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TOPICS

SL.N TOPICS PAGE.NO


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1. INTRODUCTION & MEANING 3-4
2. ADVANTAGES AND 5-10
DISADVANTAGES OF ONLINE
ADVERTISING
3 TYPES OF ONLINE ADVERTISING 11-14
WITH EXAMPLES
4. HOW TO DEVELOP GOOD 15-17
ONLINE ADVERTISEMENT
5. ONLINE ADVERTISING IN INDIA, 18-24
OVERVEIW AND STATISTICS
6. ONLINE ADVERTISMENT 25-30
AGENCIES IN INDIA
7. AD SPECIFICATIONS WITH 31-34
CONTEXT TO REDIFF
8. COST ASCERTAINMENT IN 35-38
ONLINE ADVERTISING
9. IMPORTANT TERMINOLOGIES 39-43
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10. BIBLIOGRAPHY 44
11. A SURVEY BY JUST CONXULT -

INTRODUCTION TO ONLINE ADVERTISING

Online advertisement
Online advertising is a form of advertising that uses the
Internet and World Wide Web in order to deliver marketing
messages and attract customers. Online advertising is a form of
promotion that uses the Internet and World Wide Web for the
expressed purpose of delivering marketing messages to attract
customers. Examples of online advertising include contextual ads
on search engine results pages, banner ads, Rich Media Ads,
Social network advertising, online classified advertising,
advertising networks and e-mail marketing, including e-mail spam

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Today all the companies in India and corporate in India have
products or services to sell and they are advertising them via T.V,
newspapers, brochures, magazines, radio etc. But its time to take
the promotions online is a effective way of advertising that uses
the power of Internet and World Wide Web in order to deliver
marketing messages and attract customers. Different examples of
include contextual ads on search engine results pages, banner
ads, advertising networks and e-mail marketing, including e-mail
spam and newsletters..

Online video directories for brands are a good example of


interactive advertising. These directories complement television
advertising and allow the viewer to view the commercials of a
number of brands. If the advertiser has opted for a response
feature, the viewer may then choose to visit the brand’s website,
or interact with the advertiser through other touch points such as
email, chat or phone. Response to brand communication is
instantaneous, and conversion to business is very high. This is
because in contrast to conventional forms of interruptive
advertising, the viewer has actually chosen to see the commercial

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Advantages & Disadvantages of Online
Advertising:

Online Advertising offers several advantages over traditional


means of advertising. The advantages offered by online advertising are as
follows:

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1. Traceability:

Online is different because we can know which ads work and


which do not, because we can track them. This gives online the advantage
over traditional advertising every time. We can test our advertising ideas
and only roll out the successful ones, leading to far higher returns on
investment than can be achieved by lucky guesses.

2. Internet adverting enables good conversion tracking:

It's impossible to get a good idea of how many people see


advertising through traditional means. Tracking the reach of newspaper
and television advertisements is difficult. With the help of impressions,
clicks, and conversions, advertisers can easily judge the effectiveness of the
messages in their ads.

3. Targeting:

Online advertising can trump traditional media because online ads


can be targeted. Why show the same advertisement to a 20 year old and a
60 year old viewer? The web allows us to deliver bespoke advertising to
clients. Your website can be used to target messages that are tuned to the
wants and needs of particular clients.

You can target your audience effectively. The trick is to place your
ad where the right customers can see it. Think like one of your own
customers by trying to imagine which sites they're likely to visit. Those sites
are where to place your ad.

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4. Internet advertising is huge:

With the growth of information on the internet, the amount of


time people spend on it has also grown, which has in turn generated a new
market for internet advertising. Some of the wealthiest companies in the
world have made sure that they get a piece of the internet marketing pie,
and for a good reason.

5. Internet advertising has a lower entry-level fees:

If you have a limited budget, internet advertising can be much


more in reach than traditional methods. A small yellow-page ad can cost
several thousand rupees. However, you can bid for advertisements on
Google and Overture on a performance basis. That means that you only get
charged when visitors click on the advertisement.

6. Internet advertising can be much cheaper:

Because of the targeted nature of internet advertising and the


ability to track the effectiveness of ads, conversion rates from internet
advertising is typically much better than traditional mediums.

In comparison to traditional forms of advertising, online


advertising is cheaper. Often, advertisers are charged only when visitors
click on their ads.

The ad campaign is less expensive because you don't have the


costs associated with reprinting and redistribution (as you do in a
more traditional campaign), the overall expense of a change is
decreased.

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7. Internet advertising has greater range:
The Internet enables extensive coverage, as it has the capacity to reach
global audiences at a rapid rate.

8. Budget:

A global reach is within everyone's budget once they invest a little


time and effort in online marketing. With tools such as ad words a small
business with just one or two employees can create and manage marketing
campaigns that are seen on the other side of the world.

9. The presentation to the market:

If your product / service are aimed at the younger generation or


the corporate world, Internet advertisements would be best because they
are already hooked into the net, surfing websites.

10. Relatively trouble-free:

Everything you really need is a PC, some knowledge and ideas for
designing your site, then search for the best Internet ad package for your
advertising needs and budgets, choose from a variety of advertisement ways
like Banner Ads, text ads, etc. All from the comfort of your home.

11. Update ads:

Unlike TV commercials, which must be periodically updated, your


Internet ads could go for some time without change. If they need updating,
the amendment of the site or your ad is usually a very simple matter that

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can be done quickly and easily. You can change your online ad much more
easily than you can change ads in other media.

When you need to alter your online ad, no printing or taping is


required. Just change the HTML that created the online ad and you're done
in a matter of minutes.

12. You can easily test the market:

If you create a brochure, you have to print and distribute it before


finding out whether your campaign is effective. Response (or lack of
response) on the Internet is lightning fast. You can also add a counter to
your company's Web site to see how many people visit your site.

13. The ad works 24 hours a day, 7 days a week, 365 days a year:

It's always nice to know your advertising is working for you around
the clock and around the world, so that your customers can view it at their
convenience rather than any specific time.

14. Direct Response:

The biggest strength of online advertising is the direct response


that it offers to both customers and advertisers. Audiences are just one click
away from the advertisers, creating a unique opportunity for advertisers to
engage in two-way communication with buyers.

15. Your customers can see your ad, shop, and buy, (if you sell
your goods online) all without leaving home: It's hard to beat
that sort of convenience.

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Disadvantages of Online Advertising:

1: Scope:

It is a "limited" market that can be conquered, if you only use the


Internet for advertising display. While more and more people every day are
now into the use of technology and surfing the World Wide Web there are
quite a few of the average consumers out there that are still on the older
forms of advertising as a means to gather information on certain products
and services. Fortunately for us Internet advertisers that are changing
quickly in our favor and this will soon no longer be an issue.

2: Additional costs:

If you decide to rent the help of a professional, a freelancer or a


company for the production of your site and /or advertising for your
product or service, of course it costs more than if you did it yourself. While
the costs can advance an initial disadvantage, the results in the long term
may in fact be very beneficial if you have the right people to work with.

3: It's too measurable:

You can gather more statistics than a baseball team. Worse, some
of the click-through rates are low - often 1 or 2 percent or even less. That
means hardly anyone who sees your ad clicks on it and visits your Web site
- or buys your product. Online advertising is still in its infancy.

4: Customers are experiencing advertising overload:

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One problem with online ads is the incredible amount of clutter on
most Web pages. Every advertiser wants consumer attention, but readers
simply have too much information to digest. Often, they choose to ignore
ads - and that is what leads to low rates of return.

Even with its disadvantages, the Internet is turning into a tool that
surpasses the wildest dreams of ad execs. The radio took 38 years to reach
50 million users. Television took 13 years to reach 50 million viewers. And
the Internet took just 5 years to reach the same number of users - a
stupendous achievement.

TYPES OF ONLINE ADVERTISING

Web Advantage assesses a wide variety of online advertising and targeting


methods to ensure the most effective and cost-efficient media buys for your
campaign goals.

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AD FORMATS

➢ TEXT ADS: Advertisements displayed as simple, text-based hyperlinks are


known as Text Ads. As their name suggests, text ads they do not include
graphic images. Text ads are sold on non-search websites and can be served
either by individual websites, or a publisher’s own ad servers.

➢ DISPLAY ADS: Graphical advertisements featured on websites are known


as Display Ads. Display ads are often available in many standard shapes and
sizes, including: banners, leader boards, skyscrapers, large boxes, and other
sized graphical ads. Display ads use eye-catching visuals to quickly grab
catch the attention of website visitors browsing the pages on which they are
featured. Display ads are sold on non-search websites and can be served
either by individual websites, or a publisher’s own ad servers.

➢ POP-UP ADS: Advertisements that appear to “pop up” in a new window as


users browse a website are known as Pop-Up Ads. Hover ads, floating ads
and slide-in ads ads are all considered pop-up ads. (Sometimes these ads are
also known as Pop-Under Ads, depending on whether they are displayed
over or underneath the current web content being browsed.) The use of Flash
and DHTML ads has risen in recent years in an effort to counter the
increased usage of pop-up blockers.

➢ FLASH / DHTML ADS: These kinds of ads incorporate Flash animation or


other motion graphics. Ads may be animated display ads in more traditional
shapes and sizes, or, as of late, they can be sophisticated ads that function
similarly to pop-up ads but with much deeper integration into the overall
design of the site.

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➢ INTERSTITIAL ADS: Interstitial ads appear between web pages that the
user requests. For example, an interstitial ad may appear after you click on a
link in an excerpt to view the full content of news story. Because interstitial
ads load in the background and do not interrupt the users immediate
browsing experience, they are a preferred method of delivering ads with rich
media, streaming video, and/or large graphics.

➢ VIDEO ADS: With the popularity of online video watching, video ads have
become a viable means of distributing rich advertising content. Currently
video ads can either be content created entirely by the advertiser, or “in
video” ads that will show your ad within a video. Major search properties
like Google (through You Tube), MSN, Yahoo, and AOL all offer
advertising on their video websites.

➢ EMAIL ADS (CLASSIFIED ADS & NEWSLETTER ADVERTISING):


Ads that are distributed by a publisher through email blasts to opt-in
audiences are known as email ads. Advertisers can individually sponsor a
publisher’s email newsletter or they can purchase classified ad space.

➢ ON-SITE SPONSORSHIPS: On-Site sponsorships are ads (typically just a


company’s logo) that can be bought on individual websites. Sponsorship ads
typically appear in an area on the website reserved for sponsors and often
noted as such.

➢ ADVERTORIALS: Advertisements in editorial form that appear to contain


objectively-written opinions are known as paid editorial ads, or
“Advertorials”. Online advertorials are typically featured on publisher’s
websites and promote products and services related to the website’s content.

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Some ad networks will develop, optimize, and write you’re advertorial and
place it on their ad network.

TARGETING METHODS

➢ CONTEXTUAL TARGETING: When ads are served based on


related content a user is currently reading or browsing online, it is
known as contextual targeting. For example, if you are reading an
article on a news website about sports, you may see contextual ads
for sports gear, memorabilia, or game tickets. Contextual ads are
purchased through major search properties like Google, Yahoo,
MSN, and through many other contextual ad networks. Ad relevancy
is typically determined by algorithms that will assess the
appropriateness of the ad in relation to the displayed content.

➢ BEHAVIORAL TARGETING: When ads are served based on user


behavior, it is known as behavioral targeting. Behavioral targeting is
based on a variety of online factors such as recent online purchases,
searches, and browsing history, as well as demographic details such
age or gender. For example, if you recently visited a real estate
website, you may see behavioral ads selling mortgages.

➢ GEO-TARGETING / LOCAL ADVERTISING: When ads are served


based on a user’s geographical location, it is known as geo-targeting.
For advertisers interested in targeting users within a specific locality
or region, geo-targeted online advertising is an effective solution. An
increasing number of websites now offer geo-targeting capabilities.
Local advertising also includes network buys through radio, television

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and newspaper websites, as well as localized search engines and
directories such as Yahoo! Local, Google Local, and AOL City Guide.

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How to Incorporate Online Advertising
Campaigns in Your Marketing Program

Internet marketing isn’t just for consumer marketers or large


B2B firms – it’s a powerful vehicle for companies of all sizes.

Online advertising offers B2B marketers an opportunity to


reach very broad or very targeted prospects to generate leads,
communicate a message and raise visibility. In the Marketing
M.O., the term “online advertising” refers to three general types
of campaigns:

• Banner ad campaigns on B2B websites


• Ads or sponsored content on targeted email newsletters
• Affiliate programs that enable other companies to put your
ads on their sites in return for commission on clicks or sales

While a B2B marketer has a smaller universe of prospects


than a consumer marketer, the value of each prospect is
typically far greater. With a targeted campaign and a good
offer, you may only need to generate a handful of highly
qualified prospects to generate substantial revenue.

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HOW TO DEVELOP A GOOD ONLINE ADVERTISMENT

Before you launch an online campaign, it’s important to have a


good website that can measure your traffic and convert visitors to
prospects or customers. It’s also helpful to address your online
campaigns in your annual marketing plan and budget

Develop a tangible goal:

For example, determine how many click-throughs or leads


you need to generate, then estimate your response rates to figure
out how many impressions you’ll need. Make sure you know how
you’ll measure your campaign as well.

Target your audience:

Profile and target your audience. You can reach a large


audience with your ad, but that doesn’t mean you should –
narrow targeting means you can speak more directly to their
needs.

Create a good offer and compelling call-to-action:

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Your ad needs to generate interest and get people to click
through to your website to learn more – give them a reason, a
benefit. Keep your message simple and clear.

Focus on conversion:

When you run a great ad, continue the message and


momentum on your website. Don’t drive prospects to your home
page; instead, create unique landing pages that focus on the
topic you used to generate their interest. Focus and sell!

Continually test, refine and improve:

It’s easy and inexpensive to test your online campaigns. You


can test the offer, the design of your ad, the size and location of
the ad, or the sites you choose. Start with the element that’s
most important – for example, the offer – and create two versions
of the ad. Then run them against each other to see which
performs best.

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When you keep testing in this way, you can greatly increase your
response over time – and that can mean a substantial increase in
the number of qualified leads and new customers you generate.

ONLINE ADVERTISING IN INDIA, OVERVEIW AND


STATISTICS
Advertising in India can easily handle your advertising needs. You may need to
design an ad for your business, looking for placing a matrimonial advertisement or
perhaps you want to publish an advertisement in newspaper for job recruitment.

One major benefit of online advertising is the immediate publishing of information


and content that is not limited by geography or time. To that end, the emerging
area of interactive advertising presents fresh challenges for advertisers who have
hitherto adopted an interruptive strategy.

Another benefit is the efficiency of advertiser's investment. Online advertising


allows for the customization of advertisements, including content and posted
websites. For example, AdWords and AdSense enable ads shown on relevant web
pages or aside of search results of pre-chosen keywords. Another is the payment
method. Whatever purchasing variation is selected, the payment is usually relative
with audiences' response.
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Objectives

There must be clear objectives for online e advertising. Advertising may have
many purposes, so identify a specific objective for a specific online advertising.
Advertising may be designed to do the following:

• raise awareness of the company, product, or service within a


clearly identified target market

• communicate the benefits of the product or service

• generate leads for the sales force

• solicit customers through a direct response campaign

• persuade prospective customers to switch brands

• support a marketing event, such as a sale or an exhibition

• inform customers where to obtain the product

• build confidence in your organization

Again, there should be clear in advance how much is dependent on advertising and
how much is dependent on other aspects of your marketing effort, such as the sales
force.

Raise Awareness

Awareness advertising can be used if your company is entering new markets in


which you do not have an established reputation, if you are launching new
products which appeal to specific sectors of your market, or if research shows that
customers and prospects are not aware of the full extent of your products and
services.
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For example, to raise awareness of its new range, one company advertised in
special interest consumer magazines designed for its target audience.
Advertisements included the telephone number of an information line. Editorial
articles in the same group of publications backed up the advertising by providing
more detailed information for consumers.

Awareness on its own will not sell products, however; if this is your objective, you
must integrate your campaign with other elements of your marketing. Likewise,
awareness among the general public is very different from awareness in a small,
specialized market, so you should be clear about whom you are trying to reach.

Communicate Benefits

Product advertising should focus on solving the needs of your customers;


consequently, your advertising should stress the product’s benefits. This type of
advertising is important when research shows low awareness of product benefits, if
your products have recently been improved, or if you need to counter competitors
who have introduced products with similar or better benefits.

For example, if research shows that your company’s products are perceived as old-
fashioned or poor value for the money, you need to take action to communicate the
real benefits of your products. The phrase “perception is reality” definitely applies
in advertising.

Generate Leads

The purpose of some types of advertising is to provide leads that can be followed
up by a field sales force or telemarketing team. Sometimes, customers or prospects
have a complex decision- making structure and you cannot identify the decision
makers. Advertising that generates inquiries can identify the right people and open

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the door for the sales team. It can also be used to identify prospects in new market
sectors in which you do not have an established customer base. Finally, this type of
campaign can generate leads for agents, distributors, or retailers who handle your
local marketing.

Solicit Customers through Direct Response

Direct response advertising is the most measurable form of advertising and


provides a direct return in terms of incremental sales. In an increasing number of
markets, customers prefer the convenience of buying direct, and you have to
decide whether it is appropriate to bypass your existing distribution channels.

In the personal computer market, for example, products have become increasingly
regarded as commodities, and the resulting price competition put pressure on
margins. Manufacturers found that businesses and individuals were willing to buy
personal computers “off the page” or via the Internet. The result was a
considerable growth in the level of direct sales, and manufacturers could reduce
prices by avoiding the cost of selling through retail outlets.

Encourage Brand Switching

Advertising can play an important role in winning new customers as it encourages


them to switch brands. It helps you to increase market share or maintain share
against competitive actions and is also important if you are introducing new
products that offer greater benefits than those of your competitors.

Support a Marketing Event

This type of advertising helps to build traffic for your special event and insures that
the event attracts the right prospects. For example, a company that sponsors senior

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executive seminars as a way of building its credibility could run advertisements in
the business press to promote such a seminar.

Inform Customers Where to Obtain the Product

Advertising can help to drive business to retail outlets and can improve the
performance of your distribution network by showing the range of services
available from the outlets. It can also counter competitive action, if, for example,
customers are using other distributors to obtain spare parts and service. In this
case, advertising should show locations of retail outlets and explain why the
authorized distributor should be the first choice for customers.

Build Customer Confidence

Capability advertising or corporate advertising is sometimes dismissed because it


is difficult to measure, but it is important to use when a company has been
undergoing significant change or is entering new markets. It also provides support
when a company is trying to win key account business or if competitors are
targeting your important current customers.

Benefits of Indian Companies

If you listen to the sceptics, you’d think there is no point to online


advertising. But visit online magazines and portals worldwide, and
you’ll see the ads of some of the most successful companies in
India.

Because of the lack of such information, many advertisers were faced with a
difficulty in allocating budgets for online advertising. The use of online

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advertisements in terms of time bands and space bands rather than the pay-per-
click form was a new idea in the advertisement industry world over. The success of
this concept in India would help MSN decide if it could replicate this across other
countries.

Online advertising is proving to be the most powerful and cost-


effective tool to drive traffic to your web site.Online advertising
provides maximum exposure to your products than any other
form of advertising. If your business caters mainly to the online
clients or you own a web site then it become very important to
focus on online advertising as this will increase the traffic on your
web site.

There are online advertising companies that market various tools such as pop-up
ads, banner ads, traffic exchanges etc, With the advent of heavy competition in
various businesses, online advertising has become a necessity.

You can achieve very good exposure of your website through Online advertising.
The very effective tools are SEO (search engine optimization), classified
advertisements, viral marketing, classified ads, email marketing and many more
free and paid forms of advertising.

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Internet Usage and Population Statistics:

YEAR Users Population % Usage


Pen. Source
1998 1400000 1,094,870, 0.1 % ITU
677
1999 2,800,00 1,094,870, 0.3 % ITU
0 677
2000 5,500,00 1,094,870, 0.5 % ITU
0 677
2001 7,000,00 1,094,870, 0.7 % ITU
0 677
2002 16,500,0 1,094,870, 1.6 % ITU
00 677
2003 22,500,0 1,094,870, 2.1 % ITU
00 677
2004 39,200,0 1,094,870, 3.6 % C.I.

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00 677 Almanac

C.I. Almanac
2005 50,600,0 1,112,225, 4.5 %
00 812
2006 40,000,0 1,112,225, 3.6 % Iamai
00 812
2007 42,000,0 1,129,667, 3.7 % AWS
00 528
Source:http://www.internetworldstats.com/asia/in.htm

Indian online advertising Agencies

Online advertising is steadily robbing the market share from traditional media
advertising. Given the potential of growth and increasing Internet penetration in
India, online advertising is set to explode in coming years. The 38.5 million Indian
Internet users, according to an IAMAI study, have become the prime target for
numerous advertisers clouding the web.

To cash in on this growth, number of online ad networks have come up in India in


last few years. Here is an overview of current pool of online ad networks in India.

Komli: is a leading online ad network in India offering tools to Publishers to help


them manage, optimise, and make the most of their online advertising. On the

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other hand, advertisers have access to millions of clients worldwide in order to
increase their consumer commitment, brand recognition, leads, and sales. They
offer different options such as CPM and performance based CPC and CPA
marketing.

Solutions to both publishers and advertisers include Komli premium network and
Komli performance network. Komli premium network offers publishers tons of
advertising formats using the newest web technologies, as well as many top
brands, and provides advertisers with rich, targeted ways to connect with
consumers.

Komli last year got $7 million funding from 3 VCs namely Nexus India Capital
along with Draper Fisher Jurvetson and Helion Ventures.

Pubmatic: Although branded separately, Pubmatic is service


offered Komli. Simply put, Pubmatic is a ad network aggregator that helps
publisher to maximize the revenue that you can earn from your web site , and it
reduces the complexity of managing multiple ad network relationships.

Pubmatic optimises the Ads for publishers by offering the ad real estate to the
network that maximizes your earning opportunities.

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Tyroo: Tyroo is an India based online advertising network that uses proprietary
targeting technology to ensure advertisers reach out to the right websites from its
inventory of publishers.

Internet company Yahoo picked up at least 35% stake in Tyroo for an undisclosed
amount in July 2007. Incubated by Delhi-based digital media company Smile
Interactive Technologies Group, Tyroo was voted as one of the 10 most interesting
startups by Business daily Mint, a part of the HT Media group.

Recently Tyroo claimed to reach 2.5 billion Ad impressions a month. According to


Tyroo, its 2500 strong publisher network includes Perfspot, Facebook, About.com,
SantaBanta, Smashits, Yatra, and OneIndia. The company counts Microsoft,
General Motors, Pepsi, ICICI and Yahoo amongst its advertisers.

dgm India: dgm India claims to be the largest performance based affiliate ad
network in the country. dgm India is a wholly owned subsidiary of Deal Group
Media.

dgm India offers to its advertisers affiliate program to develop a virtual sales force
using one of their turnkey affiliate marketing products, whereby advertisers
promote their products via relevant and top performing affiliates /publishers.

For publishers, DGM India will optimize their online inventory, monitor and
evaluate performance and provide with attractive deals from all the advertisers.

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Ozone Media: Ozone Media is another online Ad network in India. Even though
they are one of the early entrants in this business, I am not sure how they are
positioned currently. Not much information is available on their site other than that
they use Accipiter’s AdManager with geo-targeting features which helps to target
campaigns to different countries and audiences.

I am really surprised that being into online advertising space they themselves do
not have much to show on their website.

PayPod: PayPod is an online ad network specifically tailored to help advertising


agencies take advantage of the digital medium. Targeted at the advertising and
publishing industry in India, PayPod’s Digital Advertising Network solution helps
deliver ads on the Internet based on geography, context, content, gender and age
group relevant to specific requirement and target audience.

Along with online Internet advertising, PayPod has also launched mobile
advertising solutions for publishers in India.

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IndiAds: IndiAds is the leading Internet advertising network for the Indian and
South Asian online community. They claim to deliver 800 million ads per month to
Indians and South-Asians living in North America, Europe and Asia.

IndiAds offers ad serving services for websites with traffic over 20,000,000
pageviews per month. With ability to precisely target ads to any geographic
location, with greater flexibility in campaign settings, publishers are able to
acquire new advertisers and provide better results for their existing clients.

Sulekha ad network: Sulekha is another Indian ad network claiming to be India’s


No.1 Ad network reaching 2 million unique visitors a month and 10% of online
global Indians.

Sulekha Ad Network has a network of 600+ websites serving Indians and NRIs.
Sulekha Ad Network influences consumer behaviour and lead to brand awareness,
lead generation and online sales by leveraging the LARGEST ad network serving
NRIs and Indians.

AdsforIndians: AdsforIndians also claims that it is the largest Indian Ad network


and came into existence in 2004.

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It also claims to be the only Indian ad network, which has the advanced technology
to syndicate the text ads with pictures as well as banner ads. Ads placed on
AdsforIndians are published on all their participating partner sites worldwide. Ads
can be geo-targeted to specific countries and ad channels to reach the targeted
visitors relevant to your Advertisement.

Google ad sense: Although not Indian, it is the most popular Ad network not only
in India but worldwide. More than 5 publishers mentioned above claim to be the
largest Ad network in India. I wonder how that can be with more than 75% market
share is with Google alone!

Other advertising agencies are,

REDPEPPER ADVERTISING: Situated in Delhi Redpepper Advertising


Agency is among the established advertising agencies in Delhi with several years
of experience in offering a comprehensive array of world class advertising services
in Delhi. We are among the renowned advertising agencies in Delhi with
specialization in the domains of full-service advertising and marketing
communication.

It offer integrated advertising services which include Print Advertising,


Graphic Design Advertising, Corporate Identity, Online advertising, and Brand
Promotion in Delhi. It also provide Photographic Advertising, FM Radio
Advertising, Brochure Design Services and Exhibition Stalls as well as Public
Relations.

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MSN INDIA:
MSN India had already received advertisements from brands like
Windows media center, Sahara, Reid & Taylor, Punjab National
Bank, GE country wide, India Today, and Alliance Insurance. MSN
India hoped to have in its fold at least 500 advertisements by the
end of 2006.

AD SPECIFICATION’S

Ad specifications mean advertisement specification. This


means the way one wants to place the advertisement online in
the websites. The ad specifications vary from website to website,
some have very less ad specifications where as the big websites
like reddiff and yahoo has more ad specifications.

The tariffs of advertisement depends upon how you specify


the advertisement on the website. The ad specification comes in
broadly three ways:

• The video ad
• The web banner ad
• The single text ad

Video ad:

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The video ad means advertisement in the video format
which can be of any length, or sometimes it is has a standard
length that again depends upon the websites where we are
advertising. The video generally should be in flash, using flash 6
version software.

The web banner ad:

The web banner ad comes in the many sizes as offered by


the website you advertise. Its simple colour banner as we do in
printing banners normally. but here the size is very small and
read in kilo byte size.

The single text ad:

The text ad does not contain and colour, picture or video.


They are simple advertisements which are hyperlinked to a page
containing information’s and they are placed in any corners or
place of the webpage .

The tarrif of the advertisement depends on the following:

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• THE SIZE OF THE AD
• THE LENGTH OF THE AD PERIOD
• THE TYPE OF THE AD

AD SPECIFICATION WITH RESPECT TO REDIFF


WWW.REDIFF.COM offers the following ad specifications

1. DISCUSSION BOARD AD: AD IS SPECIFIED IN THE


DISCUSSION FORUMS OF WEBSITE WHERE MANY PEOPLE
LOG IN TO DISCUSS OF THEIR FAVORITE TOPICS

2. E-SCORE BOARD AD: AD IS SPECIFIED IN THE SPORTS


PAGES OF WEBSITE,SPECIALLY CRICKET SCORE PAGE. IN THE
LEFT OR RIGHT

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3. EDITORIAL PAGE AD: AD IS SPECIFIED ON THE MAIN PAGE
OF WEBSITE SPECIALLY ON TOP.WHICH INVITES LOT OF
ATTENTION.SPECIALLY A FLASH VIDEO

4. SEARCH WINDOW AD: AD IS SPECIFIED ON IMAGE SEARCH


WINDOW OF THE WEBSITE,SPECIFYING TO CRITERIA OF THE
SEARCH

5. INBOX BOTTOM AD: AD IS SPECIFIED ON YOUR INBOX MAIL


PAGE EITHER ON THE BOTTOM OR ABOVE

6. INBOX MAIN AD: AD IS SPECIFIED ON THE IMMEDIATE PAGE


WHEN YOU OPEN YOUR MAILBOX

7. INBOX POPOUNDER AD: THE AD WHICH JUMPS OUT IN


ANOTHER WINDOW WHEN U OPEN YOUR MAIL
8. JUMBO AD: THE AD WHICH IS LARGE SIZE IN THE MAIN
WINDOW. EITHER A VDO OR A BANNER

9. MAIL SENT PAGE: AD IS SPECIFIED ON THE MAIL SENT


SPECIFICATION PAGE OF THE WEBSITE

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10. MESSENGER PAGE AD: AD IS SPECIFIED ON REDIFF BOL
MESSENGER PAGE.

11. POPOUT AD: A POP OUT WINDOW APPEARS WITH JUS


CURSOR MOVEMENT ON THE BANNER

12. ROS-BOX AD: AD DISPLAYED AS SMALL SQUARES IN THE


SIDE OF THE PAGE

13. SLUGGY TEXT AD: AD IS SPECIFIED AS SINGLE TEXT


HYPERLIKED TO ANOTHER PAGE

14. TOWER AD: AD IS SPECIFIED LIKE TALL TOWER


SHAPE.CONTAINING INFORMATION

Purchasing variations:

The three most common ways in which online advertising is


purchased are

• CPM
• CPC
• CPA.
CPM (Cost Per Impression)

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Where advertisers pay for exposure of their message to a
specific audience. CPM costs are priced per thousand impressions,
or loads of an advertisement. However, some impressions may
not be counted, such as a reload or internal user action. The M in
the acronym is the Roman numeral for one thousand.

CPV (Cost Per Visitor) or (Cost per View in the case of Pop
Ups and Under)

Where advertisers pay for the delivery of a Targeted Visitor


to the advertisers website.

CPC (Cost Per Click):

Also known as Pay per click (PPC). Advertisers pay each time
a user clicks on their listing and is redirected to their website.
They do not actually pay for the listing, but only when the listing
is clicked on. This system allows advertising specialists to refine
searches and gain information about their market. Under the Pay
per click pricing system, advertisers pay for the right to be listed
under a series of target rich words that direct relevant traffic to
their website, and pay only when someone clicks on their listing
which links directly to their website. CPC differs from CPV in that
each click is paid for regardless of whether the user makes it to
the target site.

CPA (Cost Per Action) or (Cost Per Acquisition) advertising is


performance based and is common in the affiliate marketing
sector of the business. In this payment scheme, the publisher
takes all the risk of running the ad, and the advertiser pays only
for the amount of users who complete a transaction, such as a
purchase or sign-up. This is the best type of rate to pay for
[ONLINE ADVERTISING IN INDIA] Page 36
banner advertisements and the worst type of rate to charge.
Similarly, CPL (Cost Per Lead) advertising is identical to CPA
advertising and is based on the user completing a form,
registering for a newsletter or some other action that the
merchant feels will lead to a sale. Also common, CPO (Cost Per
Order) advertising is based on each time an order is transacted.

Cost per conversion Describes the cost of acquiring a


customer, typically calculated by dividing the total cost of an ad
campaign by the number of conversions. The definition of
"Conversion" varies depending on the situation: it is sometimes
considered to be a lead, a sale, or a purchase.

CPE (Cost per Engagement) is a form of Cost per Action


pricing first introduced in March 2008. Differing from cost-per-
impression or cost-per-click models, a CPE model means
advertising impressions are free and advertisers pay only when a
user engages with their specific ad unit. Engagement is defined
as a user interacting with an ad in any number of ways.

HOW GOOGLE MAKES MONEY??

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I was checking our referrer stats and noticed quite a few
queries lately relating to how Google makes money. In fact many
of the queries are “how does google make money”. So I thought
I'd write this article explaining what it is that Google does that
makes them so much money.

In 2005 Google's revenues were over $6 billion on which


they earned about $1.5 billion in net income. This is a far cry from
larger companies like ExxonMobile which made over $25 billion
profit.

But in just a short time Google has increased its value to


over $110 billion, putting it on par (in value) with the likes of
Cisco Systems, Nestle and Coca-Cola.

So the obvious question is - how can Google make so much


money?

Well, Google makes most of its money through the sale of


ads. In fact, of the company's $6.2 billion in revenue in 2005, over
$6 billion is from the ads.

Imagine that - Google can make so much money from ads


which cost from a few pennies, to a few dollars per click.

But it's not just the ads which help influence its value. Sure it
makes most of its money from the ads, but Google's share price is
also strong and has been since it went public. Google's shares are

[ONLINE ADVERTISING IN INDIA] Page 38


now worth over $350 each. Considering they opened at between
$80 and $100 per share you can see how much the company has
earned just from selling shares in itself. And the value of those
shares is largely determined by the revenue earned from
advertising. If we make some assumptions we can guess the
traffic generated by Google.

For example, if we assume the average cost per click is a


quarter (25 cents) then Google received about 24 billion ad clicks.
That works out to about 60 million paid clicks per day, which
means Google earns about $15 million per day on paid
advertising!

Granted, the company also has some large costs, but


essentially Google earns millions per day from the ad network
they have.

And remember that the ads you see on Google are not only
on Google.

Google also has a program called “AdSense” which allows


individual webmasters and site owners to place Google ads on
their sites and earn a percentage on every click. From these types

[ONLINE ADVERTISING IN INDIA] Page 39


of ads there are reports that site owners have earned more than
$1 million per year on Google ad clicks.

In addition to this Google also has partnerships with other


large sites such as AOL which also display Google ads and take a
percentage of every click.

But in every case where Google ads appear on other sites,


you can pretty much be guaranteed that Google earns the lions
share of those clicks.

TERMINOLOGIES
ADWORDS:
AdWords is Google's flagship advertising product and main
source of revenue ($16.4 billion in 2007). AdWords offers pay-per-
click (PPC) advertising, and site-targeted advertising for both text
and banner ads. The AdWords program includes local, national,
and international distribution. Google's text advertisements are
short, consisting of one title line and two content text lines. Image
ads can be one of several different Interactive Advertising Bureau
(IAB) standard sizes.

Pay-Per-Click advertisements (PPC)

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Advertisers specify the words that should trigger their ads
and the maximum amount they are willing to pay per click. When
a user searches Google's search engine on www.google.com or
the relevant local/national google server (e.g. www.google.fr for
France), ads (also known as creatives by Google) for relevant
words are shown as "sponsored links" on the right side of the
screen, and sometimes above the main search results.

The ordering of the paid-for listings depends on other


advertisers' bids (PPC) and the "quality score" of all ads shown for
a given search. The quality score is calculated by historical click-
through rates, relevance of an advertiser's ad text and keywords,
an advertiser's account history, and other relevance factors as
determined by Google. The quality score is also used by Google to
set the minimum bids for an advertiser's keywords. The minimum
bid takes into consideration the quality of the landing page as
well, which includes the relevancy and originality of content,
navigability, and transparency into the nature of the business.
Though Google has released a list of full guidelines for sites, the
precise formula and meaning of relevance and its definition is in
part secret to Google and the parameters used can change
dynamically.

The auction mechanism that determines the order of the ads has
been described as a Generalized second-price auction. This is
claimed to have the property that the participants do not
necessarily fare best when they truthfully reveal any private
information asked for by the auction mechanism (in this case, the
value of the keyword to them, in the form of a "truthful" bid).

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SEARCH ENGINE OPTIMIZATION:
Search engine optimization (SEO) is the process of improving
the volume or quality of traffic to a web site from search engines
via "natural" ("organic" or "algorithmic") search results. Typically,
the earlier a site appears in the search results list, the more
visitors it will receive from the search engine. SEO may target
different kinds of search, including image search, local search,
and industry-specific vertical search engines.

As an Internet marketing strategy, SEO considers how


search engines work and what people search for. Optimizing a
website primarily involves editing its content and HTML coding to
both increase its relevance to specific keywords and to remove
barriers to the indexing activities of search engines.

The acronym "SEO" can also refer to "search engine


optimizers," a term adopted by an industry of consultants who
carry out optimization projects on behalf of clients, and by
employees who perform SEO services in-house. Search engine
optimizers may offer SEO as a stand-alone service or as a part of
a broader marketing campaign. Because effective SEO may
require changes to the HTML source code of a site, SEO tactics
may be incorporated into web site development and design. The
term "search engine friendly" may be used to describe web site
designs, menus, content management systems and shopping
carts that are easy to optimize.
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Another class of techniques, known as black hat SEO or
Spamdexing, use methods such as link farms and keyword
stuffing that degrade both the relevance of search results and the
user-experience of search engines. Search engines look for sites
that employ these techniques in order to remove them from their
indices.

Screwgle™ - Google's new ad revenue model

Google's strict code of secrecy calls for extra silence when the
subject is AdWords, the epic money-making machine fueling the
company's drive towards world domination. But sometimes, the
truth slips out.

Earlier this month, during Google's all-important quarterly


earnings call, a financial analyst outed the company's plans to
squeeze who knows how many extra dollars from the world's
online advertisers. Though no one seems to have noticed, this
astute money man mentioned "Automatic Matching."

"Automatic Matching" is an AdWords beta program that Google


launched ever so quietly at the end of February. Via email, the
search giant notified an unknown number of advertisers that if
they ever failed to spend their daily ad budget, this new feature
would automatically spend it for them.

With Ad Words, you arrange for your very own text ads to appear
in response to Google keyword searches. The program is billed as
[ONLINE ADVERTISING IN INDIA] Page 43
an auction. You bid for a particular term or collection of terms -
"chia pet," say, or "suppositories" - and if you bid high enough,
your ad will turn up each time a web surfer searches on those
words. And each time someone clicks on your ad, you pay Google
a fee somewhere beneath your bid - until you reach your daily
budget.

Of course, if a relatively small number of surfers search on your


keywords, you won't reach your daily budget. And that's where
Automatic Matching kicks in. When Auto Match is turned on - and
it was turned on by default with many (if not all) beta-testers -
AdWords automatically spends your unused budget on keyword
searches you aren't actually bidding on.

"Automatic Matching automatically extends your campaign's


reach by using surplus budget to serve your ads on relevant
search queries that are not already triggered by your keyword
lists," reads Google's email to beta testers. "For example, if you
sold Adidas shoes on your website, Automatic Matching would
automatically crawl your landing page and target your campaigns
to queries such as 'shoes,' 'adidas,' 'athletic,' etc., and less
obvious ones such as 'slippers' that our system has determined
will benefit you and likely lead to a conversion on your site."

Naturally, this boosts Google's bottom line. But as search


marketing consultant Dan Theis has pointed out, it doesn't
exactly benefit the average advertiser.
[ONLINE ADVERTISING IN INDIA] Page 44
"They're offering you the exciting opportunity to bleed every
penny of your budget every day, advertising against keywords
that you didn't want to bid on," Theis says, before unloading the
sarcasm. "Sure, if I sell Adidas shoes, why wouldn't I want to get
some traffic from people who searched for slippers? I mean, it's
not like I'm trying to turn a profit or anything, right?"

Well, midway through that Google earnings call, Bank of


America analyst Brian Pitts popped up to ask about the progress
of Auto Match - which Google has yet to publicly acknowledge
with anything more than some extra words on its AdWords help
pages.

"You expanded Auto Match to more advertisers this quarter.


Do you see this as a significant driver of coverage going forward?"
Pitts asked, referring to the number of Google results pages that
include ads. If more pages include ads, then Google gets more
paid clicks. And more paid clicks mean more revenue.

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BIBIOGRAPHY:
– WWW.SLIDESHARE.COM
– www.ibef.org/download/JuxtConsultIndiaOnline.
pdf
– https://adwords.google.com/select/AdSenseLog
inToAdWords
– http://www.marketingmo.com/3-generate-and-
manage-customers/how-to-incorporate-online-
advertising-campaigns-in-your-marketing-
program/
– http://www.impliedbydesign.com/articles/the-
advantages-of-internet-advertising-vs-
traditional-advertising.html
– http://www.brownbearmedia.com/seo-
articles/advantagesonline.php

[ONLINE ADVERTISING IN INDIA] Page 46


– http://wiki.media-
culture.org.au/index.php/Online_Advertising_-
_Advantages_and_Disadvantages
– http://www.articlealley.com/article_690918_81.
html

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