Online advertising: simple slides that explain how it works

1. ADVERTISING
A world behind a word

2. Definition

3. • From
the
La+n
words
“ad
vertere”
("to
turn
toward”),
adver+sing
is
a
form
of
marke1ng
communica1on
used
to
OU
NC
E
E
AG
R
PERSUAD
E
MANIPULATE
an
audience
(viewers,
readers
or
listeners)
to
take
or
con+nue
to
take
some
ac+on.

4. Types of Advertising

5. •
•
•
•
•
Television
adver+sing
Music
adver+sing
Press
adver+sing
Radio
adver+sing
…
Online ADVERTISING
Increasingly,
other
media
are
overtaking
many
of
the
"tradi+onal"
media
because
of
a
shi:
toward
consumer's
usage
of
the
Internet

6. Advertising Online

7. Search engine
marketing
Uses the Internet to
deliver promotional
marketing messages to
consumers
Social
media
marke1ng
Display
advertising
Mobile
advertising
Email
marke1ng

8. It
involves
Publishers
Advertisers
Integrate
Provide
the
adver1sements
to
be
displayed
on
the
publisher’s
content
adver1sements
into
its
online
content
It’s
all
about
buyers
and
sellers,
and
how
they
transact!

9. AND
IN
THE
MIDDLE?

10. Publishers
• Popular
websites
and
portals
• Sell
ad
units
on
their
proper+es
Advertisers
• Buy
ad
units
on
publisher’s
proper+es
• Pay
for
each
ad
unit
“delivered”
Ad
Networks
• Aggregator
of
ad
spaces
supplied
by
publishers
• Acts
as
a
“broker”,
buying
the
publisher’s
unsold,
aggrega+ng
data,
and
selling
the
packages
to
the
adver+sers
Ad
affiliates
Ad
Exchanges
• “Sales
channel”
that
drives
traffic
to
adver+sers’
sites
• Categorized
based
on
how
they
drive
traffic
• Open
technology
plaWorm
for
trade
of
ad
units
• Provides
a
transparent
forum
for
all
par+es
in
the
ecosystem
to
coordinate
and
transact

12. ADVERTISER
Places
promo1ons
of
a
specific
product,
service
or
event
in
a
public
medium
to
aHract
poten+al
new
or
repeat
customers.
AGENCY
Represent
the
adver1sers,
and
helps
them
to
communicate
with
their
target
audience.
They
create
marke1ng
plans
and
adver+sing
campaigns,
considering
of
the
right
publishers
that
represent
the
right
audience.
MEDIA
PLANNERS
Within
the
agency,
they
work
directly
with
the
publishers
and
their
direct
sales.
Entails
finding
media
plaNorms
for
a
client's
brand
or
product.
It
involves
determining
the
best
combina1on
of
media
to
achieve
the
marke1ng
campaign
objec1ves.
NETWORK
Aggregates
and
buys
the
publisher’s
unsold
inventory,
and
categorizes
it
in
a
way
that
could
be
easily
consumed
by
media.
Similar
to
exchanges.
TRADING
DESKS
A
centralized,
service-­‐based
organiza+on,
typically
on
top
of
a
licensed
demand-­‐side
plaWorm
(DSP).
Manages
programma1c,
bid-­‐based
media
and
audience
buying
(so
it’s
connected
with
exchanges).
Works
as
an
agency’s
internal
“center
of
excellence”.
It’s
a
plaWorm
that
uses
data
and
technology
to
help
adver1sers
more
effec1vely
to
purchase
audiences
at
scale
across
digital
media.
A
trading
desk
is
integrated
with
ad
exchanges,
SSPs
and
networks.
DSP
Helps
the
buyers
(demand
side).
Demand
Side
PlaWorms
provide
centralized
(aggregated)
media
buying
from
mul+ple
sources,
leveraging
real
1me
bidding
capabili1es
of
said
sources.

13. PUBLISHERS
A
person
or
company
that
makes
content
(in
any
form)
available
for
consump1on,
for
free
or
for
sale.
THIRD
PARTIES
(audience
networks)
They
work
with
publishers,
and
they
focus
on
the
WHO,
iden+fying
and
targe1ng
an
audience.
This
audience
was
target
based
on
a
wide
variety
of
data
points.
Ability
to
target
a
specific
audience
upon
specific
interests
&
demographic
aHributes.
EXCHANGE
Ad
exchange
trades
the
(correct)
audience
rather
than
inventory
(as
network)
à
opportunity
to
buy
the
specific
audience.
They
bring
a
technology
plaWorm
that
facilitates
automated
auc+on-­‐based
pricing
and
buying
in
real-­‐+me.
Born
because
of
the
efficiency
needed
a^er
the
“network’s
boom”.
Some
publishers
sell
directly
on
the
exchange.
SSP
Other
publishers
invested
in
SSP
à
Sell
Side
PlaWorms
provide
outsourced
media
selling
and
ad
network
management
services
for
publishers,
op+mizing
the
selling
points
for
the
publishers.
The
SSP
provide
a
way
for
publishers
to
gain
control
over
how
their
inventory
was
being
sold
and
delivered
to
the
networks.
DATA
AGGREGATORS
An
organiza+on
that
collects
and
compiles
data
from
individual
sites
to
sell
to
others.

14. …HOW
TO
CONNECT
THE
WHOLE
THING??

15. GOALS
• Collect much more data as
possible;
• Get the ad in front of the
right person at the right time.
RELEVANT ADS IN FRONT OF
RELEVANT PEOPLE!

16. Data Aggregator gathers
data
from
the
desired
segment
across
various
networks.
From
there,
third-­‐party
data
companies
overlay
more
specific
informa1on
to
help
to
narrow
the
segment
to
its
most
ideal.
Once
the
Data
Aggregator
has
the
right
segment
for
the
Agency’s
client
(that
is,
the
segment
with
the
necessary
shared
a_tudes
to
meet
the
adver+ser’s
requirements)
the
agency
buys
the
segment.

17. The Agency then
puts
that
affluent
travel
segment
into
its
own
Demand
Side
PlaNorm
(DSP)
which
is
then
plugged
into
the
Ad
Exchange.
The
DSP
cookie
matches
the
segment
purchased
from
the
Data
Aggregator,
using
exis+ng
cookies
to
match
the
audience
to
the
ad.

18. The
DSP
is
used
to
FIND THE BEST USER
Why?
ADVANTAGE
DISADVANTAGE
Using
a
DSP
takes
less
The
agency
and
the
manpower,
since
it’s
adver+ser
won’t
typically
completely
automated
and
know
which
sites
the
ads
was
built
specifically
to
find
will
run
on.
the
best
audience.

19. Everybody wins!

20. The Agency did its job on behalf of its client,
whose ads are now reaching their best audience;
The Publisher happily accepts more relevant
advertising for their audience;
The users now get -and click on- a relevant ad,
thanks to an advertising process based on relevance.

21. The (super complex) Ecosystem boxing

24. Goal:
SIMPLIFICATION

25. Red
for
publishers
Blue
for
adver+sers
and
buyers
Purple
for
companies
that
sit
between
them
("aggregators”)

26. WHICH ARE
THE DIFFERENT
POSSIBLE FORMATS
FOR ONLINE ADS?

27. www.ovk.de
Boring

28. www.ovk.de
Super Boring

29. THE FUTURE:
transforms boredom
into pleasure

30. Irene De Nicolo
Business intern at
Pixelplant GmbH
Twitter: @irenelladn89
Email: irene@uxebu.com