5 Web Advertising

Web Advertising

Topics to Cover • What is web advertising? • Some Numbers • Types of Online Advertising • Webwide Trends • Thai Web Advertising Pricing Models • Questions?

Web Advertising

What is Web Advertising? • A form of advertising that utilizes the Internet and World Wide Web in order to deliver marketing messages and attract customers. Web Advertising

Some Numbers The Web is huge and growing rapidly • 10 million Websites globally by the end of this year

(Alexa

International)

• 60% are publicly accessible (Online Computer Library Center, Inc.), • Amounts to over 7 billion pages of publicly indexed information (NEC Research Institute) • 70% of those pages containing commercial content (eMarketer).

• Number of advertiser-supported Web sites anywhere between 6,000 (Forrester) and 19,000 (Myers Group).

Web Advertising

Some Numbers Web Advertising Revenues • Last year, Web ad spending topped $7 billion, representing nearly 3% of total ad spending in the US ($244 billion). • Newspapers ($48.9 billion), broadcast TV ($45 billion) and direct mail ($42.5 billion) were the largest venues for advertising. • But Web spending grew by 97%, while total advertising grew by 7% overall and papers grew by 5%, TV by 7% and direct mail by 3%. Source: eMarketer, 2001. Web Advertising

Some Numbers Web Advertising Revenues • Triple-digit growth rates are over, but Web advertising is still strong and growing faster than traditional media. Should grow 7% this year and around 40% on average annually through 2005. • Media most likely affected in the long-run will be newspapers and direct mail, and also Yellow Pages, and local/regional magazines. Source: eMarketer, 2001.

Web Advertising

Some Numbers • A few key Web site categories grab most of the Web ad spending (Internet Advertising Bureau Q2, 2000):

– Search sites and portals 36% – Business/Finance 15% – Classified 12% – Technology 11% – News/Info 10%

Web Advertising

Some Numbers • Biggest Web ad spenders: (Internet Advertising Bureau Q3, 2000 and eMarketer 2001):

– Consumer – Computing – Financial Services – Media/New Media – Business Services

30% 18% 14% 11% 10%

Web Advertising

Types of Web Advertising • Banner • Sidebar • Pop-ups • Pop-unders • Floating • Unicast • Websites Web Advertising

Banner • HTML code loads a specific website • Varies in content and shape • Horizontal • 50 cents/ 1000

Web Advertising

Sidebar • Skyscraper • Vertical • 2-3 times larger than banner • Harder to scroll it off page • $1.00 - $1.50/ 1000 Web Advertising

Pop-ups • Opens in its own window • Obscures the page your viewing • Forced to close or move it

Web Advertising

Pop-unders • Opens under the content your viewing • Less intrusive • Both are more effective than banner • Banners: 2-5 clicks/ 1000 • Pop-ups: 30 clicks/ 1000 • Can cost 4-10 times more than banner Web Advertising

Floating • Float or fly over page 5-30s • Obscure view; block mouse input • Gets attention: animation & sound • Powerful branding tool hard to ignore • 30 clicks/1000 • $3 - $30/ 1000 Web Advertising

Unicast • TV commercials that run in pop-up • 10-30s • Same branding power as TV commercial + being able to go to website • 50 clicks/1000

From AOL.com

• $30/1000 Web Advertising

Types of Online Marketing Spending • • • • • • • •

Banner Ads & Buttons (52%) Web Sponsorships (27%) Classifieds (7%) Referrals (4%) Interstitials (3%) Related Tools: eMail Marketing (2%) Affiliate Programs & Networ Rich media (2%) Search Engine Optimization Keyword Search (1%)

(Internet Advertising Bureau, Q2 2000) Web Advertising

Top 5 Ad Banners Viewed in the US Week ending May 13, 2001

Web Advertising

Sponsored Content • Advertiser-supported links on a publisher’s site take on many forms: – Direct link to sponsor’s site – Microsites & Co-Branded Pages – Featured Sponsorship – Editorial Sponsorship

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Web Sponsorships

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Affiliate

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Web Advertising Pricing Models • Flat Fee – original model (c. 1994/1995) – Sponsorships

• CPMs

(“cost per thousand” impressions)

– Official average CPM per rate cards is $28.28 (9/2000). – Ranges from $1 to $100 or more.

• Click-Throughs (CTR=Click-Through Rate) – Currently 0.3% – $2/click-through based on a $10CPM with a 0.5% CTR.

Web Advertising

Webwide Trends • Significant unsold inventory in the online advertising industry. • CPMs are down dramatically (down from an average of $40 in 1997 to below $30 this year).

• Click through rates have plummeted (down from an average 2-3% to 0.24% in December 2000).

• Online consumer lacks interest in banners (online “billboards” represent a primitive form of new media advertising).

Web Advertising

Webwide Trends • Meanwhile, industry trends favor more accountable forms of online advertising. • Online managers are increasingly dissatisfied with banner ads and flat fee portal deals: Need a way to measure ROI!

Web Advertising

Webwide Trends • Firms are increasingly looking for ways to integrate offline with online. • Major advertisers increasingly compensating their agencies based on results rather than fixed commissions (15% of billings). • Direct marketers are now moving onto the Web and bringing significant database and fulfillment experience online.

Web Advertising

Emerging Pricing Models • The Web belies John Wanamaker’s oft-quoted lament: – I know half the money I spend on advertising is wasted, but I can never find out which half.”

• Enter Pay-for-Performance Pricing Models (“Cost per Action”) – – – – – –

Cost per click Cost per lead Cost per registration Cost per download Cost per purchase Cost per whatever Web Advertising

Webwide Trends Pricing Models (Internet Advertising Bureau, Q3, 2000) Pure CPMs 41% Hybrid Models 48% Performance-Based 11% •

By 2003, 83% of Web ad spending will be performance based or hybrid (Forrester).

•

By 2002, 25% of online retail sales will be driven by affiliates (Jupiter).

Web Advertising

How is WA related to IA? • 2. Organize your website for better ad placement – Wireframes - Depict how an individual page or template should look from an architectural perspective

– Placing ads on a website

• Dark orange (strong), light yellow (weak) • Ads near rich content and navigation, and at the top-left do better

Web Advertising

How is WA related to IA? • Placing ads on a forum site – Get attention of repeat users – Best placement:

• Ads above & below first post are more effective • Place leaderboard after last post, before navigation – Blend ads in well, but don’t deceive Web Advertising

How is WA related to IA? • Placing ads on blogs – Challenges: • Predetermined page format • Highly targeted content • Regular visitors

– Suggestions: • After the first post is more effective • Skyscraper on the right • Offer referrals and searches • Link units Web Advertising

  Front Page Banner Size

Baht/Mont AVG/IM h P AVAILABLE PER IMPRESSION(IMP) ONLY

Baht/Week

AVG/IMP

A2 (728x90 Pixels)

30,000

 

133

108,000

 

120

B1 (300x250 Pixels)

60,000

 

267

216,000

240

B2 (300x250 Pixels)

55,000

225,000

244

198,000

B3 (300x250 Pixels)

55,000

 

244

198,000

  900,00 0  

B4 (300x250 Pixels)

55,000

 

244

198,000

 

220

C1 (180x150 Pixels)

30,000

 

133

108,000

 

120

C2 (180x150 Pixels)

25,000

 

111

90,000

 

100

C3 (180x150 Pixels)

20,000

 

89

72,000

 

80

C4 (180x150 Pixels)

20,000

 

89

72,000

 

D (300x110 Pixels)

60,000

 

269

216,000

 

A1 (728x90 Pixels)

AVG/CPM

Web Advertising

AVG/CPM

220 220

80 240   IMP= Impressions or Pageviews CPM=Cost Per Thounsand

Questions??

Web Advertising

Questions??

Web Advertising

Questions??

Web Advertising