CHAPTER 5

Display Advertising: The Basics

Agenda

 Display advertising overview

 The evolution of display advertising
 How display advertising works
 Ad networks, ad serves, and ad exchanges
 Digital display options
 Getting the most out of display

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Key Terminology Check

 Impressions
 View-through
 Attribution and engagement
 Ad exchanges
 Ad networks
 IAB and IAB standards
 Viewability and targeting
 Retargeting and remarketing

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Display Advertising - 92

The second largest channel by revenue

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(after search)

An extremely versatile channel that can

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be used for branding and awareness

Innovations and nuances behind

3 targeting, demographic, contextual, and
behavioral

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 Display Advertising – the 2nd Largest
Channel (and largest if you include video) 91

 Growth projections
for display
advertising,
including video

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Display Advertising – the 2nd Largest
Channel (and largest if you include video) 92

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Market Sizing by Ad Format

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And Display has High Growth (thanks to In
Stream Video)

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And Display has High Growth (thanks to In
Stream Video)

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U.S. Display Ad Spending Growth Will
Continue to Outpace Total Internet Gains

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U.S. Display Ad Spending Growth Will
Continue to Outpace Total Internet Gains

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The Big Three Account for the Majority of
Online Display Ad Inventory

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The Big Three Account for the Majority of
Online Display Ad Inventory

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High Level of Concentration in Top Properties

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 The First Online Banner Ad

 Many early online display

ads weren’t clickable
 Hotwired decided to make
money from their website in
1994
 Created a 468 x 60 banner
for AT&T

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The First Interactive Ad

 Appeared in 1996 from HP

 Enabled the user to play a simple game of “Pong” associated with the HP
brand

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Evolution of the Ad Tech Landscape

 In the early days there were only a handful of technologies

required to get an ad from an advertiser onto a publisher’s website
 Ad market was a relatively small pie split between a few industry
segments with a handful of players
 DoubleClick launched in 1996, scaling ad operations and
performance

Ad Agency Ad Operations

Ad Serving

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Evolution of the Ad Tech Landscape (c. 2005)

 The addition of ad networks helped grow display advertising pay by

helping brands achieve greater audience reach along with
competitive pricing
 It also required stronger tools for measurement and analytics

Ad Agency Analytics

Ad Networks Ad Operations

Ad Serving

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 Evolution of the Ad Tech Landscape Today

 Many companies have developed new technologies to improve

market efficiencies and drive costs lower – a much bigger pie!
Ad
Ad Exchange
Networks DSP

Ad Data
Agency Optimization

Creative
$46+ Yield
Optimization
billion Optimization

Ad Data
Serving Aggregator

Ad
Operations Verification
Analytics

© Wessex Press, Inc. 19

  Display will grow at a faster rate
than search
 Video display ads are growing at

Why is a 29% CAGR

 Display is one of the few online

Online
mechanisms which can
consistently deliver branding
impact as well as direct sales

Display  Easiest medium for clients to

understand – the perfect

Important?
medium to drive engagement
and brand equity
 Expected to be driven more
quickly as clients move
marketing budgets online

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The Complexity of the Display Ad Ecosystem

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Display Measurement – Attribution
Attribution – most current measurement systems don’t go beyond the last
referrer

Conversion
Display Interaction Aggregator Search
User
path 1

Conversion
Search
User
path 2

Conversion
Search Display
User
path 3

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Display Measurement Funnel

Measuring impressions and interactions

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How Display Advertising Works -100

Deploying the ad
 Marketers planning an ad campaign need to identify their audience,
select the appropriate publishers, and develop their creative assets

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 Ad Standards and the IAB

 The Interactive Advertising Bureau (IAB) empowers the media and

marketing industries responsible for selling, delivering, and
optimizing digital advertising or marketing campaigns
 The trade group fields critical research on interactive advertising –
educating brands, agencies, and the wider business community on
the importance of digital marketing
 In affiliation with the IAB tech lab, it develops technical standards
and best practices

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Digital Display Options
 IAB standards first
introduced in 2003

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Digital Display Options
 The IAB Universal
Advertising Package
(UAB)

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 New Digital Display Options
The new IAB New Standard Ad Portfolio showcases revised standards that
include:
 Flexible and LEAN Ads
 Flexible Size Ad Specifications
 Guidance for LEAN Ad Experience
 Native Ads
 New Media Ads (emoji, video, 360 degree, virtual and augmented reality)

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What is an Ad Exchange?
 An open and transparent marketplace to facilitate buying and
selling on online ads
 The ideal exchange provides every buyer and seller with the tools
and controls they need to reduce risk and maximize return for
every single impression
 More often used to sell display, video, and mobile ad inventory

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Ad Exchanges vs. Ad Networks

 Ad exchanges are transaction platforms that help match

buyers and sellers.
 Ad networks typically act on behalf of a buyer or seller to
get the highest return or revenue respectively, using
proprietary network information to maximize yield.

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Ad Exchanges – Who Do They Benefit?

 Sellers: As much as 80% of a site’s ads goes unsold.

Exchanges help maximize the yield on ad inventory by
enabling sites to sell more of it and at a higher price.
 Buyers: Buyers struggle to find enough of the best
inventory. An advertising exchange brings together multiple
sellers of inventory (including ad networks) so buyers can
access and target the inventory that meets their campaign
needs.

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Display Pricing Models by Type - 101

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Double Click Ad Exchange Model
In a survey conducted by Forrester Research, Inc., 72% of online advertising
professionals who were not already using an ad exchange indicated that they intend to
do so soon.

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What Are Online Ad Networks?

An IAB video that explains the increasingly complex environment with

data now powering real time bidding and selling. This video aims to
demystify the display landscape in 3 minutes!
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 Banner Ad Best Practices

Careful thinking is Incentives are crucial to Testing by Jakob Nielson

necessary to get attention getting attention (UI guru) found 4 rules
and cut through the clutter that can help grab
attention for banners:

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Top Banner Sizes

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Rich Media Examples

 Polite banners allow the campaign banner to be almost unlimited file size as a
small image file is shown during the site loading and only after the site has fully
loaded does the rich media banner load in its place.

 Push down banners push website content down to make room for more banner
advertising space. Good for accommodating video player.

 Floating expandable banners are similar to push downs except as noted, they
cover up website content rather than move it out of the way.

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Impact Intrusion Matrix: You Don’t Have to
Annoy to Be Effective - 105

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 Survey Data on Intrusive Ad Types:
Users Like Control

Exciting Clear

Different Relevant Concise

Memorable
Informative

Source: Nielsen Norman Group, 2017 research, https://www.nngroup.com/articles/most-hated-advertising-techniques/.

© Wessex Press, Inc. 39

Getting the Most out of Display Creative - 106

Most viewable ad positions

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Using Display Features

Data capture

If users rollover the ad it expands to

present a form for them to fill in.

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 Ad on the NYT Home Page

Ad on the New York Times home page uses video, sound, large size,
and a tie-in with Star Wars to cut through the clutter

© Wessex Press, Inc. 42

Using Display Features

Banner ad expansions
If users rollover the
ad it expands to
present additional
content.

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Using Display Features

IKEA jams an entire store catalog into its ad

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Targeting is the Key to Success

Targeting provides deeper levels of segmentation

SEGMENTS / PERSONAS
ENHANCED SEGMENTATION
(behavioral, attitudinal, value)

Interests/ Life-event
Life Stage
Lifestyle Triggers

Just New Meno- Road Home Active Starting Job

Other…
married Baby pause Warrior Mom Wanabe New Job Interview

SEGMENTS / PERSONAS evolve based on:

 Behaviors – online and offline
 Improving attitudinal insights from
research  Attitudes – about life, family, etc.
 Improving overall data quality  Value – current, potential value long term
 Adoption patterns emerging from value
modeling …to create detailed sub-segments that will
 Improving value insights from benefit form highly targeted messaging,
modeling offers, etc.

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Different Targeting Methods

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Targeting is the Key to Success
Data helps advertisers better meet specific goals
Category of Data Why is it valuable? Specific data types

Provides insight on the setting in  Contextual (what content are they

which a consumer views an ad viewing)
Context (e.g., while reading a laptop  Day Part (when)
 Geographic (where are they)
review). Some think context
really matters.  System (with what device)

Allows marketers to direct ads to  Actions (purchases, click/buy

Behavior consumers based on actual history, views)
behavior (e.g., in the market for a  Preferences (affinities, interests,
Interests-Intent intentions)
house)

Personal Allows identification of

demographic & psychographic
 Demographic (who)
 Psychographic (market segment)
Identity segments

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Targeting is the Key to Success

The theory behind using data for targeting – good for all
(new media versus old media targeting)

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Retargeting and Remarketing

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Different Types of Targeting

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Horrible Ad Placements

Despite best practice in development and targeting, sometimes things just go

wrong…

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Horrible Ad Placements

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Horrible Ad Placements

And they happen in the real world too!

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