1. Digital Advertising – Display, Search, Video,
Mobile, Social, Affiliate
April 1st 2014
Vinogradovo, Russia

2. 1. Traditional vs digital media advertising
2. Digital advertising terminology
3. Digital advertising format basics
4. Digital ad pricing models
5. Audience metrics and targeting
Agenda

3. What are the most important differences?
What are the main benefits and downsides?
How has changed the way your sales
department works?
How will your sales department look like in a
near future?
Traditional vs digital media advertising

4. Traditional vs digital media advertising
Quantitative „Reach“ Model
 spreading a commercial message
to audience as large as possible
in hopes of connecting with
qualified customers who happen
to be receptive to it
Qualitative „Targeted“ Model
 enables to target a selected
prospects and to monitor their
response rates
Masses of unknown eyeballs
VS
Highly specific and traceable audience

5. Digital media advertising: Pros & Cons
Benefits
• Cost
• Measurability (real-time)
• Formatting
• Targeting
• Coverage
• Speed/Flexibility
Concerns
• Banner blindness
• Fraud on the Advertiser
• User annoyance
• Ad-blocking
• Privacy Concerns
• Spam

6. Traditional media advertising: Pros & Cons
Benefits
• Recipients are
accustomed to ads
• Reach to local audience
that is not online
• Special training/device
not required
Concerns
• Cost (high overhead costs are
outweighed by high profit
margins)
• Difficult to measure and target
• Static (pre-
produced/scheduled)
• No interaction, one-way
communication

7. Digital Advertising Terminology
Ad rotation
Ad view/Ad impression
Capping
Clickthrough (CTR)
Click rate
Cookie
Display ads
Filtering
Inventory
Native advertising
Targeting
Unique visitor
Visit
KB Glossary: http://www.kbridge.org/ru/glossary/

8. Digital media advertising value chain
Buy Side
Infrastructure
and Delivery
Sell Side
Media Agency
Demand Side
Platform
Ad Exchange
Ad Network
Supply Side
Platform
Publisher

9. Evolution of display ad trading
Source: IAB UK, http://www.youtube.com/watch?v=1C0n_9DOlwE

10. Digital Advertising Essentials
Ad Types
Text or Link Ads
Display Ads
Rich Media Ads
On-Site Sponsorship
Advertorial
Directories
Mobile Ads
Affiliate Marketing Ads
Search Advertising
Social Media Ads
Delivery Methods
Display advertising
Search Engine Marketing (SEM)
Social Media Marketing
Mobile Advertising
Email Advertising
Online Classified Advertising
Affiliate Marketing

11. Digital Advertising Formats
source: IAB.net - http://www.iab.net/guidelines/508676/508767/displayguidelines

12. Digital Advertising Pricing
 Fixed costs (a flat fee over a specified period of time,
irrespective of the ad's visibility or users' response to it)
 CPM (Cost per mille) or CPT (Cost per thousand)
 CPC (Cost Per Click) or PPC (Pay Per Click)
 CPA (Cost Per Action)
 CPV (Cost Per View)

13. Digital Advertising Pricing
 Fixed costs/time-based pricing - does not reflect growth in
audience, easily overbooking ad inventory, adding new ad units
 CPC (Cost Per Click) or PPC (Pay Per Click) – ads are shown,
they increase awareness of advertiser, but you get paid only for
clicks
 CPA (Cost Per Action) – unpredictable income, you lose
visibility into revenue earned, no control on conversions
None of these is recommended pricing model
for display ads on premium content sites

14. Digital Advertising Pricing
Recommended Pricing Model for Display Ads
CPM (Cost per mille)/CPT (Cost per thousand)
 for every display ad you serve you make money (regardless of
clicks, leads, or other action), every visitor makes you earn
money;
 you know exactly how many ads you serve, and therefore
exactly how much you’re owed from your clients;
 stable stream of earnings; if you can predict your traffic, you
can predict your revenue.

15. Audience Measurement
Site-Centric - Third-party technology (a tracking code) or
self-reported website server logs collect audience metrics
for a specific site, often by analyzing cookie/browser/log
file data from each visitor.
User-Centric - Each person studied has joined a panel
and/or installed tracking software to allow a third-party to
collect their usage statistics.
Ad-Centric - Data are used to quantify the advertising
exposures delivered to the audience of a single site by
analyzing data from ad server logs.

16. Audience Measurement
Each measurement type has distinct advantages, though none
alone captures the full range of market-relevant and media-
relevant activities of consumers. No industry standard for
online activity measurement yet exists.
Hybrid approach to audience measurements - uses fusion or
other techniques to incorporate findings from a variety of
other sources, to correct errors and plug gaps (e.g.
integrating both consumer panels and site-centric
measurement).
Leaders of research in Russia: TNS, comScore, Gemius

17. Audience Measurement: Key Metrics
Page Views - a request for a file that is defined as a page
Visit / Session - is defined as a series of page requests or, in
the case of tags, image requests from the same uniquely
identified client. A visit is considered ended when no
requests have been recorded in some number of elapsed
minutes.
Visitor / Unique Visitor / Unique User - uniquely identified
client (device or browser) that is generating page views or
hits within a defined time period (e.g. day, week or month).
The identification is usually via a persistent cookie

18. Online Advertising Targeting Methods
Targeting options
 date and time targeting
 geographical location of users (up to city/district level –
hyperlocal targeting)
 number of hits per user (based on a cookie and IP) -
capping
 bandwidth, browser, languahe settings, OS, connection
type, etc.

19. Advanced Targeting Methods
Retargeting - serving ads based on prior engagement, ads
appear on a variety of other sites, keeping a campaign in front of
bounced site visitors.
Social Media Targeting - refers to the process of matching social
network user’s profile to target groups that have been specified
by the advertiser.
Contextual Targeting ( “semantic” targeting) - Inferring the
optimum ad placement from information contained on the page
where the ad is being served.
Behavioral Targeting - using prior behavior on the part of the
viewer to determine which ad to show during a given visit.

20. Work on a client brief