Online Marketing Tips And Tricks ! ALL THE DETAIL ABOUT ONLINE ADVERTISING

ALL THE DETAIL ABOUT ONLINE ADVERTISING

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 deliver promotional marketing messages to consumers. Many consumers find online advertising disruptive and have increasingly turned to ad blocking for a variety of reasons. When software is used to do the purchasing, it is known as programmatic advertising. Online advertising includes email marketing, search engine marketing, social media marketing, many types of display advertising, and mobile 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 who 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. Many common online advertising practices are controversial and, as a result, have been increasingly subject to regulation. 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.

HISTORY

In early days of the Internet, online advertising was mostly prohibited. For example, two of the predecessor networks to the Internet, ARPANET and

NSFNet, had "acceptable use policies" that banned network "use for commercial activities by for-profit institutions". The NSFNet began phasing out its

commercial use ban in 1991.

EMAIL

The first widely publicized example of online advertising was conducted via electronic mail. On 3 May 1978, a marketer from DEC, Gary Thuerk, sent an email to most of the ARPANET's American west coast users, advertising an open house for a new model of a DEC computer. Despite the prevailing acceptable use policies, electronic mail marketing rapidly expanded and eventually became known as "spam."

The first known large-scale non-commercial spam message was sent on 18 January 1994 by an Andrews University system administrator, by cross

posting a religious message to all USENET newsgroups. In January 1994 Mark Eberra started the first email marketing company for opt in email list under the domain Insideconnect.com. He also started the Direct Email Marketing Association to help stop unwanted email and prevent spam. Four months later, Laurence Canter and Martha Siegel, partners in a law firm, broadly promoted their legal services in a USENET posting titled "Green Card Lottery - Final One?" Canter and Siegel's Green Card USENET spam raised the profile of online advertising, stimulating widespread interest in advertising via both Usenet and traditional email. In 1994, web banner advertising became mainstream when HotWired, the online component of Wired Magazine, and Time Warner's Pathfinder sold banner ads to AT&T and other companies. The first AT&T ad on Hot Wired had a 44% click-through

rate, and instead of directing clickers to AT&T's website, the ad linked to an online tour of seven of the world's most acclaimed art museums.

Search ads Go To.com created the first search advertising keyword auction in 1998. Google launched its "AdWords" search advertising program in 2000 and introduced quality-based ranking allocation in 2002, which soits search advertisements by a combination of bid price and searchers' likeliness to click on the ads, and mobile advertising; mobile ad spending has grown 90% each year from 2010 to 2013. According to Ad Age Datacenter analysis, in 2017 over half of agency revenue came from digital work. Delivery methods Display advertising Display advertising conveys its advertising message visually using text, logos, animations, videos, photographs, or other graphics. Display advertisers frequently target users with particular traits to increase the ads' effect. Online advertisers often use cookies, which are unique identifiers of specific

As advertisers collect data across multiple external websites about a user's online activity, they can create a detailed profile of the user's interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting. Advertisers can also target their audience by using contextual to deliver display ads related to the content of the web page where the ads appear. Advertisers may also deliver ads based on a user's suspected geography through geotargeting. A user's IP address communicates some geographic information. The geographic information from an IP can be supplemented and refined with other proxies or information to narrow the range of possible locations. For example, with mobile devices, advertisers can sometimes use a phone's GPS receiver or the location of nearby mobile towers. Cookies and other persistent data on a user's machine may provide help narrowing a user's location further.

POP-UPS/POP-UNDERS

 A pop-up ad is displayed in a new web browser window that opens above a website visitor's initial browser window. A pop-under ad opens a new browser window under a website visitor's initial browser window.

FLOATING AD

A floating ad, or overlay ad, is a type of rich media advertisement that appears superimposed over the requested website's content. Floating ads may disappear or become less obtrusive after a pre-set time period.

EXPANDING AD

 An expanding ad is a rich media frame ad that changes dimensions upon a predefined condition, such as a preset amount of time a visitor spends on a webpage, the user's click on the ad, or the user's mouse movement over the ad. Expanding ads allow advertisers to fit more information into a restricted ad space.

TRICK BANNERS

A trick banner is a banner ad where the ad copy imitates some screen element users commonly encounter, such as an operating system message or popular application message, to induce ad clicks. Trick banners typically do not mention the advertiser in the initial ad, and thus they are a form of baitand-switch. Trick banners commonly attract a higher-than-average click-through rate, but tricked users may resent the advertiser for deceiving them.

NEWS FEED ADS

"News Feed Ads", also called "Sponsored Stories", "Boosted Posts", typically exist on social media platforms that offer a steady stream of information

updates in regulated formats . Those advertisements are intertwined with non-promoted news that the users are reading through. Those advertisements

can be of any content, such as promoting a website, a fan page, an app, or a product. Some examples are: Facebook's "Sponsored Stories", LinkedIn's "Sponsored Updates", and Twitter's "Promoted Tweets". This display ads format falls into its own category because unlike banner ads which are quite distinguishable, News Feed Ads' format blends well into non-paid news updates. This format of online advertisement yields much higher click-through rates than traditional display ads.

 DISPLAY ADVERTISING PROCESS OVERVIEW

 The process by which online advertising is displayed can involve many parties. In the simplest case, the website publisher selects and serves the ads. Publishers which operate their own advertising departments may use this method. The ads may be outsourced to an advertising agency under contract with the publisher, and served from the advertising agency's servers.

Alternatively, ad space may be offered for sale in a bidding market using an ad exchange and real-time bidding. This involves many parties interacting automatically in real time. In response to a request from the information about the user who will view it. The supply side platform sends that offer to an ad exchange. The ad exchange puts the offer out for bid to demand-side platforms. Demand side platforms act on behalf of ad agencies, who sell ads which advertise brands. Demand side platforms thus have ads ready to display, and are searching for users to view them. Bidders get the information about the user

ready to view the ad, and decide, based on that information, how much to offer to buy the ad space. According to the Internet Advertising Bureau, a demand side platform has 10 milliseconds to respond to an offer. The ad exchange picks the winning bid and informs both parties. The ad exchange then passes the link to the ad back through the supply side platform and the publisher's ad server to the user's browser, which then

requests the ad content from the agency's ad server. The ad agency can thus confirm that the ad was delivered to the browser. This is simplified, according to the IAB. Exchanges may try to unload unsold space at low prices through other exchanges. Some agencies maintain

semi-permanent pre-cached bids with ad exchanges, and those may be examined before going out to additional demand side platforms for bids. The

process for mobile advertising is different and may involve mobile carriers and handset software manufacturers. Interstitial ads are a form of interruption marketing

TEXT ADS

A text ad displays text-based hyperlinks. Text-based ads may display separately from a web page's primary content, or they can be embedded by hyperlinking individual words or phrases to the advertiser's websites. Text ads may also be delivered through email marketing or text message

marketing. Text-based ads often render faster than graphical ads and can be harder for ad-blocking software to block.

SEARCH ENGINE MARKETING

Search engine marketing, or SEM, is designed to increase a website's visibility in search engine results pages. Search engines provide sponsored

results and organic results based on a web searcher's query. Search engine optimization Search engine optimization, or SEO, attempts to improve a website's organic search rankings in SERPs by increasing the website content's relevance to search terms. Search engines regularly update their algorithms to penalize poor quality sites that try to game their rankings, making optimization a moving target for advertisers. Many vendors offer SEO services. In addition to setting a maximum price per keyword, bids may include time, language,

user's browser, the publisher content server sends the web page content to the user's

browser over the Internet. The page does not yet contain ads, but contains links which cause the user's browser to connect to the publisher ad server to

request that the spaces left for ads be filled in with ads. Information identifying the user, such as cookies and the page being viewed, is transmitted to

the publisher ad server.

The publisher ad server then communicates with a supply-side platform server. The publisher is offering ad space for sale, so they are considered the supplier. The supply side platform also receives the user's identifying information, which it sends to a data management platform. At the data management platform, the user's identifying information is used to look up demographic information, previous purchases, and other information of interest to advertisers.

Broadly speaking, there are three types of data obtained through such a data management platform:

This customer information is combined and returned to the supply side platform, which can now package up the offer of ad space along with geographical, and other constraints.

MOBILE ADVERTISING

Mobile advertising is ad copy delivered through wireless mobile devices such as smartphones, feature phones, or tablet computers. Mobile advertising

may take the form of static or rich media display ads, SMS or MMS ads, mobile search ads, advertising within mobile websites, or ads within mobile

applications or games. Adware installed without the user's permission is a type of malware.

 AFFILIATE MARKETING

Affiliate marketing occurs when advertisers organize third parties to generate potential customers for them. Third-party affiliates receive payment

based on sales generated through their promotion

COMPENSATION METHODS

Advertisers and publishers use a wide range of payment calculation methods. In 2012, advertisers calculated 32% of online advertising transactions on

a cost-per-impression basis, 66% on customer performance, and 2% on hybrids of impression and performance methods. and some impressions may

not be charged because they don't represent a new exposure to an actual customer. Advertisers can use technologies such as web bugs to verify if an

impression is actually delivered.

Similarly, revenue generated can be measured in Revenue per mille. Publishers use a variety of techniques to increase page views, such as dividing content across multiple pages, repurposing someone else's content, using sensational titles, or publishing tabloid or sexual content. CPM advertisinly is susceptible to "impressivil laud," and advertisers whiv Waill visitors to their sites inlay ilul sünd per-impression payments a youd proxy for the results they desire.

CPC

CPC or PPC means advertisers pay each time a user clicks on the ad. CPC advertising works well when advertisers want visitors to their sites, but it's

a less accurate measurement for advertisers looking to build brand awareness. CPC's market share has grown each year since its introduction, eclipsing CPM to dominate two-thirds of all online advertising compensation methods.

CPE

Cost per engagement aims to track not just that an ad unit loaded on the page, but also that the viewer actually saw and/or interacted with the ad.

CPV

Cost per view video advertising. Both Google and TubeMogul endorsed this standardized CPV metric to the IAB's Digital Video Committee, and it's

gamnering a notable amount of industry support. CPV is the primary benchmark used in YouTube Advertising Campaigns, as part of Google's AdWords

platform.

CPI

The CPI compensation method is specific to mobile applications and mobile advertising. In CPI ad campaigns brands are charged a fixed of bid rate

only when the application was installed.

ATTRIBUTION OF AD VALUE

In marketing, "attribution" is the measurement of effectiveness of particular ads in a consumer's ultimate decision to purchase. Multiple ad impressions

may lead to a consumer "click" or other action. A single action may lead to revenue being paid to multiple ad space sellers.

OTHER PERFORMANCE-BASED COMPENSATION

CPA or PPP advertising means the advertiser pays for the number of users who perform a desired activity, such as completing a purchase or filling out

a registration form. Performance-based compensation can also incorporate revenue sharing, where publishers earn a percentage of the advertiser's

profits made as a result of the ad. Performance-based compensation shifts the risk of failed advertising onto publishers, or let users follow the

advertiser on social media. Online ads can even incorporate games.

TARGETING

Publishers can offer advertisers the ability to reach customizable and narrow market segments for targeted advertising. Online advertising may use geotargeting to display relevant advertisements to the user's geography. Advertisers can customize each individual ad to a particular user based on the user's previous preferences.

COVERAGE

Online advertising can reach nearly every global market, and online advertising influences offline sales.

SPEED

Once ad design is complete, online ads can be deployed immediately. The delivery of online ads does not need to be linked to the publisher's

publication schedule. Furthermore, online advertisers can modify or replace ad copy more rapidly than their offline counterparts.

CONCEINS

Security concerns

According to a US Senate investigation, the current state of online advertising endangers the security and privacy of users.

Banner blindness

Eye-tracking studies have shown that Internet users often ignore web page zones likely to contain display ads, and this problem is worse online than in

offline media. On the other hand, studies suggest that even those ads "ignored" by the users may influence the user subconsciously.

FRAUD ON THE ADVERTISER

There are numerous ways that advertisers can be overcharged for their advertising. For example, click fraud occurs when a publisher or third parties

click on a CPC ad with no legitimate buying intent. For example, click fraud can occur when a competitor clicks on ads to deplete its rival's

advertising budget, or when publishers attempt to manufacture revenue.

As with offline publications, online impression fraud can occur when publishers overstate the number of ad impressions they have delivered to their

advertisers. To combat impression fraud, several publishing and advertising industry associations are developing ways to count online impressions

credibly.

TECHNOLOGICAL VARIATIONS

HETEROGENEOUS CLIENTS

Because users have different operating systems, web browsers and computer hardware, online ads may appear to users differently from how the advertiser intended, or the ads may not display properly at all. A 2012 comScore study revealed that, on average, 31% of ads were not "in-view" when

rendered, meaning they never had an opportunity to be seen. Rich media ads create even greater compatibility problems, as some developers may use

competing software to render the ads.

Furthermore, advertisers may encounter legal problems if legally required information doesn't actually display to users, even if that failure is due to technological heterogeneity. In the United States, the FTC has released a set of guidelines indicating that it's the advertisers' responsibility to ensure the

ads display any required disclosures or disclaimers, irrespective of the users' technology. Other software programs or browser add-ons may also block

the loading of ads, or block elements on a page with behaviors characteristic of ads. Approximately 9% of all online page views come from browsers with ad-blocking software installed, and some publishers have 40%+ of their visitors using ad-blockers. Privacy concerns The collection of user information by publishers and advertisers has raised consumer concerns about their privacy. Over half of all Google and Facebook users are concerned about their privacy when using Google and Facebook, according to Gallup.

Many consumers have reservations about online behavioral targeting. By tracking users' online activities, advertisers are able to understand consumers

quite well. Advertisers often use technology, such as web bugs and respawning cookies, to maximize their abilities to track consumers. According to a

2011 survey conducted by Harris Interactive, over half of Internet users had a negative impression of online behavioral advertising, and forty percent

feared that their personally-identifiable information had been shared with advertisers without their consent. Consumers can be especially troubled by

advertisers targeting them based on sensitive information, such as financial or health status, leading to artifices like phishing and confidence schemes

like the Nigerian "419" scam. The Internet Crime Complaint Center received 289,874 complaints in 2012, totaling over half a billion dollars in losses,

most of which originated with scam ads.

Consumers also face malware risks, i.e. malvertising, when interacting with online advertising, Cisco's 2013 Annual Security Report revealed that

clicking on ads was 182 times more likely to install a virus on a user's computer than surfing the Internet for porn. For example, in August 2014

Yahoo's advertising network reportedly saw cases of infection of a variant of Cryptolocker ransomware.

SPAM

The Internett's low cost of disseminating advertising contributes to spam, especially by large-scale spammers. Numerous efforts have been undertaken

to combat spam, ranging from blacklists to regulatorily-required labeling to content filters, but most of those efforts have adverse collateral effects,

such as mistaken filtering. As with offline advertising, industry participants have undertaken numerous efforts to self-regulate and develop industry standards or codes of conduct.

Several United States advertising industry organizations jointly published Self-Regulatory Principles for Online Behavioral Advertising based on

standards proposed by the FTC in 2009. European ad associations published a similar document in 2011. Primary tenets of both documents include

consumer control of data transfer to third parties, data security, and consent for collection of certain health and financial data.

PRIVACY AND DATA COLLECTION

Privacy regulation can require users' consent before an advertiser can track the user or communicate with the user. However, affirmative consent can

be difficult and expensive to obtain. Otherwise, the U.S. Federal Trade Commission frequently supports industry self-regulation, although increasingly

it has been undertaking enforcement actions related to online privacy and security. The FTC has also been pushing for industry consensus about

possible Do Not Track legislation.

In contrast, the European Union's "Privacy and Electronic Communications Directive" restricts websites' ability to use consumer data much more

comprehensively. The EU limitations restrict targeting by online advertisers: researchers have estimated online advertising effectiveness decreases on

average by around 65% in Europe relative to the rest of the world.

DELIVERY METHODS

Many laws specifically regulate the ways online ads are delivered. For example, online advertising delivered via email is more regulated than the same ad content delivered via banner ads. Among other restrictions, the U.S. CAN-SPAM Act of 2003 requires that any commercial email provide an opt

out mechanism. Similarly, mobile advertising is govemed by the Telephone Consumer Protection Act of 1991, which requires user opt-in before

sending advertising via text messaging.

See also

• Adblock
• Advertising
• Advertising campaign
• Advertising management
• Advertising media
• Branded entertainment
• Direct marketing
• Integrated marketing communications
• Marketing communications
• Media planning
• Digital Marketing
• Promotion
• Promotional mix
• Promotional campaign
• Product placement
• Promotional merchandise
• Sales promotion

References

Bibliography:

Wikipedia