objectives. It includes four main analysis areas- Offerings mix, Marketing mix, Resources
mix and Competencies mix

c) Digital Presence Analysis

This is a 2X2 Matrix that helps firms identify their present Digital State through a
combined analysis of External and Internal factors. There are four key Digital Presence
States depending upon the present “Extent of Digital Presence” of any firm and its
“Market Standing” with respect to direct competition in their specific industry segment
and market category

d) Objectives Development & Review

Involves setting high-level Digital Marketing Objectives based upon the specific Digital
State in which the firm is present. The Review stage consists of activities that involve
monitoring, evaluating and controlling marketing activities continuously

Strategy- Phase 2

The second phase involves creating the Digital Marketing strategy roadmap in line with
traditional marketing strategy and objectives. Key stages include-

a) Digital Strategy Definition

Defining Business Strategy for firms going digital, their impact factors and emerging
Business Structures. Also involves alignment of firm’s Core Competencies to changing
Value Function shifts to develop appropriate OVPs

b) Customer Development Strategy (STP2.0)

Includes revisions to classic STP (Segmenting, Targeting and Positioning) activities to

develop a revised STP 2.0 version for Digital to form the base for creating the Customer
Development Strategy

c) Digital Marketing Mix (8Ps)

Involves looking at the classic 4Ps (Product, Price, Place, Promotion) with a digital view
and also developing the new set of 4Ps for modern marketing (People, Process, Programs
& Performance)

d) 6S Implementation Framework

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The final stage involves developing the 6S (Scoping, Shadow, Set-up, Stability, Scale-up,
and Spectrum) Digital Marketing Implementation Framework for executing the strategy
elements

Communications & Channel Mix – Phase 3

This stage involves a more in-depth communication and channel mix plan created for
each of the marketing objectives

Key activities include

a) Digital Media Planning

Involves developing the strategy towards creating a Digital Media Plan post the Digital
Strategy Definition exercise from the last phase to determine the communication and
channel mix for brand’s specific offerings taking into the present Product Lifecycle and
Digital Presence Stage

b) Communication Program Design

Details seven steps to creating an overall communications strategy and helps create an
implementation plan towards developing the communication message and its orientation
for specific end objectives

c) Channel Mix Development-

Details the nature of each channel and the type of communication which can be targeted
through the particular channel to meet a specific communication objective. Also involves
looking at the positives of one channel over the other for specific marketing objectives
and strategies

Budget Allocation for Channel Mix- Involves utilizing the four key methods commonly
used for Budget allocation to ensure appropriate emphasis is given to each channel
depending on communication objectives and the nature of returns expected from each of
the channels in the overall mix

Operations- Phase 4

MARKETING OPERATIONS- This is the deployment stage for digital operations and
involves the actual planning, implementation, monitoring and optimization of campaigns
during the media flight dates so that marketers obtain the maximum impact for their
investments during the campaign run period.

Key activities include

a) Digital Campaign Planning

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Dr S V N Sreenivasu, Prof in CSE DM- Unit-2

Involves activities performed towards planning the campaign before it starts and aligning
the resources, tools and key activities. It starts with developing the campaign objectives
which would include developing a high-level brief of the product, the type of segments to
be targeted, targeted message, overall flight dates (run-time) and the final tangible output
desired in terms of response rates, website visits/leads or conversions.

b) Multi-channel Campaign Set-up

Involves the actual operations work for setting up the campaign across multiple channels
and begins with developing a campaign calendar and getting it approved internally before
sharing it with execution teams for implementation.

c) Campaign Execution

This step involves all the activities performed by campaign managers’ right from the time
they make the campaign “Go-Live”. Typical representative parameters (which we would
learn more about in the upcoming chapters too) include Bid, Geo, Targeting, Networks,
Devices, Languages, Ad Extensions, Advanced Settings, etc.

Campaign Monitoring & Tracking- During the implementation of the campaign,

marketers start receiving daily and weekly data points and extensive metrics so that all
data captured can be effectively analyzed and monitored.

REFINEMENT Phase 5

This is the final stage of Digital Marketing wherein Marketers and the Campaign Team
analyze overall RoI for the effort and investments, create reports and analytics
dashboards and refine present strategies for further digital marketing activities based on
customer response and collated data.

Key activities include

a) Implementing Web Analytics

Traditionally web analytics helped evaluate website performance, but the emerging Web
2.0 world involves analytics activities like Multiple-Outcome Analysis, Site Testing,
understanding customer & competition, etc

b) Defining Measurement Framework

Involves developing a Marketing Measurement Framework that helps generate

quantitative and qualitative analytics for all three digital media types (Owned, Earned and
Paid).

c) Marketing Implementation RoI

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Involves developing a Return on Investment model which calculates Key Expense areas
for spend across all Marketing Channels and overall marketing impact for the firm.

d) Digital Marketing Refinement

As a final step, the overall digital marketing strategy is refined using a five-step model of
Define, Measure, Analyze, Action and Improve or Eliminate to make sure that campaigns
are run most effective in future executions.

Business Phase I Phase 2 Phase 3 Phase 4 Phase 5

Type Assessment Operations Refinement
Strategy Channel and
Communication

Individual Access Define Develop Develop Revie Web

Potential to unique content and content and visits amd
development value intend based marketing marketing
Brand creation marketing mix material reposts
element

A local Compare Develop plan for blogs website/blog Analyze

Orthopedic present ovp built website, SEO, launch, improvements
wants to standing on repute SEM creation marketing in service
build his among & initiated on requirements
reputation similar experience search SEM and patient
online doctors creation visits

Study visit Define Refine

patterns for brand marketing
doctors building tactics
websites. elements regularly

ovp: online value proposition

Digital Marketing Mix

The digital marketing Mix is essentially the same as the marketing mix. It is simply the
adaptation of price, place, product and promotion to the digital marketing context of
course one could also include people, process, programmes, and performance when
marketing planning for an online service.

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offering mix for digital

Digital pricing Models

channel of purchase

Managing promotion channel

Developing the Extended Ps — people, process, programmes, and performance

product also related to a service or a brand.

product can be classified as consisting two component — tangible and intangible.

Any product or service which is being sold online and across digital platform
needs to be reasonably differentiated and have brand attributes or element attached to
them to differentiate from competitors.

Further product can be classified in five states of an offering mix which starts with pure
tangible product with no service element and ends as being a pure service with no
product components.

Offering Mix for Digital

state A: only tangible product which are primarily physical in form and mostly
commodity in nature. . sugar, steel etc. (pure tangible goods)

state B: It involves tangible good a decent service element to them.

E.g. mobile, automobile, furniture (and most of the productsold through e-commerce) etc.
(Tangible goods and related service)

state C：It has an equal mix of product and service elements built it.

E.g. hospitality services like them park, restaurants etc. (Hybrid Model)

state D： In this state, the intangible part forms the core service, while intangible part is
built as a support element.

E.g. Air travel, Banking, Insurance, and software developer etc. (Major service with few
goods)

state E：This final state involves as offering having complete intangible attributes.

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E.g. spa and other wellness services, online consulting, support helplines, etc. (pure
service)

product changing their form to digital — media broadcasting, books, music, Tv content
etc.

products picking up a perceived benefits to convert into service: Nike — Mobile

application,website etc.

service firms can use intangible elements like social networks to provide new service

service firms creating content-based service line — Management institute conducting

soft skill training for corporates

Marketer should combined various tangible and intangible elements to create multiple

product 一 service offerings which is differentiated and sustainable.

Digital Pricing model

Pricing product and service for digital sales has changed in quite a many ways from how
it was done traditionally. key trends which have impacted this shift includes;

. Reductions of intermediaries through digital channel — convenience and cost are

reasons for online purchase.

. knowledge of customer buying habit and propensity helps create cluster/persona

specific and channel specific pricing.

. possibility of instant price comparisons online

. Ability for consumer to set and negotiate online prices

. customer, demand for payment elasticity

Digital pricing Models are setting the price model as followes

1. selecting the pricing objective

2. Determining demand

3. Estimating cost

4. Analyzing competitor,s costs, prices, and offers

5. Electing a pricing method

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6. setting the final price

Traditional pricing methods

1. Mark-up pricing

2. Target return

3. perceived value

4. Going rate

Digital pricing Models

comparative pricing — compare competitor price, price also varies in relation to data on
.

customer visits, their loyalty, influence of the channel, e-commerce site on which it is
being sold.

Ad supported model — This is one of the core model on which digital business was
.

developed wherein instead of charging the customer, business and advertisers were
charged for placing ads across most read content.

subscription model — There has been surge of interesting subscription based

.

models where customers are paying for packages of information, entertainment,

education etc. on a time bound fixed price basis.

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Digital pricing Models

pay-per content/use model — It is possible to charge customer for each content piece as
even on the usage time for that content as digital medium can provide all if this
information.

Auction type -

Last minute pricing — possible only in online mode (Air-lines prices) customized
pricing/ cart based pricing - loyal customer free coupon

Ofering Mix with Pricing

state A (pure tangible good): comparative, mark-up, auction pricing are applicable

state B (tangible good and related service): subscription, maybe perceived value and
customized pricing model

state c (hybrid model): subscription, price per content, price per usage

state D (major service with few products)：Target return, comparative pricing

state E (pure service) ： online industry mostly started out with content, networks, and
sharing as its core model which did not charge initially but developed delighted and loyal
customer base. Then typically charged through advertising, subscription, and pay per
content/use model. YouTube, Facebook, Twitter etc. are ad supported whereas LinkedIn,
whatsApp, wiki are subscription or donation way.

channel of purchase - reaching the e commerce

companies can make sure that their products and services are present at right place where
their e-consumers would be looking for them.

channel ownership

. Direct sales channel

. Indirect sales channel

sales orientation

. pull based

. push based

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Managing promotional channel :promotional channel are those which help marketers
position and promote their products across customer funnel stages so that they finally
purchase product on the channel of purchase.

. Reach

. Engage

. Active

Managing promotional channel

Developing the Extended Ps- people, process, programs, and performance

People：

Involve developing online teams with a mix of digital marketing expertise, technology,
know-how, multi-channel experience, knowledge of automation tools, target customers
insights. It also includeshow to look at customers with all their human impulses and
desire to know what would tempt them most towards marketing efforts both on the
content and creativeside.

Processes:

Involves developing a rigorous process-driven marketing organization. Lays down clear

steps to understand and identify target customer clusters. Develop thought through and
tightly integrated supplier-customer processes. Manage campaigns as a series of

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processes with clearly aligned goals parallel to consumer funnel activities, with ways and
means to refine them needed.

Programs:

It is defined as the entire set of consumer-driven programs which are run in a holistic
manner online and offline to meet a firm's marketing objectives. It also includes all the
multi-channel initiatives which are taken across traditional and new platforms to make
sure that customers at all stages, be it targets, prospects, or leads are touched upon and
impacted in a 360-degree manner.

Performance:

setting up the system and ways to measure the performance and desired output at each
stage of marketing activities. It requires well defines metrics and KpIs performance
evolution touch all of the other ps to continually refine

Digital marketing affects all aspects of the traditional and services marketing mix
including:

Product – looking at opportunities for modifying the core or extended product for digital
environments. For example, offering digital products.

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Price – focusing on the implications for setting prices in digital markets; new pricing
models and strategies including online discounts.

Place – considering the implications for distribution for digital marketing. For example
affiliate or co-marketing.

Promotion – exploring inbound marketing techniques such as search, email and social
media marketing.

People, process and physical evidence – the extended mix of improving customer service
via Livechat and online knowledge bases.

search Engine Advertising:

Internet is the zero moment of truth, consumers first search for products or services
online before visiting the store. Hence, it is imperative for marketers to be present on
search engines

Search Engine Marketing has two parts

Search Engine optimisation (SEo) (SEo is organic,)

Search Advertising (Search Advertising is paid)

First advertiging search engine is google, the remaining yahoo and other are very less.

Yahoo wich mix with content bar with search where as google primary business is search.
Yahoo’s focus is on content and hence it display an advertisement. Google does not
show any adds on tis first page keep the focus on search query, keeps its page unculttered.

Pay for search Advertising

A marketer could build an excellent website and invest in SEO techniques to get the
highest rank for the website in organic results. despite the best efforts, the website may
not come on top, the algorithem for organic results is complex and not under the controler

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of the marketer, in comaparision marketer could secure a higher position on paid results
by paying for Ads.

capture Intent : These people are actively searching because they are interested in either
.

finding out more information about the product or service or are buying it.click through
rates (CTRs)

Ease of Action: search engine ads are meant to be clickable. once a person clicks on the
.

ad, the search engine directs the user to the brand's webpage, custom designed for the ad.

controlled costs: search engines charge a marketer only if a person clicks on the ad
.

(cost per click model). The advertisers are not charged for impressions

Analytics: search engines help in creating and downloading reports about the
performance of ads. average cost per click(CPC), the number of clicks for each ad, the
total amount spent, the click through rate, and the number of impressions to analyse the
effectiveness of their campaigns.

competition: A company's website is found to be listed as a top ad and as first in the

organic results. Then company wasting money on advertisements even though one
company may earn the first rank in organic results, they are leaving the ad space open for
attack by competition.

. For example, when Flipkart ran the campaign-Big Billion Day-during Diwali,
Amazon showed ads against the keyword and purchased the Big Billion Day' domain
name.

Understanding Ad placement

search engines show advertisements in predefined areason the result pages. Google shows
ads in two areas-top and bottom.Maximum four ads can appear on the top and three at the
bottom. It is not necessary though that search engines will display all potential ads on the
results page.

why do search engines lose out on potential revenue then?

The reason is that there is the high cost of serving ads.The entire algorithm is optimised
for the probability of click the advertisers pay only when they receive aclick. Hence,
search engines show ads only when the probability or click is higher than the threshold
level.

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Typical Google search results page

TOP

The top position is considered the prime location in Search Engine Results Page (SERP).
How many times have you gone second or the third page of the results? Users usually
click on results on the first page and that too which are above the scroll. Hence the
competition is for the top four positions on the first page. Click rates are high for them
and drastically reduce for below the scroll and subsequent pages.

SIDE

Google majorly displays shopping ads on the side. The shopping ads depict the picture of
the product with the prices, enabling purchase by users. Google search also displays
Knowledge graphs on the right side of search results page to make the experience of the
customers even better by giving them concise m ormation a out the business. Left side
ads are called ‘native ads’ as they appear at the same place that organic results appear.

BOTTOM

If the ad rank for an ad is lower than the threshold for the top position, in that case even if
the top position does not show any ads, this ad is shown in the bottom area.

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Appearance of Ads on Google Results Page

Page Top Slots Other Slots

Page 1 Ads 1-4 Ads 5-7

Page 2 Ads 1,2,5,6 Ads 3,8-10

Page 3 Ads 1,2,7,8 Ads 4,11-12

UNDERSTANDING AD RANKS :

Ad Rank is the position at which the ad appears in the search engine results. A study by
chitika (2013) has shown that results that appear in the top three positions combined
attract more than 60 per cent of traffic compared to all other results. The traffic decreases
exponentially as we go down the page Rank.

Ad Rank

BASIC AD AUCTION MODEL

Do you know that Google is not the first search advertising platform?

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Overture was one of the early players in the market; it launched paid search advertising
service in 1998. Google launched its paid advertising do-it-yourself platform-Adwords-in
the year 2000. In 2003, yahoo! acquired overture The initial auction model ranked ads
per bid amount placed by an advertiser for the keywords However, it was not
successful. This model leads to bidding wars suppose one bids Rs. 2 for the keyword
grocery shopping. To outrank this bid, their competitor raises the bid by Rs. 1. This
practice is especially unfair to small businesses. The second problem with this model
is that the quality of ads is not considered. ultimately resulted in a bad user
experience.Google launched Quality score measurement system in 2005, which
reduced the importance of bid amount in determining Ad Rank

The Ad Auction Model

The algorithm of Google search ads is as follows:

Ad Rank = Maximum bid x Quality score

Although Google does not provide weights of the components of Quality score, but some
analytics companies have analysed the Quality score of large scale number of keywords
and drawn some inferences about weights. (Relevancy, Landing page, cTR (click
Through rate))

why is Ad Rank Important?

. psychological factors influence consumers to click on ads.

. primacy Effects - serial position effects have been described as the effect of the
position

of the items on alist on the chances of an individual recalling them.

. Competition for Attention Theory - The competition for attention theory explains
biases in information processing. Djamasbi et al. (2010) find that the position of a
particular item has an influence on the individual's choice to process it. As Faraday (2000)
suggests,

individuals tend to consider items higher up on the list as more important.

. Information overload - Information overload is the phenomenon of what happens

when one receives too much information. user simple use heuristics and using fewer
numbers

of options (payne, Bettman, and Johnson, 1988, 1993 Timmermans 1993).

CREATE YOUR FIRST AD CAMPAIGN

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Creating AD Campaign

Architecture of search Advertising Account

Google provides an online platform called Adwords to create and manage one's online
advertisements. Now Google Ads, Advertisers must create an account to use Google Ads.
create separate campaigns for different product lines or services. For example, an online
grocery store can have separate campaigns for each of the product categories like home
care products', personal care items. within the product category of home care, each sub-
category such as detergents, cleansers could be different ad groups.

Each ad group should have related items since the set of keywords is defined at ad group
level. one might create a separate campaign for each location. similarly, if one is running
discounts on certain products and wants to allocate greater budget to advertise that
product, then they should run it as a separate campaign as the budget setting can be done
only at the campaign level.

Google Ads Account

Campaigns

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The daily budget which allows to set a maximum daily expenditure possible for the
campaign. one can have multiple campaigns region-wise to save cost. (Mumbai 一 more
target audience).The bidding rates for keywords will be different in different markets.
(higher in metro cities ) one can choose to show ads only on Google or on all search
partners. (default it is both)

Advertiser can choose among cost per click (CPC) (most popular), cost per acquisition
(CPA), or cost per lead (CPL)

Another important setting is location. (i) geographical location (ii) location of interest by
user.

Ad Groups

Each campaign is made up of one or more ad groups

An ad group is a bundle of keywords and ads

The best practice is to have 10-15 tightly themed keywords in an ad group.

An important setting done at the ad group level is default bid

one can also set bids for individual keywords

E.g. The company is a large corporation with global operations and many divisions,
for example, samsung, for which keywords can be runs into millions, so selection of bids
for individual keywords may not be possible.

keywords

. keywords are the single most important component of the search advertisement

. Appropriateness of keywords

. poor choice of keywords

. keywords should be relevant to the search term as well as the ad

. keywords can be short tailor long tail

. short tail: few keywords with high search volume

. Long tails: phrases which has small search volume but together they add up to
significant per cent of all searchers.

DIFFERENT KEY WORDS CLICK THIS LINK : https://seopressor.com/blog/short-tail-

or-long-tail-keywords/

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Display Advertising

Picture Superiority Effect (PSE) is a phenomenon which drives display advertising.

.
.

According to PSE, the human brain is more likely to remember images and pictures than
.

words. The company developed interactive display banners and coupled them with tailor
made content aimed at engaging with customers across different websites. Google
Display Networks (GDN) to channel all its online resources towards driving
prospective customers to showrooms.

Trends: Display Advertising

Average time spent on the website by audience tripled Number of website visitors
.

..

increased by 60 per cent year over year (yoy). Bounce rate on the website dropped from
.

65 percent to 1.5 percent. 5 per cent of the leads in the year came directly because of
display advertising.

Concept of Display advertising

Display advertising is a type of online advertising that comes in several forms, including
.

banner ads, rich media and more. unlike text-based ads, display advertising relies
on elements such as images, audio and video to communicate an advertising message.
Display advertising refers to the act of communicating the advertising message
using visually rich media. Display advertising (banner advertising) is a form of
.

advertising that conveys a commercial message visually using text, logos, animations,
videos, photographs, or other graphics. Display advertisers frequently target users with
particular traits to increase the ads, effect. Display advertising is very powerful in
creating awareness as it is a push medium

Flash ads are interactive web banners made with Adobe Flash that can feature complex
animations, movies and sound. This technology became extremely popular online
because of how it can react to users. For example, an entire ad can transform into a full
multimedia experience all with a simple mouse-over

HTML5 is a markup language used for structuring and presenting content on the
world wide web. It is the fifth and latest major version of HTML that is a world wide web
consortium recommendation

HTML5 ads are ads that use HTML5 files created in Google web Designer to
create attention-catching, interactive ads. You can design and build HTML5

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advertisements and other web content in Google web Designer's integrated visual
and code interfaces, then export and upload the files in .

HTML5 ads are the replacement for Flash-based ads that designers often built when they
wanted to use animations or interactivity in their design. Flash was used extensively from
the early 2000s through to 2016. Flash support started falling considerably after 2010
due to mobile operating systems like Apple,s ios not supporting Flash, and Google,s
Android having limited support.

HTML5 ads enable animation, and interactive content, but are also responsive/adaptive,
meaning that your design will look good across any browser, os, or device. since
HTML5 ads are based off of HTML5 code, any device that can render HTML5 can
render your ad as well.

Types of Display Ads

Format

. Image Ads - An image ad consists of an image that you provide featuring

information about your business, services, or products.

. Rich Ads

. video Ads

Display size

. Medium rectangle

. Large rectangle

. Leaderboard

BUYING MODELS

Cost per Click (CPC)

. ?????

Cost per Milli (CPM)

. cost per thousand impression —

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. Brand building process

Cost per Lead (CPL)

. For acquiring leads

Cost per Acquisition (CPA)

. An amount you pay for acquiring a customers who buys your products

Fixed cost /sponsorship

. You pay fixed cost per day irrespective of number of impression (YouTube
homepage banner ads are sold on fixed cost model)

Display plan

. Marketers need to prepare a display media plan which must include

thefollowing:

. site
. section
. Ad size
. Impressions
. Rate
. cost
“programmatic” ad buying typically refers to the use of software to purchase digital
advertising, as opposed to the traditional process that involves Rfps (request for
proposal), human negotiations and manual insertion orders. It,s using machines to buy
ads, basically.

Efficiency

Programmatic advertising is automated buying

The buying take place in realtime and follows a bidding model

. RTB — realtime bidding

. Bidding take place for ad spaces in the publisher,s webpages

Most recent development - automation in the field of display advertising programmatic

buying - shift — contextual targeting to audience targeting

E.g. A car brand —

. car portals,

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Instead,

Target audience, who have visited car portal atleast once visited finance site atleast once
in the last one month

Booked a travel ticked least once in the last one month

key inputs: programmatic Digital Advertising

The user requests for a webpage, which means there is a potential to show ad impressions
to the user. Everytime a user requests for a page, ad exchange holds a live auction. on
behalf of the publisher, supply side platforms (ssp) send a bid request to the Demand,
side platform (Dsp). Dsp examines the potential impression in terms target audience,
context match, and returns abid amount based on its value to advertiser. Winning bid is
chosen by the ad exchange and that ad is shown on the publisher's website.

Ad exchange

An ad exchange is a technology platform that facilitates the buying and selling of

media advertising inventory from multiple ad networks. prices for the inventory are
determined through bidding. The approach is technology-driven as opposed to the
historical approach of negotiating price on media inventory..

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process: programmatic Digital Advertising

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players in programmatic Advertising Ecosystem

players in programmatic Advertising Ecosystem

publishers

. publisher who have ad impression

. E.g. a blog is having 10 million followers

. E.g. website with 10000 unique visitors daily

. E.g. mobile application having 50000 users

publisher sells ad inventory to the advertisers.

Advertising inventory is the number of advertisements, or amount of ad space, a

.

publisher has available to sell to an advertiser. Ad inventory is often calculated by the

month. The term can refer to ads in print or other traditional media but is increasingly
used to refer to online or mobile ads.

Players in programmatic Advertising Ecosystem

. Supply Side Platform (SSP)

. A technology platform which enables the publishers to manage their ad

impression inventory and maximize revenue from digital media.

. SSP is a yield manager of the publisher.

. It integrates multiple networks together. It shares the context of the webpage, such
as topic, keywords, page URL and the profile of the user such as demography, location,

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device and browser behavior with the DSP and requests the DSP to bid for ad
impressions.

. ssps - LiveRail, openx, Rubicon project, Double click for publishers, pubNative and
AdJuggler.

Demand Side Platform (DSP)

. A platform that allows advertiser to buy the inventory from various ad exchanges and
data exchange accounts through one interface called RTB. The Dsps represent the interest
of the advertiser and attempt to find the most efficient impressions given the constraints
imposed by the advertiser.

. Dsp companies are Double click for Advertisers, Rocket Fuel, Turn, Appnexus.
Mediamath, Double click, and Audience science.

Data Management platform (DMP)

. It is used by publishers and buyers to store and manage audience data from multiple
sources. These sources include publisher,s websites, apps, videos etc.

players in programmatic Advertising Ecosystem

. Ad server

. There are Ad server technology companies that will host your ad and give
independent reporting, analytics and verification of display of ads.

. An ad server is a piece of advertising technology (AdTech) that is used by publishers,

advertisers, ad agencies, and ad networks to manage and run online advertising
campaigns.

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. Ad servers are responsible for making instantaneous decisions about what ads to
showon a website, then serving them.

How Ad server works

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Players in programmatic Advertising Ecosystem

Ad Exchange : Ad exchange brings together buyers and sellers to buy and sell online ad
inventory in an automated manner. Like a stock exchange, realtime auctioning for ad
spaces on publisher websites happens in an ad exchange

Open Exchanges : Ad exchanges open for everybody on the web. There is no restriction
on the purchase of inventory available in these exchanges.

Private Exchanges :An exchange wherein a group of publishers pooled up to sell their
advertising inventory only through select agencies or to reputed companies.

Analytics Tools

View ability — As per Integral Ad science & Media Rating council Data in 2015 57% of
display ads were not viewable. 50 per cent of ad pixel should display for minimum for
one second in image ads and 2 seconds for video ads for an ads to be considered viewable.
Tools such as Integral Ad science and MOAT provide matrices such as in-view
impression, out-of-view impression and viewable rate on Target Reach - these tools
determine accuracy based on real people logins across mobile and desktop.

Tools — “Atlas” provide on target reach publisher wise; Nielsen DAR do cross device
measurement and providereach overlap report.

Ad Fraud - the deliberate practice of serving ads that have no potential to be viewed by a
human. offenders of ad fraud are criminal gang Publisher with higher CPM rates are
more susceptible to trust. Create millions of impression but not one there to view. Ended
with high charges

Domain Identity Theft : This is a form of fraud where fraudsters add a fake URL into
the ad unit, fooling the auction into believing that an ad will appear on an acceptable site
that it will not end up on.

Click/Impression/conversion Fraud: This is when fraudsters mechanize clicking,

viewing or converting on ads. click farms exist where people are paid to sit and click,
view, or convert on ads through desktop and mobile devices.

Bot Activity : This is when robots carry out similar actions by masking IP addresses
through advanced algorithms. Malware can be installed on computers, giving fraudsters
the power to control what domains a computer visits and the ads it views.

Ad Fraud

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. Ad-stacking This is when multiple ads are served within the same placement. This
method tricks ad servers, as each of the ads is served; however, they are stacked beneath
each other so the advertiser,s message is often not viewable. Pixel stuffing when an ad of
say 300 x 250 pixels is crammed into 1 x 1 pixel size which makes it appear on page but
is invisible to human eye.

Brand Health - the process and controls implemented to protect advertisers from having
their ads appear alongside content that could damage their brand or reputation. Integral
Ad science tool assigns brand risk scores to prevent brand from getting
compromised.

YouTube Advertising

You Tube is the second largest search engine in the world behind Google search
Marketers on YouTube have two broad areas of participation: (i) YouTube channels, and
(ii) YouTube ads.

YouTube channel

. companies can promote their brands and products by creating quality video
content and curating it into a YouTube channel or profile. This will aid discovery and
engagement whenever someone searches for relevant content on YouTube.

YouTube Ads

. YouTube allows you to capitalize on the millions of partner videos already present
on YouTube, by targeting your display ads to relevant videos. These ads are available in
two different formats.

Display Ads :These ads appear next to your video while you are using YouTube on a
laptop or a desktop. This ad format not available on the mobile device and can be
purchased in both CPC and CPM formats.

Overlay Ads :An overlay ad appears in a rectangular format in the bottom 20 per cent of
the video. It is available only on a laptop or a desktop and not on a mobile devices, Tvs,
game consoles, etc. viewers can dismiss the ad anytime and can be purchased only in the
CPC model.

YouTubeDisplay Ad Over Lay Ad

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YOUTube Advertising

skippable Ads : skippable video ad is the

most popular advertising format on
YouTube. viewers can skip the ad after
watching it for five seconds. It can be
inserted before, during or after the video
and is available on desktop. Tvs, gaming
consoles and mobile devices. It has a very
unique buying model wherein the
publisher is paid only when a user watches
30 seconds of the video or till the end of
the video - whichever comes first.

Non skippable Ads : Ads are 15-20

second long video ads which can be
inserted before, during or after the
YouTube video. For these ads, the
publisher gets paid only when a user
fully watches the ad.

Mid-roll Ads :Available only for videos over 15 minutes, Mid-roll ads are spaced
between the video similar to Tv commercials. For better viewing experience, publishers
can choose to place their ads at natural pauses between the scenes. They are available
only on desktop and mobile versions and not on game consoles, Tvs etc. Further, these
mid-roll ads could be skippable or non-skippable ads and the pricing model is as per the
chosen format (i.e., skippable or non-skippable).

Bumper Ads : Lightweight, non skippable video ads up to 6 seconds long. They are
especially optimized for mobile devices.

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Bumper Ads

Native Mobile Ads : Native mobile ads are display ads that appear in the same context as
organic content. only available on mobile device. And can be boughton a CPC or CPM
basis.

Trueview video discovery ads :Trueview video discovery ads can run on the YouTube
search results and watch pages for both desktop and m.youtube.com, as well as the
mobile app homepage. You are charged whenever a user clicks on a video ad thumbnail
or title and begins watching your ad video. The ad unit consists of animage thumbnail
and up to three lines of text.

YouTube Buying Models

cost per view (cpv) :cost per view (cpv) cpv is the amount you pay for your true video
ads. with cpv bidding, you will pay for video views or interactions (such as clicks on call-
to-action overlays). A view is counted when someone watches 30 seconds of your video
ad (or the duration if it is shorter than 30 seconds) or interacts with the ad, whichever
comes first.

. True view Instream video

. The viewer watches your ad completely (if ad length less than 30 seconds) or
watches atleast 30 seconds of your ad (if ad length greater than 30 seconds). The viewer
performs a desired action on the adi.e., clicks on the ad.

Actual cpv As an advertiser, you always do not pay the max cpv amount. As it is a
competitive bidding model, you might often strike deals at a lower price relative to your
max cpv. This price at which you strike a deal (i.e., the actual amount you are charged) is
called the actual cpv. The actual cpv you pay depends on two factors.

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. Quality score

. Ad Rank

. Ad rank = Max. cpc * Quality score

Reserved media Placement : Follows the fixed pricing model. Highly beneficiary if
marketer wants to develop instant brand awareness E.g. new product commercialisation,
E.g. Entering into newmarke

There are two mode of RMP

. CPM There are two formats

. CPD - cost per Day

. To be booked couple of week advance, creative have to be delivered nine business

day advance. There are two formats

CPM : standard in- stream. Non skippable video ads that play before the user play actual
video can be of 15 to 30 seconds

. In-stream select skippable ads that play before the user play actual video can be up
to 30 seconds user allow to skip after 5 seconds

CPD - cost per Day : To be booked couple of week advance, creative have to be delivered
nine business day advance. There are three formats - Desktop custom Masthead, 970*250
pixel ad unit that snaps the entire breath of the YouTube homepage below the navigation
bar

Desktop universal video Masthead: Include flash information panel on one side and a
video panel on the other side. standard size 780*195 pixel

Mobile video Masthead: Mobile tablet only, video headline, description, channel name,

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