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Diversification of Digital, by LeapFrog Interactive

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This document provides an overview of digital advertising presented by Christy Belden, Vice President of Media and Marketing at LeapFrog Interactive. It includes sections on the basics of digital advertising, statistics, key terminology, types of digital ads, how digital advertising works, pricing and strategy, and trends. The document aims to educate on diversifying digital advertising approaches.

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Diversification of DigitalChristy Belden, Vice President, Media + MarketingMay 26, 2011
Diversification of DigitalAgenda+ Introductions+ Basics+ Statistics+ Key Terminology, Common Acronyms + Resources+ Types of Digital Ads+ How Digital Advertising Works+ Pricing + Strategy+ Ad Performance + Measurement+ Trends + Current Event+ Best Practices2
LeapFrog Interactive3Diversification of DigitalTwitter: @LFI #display #LFI #digitalmediaFacebook: www.facebook.com/LeapFrogInteractiveAgencyBlog: www.leapfroginteractive.com/blog
Christy Belden4Vice President of Media + Marketing, LeapFrog InteractiveExperience: 11 years The Courier-Journal University of LouisvilleSEMPO CertifiedGoogle AdWords Professionals (GAP) CertifiedChristy knows marketing. Display, PPC, SEO, social media, email, mobile, traditional—she’s been there and done that. She continues to build a deep well of experience and is always in touch with the trends and strategies that provide a solid return on clients’ investments.
Examples
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Basics
Definition of Digital AdvertisingWhat is a display ad?+ A graphical web advertising unit+ A graphical image on the a website used to promote products or services+ Otherwise called:+ Web Ad+ Web Banner+ Banner Advertising+Banners10
Definition of Digital Advertising11
Definition of Digital Advertising12
Definition of Digital Advertising13
History of Digital AdvertisingRecap+ The first digital ad appeared on HotWired.com in 1994 + The first ad was called a ‘graphical ad unit’+ MCI, Volvo, Club Med, 1-800-Collect, AT&T and Zima were the first advertisers on HotWired.com14Source: http://adage.com/article/digitalnext/happy-birthday-digital-advertising/139964/
Statistics
Diversification of DigitalDid You Know?16Ads served to US Internet users in Q1 2011: 1.1 trillionOf those ads, number served via Facebook: 346 billionTotal % ads served to US Internet users that were on Facebook in Q1 2011: 31Banner Ads Spending Was Up 23% YOY in 2010Source: Huffington Post via TechCrunch/Comscore; eMarketer.com
Diversification of DigitalDid You Know?17*Eric Schmidt, chairman-CEO of Google, predicts online advertising will increase from $62 billion a year to $200 billion in the next 5-10 years.(Ad Age, “Ad Networks Raise Profile with Targeting” May 2011)Source: eMarketer US Ad Spending: Online Outshines Other Media, Dec 2010
Diversification of DigitalDid You Know?18Source: comScore 2010 US Digital Year in Review
Diversification of DigitalDid You Know?19Source: comScore 2010 US Digital Year in Review
Diversification of DigitalDid You Know?20Source: comScore 2010 US Digital Year in Review
Diversification of DigitalDid You Know?21Source: Ad Age, “Facesbook Scores Again With Most Ads on the Web” May 9, 2011
Diversification of DigitalDid You Know?22Source: Ad Age, “Facesbook Scores Again With Most Ads on the Web” May 9, 2011
Diversification of DigitalDid You Know?23Source: comScore 2010 US Digital Year in Review
Key Terminology + Common Acronyms + Resources
Key TerminologyGlossary of Terms+ Cookies: code placed in a browser so the browser’s activity is recorded, i.e. visiting a page and it is “remembered” when the browser returns to the site or another ad is served+ Beacon: 1x1 pixel tag used to track unique user activities over time, i.e. tracking a user who clicked through on an ad and purchased several days later+ Unique visitors (UVs): measure for readership or net audience+ Page Views (PVs): measure of requests to load a single page of an Internet site+ Ad Impressions: each time an advertisement loads on a user’s screen+ Sessions: aka “visits,” is the number of times each unique visitor goes to a website25Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
Key TerminologyGlossary of Terms+ Ad Exchange: Marketplace-like network of excess inventory on publisher sites which media buyers can access and purchase+ Ad Network: Aggregates audiences based on demography or intent to purchase + Mobile Network: sells ad on wireless devices (i.e. phones & tablets) + Video Network: aggregates video inventory to run ads or syndicate video content+ DSP: “Demand Side Platform,” platform used by agencies & advertisers to automate media buying across multiple sources with unified targeting, data, optimization, and reports+ Ad Server: Technology that disseminates online ads and then, tracks and reports back on performance 26Source: AdAge, “Special Report: Audience Buying Guide” April 2011
Key TerminologyGlossary of Terms+ Data Aggregator: Pulls together ad-serving data, conversion data, and third-party data in an effort to attach preference attributes to a user or set of users+ Ad Verification: Software enabling advertisers to determine if impressions are display in the proper place and whether ads are privacy compliant+ Frequency Capping: Using cookies to manage the number of times a user sees specific ad creative, typically utilized to conserve impressions and improve campaign performance+ OBA: Online Behavioral Advertising, also a compliance program led by IAB 27Source: AdAge, “Special Report: Audience Buying Guide” April 2011
Common AcronymsGlossary of Acronyms+ Key Performance Indicator (KPI): measureable points of interaction between consumer and brand+ CPC: cost-per-click+ CPM: cost-per-thousand [impressions]+ CPA: cost-per-action + Cost-per-download + Cost-per-call + Click-Through Rate (CTR): the number of clicks divided by the number of impressions28Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
ResourcesIndustry Leaders: Associations Digital Advertising Alliance29
ResourcesIndustry Leaders: Networks 30
ResourcesIndustry Leaders: 3rd Party Ad Servers31
ResourcesIndustry Leaders: Data Suppliers32
Types of Digital Ads
Types of Digital AdsStandard Ad Unit Sizes34Skyscraper160x600Half Page300x600These are the five most common ad sizes, according to the Interactive Advertising Bureau (IAB). Medium Rectangle300x250Small Rectangle180x150Leaderboard728x90Source: IAB, www.iab.com
Types of Digital AdsAd Formats + Specs+ .GIF/.JPG/.PNG “Static banner”+ .SWF “Flash banner”+ .EXP “Rich Media/Expandable banner”35*Source: IAB, www.iab.com
Types of Digital AdsAd Format: GIF/JPEG/PNG+ .GIF/.JPG/.PNG aka “Static banner”Simple, single-frame imageTypically 30K file size*May include “animated .GIF”36*Source: IAB, www.iab.com
Types of Digital Ads37Why Brands Use Static Banners?+ Ease of Creation: Organizations with limited creative resources can easily develop static assets + Affordability: With appropriate sized buys, publishers may offer creative services for free+ Flexibility of Creative: Self-serve advertising solutions often don’t allow complex display formats like Flash or Rich Media
Types of Digital Ads38Static Banner Examples
Types of Digital AdsAd Format: Flash+ .SWF “Flash banner”More dynamic, flexible coding language allows basic interaction and more complex imageryTypically 40K file size*39*Source: IAB, www.iab.com
Types of Digital Ads40Why Brands Use Flash Banners?+ Cost savings: it takes less resources to develop Flash banners and typically there is no 3rd party ad serving required+ Available inventory: more publishers will accept Flash banners on their websites than will accept Rich Media+ Consumer visibility: slightly more consumers are able to view Flash on their computers than can view Rich Media
Types of Digital AdsFlash Banner Examples+ Animation occurs in 7-10 seconds+ CTA that appears on relevant frame and remains visible throughout the ad+ Logo visible during entire ad+ Realistic action/movement+ Highlights consumer needs and answers with product recommendation+ Highlights customizability 41324157689
Types of Digital AdsFlash Banner Examples42213+ Simple , quick messaging+ Consistent font and text size+ Realistic action/movement+ Highlights consumer needs and answers with product recommendation+ Focuses on a single objective, straightforward CTA+ Color scheme appropriate and eye-catching654789
Types of Digital AdsAd Formats + Specs+ .EXP “Rich Media/Expandable banner”Highly interactive, super complex creative which can include multi-functional features Typically 40K with up to 100K polite load, upon click*43*Source: IAB, www.iab.com
Types of Digital Ads44Why Brands Use Rich Media Banners?+ Sophisticated functionality: the ability to incorporate games, polls, data collection, file downloads, product showcases, store locators and other interactive features makes Rich Media highly desirable+ Outperformance of Flash: due to its nature, Rich Media frequently outperforms Flash on interactivity rates, brand engagement and consumer ad recall+ Enhanced reporting/tracking capabilities: almost any metric that relates to functionality of each feature can be measured and reported on, allowing quicker optimizations+ Alternative to landing page: depending on a campaign’s goal, Rich Media can serve as the only environment needed to achieve a conversion
Types of Digital AdsRich Media Examples45+ “Rollover” to act is used rather than “Click”+ Tabs in upper right allow user to control their experience inside the ad+ Users have the ability to download a brochure that meets their specific needs + “Close” button is clear, visible in bottom rightFYI:Carestream® is able to see how many of each brochure was downloaded.Carestream® is able to tie each download to a specific user’s name/email address123
Types of Digital AdsRich Media Examples46+ Specific CTA+ Creative use of product showcase feature by highlighting various treats you can make using the product+ Allows consumers the option to print the recipe or e-mail it to yourself+ Encourages users to use their “in-banner” search function – this is an example of how a brand may use Rich Media to replace a landing pageFYI:(1) Kellogg’s® is able to see which recipe was emailed or downloaded the most often123
Types of Digital AdsRich Media Examples+ Engaging question to capture attention+ Specific CTA+ Interactive creative with multiple videos for users to watch+ Email/data collection feature always visibleFYI: (1) Carnival® would be able to feed email addresses directly into their database with an API. (2) Metrics would be able to tell Carnival® how many consumers watched each video 25%, 50%, 75% or 100%. 47123
Types of Digital AdsTakeover Example48
Types of Digital AdsOverlay Example49
Types of Digital AdsNewest OPA Standards Examples - Pushdown50Pushdown AdStarts as thin ad that expands to take up most “above the fold” space upon click or rollover
Types of Digital AdsNewest OPA Standards Examples51Fixed Placement AdAd stays with you as you scroll up/down through content
Types of Digital AdsNewest OPA Standards Examples52XXLAdExtra-large ad for high impact/visibility
Types of Digital AdsTypes of Video AdsVideo Ads + In-stream video - Pre-roll, mid-roll, post-roll + Overlay - Transparent overlays + In-banner - Video converted to Flash, plays within ad unit - Click to play or auto play + In-Text Video - User initiated, triggered by highlighted words within content53Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
Types of Digital AdsConsiderations+ On average, an advertisement has approximately 2-5 second to capture the attention of a user before their attention is elsewhere on a webpage+ As of January 2009, Flash banners saw .07% - .14% CTR across all industries+ Rich Media banners average .12% - .36% CTR; the goal of a rich media may not be a “click” through to landing page, but instead application completion, file download or coupon print-up+ Average brand interaction time for expandable rich media ads is between 11-12 seconds, upon expansion54Resources: DoubleClick, PointRoll Industry Data (2009), Atlas 2007-2010
Pricing + Strategy
Pricing + StrategyPricing ModelsCPM + Impressions sold in “packages” or levels + Impressions sold ROS or targetedCPC + Costs accrued every time a click occursFlat Rates + Associated with sponsorships + Directory listings, supplier guides (B2B) + Classifieds + Sites with limited ad inventory + Site with low tech ad serving56Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
Pricing + StrategyStrategy of Different Structures57CPMCPCCPA
How Digital Buying Works
How Digital Buying WorksTypes of BuysAd Network + Sold by categorization of sites (vertical, horizontal, video) + Niche verticals availableDirect Buy or Direct-to-Publisher + One-on-one with a website, or small group of related websites + By nature of the buy, selection of individual relevant/niche sites is possible 59Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
How Digital Buying WorksAd NetworkPros + Audience reach + Scalability + Hyper-targeting + Testing performance business models + Typically lower CPMs + Typically robust reporting60Cons + Duplication across sites + Limited transparency + No “cherry picking” + Targeting content within sites + Generally no sponsorship programs + Occasional limitations with ad units and placements
How Digital Buying WorksDirect PublishersPros + Sponsorship opportunities + Specialized/niche content + More opportunities for “value adds” + General flexibility of ad formats61Cons + Typically higher CPMs + Generally not sold on CPC or CPA + Basic reporting capabilities + Scalability can be limited
How Digital Buying WorksTargeting Solutions+ Geographic+ Demographic+ Local+ Contextual+ Day-Parting+ Behavioral62
How Digital Buying WorksTargeting SolutionsGeographic + Zip code data provided by user + Accurate, updated + More granular + IP address identified via ad server - Less granular - Based on IP database63Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
How Digital Buying WorksTargeting SolutionsBehavioral Targeting + Ads targeted using behavior not content/page + Tracks user’s web usage behavior (via cookies) - Where user goes - Registration data - Survey data - Recency - Keywords64Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
How Digital Buying WorksTargeting SolutionsLocal Targeting + Local content + Portals and ad networks + Geo-based content + User provided demographics + Directories and Internet Yellow Pages + Search options65Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
How Digital Buying WorksTargeting SolutionsContextual Targeting + Ads align with content featured on page, via keywords + Attempts to target based on users’ intent - Recency - Keywords66Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
How Digital Buying WorksTargeting SolutionsBehavioral Targeting + Behaviors tracked via cookies data predict which ads are relevant to a user + Vertical-based67Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
How Digital Buying WorksAd Delivery Process68Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
How Digital Buying WorksAd Delivery Model+ Scheduling - Start – Stop dates not pre-defined by media schedule - Day-parting+ Smooth - Equal number of of impressions every day of campaign+ Weighting - Deliver higher share of voice (% of total impressions)69Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
How Digital Buying WorksHow “Cookies” Work in Targetinghttp://online.wsj.com/video/how-advertisers-use-internet-cookies-to-track-you/92E525EB-9E4A-4399-817D-8C4E6EF68F93.html70Source: Wall Street Journal, “How Advertisers Use Internet Cookies to Track You”
How Digital Buying WorksSelf-Serve SolutionsUse self-serve vendors like:When… + Network/Publisher minimums don’t fit your budget + Creative flexibility is not an absolutely must-have + Programs need to be launch quickly71
Ad Performance + Measurement
Ad Performance + MeasurementMetrics for Rich MediaStatic Banners: + Impressions + Clicks + Click-Through RatesFlash Banners: + Click-Through Rates + Basic Interactions73Rich Media Banners: + Interaction Rates + Panel Views/Interactions + Full plays (Video) + Average Brand Interaction Times + Close Rates + (Depending on goal) CTRs
Ad Performance + MeasurementCampaign Performance + EffectivenessInfluential Factors + Creative + Highlighted Call-to-Action Messaging + Targeting + Relevant Messaging + Ad Placement + Ad Size + Reach & Frequency + Optimizations 74
Ad Performance + MeasurementCampaign Performance + EffectivenessEngaging Creative (Rich Media) + Higher interactions with rich media + Multiple creative executions + High frequency delivery – avoid banner burn-out by running multiple creatives and ad sizes75
Ad Performance + MeasurementCampaign Performance + EffectivenessHighlight Call-to-Action (CTA) + Use active verbs + Recognizable, each to read76
Ad Performance + MeasurementCampaign Performance + EffectivenessTargeting + Higher CTRs with targeted messages vs. run-of-site (ROS) + Different creative for different targeted segments + Add geo-location to message77
Ad Performance + MeasurementCampaign Performance + EffectivenessRelevant Messaging + Broader offers = higher CTRs + Narrow offers = lower CTRs78
Ad Performance + MeasurementCampaign Performance + EffectivenessAd Placement + Ads above-the-fold – higher CTRs + Ads on home pages – lower CTRs + Ads in targeted, opt-in newsletters – higher CTRsAd Size + Larger ads – more visibility, typically higher CTRs79
Ad Performance + MeasurementCampaign Performance + EffectivenessAd Frequency + Too much frequency – lower click rates + Too little frequency – hurt branding metrics + Direct response campaigns – evaluate the correct frequency cap to optimize ROI80
Ad Performance + MeasurementCampaign Performance + EffectivenessOptimizations+ If budget allows, test (A/B or multivariate) + Vendors should be proactive about recommendations for improvement+ Develop a comfortable optimization frequency+ Track toward improving your action – calls, downloads, video views, data collection+ Experiment with placements, verticals – within reason+ Ask vendor for screenshots but monitor when you can81
82Mobile Display
Mobile DisplayDid You Know?83Percent of US Population (303.6MM) with a mobile phone: 80Percent of mobile users with text messaging capabilities: 82Percent with phones capable of browsing the Internet: 72Percent of users who say they’ve been exposed to mobile ads in last 30 days : 23Percent of those users who say they responded: 50* Source 2008 Mobile Marketers Guide mobilemarketer.com
Mobile DisplayWhat is mobile display? + Display messaging in the mobile device environment+ Can link to: + make calls + download apps + share content + submit data/sign-up + enter contests + visit mobile websites84
Mobile Display How to Make an Effective Mobile Display Campaign+ Be attentive to environments – ask where your ads may be and explore the environment for yourself+ Practice concise messaging – mobile ads don’t leave much room for gregariousness+ Be mindful of users’ time - consider where a user may come from and where you’re taking them 85* Source: PervezSkiora, “What makes mobile display ads effective?” 2011 mobilemarketer.com
Mobile DisplayPopular Networks 86
Mobile DisplayBenefits+ Small screen, big audience, powerful targeting capabilities+ Performance-based models (Cost-per-call, cost-per-download, cost-per-interaction) + Branding for those who don’t click + Click rates at upwards of 3-6%* + Downloads from clicks at upwards of 16-20%*+ Flexibility in program type (sweepstakes, database collection, branding/awareness)+ Typically lower minimums + Ease of integration with other marketing tactics87* Source: Greystripe & ATT Mobile Ad Solutions, 2011
88Trends + Current Events
Trends + Current Events89What’s Happening Now?+ Digital Advertising Alliance + Congress pushing “do-not-track” legislation + FTC responds to consumer privacy concerns + IAB introduced Code of Conduct + DAA building on Self-Regulatory Principles of Online Behavioral Advertising+ Facebook tests real-time ad targeting, via data mining conversations+ DMPs (Data Management Platforms) + AMPs (Audience Management Platforms) + Topic Targeting + ConditionalTargeting & Re-Targeting + Search, Site, Creative
Best Practices
Best PracticesTake-aways+ Identify the ONE main objective of the creative+ Execute a clear, concise call-to-action+ Use consistent messaging (and imagery, where possible) across online & offline channels+ Choose colors appropriate for audience and website where ad will be placed+ Utilize A/B split testing or other methods of creative testing, create optimization schedule – LEARN!+ Align creative with your landing page91
Best PracticesWhat Should You Expect from a Vendor/Agency?+ Established goals before campaign launches+ Resisted urges to revamp tracking structure or goal (unless absolutely necessary)+ Optimization recommendations and analysis of performance+ Tracking codes in place on front end+ Analytics setup on back end+ Regularly schedule reporting92
Best PracticesLanding Pages: “DONTs”93Banner AdLanding Page
Best PracticesLanding Pages: “Almost but not quite”94Banner AdLanding Page
Best PracticesLanding Pages: DOs95Banner AdLanding Page
Best PracticesLanding Pages: DOs96Banner AdLanding Page
Questions?
LeapFrog InteractiveContact UsChristy Belden, Vice President of Media + Marketingcbelden@leapfroginteractive.comTwitter: @LFIFacebook: www.Facebook.com/LeapFrogInteractiveAgency98
Thank You

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Diversification of Digital, by LeapFrog Interactive

  • 1. Diversification of DigitalChristy Belden, Vice President, Media + MarketingMay 26, 2011
  • 2. Diversification of DigitalAgenda+ Introductions+ Basics+ Statistics+ Key Terminology, Common Acronyms + Resources+ Types of Digital Ads+ How Digital Advertising Works+ Pricing + Strategy+ Ad Performance + Measurement+ Trends + Current Event+ Best Practices2
  • 3. LeapFrog Interactive3Diversification of DigitalTwitter: @LFI #display #LFI #digitalmediaFacebook: www.facebook.com/LeapFrogInteractiveAgencyBlog: www.leapfroginteractive.com/blog
  • 4. Christy Belden4Vice President of Media + Marketing, LeapFrog InteractiveExperience: 11 years The Courier-Journal University of LouisvilleSEMPO CertifiedGoogle AdWords Professionals (GAP) CertifiedChristy knows marketing. Display, PPC, SEO, social media, email, mobile, traditional—she’s been there and done that. She continues to build a deep well of experience and is always in touch with the trends and strategies that provide a solid return on clients’ investments.
  • 6. 6
  • 7. 7
  • 8. 8
  • 10. Definition of Digital AdvertisingWhat is a display ad?+ A graphical web advertising unit+ A graphical image on the a website used to promote products or services+ Otherwise called:+ Web Ad+ Web Banner+ Banner Advertising+Banners10
  • 11. Definition of Digital Advertising11
  • 12. Definition of Digital Advertising12
  • 13. Definition of Digital Advertising13
  • 14. History of Digital AdvertisingRecap+ The first digital ad appeared on HotWired.com in 1994 + The first ad was called a ‘graphical ad unit’+ MCI, Volvo, Club Med, 1-800-Collect, AT&T and Zima were the first advertisers on HotWired.com14Source: http://adage.com/article/digitalnext/happy-birthday-digital-advertising/139964/
  • 16. Diversification of DigitalDid You Know?16Ads served to US Internet users in Q1 2011: 1.1 trillionOf those ads, number served via Facebook: 346 billionTotal % ads served to US Internet users that were on Facebook in Q1 2011: 31Banner Ads Spending Was Up 23% YOY in 2010Source: Huffington Post via TechCrunch/Comscore; eMarketer.com
  • 17. Diversification of DigitalDid You Know?17*Eric Schmidt, chairman-CEO of Google, predicts online advertising will increase from $62 billion a year to $200 billion in the next 5-10 years.(Ad Age, “Ad Networks Raise Profile with Targeting” May 2011)Source: eMarketer US Ad Spending: Online Outshines Other Media, Dec 2010
  • 18. Diversification of DigitalDid You Know?18Source: comScore 2010 US Digital Year in Review
  • 19. Diversification of DigitalDid You Know?19Source: comScore 2010 US Digital Year in Review
  • 20. Diversification of DigitalDid You Know?20Source: comScore 2010 US Digital Year in Review
  • 21. Diversification of DigitalDid You Know?21Source: Ad Age, “Facesbook Scores Again With Most Ads on the Web” May 9, 2011
  • 22. Diversification of DigitalDid You Know?22Source: Ad Age, “Facesbook Scores Again With Most Ads on the Web” May 9, 2011
  • 23. Diversification of DigitalDid You Know?23Source: comScore 2010 US Digital Year in Review
  • 24. Key Terminology + Common Acronyms + Resources
  • 25. Key TerminologyGlossary of Terms+ Cookies: code placed in a browser so the browser’s activity is recorded, i.e. visiting a page and it is “remembered” when the browser returns to the site or another ad is served+ Beacon: 1x1 pixel tag used to track unique user activities over time, i.e. tracking a user who clicked through on an ad and purchased several days later+ Unique visitors (UVs): measure for readership or net audience+ Page Views (PVs): measure of requests to load a single page of an Internet site+ Ad Impressions: each time an advertisement loads on a user’s screen+ Sessions: aka “visits,” is the number of times each unique visitor goes to a website25Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 26. Key TerminologyGlossary of Terms+ Ad Exchange: Marketplace-like network of excess inventory on publisher sites which media buyers can access and purchase+ Ad Network: Aggregates audiences based on demography or intent to purchase + Mobile Network: sells ad on wireless devices (i.e. phones & tablets) + Video Network: aggregates video inventory to run ads or syndicate video content+ DSP: “Demand Side Platform,” platform used by agencies & advertisers to automate media buying across multiple sources with unified targeting, data, optimization, and reports+ Ad Server: Technology that disseminates online ads and then, tracks and reports back on performance 26Source: AdAge, “Special Report: Audience Buying Guide” April 2011
  • 27. Key TerminologyGlossary of Terms+ Data Aggregator: Pulls together ad-serving data, conversion data, and third-party data in an effort to attach preference attributes to a user or set of users+ Ad Verification: Software enabling advertisers to determine if impressions are display in the proper place and whether ads are privacy compliant+ Frequency Capping: Using cookies to manage the number of times a user sees specific ad creative, typically utilized to conserve impressions and improve campaign performance+ OBA: Online Behavioral Advertising, also a compliance program led by IAB 27Source: AdAge, “Special Report: Audience Buying Guide” April 2011
  • 28. Common AcronymsGlossary of Acronyms+ Key Performance Indicator (KPI): measureable points of interaction between consumer and brand+ CPC: cost-per-click+ CPM: cost-per-thousand [impressions]+ CPA: cost-per-action + Cost-per-download + Cost-per-call + Click-Through Rate (CTR): the number of clicks divided by the number of impressions28Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 29. ResourcesIndustry Leaders: Associations Digital Advertising Alliance29
  • 31. ResourcesIndustry Leaders: 3rd Party Ad Servers31
  • 34. Types of Digital AdsStandard Ad Unit Sizes34Skyscraper160x600Half Page300x600These are the five most common ad sizes, according to the Interactive Advertising Bureau (IAB). Medium Rectangle300x250Small Rectangle180x150Leaderboard728x90Source: IAB, www.iab.com
  • 35. Types of Digital AdsAd Formats + Specs+ .GIF/.JPG/.PNG “Static banner”+ .SWF “Flash banner”+ .EXP “Rich Media/Expandable banner”35*Source: IAB, www.iab.com
  • 36. Types of Digital AdsAd Format: GIF/JPEG/PNG+ .GIF/.JPG/.PNG aka “Static banner”Simple, single-frame imageTypically 30K file size*May include “animated .GIF”36*Source: IAB, www.iab.com
  • 37. Types of Digital Ads37Why Brands Use Static Banners?+ Ease of Creation: Organizations with limited creative resources can easily develop static assets + Affordability: With appropriate sized buys, publishers may offer creative services for free+ Flexibility of Creative: Self-serve advertising solutions often don’t allow complex display formats like Flash or Rich Media
  • 38. Types of Digital Ads38Static Banner Examples
  • 39. Types of Digital AdsAd Format: Flash+ .SWF “Flash banner”More dynamic, flexible coding language allows basic interaction and more complex imageryTypically 40K file size*39*Source: IAB, www.iab.com
  • 40. Types of Digital Ads40Why Brands Use Flash Banners?+ Cost savings: it takes less resources to develop Flash banners and typically there is no 3rd party ad serving required+ Available inventory: more publishers will accept Flash banners on their websites than will accept Rich Media+ Consumer visibility: slightly more consumers are able to view Flash on their computers than can view Rich Media
  • 41. Types of Digital AdsFlash Banner Examples+ Animation occurs in 7-10 seconds+ CTA that appears on relevant frame and remains visible throughout the ad+ Logo visible during entire ad+ Realistic action/movement+ Highlights consumer needs and answers with product recommendation+ Highlights customizability 41324157689
  • 42. Types of Digital AdsFlash Banner Examples42213+ Simple , quick messaging+ Consistent font and text size+ Realistic action/movement+ Highlights consumer needs and answers with product recommendation+ Focuses on a single objective, straightforward CTA+ Color scheme appropriate and eye-catching654789
  • 43. Types of Digital AdsAd Formats + Specs+ .EXP “Rich Media/Expandable banner”Highly interactive, super complex creative which can include multi-functional features Typically 40K with up to 100K polite load, upon click*43*Source: IAB, www.iab.com
  • 44. Types of Digital Ads44Why Brands Use Rich Media Banners?+ Sophisticated functionality: the ability to incorporate games, polls, data collection, file downloads, product showcases, store locators and other interactive features makes Rich Media highly desirable+ Outperformance of Flash: due to its nature, Rich Media frequently outperforms Flash on interactivity rates, brand engagement and consumer ad recall+ Enhanced reporting/tracking capabilities: almost any metric that relates to functionality of each feature can be measured and reported on, allowing quicker optimizations+ Alternative to landing page: depending on a campaign’s goal, Rich Media can serve as the only environment needed to achieve a conversion
  • 45. Types of Digital AdsRich Media Examples45+ “Rollover” to act is used rather than “Click”+ Tabs in upper right allow user to control their experience inside the ad+ Users have the ability to download a brochure that meets their specific needs + “Close” button is clear, visible in bottom rightFYI:Carestream® is able to see how many of each brochure was downloaded.Carestream® is able to tie each download to a specific user’s name/email address123
  • 46. Types of Digital AdsRich Media Examples46+ Specific CTA+ Creative use of product showcase feature by highlighting various treats you can make using the product+ Allows consumers the option to print the recipe or e-mail it to yourself+ Encourages users to use their “in-banner” search function – this is an example of how a brand may use Rich Media to replace a landing pageFYI:(1) Kellogg’s® is able to see which recipe was emailed or downloaded the most often123
  • 47. Types of Digital AdsRich Media Examples+ Engaging question to capture attention+ Specific CTA+ Interactive creative with multiple videos for users to watch+ Email/data collection feature always visibleFYI: (1) Carnival® would be able to feed email addresses directly into their database with an API. (2) Metrics would be able to tell Carnival® how many consumers watched each video 25%, 50%, 75% or 100%. 47123
  • 48. Types of Digital AdsTakeover Example48
  • 49. Types of Digital AdsOverlay Example49
  • 50. Types of Digital AdsNewest OPA Standards Examples - Pushdown50Pushdown AdStarts as thin ad that expands to take up most “above the fold” space upon click or rollover
  • 51. Types of Digital AdsNewest OPA Standards Examples51Fixed Placement AdAd stays with you as you scroll up/down through content
  • 52. Types of Digital AdsNewest OPA Standards Examples52XXLAdExtra-large ad for high impact/visibility
  • 53. Types of Digital AdsTypes of Video AdsVideo Ads + In-stream video - Pre-roll, mid-roll, post-roll + Overlay - Transparent overlays + In-banner - Video converted to Flash, plays within ad unit - Click to play or auto play + In-Text Video - User initiated, triggered by highlighted words within content53Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 54. Types of Digital AdsConsiderations+ On average, an advertisement has approximately 2-5 second to capture the attention of a user before their attention is elsewhere on a webpage+ As of January 2009, Flash banners saw .07% - .14% CTR across all industries+ Rich Media banners average .12% - .36% CTR; the goal of a rich media may not be a “click” through to landing page, but instead application completion, file download or coupon print-up+ Average brand interaction time for expandable rich media ads is between 11-12 seconds, upon expansion54Resources: DoubleClick, PointRoll Industry Data (2009), Atlas 2007-2010
  • 56. Pricing + StrategyPricing ModelsCPM + Impressions sold in “packages” or levels + Impressions sold ROS or targetedCPC + Costs accrued every time a click occursFlat Rates + Associated with sponsorships + Directory listings, supplier guides (B2B) + Classifieds + Sites with limited ad inventory + Site with low tech ad serving56Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 57. Pricing + StrategyStrategy of Different Structures57CPMCPCCPA
  • 59. How Digital Buying WorksTypes of BuysAd Network + Sold by categorization of sites (vertical, horizontal, video) + Niche verticals availableDirect Buy or Direct-to-Publisher + One-on-one with a website, or small group of related websites + By nature of the buy, selection of individual relevant/niche sites is possible 59Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 60. How Digital Buying WorksAd NetworkPros + Audience reach + Scalability + Hyper-targeting + Testing performance business models + Typically lower CPMs + Typically robust reporting60Cons + Duplication across sites + Limited transparency + No “cherry picking” + Targeting content within sites + Generally no sponsorship programs + Occasional limitations with ad units and placements
  • 61. How Digital Buying WorksDirect PublishersPros + Sponsorship opportunities + Specialized/niche content + More opportunities for “value adds” + General flexibility of ad formats61Cons + Typically higher CPMs + Generally not sold on CPC or CPA + Basic reporting capabilities + Scalability can be limited
  • 62. How Digital Buying WorksTargeting Solutions+ Geographic+ Demographic+ Local+ Contextual+ Day-Parting+ Behavioral62
  • 63. How Digital Buying WorksTargeting SolutionsGeographic + Zip code data provided by user + Accurate, updated + More granular + IP address identified via ad server - Less granular - Based on IP database63Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 64. How Digital Buying WorksTargeting SolutionsBehavioral Targeting + Ads targeted using behavior not content/page + Tracks user’s web usage behavior (via cookies) - Where user goes - Registration data - Survey data - Recency - Keywords64Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 65. How Digital Buying WorksTargeting SolutionsLocal Targeting + Local content + Portals and ad networks + Geo-based content + User provided demographics + Directories and Internet Yellow Pages + Search options65Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 66. How Digital Buying WorksTargeting SolutionsContextual Targeting + Ads align with content featured on page, via keywords + Attempts to target based on users’ intent - Recency - Keywords66Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 67. How Digital Buying WorksTargeting SolutionsBehavioral Targeting + Behaviors tracked via cookies data predict which ads are relevant to a user + Vertical-based67Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 68. How Digital Buying WorksAd Delivery Process68Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 69. How Digital Buying WorksAd Delivery Model+ Scheduling - Start – Stop dates not pre-defined by media schedule - Day-parting+ Smooth - Equal number of of impressions every day of campaign+ Weighting - Deliver higher share of voice (% of total impressions)69Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
  • 70. How Digital Buying WorksHow “Cookies” Work in Targetinghttp://online.wsj.com/video/how-advertisers-use-internet-cookies-to-track-you/92E525EB-9E4A-4399-817D-8C4E6EF68F93.html70Source: Wall Street Journal, “How Advertisers Use Internet Cookies to Track You”
  • 71. How Digital Buying WorksSelf-Serve SolutionsUse self-serve vendors like:When… + Network/Publisher minimums don’t fit your budget + Creative flexibility is not an absolutely must-have + Programs need to be launch quickly71
  • 72. Ad Performance + Measurement
  • 73. Ad Performance + MeasurementMetrics for Rich MediaStatic Banners: + Impressions + Clicks + Click-Through RatesFlash Banners: + Click-Through Rates + Basic Interactions73Rich Media Banners: + Interaction Rates + Panel Views/Interactions + Full plays (Video) + Average Brand Interaction Times + Close Rates + (Depending on goal) CTRs
  • 74. Ad Performance + MeasurementCampaign Performance + EffectivenessInfluential Factors + Creative + Highlighted Call-to-Action Messaging + Targeting + Relevant Messaging + Ad Placement + Ad Size + Reach & Frequency + Optimizations 74
  • 75. Ad Performance + MeasurementCampaign Performance + EffectivenessEngaging Creative (Rich Media) + Higher interactions with rich media + Multiple creative executions + High frequency delivery – avoid banner burn-out by running multiple creatives and ad sizes75
  • 76. Ad Performance + MeasurementCampaign Performance + EffectivenessHighlight Call-to-Action (CTA) + Use active verbs + Recognizable, each to read76
  • 77. Ad Performance + MeasurementCampaign Performance + EffectivenessTargeting + Higher CTRs with targeted messages vs. run-of-site (ROS) + Different creative for different targeted segments + Add geo-location to message77
  • 78. Ad Performance + MeasurementCampaign Performance + EffectivenessRelevant Messaging + Broader offers = higher CTRs + Narrow offers = lower CTRs78
  • 79. Ad Performance + MeasurementCampaign Performance + EffectivenessAd Placement + Ads above-the-fold – higher CTRs + Ads on home pages – lower CTRs + Ads in targeted, opt-in newsletters – higher CTRsAd Size + Larger ads – more visibility, typically higher CTRs79
  • 80. Ad Performance + MeasurementCampaign Performance + EffectivenessAd Frequency + Too much frequency – lower click rates + Too little frequency – hurt branding metrics + Direct response campaigns – evaluate the correct frequency cap to optimize ROI80
  • 81. Ad Performance + MeasurementCampaign Performance + EffectivenessOptimizations+ If budget allows, test (A/B or multivariate) + Vendors should be proactive about recommendations for improvement+ Develop a comfortable optimization frequency+ Track toward improving your action – calls, downloads, video views, data collection+ Experiment with placements, verticals – within reason+ Ask vendor for screenshots but monitor when you can81
  • 83. Mobile DisplayDid You Know?83Percent of US Population (303.6MM) with a mobile phone: 80Percent of mobile users with text messaging capabilities: 82Percent with phones capable of browsing the Internet: 72Percent of users who say they’ve been exposed to mobile ads in last 30 days : 23Percent of those users who say they responded: 50* Source 2008 Mobile Marketers Guide mobilemarketer.com
  • 84. Mobile DisplayWhat is mobile display? + Display messaging in the mobile device environment+ Can link to: + make calls + download apps + share content + submit data/sign-up + enter contests + visit mobile websites84
  • 85. Mobile Display How to Make an Effective Mobile Display Campaign+ Be attentive to environments – ask where your ads may be and explore the environment for yourself+ Practice concise messaging – mobile ads don’t leave much room for gregariousness+ Be mindful of users’ time - consider where a user may come from and where you’re taking them 85* Source: PervezSkiora, “What makes mobile display ads effective?” 2011 mobilemarketer.com
  • 87. Mobile DisplayBenefits+ Small screen, big audience, powerful targeting capabilities+ Performance-based models (Cost-per-call, cost-per-download, cost-per-interaction) + Branding for those who don’t click + Click rates at upwards of 3-6%* + Downloads from clicks at upwards of 16-20%*+ Flexibility in program type (sweepstakes, database collection, branding/awareness)+ Typically lower minimums + Ease of integration with other marketing tactics87* Source: Greystripe & ATT Mobile Ad Solutions, 2011
  • 89. Trends + Current Events89What’s Happening Now?+ Digital Advertising Alliance + Congress pushing “do-not-track” legislation + FTC responds to consumer privacy concerns + IAB introduced Code of Conduct + DAA building on Self-Regulatory Principles of Online Behavioral Advertising+ Facebook tests real-time ad targeting, via data mining conversations+ DMPs (Data Management Platforms) + AMPs (Audience Management Platforms) + Topic Targeting + ConditionalTargeting & Re-Targeting + Search, Site, Creative
  • 91. Best PracticesTake-aways+ Identify the ONE main objective of the creative+ Execute a clear, concise call-to-action+ Use consistent messaging (and imagery, where possible) across online & offline channels+ Choose colors appropriate for audience and website where ad will be placed+ Utilize A/B split testing or other methods of creative testing, create optimization schedule – LEARN!+ Align creative with your landing page91
  • 92. Best PracticesWhat Should You Expect from a Vendor/Agency?+ Established goals before campaign launches+ Resisted urges to revamp tracking structure or goal (unless absolutely necessary)+ Optimization recommendations and analysis of performance+ Tracking codes in place on front end+ Analytics setup on back end+ Regularly schedule reporting92
  • 93. Best PracticesLanding Pages: “DONTs”93Banner AdLanding Page
  • 94. Best PracticesLanding Pages: “Almost but not quite”94Banner AdLanding Page
  • 95. Best PracticesLanding Pages: DOs95Banner AdLanding Page
  • 96. Best PracticesLanding Pages: DOs96Banner AdLanding Page
  • 98. LeapFrog InteractiveContact UsChristy Belden, Vice President of Media + Marketingcbelden@leapfroginteractive.comTwitter: @LFIFacebook: www.Facebook.com/LeapFrogInteractiveAgency98

Editor's Notes

  • #28: AD VERIFICATION: Software tools that advertisers use to determine if impressions are displayed in the proper place and whether the ads are privacy compliant. They are often used with exchange inventory when the advertiser does not know exactly where the ads are placed or for audience targeted buys to ensure "brand safety" -- that ads aren't on pages with, say, boobs. The ad networks typically dislike verification tools because networks say it's their job to find the right sites, and they argue verification has technological limits. For example, they say, if advertising for a woman's product shows up on a breast cancer-related site, boobs may just be a perfect fit.
  • #58: Theory in the images is that the smaller your audience gets the easier it is to define who they are, what they like, and what motivates them to buy.
  • #86: When I say, “consider where they may come from” think of that as what sites they visit before they see your ad or what environment the users may be seeing your ad. If they see your add in a gaming app, what are the chances they will click on your ad to fill out a long survey form?
  • #90: AUDIENCE MANAGEMENT PLATFORMS (AMPS): One of the rising terms of 2011. The folks who provide the audience targeting now have platforms to automate the process of buying audience-targeted inventory. Since many of them also operate ad networks, it's a natural extension. Jeff Hirsch, CEO of Audience Science, which has rebranded as an AMP, said "AMP is the acronym representing a company that has DMP and DSP capabilities." DMPS (DATA MANAGEMENT PLATFORMS): The hot term of 2011. These self-service "dashboard" tools perform a range of services from collecting, managing, segmenting, sharing and analyzing marketers' advertising data -- and assuring that your data is your data.