Internet Marketing and Digital

Marketing Mix
 Internet Marketing and Digital Marketing

 Digital Marketing,

 Internet Marketing,

 Online marketing,

 Content marketing
 Internet Marketing and Digital Marketing

 Digital Marketing,

 Internet Marketing,

 Online marketing,
 Online marketing, internet marketing is the process of promoting a business or brand
and its products or services over the internet using tools that help drive traffic, leads,
and sales.

 Content marketing
 Internet Marketing and Digital Marketing

 Digital Marketing,

 Internet Marketing,

 Online marketing,

 Content marketing
 A strategic marketing approach focused on creating and distributing
valuable, relevant, and consistent content to attract and retain a clearly
defined audience — and, ultimately, to drive profitable customer action.
 Internet Marketing and Digital Marketing

 Digital Marketing,

 Internet Marketing,

 Online marketing,

 Content marketing
 a type of marketing that involves the creation and sharing of online material
(such as videos, blogs, and social media posts) that does not explicitly
promote a brand but is intended to stimulate interest in its products or
services.
 Internet Marketing and Digital Marketing

 Digital Marketing,
 It is a complete term in itself as it comprises a set of marketing processes, making use
of all available digital channels in the best possible way for building a brand image or
promotion of a product or service. The resources used for digital marketing are
computers, laptops, smartphones, tablets, mobiles, DTVs, digital billboards, digital
magazines, etc.

 Internet Marketing,

 Online marketing,
 Content marketing
 Digital Marketing and Internet Marketing- Opportunities
 Easy Consumer Reach
 Direct Advertising
 Perpetually Displaying Ads
 Global Advertisements
 Easy Brand Promotion
 Cost Effective Channel

 Consumer’s Convenience to Shop Online

 Accountability of Marketing Activity
 Helping Marketers’ Career
 Digital Marketing and Internet Marketing- Opportunities
 Reaching out to new set of prospects and leads
 Improving customer connect
 Increasing availability
 Multiple pricing option
 Reaching international market
 Digital Marketing and Internet Marketing - Challenges

 Limitation of Internet Access

 Limited Consumer Link and Conversation

 High Competition of Brands

 Risk of Hacking Strategies

 Anti-Brand Activities

 Advertisement for Limited Products

 Digital Marketing and Internet Marketing - Challenges

 Investment: IT

 Adoption: Clear strategy adoption by all the departments

 Resources: HR, to be hired or groomed internally

 Training: HR training

 Integration: with various functions across departments

 Establishing ROI: cause and effect to each marketing activities

Digital Marketing and Internet Marketing - Challenges
Top Challenges of a 2019
Digital Marketing Strategy (
https://ascend2.com/top-cha
llenges-of-a-2019-digital-mar
keting-strategy/
)
 Digital Marketing and Internet Marketing - Challenges

 Proving Impact on Revenue

 Staffing Teams - The Right Blend

 Personalization

 Marketing-IT Alignment

 Marketing ROI: An Ongoing Challenge

(https://www.mediacurrent.com/blog/our-clients-top-2019-digital-marketing-challenges/ )
 Digital Marketing Framework

 Understanding concept of OVP (Online value proposition)

 Market opportunity analysis and digital service development

 ASCOR digital marketing framework

 Digital Marketing Framework

 Understanding concept of OVP (Online value proposition)

 Customer has a specific need and is looking for solution to meet that need

 Solution: Product / Service / Information

 Meeting this need is the core job of the marketing

 Meeting this need through digital channels provides based for digital marketing.
 Digital Marketing Framework
 Understanding concept of OVP (Online value proposition)
 Digital Marketing Framework
 Market opportunity analysis and digital service development
 ASCOR digital marketing framework
 For any type of company to move into digital marketing, be it a traditional firm
with more physical products and services mix or one that has transformed itself to
a large degree to tweak its products for the internet generation, there needs to be an
underlying framework which helps to map the process and its progress.
 where ASCOR is an acronym standing for the five phases:
 Assessment phase
 Strategy phase
 Channel and communication plan
 Digital marketing operations
 Refinement phase
 Phase 1: Assessment

 External Analysis (macro-micro

environment and market situation
analysis)
 Internal Analysis (Analysis of –
offering mix, marketing mix,
resources mix, and competencies
mix )
 Digital Presence Analysis

 Objectives development and review

(High level digital marketing goal -
review)
 Phase 2: Strategy

 Digital Strategy Definition

 Customer Development Strategy

(STP)
 Digital Marketing Mix (8Ps)
(people, program, process,
performance)
 6S Digital Marketing
Implementation Performance
(Scoping, Shadow, Set-up, Stability,
Scale-up, and Spectrum)
 This stage includes firms that are purely
traditional and have no presence at all on
any digital channels
 This next stage is covered with companies that have
taken their first steps towards being digital in the form
of getting their names to be a part of product listing
sites or placing basic information on their presence up
on Google Maps/Places
The third column represents firms that have definitely
realized the importance of an online set-up to their
offline operations and are willing to spend effort and
budget in developing the appropriate channels to
compete and climb the digital ladder.
 The digital stability column includes companies which already have a
stable digital presence for some time now; have a well-functioning
website and blog; presence across earned media channels (resulting in
audience traction to website); are deploying paid marketing
techniques; and even using concepts like SEO management, analytics-
based optimization, etc., on a regular basis.
 The penultimate state involves firms scaling up rapidly to
leverage digital across key strategic business areas and where
online presence has become as crucial and advantageous for
firms as physical presence and revenues.
 This last stage of the 6S Framework represents companies that
are digital-first in nature and where most of the digital activities
and campaigns are well orchestrated with clarity of desired
outcomes.
 Phase 3: Communication
and Channel mix
 Digital Media planning (channel mix,
consider PLC, Digital presence stage)
 Communication program design
(developing communication massaged,
its orientation as per the objectives)
 Channel Mix Development (Chanel
type, as per specific communication
objectives, intern channel impact and
integration)
 Budget Allocation (for channel mix)
 Phase 4: Digital Marketing
Operations
 Digital Campaign Planning
(Campaign objectives, Segmentation,
target massage, run time, tangible
outcome )
 Multichannel Campaign set-up

 Campaign Execution (Go live)

 Campaign Monitoring and Tracking
 Phase 5: Refinement

 Implementing Web Analytics etc.

 Defining Measurement Framework

 Digital Marketing Refinement
 ASCOR Model – An Application
Business Types Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Assessment Strategy Channel and Operations Refinement
Communication
Individual • Assess potential • Define unique • Develop • Developing • Review web
to develop value creation content and content and visits and
online brand elements intent based marketing marketing
marketing mix material reposts,
A local orthopedic • Compare • Develop OVP
wants to build his present built on repute • Plan for blogs • Website/blog • Analyze
reputation online standing among & experience website, SEO, launch, improvements
similar doctors SEM creation marketing in service
• Define brand initiated on requirements
• Study visit building search SEM and patient
patterns for elements creation visits
doctors
websites. • Refine
marketing
tactics regularly

OVP: Online Value Proposition

 Digital Marketing Mix
 The digital marketing Mix is essentially the same as the marketing mix. It is simply the adaptation
of price, place, product and promotion to the digital marketing context. Of course one could also
include People, Process, Programmes, and Performance when marketing planning for an online
service.
 Offering mix for digital
 Digital pricing Models

 Channel of purchase
 Managing promotion channel

 Developing the Extended Ps – People, Process, Programmes, and Performance

 Offering Mix for Digital

 Product also related to a service or a brand.

 Product can be classified as consisting two component – tangible and intangible.

 Any product or service which is being sold online and across digital platform needs to be

reasonably differentiated and have brand attributes or element attached to them to differentiate from

competitors.

 Further product can be classified in five states of an offering mix which starts with pure tangible

product with no service element and ends as being a pure service with no product components.
 Offering Mix for Digital
 State A: Only tangible product which are primarily physical in form and mostly commodity in nature.
 Sugar, Steel etc. (Pure tangible goods)

 State B: It involves tangible good a decent service element to them.

 E.g. mobile, auto mobile, furniture (and most of the product sold through e-commerce) etc. (Tangible goods and related
service)

 State C: It has an equal mix of product and service elements built it.
 E.g. hospitality services like them park, restaurants etc. (Hybrid Model)

 State D: In this state, the intangible part forms the core service, while intangible part is built as a
support element.
 E.g. Air travel, Banking, Insurance, and software developer etc. (Major Service with few goods)

 State E: This final state involves as offering having complete intangible attributes.
 E.g. Spa and other wellness services, online consulting, support helplines, etc. (Pure service)
 Offering Mix for Digital - Implications

 Product changing their form to digital – media broadcasting, books, music, TV content etc.

 Products picking up a perceived benefits to convert into service: Nike – Mobile application,

Website etc.

 Service firms can use intangible elements like social networks to provide new service

 Service firms creating content-based service line – Management institute conducting soft skill

training for corporates

 Marketer should combined various tangible and intangible elements to create multiple

product –service offerings which is differentiated and sustainable.

 Digital Pricing Models

 Pricing product and service for digital sales has changed in quite a many ways from how it was
done traditionally. Key trends which have impacted this shift includes;
 Reductions of intermediaries through digital channel – convenience and cost are reasons for
online purchase.
 Knowledge of customer buying habit and propensity helps create cluster/persona specific
and channel specific pricing.
 Possibility of instant price comparisons online
 Ability for consumer to set and negotiate online prices

 Customer’ demand for payment elasticity

 Digital Pricing Models - Setting the price model

1. Selecting the pricing objective

2. Determining demand

3. Estimating cost

4. Analyzing competitor’s costs, prices, and offers

5. Electing a pricing method

6. Setting the final price

 Traditional Pricing methods

1. Mark-up pricing

2. Target return

3. Perceived value

4. Going rate
 Digital Pricing Models

 Comparative pricing – Compare competitor price, price also varies in relation to data on customer

visits, their loyalty, influence of the channel, e-commerce site on which it is being sold.

 Ad supported model – This is one of the core model on which digital business was developed

wherein instead of charging the customer, business and advertisers were charged for placing ads

across most read content.

 Subscription model – There has been surge of interesting subscription based models where

customers are paying for packages of information, entertainment, education etc. on a time bound

fixed price basis.

 Digital Pricing Models

 Pay-per content/use model – It is possible to charge customer for each content piece as even on

the usage time for that content as digital medium can provide all if this information.

 Auction type -

 Last minute pricing – possible only in online mode (Air-lines prices)

 Customized pricing/ Cart based pricing - loyal customer free coupons

 Offering Mix and Pricing
 State A (pure tangible good): Comparative, mark-up, auction pricing are applicable
 State B (tangible good and related service): Subscription, may be perceived value and customized
pricing model
 State C (hybrid model): Subscription, price per content, price per usage
 State D (major service with few products): Target return, Comparative pricing
 State E (pure service) : Online industry mostly started out with content, networks, and sharing as
its core model which did not charge initially but developed delighted and loyal customer base. Then
typically charged through advertising, subscription, and pay per content/use model. YouTube,
Facebook, Twitter etc. are ad supported whereas LinkedIn, WhatsApp, Wiki are subscription or
donation way.
 Channel of purchase – reaching the e commerce
 Companies can make sure that their products and services are present at right place where their e-
consumers would be looking for them.

 Channel ownership
 Direct sales channel
 Indirect sales channel

 Sales orientation
 Pull based

 Push based
*Curated: (Online content, merchandise, information, etc.)
selected, organized, and presented using professional or
expert knowledge.
 Matrix Quadrants
 Direct push channel: involve branded websites and microsites which are developed and
controlled by the firms.

 Direct pull channel: include content based channel like blogs, mobile apps, developed in
well guided and curated manner and engaging customer for buy.
 Matrix Quadrants
 Indirect push channel: include online sales and highly popular e-commerce site,
marketplace, wholesaler who have setup online presences, web portals, etc.

 Indirect pull channel: channel have high engagement rates and provide value beyond push
based channel. vertical site (only car sales site), price comparison site, value added
resellers, SaaS integrators (provide end to end solution by integrating firm’s products with
others and make their revenues through service rather than product resale for example,
bluewolf - Bluewolf is a global business consulting firm. We help companies innovate
business processes and technologies to engage their customers.)
 Managing Promotional Channel
 Promotional channel are those which help marketers position and promote their products
across customer funnel stages so that they finally purchase product on the channel of
purchase.
 Reach

 Engage
 Active
Managing Promotional Channel
 Developing the Extended Ps- People, Process, Programs, and Performance

 People:

 Involve developing online teams with a mix of digital marketing expertise, technology,

know-how, multi-channel experience, knowledge of automation tools, target customers

insights.

 It also includes how to look at customers with all their human impulses and desire to know

what would tempt them most towards marketing efforts both on the content and creative

side.
 Developing the Extended Ps- People, Process, Programs, and Performance
 Processes:
 Involves developing a rigorous process-driven marketing organization

 Lays down clear steps to understand and identify target customer clusters
 Develop thought through and tightly integrated supplier-customer processes
 Manage campaigns as a series of processes with clearly aligned goals parallel to consumer
funnel activities, with ways and means to refine them needed.
 Developing the Extended Ps- People, Process, Programs, and Performance

 Programs:
 It is defined as the entire set of consumer-driven programs which are run in a holistic
manner online and offline to meet a firm's marketing objectives.
 It also includes all the multi-channel initiatives which are taken across traditional and
new platforms to make sure that customers at all stages, be it targets, prospects, or leads are
touched upon and impacted in a 360-degree manner.
 Developing the Extended Ps- People, Process, Programs, and Performance

 Performance:
 Setting up the system and ways to measure the performance and desired output at each
stage of marketing activities
 It requires well defines metrics and KPIs
 Performance evolution touch all of the other Ps to continually refine
 E-Marketing Mix or Digital Marketing Mix
• https://www.davechaffey.com/digital-marketing-glossary/e-marketing-mix/ (retrieved on 11/8/2020)
 Developing the Extended Ps- People, Process, Programs, and Performance

 In summary, digital marketing affects all aspects of the traditional and services marketing mix
including:
 Product – looking at opportunities for modifying the core or extended product for digital environments.
For example, offering digital products.
 Price – focusing on the implications for setting prices in digital markets; new pricing models and strategies
including online discounts.
 Place – considering the implications for distribution for digital marketing. For example affiliate or co-
marketing.
 – exploring inbound marketing techniques such as search, email and social media marketing. Promotion
 People, process and physical evidence – the extended mix of improving customer service via Livechat
and online knowledge bases. https://www.davechaffey.com/digital-marketing-glossary/e-marketing-mix/ (retrieved on 11/8/2020)
 Search Engine Advertising

 Internet is the zero moment of truth

 Consumers first search for products or services online before visiting the store

 Hence, it is imperative for marketers to be present on search engines

 Search Engine Marketing has two parts

 Search Engine Optimisation (SEO) (SEO is organic,)

 Search Advertising (Search Advertising is paid)

 Need of Search Engine Advertising
 Refer (Search engine market share):
 https://www.statista.com/statistics/216573/worldwide-market-share-of-search-engines/

 https://gs.statcounter.com/search-engine-market-share
 Which is the Most visited websites in the world ?
 Need of Search Engine Advertising
 Google does not show any ads on its homepage
 Keep the focus on the search query

 Keeps its page uncluttered

 Need of Search Engine Advertising
 Yahoo!,
 Which mixes its search bar with content

 Whereas Google's primary business is search,

 Yahoo!'s focus is on content and hence it displays advertising
 Why Pay for Search Advertising?
 A question you may ask is if organic results are free then why should a marketer spend
money on paid results?
 A marketer could build an excellent website and invest in SEO techniques to get the
highest rank for the website in organic results.
 Despite the best efforts, the website may not come on top.
 The algorithm for organic results is complex and not under the control of the marketer.
 In comparison, marketers could secure a higher position on paid results by paying for Ads.
 Why Pay for Search Advertising?
 Capture Intent
 These people are actively searching because they are interested in either finding out
more information about the product or service or are buying it.
 Ease of Action
 Search engine ads are meant to be clickable. Once a person clicks on the ad, the search
engine directs the user to the brand's web page, custom designed for the ad.
 Controlled Costs

 Search engines charge a marketer only if a person clicks on the ad (cost per click
model). The advertisers are not charged for impressions
 Why Pay for Search Advertising?
 Analytics
 Search engines help in creating and downloading reports about the performance of ads. average cost
per click, the number of clicks for each ad, the total amount spent, the click through rate, and the
number of impressions to analyse the effectiveness of their campaigns.

 Competition
 A company's website is found to be listed as a top ad and as first in the organic results. Then
company wasting money on advertisements even though one company may earn the first rank in
organic results, they are leaving the ad space open for attack by competition.
 For example, when Flipkart ran the campaign-Big Billion Day-during Diwali, Amazon showed ads
against the keyword and purchased the Big Billion Day' domain name.
Why Pay for Search Advertising?
Why Pay for Search Advertising?
 Understanding Ad Placement
 Search engines show advertisements in predefined areas on the result pages.

 Google shows ads in two areas-top and bottom.

 Maximum four ads can appear on the top and three at the bottom.

 It is not necessary though that search engines will display all potential ads on the results page.

 Why do search engines lose out on potential revenue then?

 The reason is that there is the high cost of serving ads.

 The entire algorithm is optimised for the probability of click the advertisers pay only when they receive
a click.
 Hence, search engines show ads only when the probability or click is higher than the threshold level.

 https://support.google.com/google-ads/answer/1704373?hl=en (Where your ads can appear on Google)

 Page Top slots Other slots

Page 1 Ads 1-4 Ads 5-7

Page 2 Ads 1, 2, 5,6 Ads 3, 8-10

Page 3 Ads 1, 2, 7,8 Ads 4,11-12

Appearance of ads on Google SERP

 Understanding Ad Placement
 Top
 The top position is considered as the prime location in Search Engine Results Page
(SERP).
 How many times do we go to the second or the third page of the results?
 Click rates are high for them and are drastically reduced for below the scroll and
subsequent pages.
Understanding Ad Placement
Understanding Ad Placement
 Why Pay for Search Advertising?
 Side
 Google showed ads on the side too.

 The side had only ads and no organic results, so users naturally paid more attention to
the results of the main section (left and less to results on the side (right)).
 Left side ads are called native ads as they come in the same place where organic results
come.
 Right side ads have been discontinued to align the user experience on the desktop with
mobile.
 The click rates of right side were very low as they were not native.
Why Pay for Search Advertising?
Understanding Ad Placement
Understanding Ad Placement
 Understanding Ad Placement
 Bottom
 Google categorises the bottom ads as 'others.

 The other ads are unique for each page of the results Google does not repeat ads shown
in other slots rather would show newer ads in subsequent pages.
 Ads in the other slot, however, may get shown in the top slot in one of the result pages.
Understanding Ad Placement
 Ad Rank
 Ad Rank is the position at which the ad appears in the search engine results.
 A study by Chitika (2013) has shown that results that appear in the top three positions
combined attract more than 60 per cent of traffic compared to all other results.
 The traffic decreases exponentially as we go down the PageRank.
Ad Rank
 Basic Ad Auction Model
 Do you know that Google is not the first search advertising platform?
 Overture was one of the early players in the market; it launched paid search advertising
service in 1998.
 Google launched its paid advertising do-it-yourself platform-AdWords-in the year 2000.
 In 2003, Yahoo! acquired Overture.
 Basic Ad Auction Model
 The initial auction model ranked ads per bid amount placed by an advertiser for the
keywords
 However, it was not successful

 This model leads to bidding wars

 Suppose one bids Rs. 2 for the keyword grocery shopping. To outrank this bid, their
competitor raises the bid by Rs. 1.
 This practice is especially unfair to small businesses

 The second problem with this model is that the quality of ads is not considered.
Ultimately resulted in a bad user experience.
 Basic Ad Auction Model
 Google launched Quality Score measurement system in 2005, which reduced the
importance of bid amount in determining Ad Rank
 The Ad Auction Model

 The algorithm of Google search ads is as follows:

 Ad Rank = Maximum bid x Quality Score
 Although Google does not provide weights of the components of Quality Score, but some
analytics companies have analysed the Quality Score of large scale number of keywords
and drawn some inferences about weights. (Relevancy, Landing page, CTR (Click Through
rate))
 Basic Ad Auction Model
1. Setting the right Bids
 A search engine gives the option to set the maximum amount that will be spent on each
ad.
 Advertisers must explore options to set their ad bid amounts manually.
 It is important to remember that bids are set for keywords and would apply to all the ads
that are configured for that keyword.
 The buying model in search advertising is CPC
 Basic Ad Auction Model
1. Setting the right Bids
 Search engines give an estimated bid amount for each keyword.

 One may start bidding at 70 per cent of the suggested bid and gradually raise it if the ad is
either not showing or showing at lower positions than desired.
 Search engines also send an alert, irrespective of whether the bid amount one has selected
is enough to show their ad or not.
 Basic Ad Auction Model
2. Quality Score
 The quality score consists of three components (i) Landing page. (ii) CTR, and (ii)
Relevance.
 Landing Page Each ad has a target URL configured for it which upon clicking takes the
customer to the landing page. (The content of the landing page must match the ad)
 Expected Click Through Rate Once the ad starts showing, click through rate (CTR) is the
feedback that the user is giving to the search engine.
 Relevance Search engines give importance to relevance since high relevance indicates better
user experience. (whether the search query of the user matches with the keywords and
whether the keywords are appearing in the ad headlines and description)
 Why is Ad Rank Important?
 Psychological factors influence consumers to click on ads.
 Primacy Effects - Serial position effects have been described as the effect of the position
of the items on a list on the chances of an individual recalling them.
 Competition for Attention Theory - The competition for attention theory explains biases
in information processing. Djamasbi et al. (2010) find that the position of a particular
item has an influence on the individual's choice to process it. As Faraday (2000) suggests,
individuals tend to consider items higher up on the list as more important.
 Information Overload - Information overload is the phenomenon of what happens when
one receives too much information. User simple use heuristics and using fewer numbers
of options (Payne, Bettman, and Johnson, 1988, 1993 Timmermans 1993).
 Creating AD Campaign
Architecture of Search Advertising Account
 Google provides an online platform called AdWords to create and manage one's online
advertisements.
 Now Google Ads

 Advertisers must create an account to use Google Ads

 Create separate campaigns for different product lines or services.
 For example, an online grocery store can have separate campaigns for each of the product
categories like home care products', personal care items.
 Within the product category of home care, each sub-category such as detergents, cleansers
could be different ad groups.
 Architecture of Search Advertising Account
 Each ad group should have related items since the set of keywords is defined at ad group
level.
 One might create a separate campaign for each location.

 Similarly, if one is running discounts on certain products and wants to allocate greater
budget to advertise that product, then they should run it as a separate campaign as the
budget setting can be done only at the campaign level.
https://www.wordstream.com/blog/ws/2017/05/02/adwords-account-structure-guide
 Architecture of Search Advertising Account
1. Google Ads Account

2. Campaigns
 The daily budget which allows to set a maximum daily expenditure possible for the campaign.
 One can have multiple campaigns region-wise to save cost. (Mumbai – more target audience)
 The bidding rates for keywords will be different in different markets. (higher in metro cities )
 One can choose to show ads only on Google or on all search partners. (default it is both)
 Advertiser can choose among cost per click (CPC) (most popular), cost per acquisition
(CPA), or cost per lead (CPL)
 Another important setting is location. (i) geographical location (ii) location of interest by user.
 Architecture of Search Advertising Account
3. Ad Groups
 Each campaign is made up of one or more ad groups
 An ad group is a bundle of keywords and ads
 The best practice is to have 10-15 tightly themed keywords in an ad group.
 An important setting done at the ad group level is default bid
 One can also set bids for individual keywords
 E.g. The company is a large corporation with global operations and many divisions, for
example, Samsung, for which keywords can be runs into millions, so selection of bids for
individual keywords may not be possible.
 Architecture of Search Advertising Account

4. Keywords
 Keywords are the single most important component of the search advertisement
 Appropriateness of keywords
 Poor choice of keywords
 Keywords should be relevant to the search term as well as the ad
 Keywords can be short tail or long tail

 Short tail: few keywords with high search volume

 Long tails: Phrases which has small search volume but together they add up to significant per
cent of all searchers.
https://seopressor.com/blog/short-tail-or-long-tail-keywords/
https://raventools.com/marketing-glossary/short-tail-keywords/
https://www.bounteous.com/insights/2011/11/08/using-long-tail-keywords/?ns=l
https://seopressor.com/blog/short-tail-or-long-tail-keywords/
 Display Advertising
 Picture Superiority Effect (PSE) is a phenomenon which drives display advertising.
 According to PSE, the human brain is more likely to remember images and pictures than
words.
 The company developed interactive display banners and coupled them with tailor made
content aimed at engaging with customers across different websites.
 Google Display Networks (GDN) to channel all its online resources towards driving
prospective customers to showrooms.
 Trends: Display Advertising
 Average time spent on the website by audience tripled
 Number of website visitors increased by 60 per cent year over year (YoY).

 Bounce rate on the website dropped from 65 per cent to 1.5 per cent.
 5 per cent of the leads in the year came directly because of display advertising.
 https://www.ibef.org/industry/advertising-marketing-india.aspx (Advertising and
Marketing Industry in India)
 https://support.google.com/google-ads/answer/2404190?hl=en (Google Display Network)
 Concept of display advertising
 Display advertising is a type of online advertising that comes in several forms, including
banner ads, rich media and more. Unlike text-based ads, display advertising relies on
elements such as images, audio and video to communicate an advertising message.
 Display advertising refers to the act of communicating the advertising message using
visually rich media.
 Display advertising (banner advertising) is a form of advertising that conveys a commercial
message visually using text, logos, animations, videos, photographs, or other graphics.
Display advertisers frequently target users with particular traits to increase the ads’ effect.
 Display advertising is very powerful in creating awareness as it is a push medium
Concept of display advertising

Flash ads are interactive web banners made with Adobe Flash
that can feature complex animations, movies and sound. This
technology became extremely popular online because of how
it can react to users. For example, an entire ad can transform
into a full multimedia experience—all with a simple mouse-
over

https://www.youtube.com/watch?v=kuiN90RI2Vs (flash ads)

Concept of display advertising
HTML5 is a markup language used for structuring and
presenting content on the World Wide Web. It is the fifth
and latest major version of HTML that is a World Wide
Web Consortium recommendation

HTML5 ads are ads that use HTML5 files created in

Google Web Designer to create attention-catching,
interactive ads. You can design and build HTML5
advertisements and other web content in Google Web
Designer's integrated visual and code interfaces, then
export and upload the files in .
 Concept of display advertising
HTML5 ads are the replacement for Flash-based ads that designers
often built when they wanted to use animations or interactivity in their
design. Flash was used extensively from the early 2000s through to
2016. Flash support started falling considerably after 2010 due to
mobile operating systems like Apple’s iOS not supporting Flash, and
Google’s Android having limited support.

HTML5 ads enable animation, and interactive content, but are also
responsive/adaptive, meaning that your design will look good across
any browser, OS, or device. Since HTML5 ads are based off of
HTML5 code, any device that can render HTML5 can render your ad
as well.
https://www.youtube.com/watch?time_continue=29&v=YgI_z783zpY&feature=emb_logo
https://www.youtube.com/watch?v=jHE8367pfCs&feature=emb_logo
 Display Advertising Media
 Do you know that ads on TV and print are also a form of display advertising?
 The most important objective of display advertising is awareness and brand building.

 For awareness, the most important requirement is Reach. The metrics for measuring the
reach is different in different mediums of display advertising.
 Print Media - circulation or number of readers
 Television - the number of viewers

 Digital - both via mobile and website - unique users and page views
 Display Advertising Media
 Unique Users
 Unique users are distinct individual users who have visited a particular site.
 This number is tracked based on either the cookie ID of the browser or the IP address
 Whenever someone opens a website for the first time, a cookie is stored in the browser of the
device they are using

 Page Views
 Whenever an individual visits a new page on a website, it is considered as a page view
 Page 1 The first time you open a page on Yahoo

 Page 2 Now, if you click on any link on this page and it redirects you to another page
 Page 3 From Page 2, if you jump to the News section of Yahoo
 Display Advertising Media
 Page Views and Unique Visitors – which is important ?
 Page Views and Unique Visitors both are equally important for the long-term growth of any
website.
 If asked to choose one, you should choose based on the type of website you are running
 Company and looking for brand building, and then Unique Visitors are important
 If you are a publisher or a blog and in the phase of increasing your revenue, then Page
Views are more important
 Display Advertising Media
Website Total Unique Total Pages Viewed(MM) Average Page per Visitor Total Minutes (MM)
Visitors(000)
YOUTUBE.COM 34,299 2,165 63 3,094
FACEBOOK.COM 53,498 15,562 291 11,855
Yahoo! Sites 40,106 2,725 15 2,615
Yahoo! India Homepages 23,768 258 11 228
Yahoo! Mail 20,598 1,492 72 1,359
Yahoo! Cricket 3,800 42 11 28
The Times of India 12,140 156 13 131
The Times Of India-Cricket 759 4 5 3
The Economics Times 4,552 55 12 72
GAANA.COM 2,787 57 21 55
ZIGWHEELS.COM 2,208 12 12 8
MAGICBRICKS.COM 1,242 15 6 16
Rediff.com India Ltd 14,353 778 12 411
Indian Railway 11,761 481 54 297
LinkedIn 9,079 232 26 171
FLIPKART.COM 8,149 154 19 107
 Digital Metrics
 Ad Impressions - An ad impression is recorded whenever an ad is displayed on the user's
screen through your website.
 The number of times an ad is displayed.
Ad Impressions
Ad Impressions
 Digital Metrics
 Clicks
 A click is counted whenever a user clicks on an ad. Upon clicking, it redirects the user to the
landing page.

 CTR
 CTR = (clicks/Impression) * 100

 Category
 The product category for which the ad is being displayed is an important factor to decide the optimal
CTR. (Product categories such as automobiles, mobile phones, laptops – higher CTR; categories such as
grocery, cosmetics, B2B products/services, etc. – lower CTR)
CTR in different countries in Asia
 Digital Metrics
 Creative
 Eye catching creative banners are the heart and soul of display advertising.
 Creativity in design may include using rich audio visual media, interactive banners, dynamic
banners, personalised banners or integrating video players into the banners.
 Digital Metrics
 Placement
 A beautifully designed as placed at the wrong placed might not yield results as expected.
 Placement is as important as creativity.
 For example, the ad about weight loss, if placed on a car review portal will not deliver results.
 Selecting the right category of websites to advertise is critical to success.
 Types of Display Ads
 Format
 Image Ads - An image ad consists of an image that you provide featuring information about your
business, services, or products.
 Rich Ads

 Video Ads

 Display size
 Medium rectangle

 Large rectangle
 Leaderboard
Ads put on various sizes based on the availability of space on the website.
Medium Rectangle
Large Rectangle
Leaderboard
Half Page
Large Mobile Banner
Skinning/ Takeover
Large Format Ads
 Buying Models
 Cost per Click (CPC)
 ?????

 Cost per Milli (CPM)

 Cost per thousand impression –
 Brand building process

 Cost per Lead (CPL)

 For acquiring leads

 Cost per Acquisition (CPA)

 An amount you pay for acquiring a customers who buys your products

 Fixed cost /Sponsorship

 You pay fixed cost per day irrespective of number of impression (YouTube home page banner ads are sold on fixed cost model)
Buying Models
Trade-offs in Buying Models
 Reference
 https://blog.bannersnack.com/display-advertising-guide/
 https://www.bannersnack.com/templates.html

 https://www.kasatria.com/basics-of-online-marketing/what-is-display-advertising#.XT8bW
vIzbIU
Display ads are most effective when serving three specific purposes:
 Display Plan

 Marketers need to prepare a display media plan which must include the
following:
 Site
 Section
 Ad size
 Impressions
 Rate
 Cost
Display plan Process

TG = Target group
 Display Plan
Site Section Ad Unit Impressions Duration CPM Cost
 2 days in
Home Page LREC Expando  1,750,000  150  INR 260,000
rotation
Movies LREC  500,000  6 Weeks  180  INR 95,000
Yahoo
Mail Super Roll Over  1,500,000  3 Weeks  75  INR 115,000

Messenger LREC  1,000,000  3 Weeks  180  INR 175000

Yahoo Total            INR 645,000

Listen Jingle + Branding  100000  1 Month  

In.com ROS (run of site) LREC  1,500,000  4 Weeks  
Home Page Takeover  200,000  1 Day    INR 700,000
IBN Live + Buzz18 Home Page Innovation  1,200,000  2 Days  
IBN LIVE Home Page Site Capture  500,000  1 Day    INR 150,000
 3 days on
Home Page 300×250 Expandable  750,000  175  INR 133,000
rotation
MSN
Hot Mail Roll Over  800,000  4 Weeks  130  INR 102,000

ROS = Page may run on any page of website

 Programmatic Digital Advertising
 “Programmatic” ad buying typically refers to the use of software to purchase digital advertising,
as opposed to the traditional process that involves RFPs (request for proposal), human
negotiations and manual insertion orders. It’s using machines to buy ads, basically.
 https://publift.com/what-is-programmatic-advertising/ ( Video)
 Efficiency
 Programmatic advertising is automated buying
 The buying take place in real time and follows a bidding model
 RTB – real time bidding
 Bidding take place for ad spaces in the publisher’s webpages
 Most recent development – automation
https://clearcode.cc/blog/what-is-an-ad-server/ inserver)
(Ad the field of display advertising
Programmatic Digital Advertising

https://www.emarketer.com/content/us-programmatic-ad-spend
ing-forecast-2019
 Programmatic Digital Advertising
 Programmatic buying - shift – contextual targeting to audience targeting
 E.g. A car brand –

 Car portals,
 Instead,
 Target audience, who have visited car portal at least once

 Visited finance site at least once in the last one month

 Booked a travel ticked least once in the last one month
Key inputs: Programmatic Digital Advertising
 Programmatic Digital Advertising
 The user requests for a webpage, which means there is a potential to show ad impressions
to the user.
 Every time a user requests for a page, ad exchange holds a live auction.

 On behalf of the publisher, Supply Side Platforms (SSP) send a bid request to the Demand
Side Platform (DSP).
 DSP examines the potential impression in terms target audience, context match, and returns
a bid amount based on its value to advertiser.
 Winning bid is chosen by the ad exchange and that ad is shown on the publisher's website.
 Ad exchange
 An ad exchange is a technology platform that facilitates the buying and selling of
media advertising inventory from multiple ad networks. Prices for the inventory are
determined through bidding. The approach is technology-driven as opposed to the
historical approach of negotiating price on media inventory.
Process: Programmatic Digital Advertising

Source: Adapted from

https://blogs.adobe.com/digitalmarketing/advertising/15-years-of-defining-programmatic/. Retrieved on
Players in Programmatic Advertising Ecosystem
 Players in Programmatic Advertising Ecosystem
 Publishers
 Publisher who have ad impression

 E.g. a blog is having 10 million followers

 E.g. Website with 10000 unique visitors daily

 E.g. mobile application having 50000 users

 Publisher sells ad inventory to the advertisers.

 Advertising inventory is the number of advertisements, or amount of ad space, a publisher
has available to sell to an advertiser. Ad inventory is often calculated by the month. The
term can refer to ads in print or other traditional media but is increasingly used to refer to
online or mobile ads.
 Players in Programmatic Advertising Ecosystem
 Supply Side Platform (SSP)
 A technology platform which enables the publishers to manage their ad impression
inventory and maximize revenue from digital media.
 SSP is a yield manager of the publisher.
 It integrates multiple networks together. It shares the context of the webpage, such as
topic, keywords, page URL and the profile of the user such as demography, location,
device and browser behavior with the DSP and requests the DSP to bid for ad impressions.
 SSPs - LiveRail, OpenX, Rubicon Project, Double Click for Publishers, PubNative and
AdJuggler.
 Players in Programmatic Advertising Ecosystem
 Demand Side Platform (DSP)
 A platform that allows advertiser to buy the inventory from various ad exchanges and
data exchange accounts through one interface called RTB.
 The DSPs represent the interest of the advertiser and attempt to find the most efficient
impressions given the constraints imposed by the advertiser.
 DSP companies are Double Click for Advertisers, Rocket Fuel, Turn, Appnexus.
Mediamath, Double click, and Audience science.
 Players in Programmatic Advertising Ecosystem
 Data Management Platform (DMP)
 It is used by publishers and buyers to store and manage audience data from multiple
sources. These sources include publisher’s websites, apps, videos etc.
 Players in Programmatic Advertising Ecosystem

 Ad Server
 There are Ad server technology companies that will host your ad and give independent
reporting, analytics and verification of display of ads.
 An ad server is a piece of advertising technology (AdTech) that is used by publishers,
advertisers, ad agencies, and ad networks to manage and run online advertising
campaigns.
 Ad servers are responsible for making instantaneous decisions about what ads to show
on a website, then serving them.
 How Ad Server works

https://epom.com/resources/img/news/how-ad-server-works-pic-5.png
 Players in Programmatic Advertising Ecosystem
 Ad Exchange
 Ad exchange brings together buyers and sellers to buy and sell online ad inventory in an automated
manner. Like a stock exchange, real time auctioning for ad spaces on publisher websites happens in an ad
exchange.

 Open Exchanges
 Ad exchanges open for everybody on the web. There is no restriction on the purchase of inventory
available in these exchanges.

 Private Exchanges
 An exchange wherein a group of publishers pooled up to sell their advertising inventory only through
select agencies or to reputed companies.
 Analytics Tools
 View ability – As per Integral Ad Science & Media Rating Council Data in 2015 57% of
display ads were not viewable.
 50 per cent of ad pixel should display for minimum for one second in image ads and 2
seconds for video ads for an ads to be considered viewable.
 Tools such as Integral Ad science and MOAT provide matrices such as in-view
impression, out-of-view impression and viewable rate.
 Analytics Tools
 On Target Reach - these tools determine accuracy based on real people logins across
mobile and desktop.
 Tools – “Atlas” provide on target reach publisher wise; Nielsen DAR do cross device
measurement and provide reach overlap report.
 Analytics Tools
 Ad Fraud - the deliberate practice of serving ads that have no potential to be viewed by a
human.
 Offenders of ad fraud are criminal gang

 Publisher with higher CPM rates are more susceptible to trust

 Create millions of impression but not one there to view

 Ended with high charges

 Analytics Tools
 Ad Fraud
 Domain Identity Theft This is a form of fraud where fraudsters add a fake URL into
the ad unit, fooling the auction into believing that an ad will appear on an acceptable
site that it will not end up on.
 Click/Impression/Conversion Fraud This is when fraudsters mechanize clicking,
viewing or converting on ads. Click farms exist where people are paid to sit and click,
view, or convert on ads through desktop and mobile devices.
 Bot Activity This is when robots carry out similar actions by masking IP addresses
through advanced algorithms. Malware can be installed on computers, giving fraudsters
the power to control what domains a computer visits and the ads it views.
 Analytics Tools
 Ad Fraud
 Ad-stacking This is when multiple ads are served within the same placement. This
method tricks ad servers, as each of the ads is served; however, they are stacked beneath
each other so the advertiser's message is often not viewable.
 Pixel Stuffing when an ad of say 300 x 250 pixels is crammed into 1 x 1 pixel size
which makes it appear on page but is invisible to human eye.
 Analytics Tools
 Brand Health - the process and controls implemented to protect advertisers from having
their ads appear alongside content that could damage their brand or reputation.
 Integral Ad Science tool assigns brand risk scores to prevent brand from getting
compromised.
 YouTube Advertising
 You Tube is the second largest search engine in the world behind Google search
 Marketers on YouTube have two broad areas of participation: (i) YouTube channels, and
(ii) YouTube ads.
 YouTube Channel
 Companies can promote their brands and products by creating quality video content and curating it into a
YouTube channel or profile. This will aid discovery and engagement whenever someone searches for
relevant content on YouTube.

 YouTube Ads
 YouTube allows you to Capitalize on the millions of partner videos already present on YouTube, by
targeting your display ads to relevant videos. These ads are available in two different formats.
 YouTube Advertising
 Display Ads
 These ads appear next to your video while you are using YouTube on a laptop or a desktop. This ad
format not available on the mobile device and can be purchased in both CPC and CPM formats.

 Overlay Ads
 An overlay ad appears in a rectangular format in the bottom 20 per cent of the video. It is available only
on a laptop or a desktop and not on a mobile devices, TVs, game consoles, etc. Viewers can dismiss the
ad anytime and can be purchased only in the CPC model.
YouTube Display Ad
Overlay Ad
 YouTube Advertising
 Skippable Ads
 Skippable video ad is the most popular advertising format on YouTube.

 Viewers can skip the ad after watching it for five seconds.

 It can be inserted before, during or after the video and is available on desktop. TVs, gaming consoles and
mobile devices.
 It has a very unique buying model wherein the publisher is paid only when a user watches 30 seconds of
the video or till the end of the video - whichever comes first.

 Non Skippable Ads

 Ads are 15-20 second long video ads which can be inserted before, during or after the YouTube video.
For these ads, the publisher gets paid only when a user fully watches the ad.
Skippable Ads
Non Skippable Ads
 YouTube Advertising
 Mid-roll Ads
 Available only for videos over 15 minutes,

 Mid-roll ads are spaced between the video similar to TV commercials.

 For better viewing experience, publishers can choose to place their ads at natural pauses between the
scenes.
 They are available only on desktop and mobile versions and not on game consoles, TVs etc.

 Further, these mid-roll ads could be skippable or non-skippable ads and the pricing model is as per the
chosen format (i.e., skippable or non-skippable).

 Bumper Ads
 Lightweight, non skippable video ads up to 6 seconds long. They are especially optimized for mobile
devices.
Bumper Ads
 YouTube Advertising
 Native Mobile Ads
 Native mobile ads are display ads that appear in the same context as organic content. Only available on
mobile device. And can be bought on a CPC or CPM basis.

 TrueView video discovery ads

 TrueView video discovery ads can run on the YouTube search results and watch pages for both desktop
and m.youtube.com, as well as the mobile app homepage.
 You are charged whenever a user clicks on a video ad thumbnail or title and begins watching your ad
video.
 The ad unit consists of an image thumbnail and up to three lines of text.
Native Mobile Ads
TrueView video discovery ads
 TrueView video discovery ads

Android
(Portrait) iOS (Portrait)
TrueView video discovery ads
 YouTube: Buying Models
 Cost Per View (CPV)
 Cost Per View (CPV) CPV is the amount you pay for your true video ads. With CPV bidding, you will
pay for video views or interactions (such as clicks on call-to-action overlays).
 A view is counted when someone watches 30 seconds of your video ad (or the duration if it is shorter
than 30 seconds) or interacts with the ad, whichever comes first.

 True View Instream Video

 The viewer watches your ad completely (if ad length less than 30 seconds) or watches at least 30 seconds
of your ad (if ad length greater than 30 seconds).
 The viewer performs a desired action on the ad i.e., clicks on the ad.
 YouTube: Buying Models
 Actual CPV As an advertiser, you always do not pay the max CPV amount. As it is a
competitive bidding model, you might often strike deals at a lower price relative to your
max CPV. This price at which you strike a deal (i.e., the actual amount you are charged) is
called the actual CPV. The actual CPV you pay depends on two factors.
 Quality Score

 Ad Rank
 Ad rank = Max. CPC * Quality Score
 YouTube: Buying Models
 Reserved Media Placement
 Follows the fixed pricing model
 Highly beneficiary if marketer wants to develop instant brand awareness
 E.g. new product commercialisation
 E.g. Entering in to new market

 There are two mode of RMP

 CPM
 There are two formats
 CPD – Cost per Day
 To be booked couple of week advance,
 Creative have to be delivered nine business day advance
 There are two formats
 YouTube: Buying Models
 CPM
 Standard in- Stream
 Non skippable video ads that play before the user play actual video
 Can be of 15 to 30 seconds

 In-Stream Select
 Skippable ads that play before the user play actual video
 Can be up to 30 seconds
 User allow to skip after 5 seconds
 YouTube: Buying Models
 CPD – Cost per Day
 To be booked couple of week advance,
 Creative have to be delivered nine business day advance

 There are three formats

 Desktop Custom Masthead

 970*250 pixel ad unit that snaps the entire breath of the YouTube home page below the navigation bar

 Desktop Universal Video Masthead

 Include flash information panel on one side and a video panel on the other side.
 Standard size 780*195 pixel

 Mobile Video Masthead

 Mobile tablet only
 Video head line, description, channel name,
Desktop Custom Masthead
Desktop Universal Video Masthead
Mobile Video Masthead
 YouTube Ad campaign
• How to pause, resume, or remove an AdWords campaign
• https://www.youtube.com/watch?time_continue=5&v=L-sdsB
B-NEk&feature=emb_logo&ab_channel=GoogleAds