6 — Digital Advertising

From Code to Product

gidgreen.com/course
 Million Dollar Homepage

From Code to Product Lecture 6 — Digital Advertising — Slide 2 gidgreen.com/course

 Lecture 6
•  Introduction
•  Ad formats
•  Types of targeting
•  Price models
•  Creatives
•  Landing pages
•  Web Sudoku
•  Buying ads
From Code to Product Lecture 6 — Digital Advertising — Slide 3 gidgreen.com/course
 Traditional advertising
•  Mass media
–  Newspapers, magazines, TV, radio, outdoor
–  Local or national, not global
•  Big one-time purchase
•  One message to all recipients
–  No filtering or personalization
•  Success measured indirectly
–  Did sales increase this month?

From Code to Product Lecture 6 — Digital Advertising — Slide 4 gidgreen.com/course

 Digital advertising
•  Digital media
–  Web, mobile, email, desktop
–  Global in scope
•  Pay as you go, small increments
•  Messages targeted by recipient
–  Filtering, personalization
•  Success measured directly
–  Views, clicks, actions

From Code to Product Lecture 6 — Digital Advertising — Slide 5 gidgreen.com/course

 Underlining the difference
“Half the money I spend on advertising is
wasted; the trouble is I don't know which
half.”
— John Wanamaker, store owner

“Ninety-nine percent of advertising doesn't

sell much of anything..”
— David Ogilvy, advertising executive

From Code to Product Lecture 6 — Digital Advertising — Slide 6 gidgreen.com/course

 US ad spending (+projected)

(world totals
approximately
double)

From Code to Product Lecture 6 — Digital Advertising — Slide 7 gidgreen.com/course

 Media and advertising

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 Digital ad breakdown

IAB Internet Advertising Revenue Report, October 2013

From Code to Product Lecture 6 — Digital Advertising — Slide 9 gidgreen.com/course
 How it works
•  Direct sales
–  Hard to find advertisers
–  Transaction cost vs volume
•  Ad networks
–  Aggregate 1000s of publishers + advertisers
–  Copy-paste code snippet
–  Take 20%—50% of revenue
•  Big sites use both

From Code to Product Lecture 6 — Digital Advertising — Slide 10 gidgreen.com/course

 Top US online ad destinations

From Code to Product Lecture 6 — Digital Advertising — Slide 11 gidgreen.com/course

 Top US mobile ad destinations

From Code to Product Lecture 6 — Digital Advertising — Slide 12 gidgreen.com/course

 Lecture 6
•  Introduction
•  Ad formats
•  Types of targeting
•  Price models
•  Creatives
•  Landing pages
•  Web Sudoku
•  Buying ads
From Code to Product Lecture 6 — Digital Advertising — Slide 13 gidgreen.com/course
 Online banner sizes (IAB)

Full banner
468 x 60
Leaderboard
728 x 90
Wide
sky-
scraper
160 x 600

Medium rectangle
300 x 250

From Code to Product Lecture 6 — Digital Advertising — Slide 14 gidgreen.com/course

 Banner ad code
<!-- Casale Media: 336x280, 300x250 (Rectangle) -->
<script type="text/javascript">
var CasaleArgs = new Object();
CasaleArgs.version = 2;
CasaleArgs.adUnits = "6,4";
CasaleArgs.casaleID = 76546;
</script>
<script type="text/javascript" src="http://
js.casalemedia.com/casaleJTag.js"></script>
<!-- DO NOT MODIFY -->

From Code to Product Lecture 6 — Digital Advertising — Slide 15 gidgreen.com/course

 Size vs CTR (AdSense)
Click-through rate

Banner area

From Code to Product Lecture 6 — Digital Advertising — Slide 16 gidgreen.com/course

 Interstitials

From Code to Product Lecture 6 — Digital Advertising — Slide 17 gidgreen.com/course

 Pop-up ads
•  Hated by
users
•  Pop-up
blockers
common
•  Also:
pop-
under

From Code to Product Lecture 6 — Digital Advertising — Slide 18 gidgreen.com/course

 Search advertising

From Code to Product Lecture 6 — Digital Advertising — Slide 19 gidgreen.com/course

 Social network ads

From Code to Product Lecture 6 — Digital Advertising — Slide 20 gidgreen.com/course

 In-text advertising

From Code to Product Lecture 6 — Digital Advertising — Slide 21 gidgreen.com/course

 Content marketing

From Code to Product Lecture 6 — Digital Advertising — Slide 22 gidgreen.com/course

 Other online formats
•  Floating ads
•  Mouseover ads
–  Expanding
–  Audio
•  In-video
–  Pre, mid, post-roll
•  In-map
•  Advertorials
From Code to Product Lecture 6 — Digital Advertising — Slide 23 gidgreen.com/course
 In-app ad formats
Mobile banner
320 (or 300) x 50

Full screen (or almost)

320 x 480 (or 440)

From Code to Product Lecture 6 — Digital Advertising — Slide 24 gidgreen.com/course

 Ads in email
•  Past: text
•  Now:
images
–  Not always
displayed
•  Direct sales
•  Some small
networks

From Code to Product Lecture 6 — Digital Advertising — Slide 25 gidgreen.com/course

 Lecture 6
•  Introduction
•  Ad formats
•  Types of targeting
•  Price models
•  Creatives
•  Landing pages
•  Web Sudoku
•  Buying ads
From Code to Product Lecture 6 — Digital Advertising — Slide 26 gidgreen.com/course
 Geography

From Code to Product Lecture 6 — Digital Advertising — Slide 27 gidgreen.com/course

 Demographics

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 Traffic source

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 Contextual

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 Contextual

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 Contextual

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 Contextual pitfalls

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 Behavioral (retargeting)

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 Behavioral

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 On-site behavioral

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 Profile-based

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 Profile-based

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 Profile-based

From Code to Product Lecture 6 — Digital Advertising — Slide 39 gidgreen.com/course

 Affiliate advertising
•  Direct sales
–  But no
transaction
costs
•  Payment on
sale only
–  Open to all

From Code to Product Lecture 6 — Digital Advertising — Slide 40 gidgreen.com/course

 Affiliate advertising

From Code to Product Lecture 6 — Digital Advertising — Slide 41 gidgreen.com/course

 Real-time bidding (RTB)
•  Most online ads bought in advance
–  Volumes and targeting predefined
•  RTB ads bought in real-time
–  User visits page with RTB ad
–  Impression auctioned to buyers
–  Highest bid wins
•  Transparent to publishers
•  Use a demand-side platform
From Code to Product Lecture 6 — Digital Advertising — Slide 42 gidgreen.com/course
 Real-time bidding growth

From Code to Product Lecture 6 — Digital Advertising — Slide 43 gidgreen.com/course

 Demand-side platforms for RTB

From Code to Product Lecture 6 — Digital Advertising — Slide 44 gidgreen.com/course

 Lecture 6
•  Introduction
•  Ad formats
•  Types of targeting
•  Price models
•  Creatives
•  Landing pages
•  Web Sudoku
•  Buying ads
From Code to Product Lecture 6 — Digital Advertising — Slide 45 gidgreen.com/course
 Fixed price
•  Predefine:
–  Where ads will show
–  Proportion of time
–  Time period (week/month)
•  Direct sales only
•  No tracking required
–  Advertiser can monitor performance
•  Money left on table?
From Code to Product Lecture 6 — Digital Advertising — Slide 46 gidgreen.com/course
 Cost per impression
•  Priced in CPM = cost per mille (1000)
•  Advertiser sets:
–  CPM rate
–  “Above the fold”?
–  Limits per day, per user
•  Popular for display advertising
–  Viewing ad builds brand recognition
•  Impression tracking
From Code to Product Lecture 6 — Digital Advertising — Slide 47 gidgreen.com/course
 Pay per click
•  Priced in CPC = cost per click
•  Advertiser more flexible
–  Click = user intent
•  Popular for search advertising
–  Auction between advertisers
•  Impression and click tracking
–  CTR = click-through rate

From Code to Product Lecture 6 — Digital Advertising — Slide 48 gidgreen.com/course

 Pay per action
•  Priced in CPA = cost per action (sale)
•  Suits advertiser perfectly
–  Only pay if you get paid
•  Popular for affiliate advertising
–  Any publisher will do
•  Impression, click and conversion tracking
–  CR = conversion rate
–  Publisher forced to trust advertiser

From Code to Product Lecture 6 — Digital Advertising — Slide 49 gidgreen.com/course

 Total revenue

Revenue =
Fixed price
Impressions × CPM/1000
Impressions × CTR × CPC
Impressions × CTR × CR × CPA
From Code to Product Lecture 6 — Digital Advertising — Slide 50 gidgreen.com/course
 Total revenue

Revenue =
$1,000
500k × $2/1000
500k × 2.5% × $0.08
500k × 2.5% × 2% × $4
From Code to Product Lecture 6 — Digital Advertising — Slide 51 gidgreen.com/course
 Defaults and thresholds
•  Defaults
–  What to show if there’s no ad
•  eCPM = equivalent CPM
–  All you really care about
•  Threshold
–  Minimum required eCPM
•  Fill rate
•  Check the definitions!
From Code to Product Lecture 6 — Digital Advertising — Slide 52 gidgreen.com/course
 Ad network example

From Code to Product Lecture 6 — Digital Advertising — Slide 53 gidgreen.com/course

 AdSense example

From Code to Product Lecture 6 — Digital Advertising — Slide 54 gidgreen.com/course

 Real-world eCPMs
Type of site Example 300x250 eCPM
Forum $0.25
Gaming $1.50
Fashion $4.00
Real estate $8.00
Local newspaper $10.00
Technology $15.00
Travel $20.00
Investments $40.00

From Code to Product Lecture 6 — Digital Advertising — Slide 55 gidgreen.com/course

 Lecture 6
•  Introduction
•  Ad formats
•  Types of targeting
•  Price models
•  Creatives
•  Landing pages
•  Web Sudoku
•  Buying ads
From Code to Product Lecture 6 — Digital Advertising — Slide 56 gidgreen.com/course
 Banner creatives
•  Company logo
–  Brand building if no click
•  Value proposition
–  Product (+special offer?)
–  Short, readable, clear
•  Call to action
–  Be explicit (“click here”)
–  Visual buttons

From Code to Product Lecture 6 — Digital Advertising — Slide 57 gidgreen.com/course

 Solid banners

From Code to Product Lecture 6 — Digital Advertising — Slide 58 gidgreen.com/course

 Solid banners

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 Solid banners

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 But…

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 Clickthrough times

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 Creative banners

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 Creative banners

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 Creative banners

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 Facebook CTRs

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 Facebook example

From Code to Product Lecture 6 — Digital Advertising — Slide 67 gidgreen.com/course

 Facebook creatives
•  Image that speaks to audience
•  Also: captures attention
–  Bright colors
–  Happy people
–  Children and pets
–  Funny or odd
•  Clear message alongside
•  Call to action
From Code to Product Lecture 6 — Digital Advertising — Slide 68 gidgreen.com/course
 Search ads CTR

From Code to Product Lecture 6 — Digital Advertising — Slide 69 gidgreen.com/course

 Adwords creatives
•  What makes you unique
•  Include prices, promotions
–  Numbers attract attention
•  Call to action (with ! after)
•  Keywords in ad headline and text
•  Unusual characters ® % + * © ™ &
•  Capitalize Every Word

From Code to Product Lecture 6 — Digital Advertising — Slide 70 gidgreen.com/course

 Adwords examples

From Code to Product Lecture 6 — Digital Advertising — Slide 71 gidgreen.com/course

 Lecture 6
•  Introduction
•  Ad formats
•  Types of targeting
•  Price models
•  Creatives
•  Landing pages
•  Web Sudoku
•  Buying ads
From Code to Product Lecture 6 — Digital Advertising — Slide 72 gidgreen.com/course
 Every page is a home page
•  Visitors have multiple paths to your site
–  Direct entry of URL / site name search
–  Links from other sites
–  Social networks
–  Organic search queries
–  Your advertisements
•  Always give some context
–  Plus clear link to home page

From Code to Product Lecture 6 — Digital Advertising — Slide 73 gidgreen.com/course

 Example entry points

From Code to Product Lecture 6 — Digital Advertising — Slide 74 gidgreen.com/course

 Landing pages
•  Special purpose pages
–  Not in global navigation
–  Intermediate or destination page
•  For entry points you control or predict
–  Specific internet searches
–  Clicks on advertisements
•  Goal: smooth transition
–  Map the specific to the general

From Code to Product Lecture 6 — Digital Advertising — Slide 75 gidgreen.com/course

 Organic search example

From Code to Product Lecture 6 — Digital Advertising — Slide 76 gidgreen.com/course

 Paid search example

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 Banner ad example

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 Landing page tips
•  Consistent words and design
–  Ad → landing page (→ site)
•  All home page rules apply
–  One-sentence pitch
–  Call to action
–  Establish credibility
–  5-second rule
•  But: minimal navigation to rest of site

From Code to Product Lecture 6 — Digital Advertising — Slide 79 gidgreen.com/course

 Lecture 6
•  Introduction
•  Ad formats
•  Types of targeting
•  Price models
•  Creatives
•  Landing pages
•  Web Sudoku
•  Buying ads
From Code to Product Lecture 6 — Digital Advertising — Slide 80 gidgreen.com/course
 Core problems
•  Ceding control of user experience
–  Weakens brand/message
–  Bad ads and bad sites
•  Users don’t like ads
–  Can harm word of mouth
•  An effective ad is clicked
–  User gone elsewhere
–  To competitor?

From Code to Product Lecture 6 — Digital Advertising — Slide 81 gidgreen.com/course

 Amazon ads

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 Direct ad deals

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 AdSense + our own products

From Code to Product Lecture 6 — Digital Advertising — Slide 84 gidgreen.com/course

 Banners on puzzle page
+4%
Bright static banners
+2%
Quiet static banners
+0%

-2%

-4%

-6%
Moving banners
-8%
7 Aug 7 Sep 8 Oct 8 Nov

From Code to Product Lecture 6 — Digital Advertising — Slide 85 gidgreen.com/course

 The big break

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 AdSense + new affiliation

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 Very highly targeted

From Code to Product Lecture 6 — Digital Advertising — Slide 88 gidgreen.com/course

 Where we are today
•  Ads are biggest source of revenue
–  ~70% display ads after puzzle
–  ~20% AdSense above puzzle
–  ~10% direct deals
•  3 big display ad networks
–  Monitor performance weekly
–  Rebalance in response
–  Ad quality a constant challenge

From Code to Product Lecture 6 — Digital Advertising — Slide 89 gidgreen.com/course

 Bad ads: Ugly

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 Bad ads: Offensive

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 Bad ads: Misleading

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 Bad sites: Spyware

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 Bad sites: Gambling

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 Bad sites: Scams

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 User complaints
“Your advertisement in support of
Rick Santorum is enough to cause
me to use some other website for
this game. I will avoid coming
here again!”

“Why do you accept advertising

from nomorerack? They are an out
and out scam. Read the feedback.”
From Code to Product Lecture 6 — Digital Advertising — Slide 96 gidgreen.com/course
 Ad network filters

From Code to Product Lecture 6 — Digital Advertising — Slide 97 gidgreen.com/course

 Lecture 6
•  Introduction
•  Ad formats
•  Types of targeting
•  Price models
•  Creatives
•  Landing pages
•  Web Sudoku
•  Buying ads
From Code to Product Lecture 6 — Digital Advertising — Slide 98 gidgreen.com/course
 AdRoll retargeting network

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 AdRoll: Getting started

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 AdRoll: Retargeting pixel

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 AdRoll: Campaign settings

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 AdRoll: Visitor segments

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 AdRoll: Add Ads

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 AdRoll: Dashboard

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 Google Adwords

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 Adwords: campaign type

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Adwords: location and language

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 Adwords: bidding

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 Adwords: ad extensions

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 Adwords: phone integration

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 Adwords: create ad

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 Adwords: keyword matching

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 Adwords: keyword planner

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 Adwords: reports

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 Facebook ads

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 Facebook: objectives

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 Facebook: website and images

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 Facebook: news feed

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 Facebook: right column

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 Facebook: audience

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 Facebook: audience

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 Facebook: more targeting

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 Facebook: more targeting

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 Facebook: budget

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 Facebook: reporting

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