4. Tempted?
From Code to Product Lecture 6 — BM — Advertising— Slide 4 gidgreen.com/course
5. Lecture 6
• Introduction
• Types of targeting
• Price models
• Ad formats
• Ethical issues
• Web Sudoku
From Code to Product Lecture 6 — BM — Advertising— Slide 5 gidgreen.com/course
6. Traditional advertising
• Mass media
– Newspapers, magazines, TV, radio, outdoor
– Local or national, not global
• Big one-time purchase
• One message to all recipients
– No filtering or personalization
• Success measured indirectly
– Did sales increase this month?
From Code to Product Lecture 6 — BM — Advertising— Slide 6 gidgreen.com/course
7. Digital advertising
• Digital media
– Web, mobile, email, desktop
– Global in scope
• Pay as you go, small increments
• Messages targeted by recipient
– Filtering, personalization
• Success measured directly
– Views, clicks, actions
From Code to Product Lecture 6 — BM — Advertising— Slide 7 gidgreen.com/course
8. Underlining the difference
“Half the money I spend on advertising is
wasted; the trouble is I don't know which
half.”
— John Wanamaker, store owner
“Ninety-nine percent of advertising doesn't
sell much of anything..”
— David Ogilvy, advertising executive
From Code to Product Lecture 6 — BM — Advertising— Slide 8 gidgreen.com/course
9. US ad spending (+projected)
$70B
Web
$60B
Mobile
$50B
$40B
(world totals approximately double)
$30B
$20B
$10B
0
1996 2001 2006 2011 2016
From Code to Product Lecture 6 — BM — Advertising— Slide 9 gidgreen.com/course
12. How it works
• Direct sales
– Hard to find advertisers
– Transaction cost vs volume
• Ad networks
– Aggregate 1000s of publishers + advertisers
– Copy-paste code snippet
– Take 20%—50% of revenue
• Big sites use both
From Code to Product Lecture 6 — BM — Advertising— Slide 12 gidgreen.com/course
13. Top US online ad networks
From Code to Product Lecture 6 — BM — Advertising— Slide 13 gidgreen.com/course
14. Top US mobile ad networks
AdMob
(Google)
Other 24%
44%
iAd (Apple)
15%
Millennial
Media
17%
2011 figures
from IDC
From Code to Product Lecture 6 — BM — Advertising— Slide 14 gidgreen.com/course
15. Lecture 6
• Introduction
• Types of targeting
• Price models
• Ad formats
• Ethical issues
• Web Sudoku
From Code to Product Lecture 6 — BM — Advertising— Slide 15 gidgreen.com/course
16. Geography
From Code to Product Lecture 6 — BM — Advertising— Slide 16 gidgreen.com/course
23. Affiliate advertising
• Direct sales
– But no
transaction
costs
• Payment on
sale only
– Open to all
From Code to Product Lecture 6 — BM — Advertising— Slide 23 gidgreen.com/course
25. Real-time bidding (RTB)
• Most online ads bought in advance
– Volumes and targeting predefined
• RTB ads bought in real-time
– User visits page with RTB ad
– Impression auctioned to buyers
– Highest bid wins
• Works like an ad network
• 10% of display ads, projected 27% in 2015
From Code to Product Lecture 6 — BM — Advertising— Slide 25 gidgreen.com/course
26. Lecture 6
• Introduction
• Types of targeting
• Price models
• Ad formats
• Ethical issues
• Web Sudoku
From Code to Product Lecture 6 — BM — Advertising— Slide 26 gidgreen.com/course
27. Fixed price
• Predefine:
– Where ads will show
– Proportion of time
– Time period (week/month)
• Direct sales only
• No tracking required
– Advertiser can monitor performance
• Money left on table?
From Code to Product Lecture 6 — BM — Advertising— Slide 27 gidgreen.com/course
28. Cost per impression
• Priced in CPM = cost per mille (1000)
• Advertiser sets:
– CPM rate
– “Above the fold”?
– Limits per day, per user
• Popular for display advertising
– Viewing ad builds brand recognition
• Impression tracking
From Code to Product Lecture 6 — BM — Advertising— Slide 28 gidgreen.com/course
29. Pay per click
• Priced in CPC = cost per click
• Advertiser more flexible
– Click = user intent
• Popular for search advertising
– Auction between advertisers
• Impression and click tracking
– CTR = click-through rate
From Code to Product Lecture 6 — BM — Advertising— Slide 29 gidgreen.com/course
30. Pay per action
• Priced in CPA = cost per action (sale)
• Suits advertiser perfectly
– Only pay if you get paid
• Popular for affiliate advertising
– Any publisher will do
• Impression, click and conversion tracking
– CR = conversion rate
– Publisher forced to trust advertiser
From Code to Product Lecture 6 — BM — Advertising— Slide 30 gidgreen.com/course
33. Defaults and thresholds
• Defaults
– What to show if there’s no ad
• eCPM = equivalent CPM
– All you really care about
• Threshold
– Minimum required eCPM
• Fill rate
• Check the definitions!
From Code to Product Lecture 6 — BM — Advertising— Slide 33 gidgreen.com/course
34. Ad network example
From Code to Product Lecture 6 — BM — Advertising— Slide 34 gidgreen.com/course
36. Real-world eCPMs
Type of site Example 300x250 eCPM
Forum $0.25
Gaming $1.50
Fashion $4.00
Real estate $8.00
Local newspaper $10.00
Technology $15.00
Travel $20.00
Investments $40.00
From Code to Product Lecture 6 — BM — Advertising— Slide 36 gidgreen.com/course
37. Lecture 6
• Introduction
• Types of targeting
• Price models
• Ad formats
• Ethical issues
• Web Sudoku
From Code to Product Lecture 6 — BM — Advertising— Slide 37 gidgreen.com/course
38. Online banner sizes (IAB)
Full banner
468 x 60
Leaderboard
728 x 90
Wide
sky-
scraper
160 x 600
Medium rectangle
300 x 250
From Code to Product Lecture 6 — BM — Advertising— Slide 38 gidgreen.com/course
39. Banner ad code
<!-- Casale Media: 336x280, 300x250 (Rectangle) -->
<script type="text/javascript">
var CasaleArgs = new Object();
CasaleArgs.version = 2;
CasaleArgs.adUnits = "6,4";
CasaleArgs.casaleID = 76546;
</script>
<script type="text/javascript" src="http://
js.casalemedia.com/casaleJTag.js"></script>
<!-- DO NOT MODIFY -->
From Code to Product Lecture 6 — BM — Advertising— Slide 39 gidgreen.com/course
40. Size vs CTR (AdSense)
Click-through rate
Banner area
From Code to Product Lecture 6 — BM — Advertising— Slide 40 gidgreen.com/course
44. In-app ad formats
Mobile banner
320 (or 300) x 50
Full screen (or almost)
320 x 480 (or 440)
From Code to Product Lecture 6 — BM — Advertising— Slide 44 gidgreen.com/course
45. In-app state of play
• Many other ad sizes
– 320x250, 320x320, 320x350, …
• Landscape getting started
– 480x50, 480x60, 480x70, …
• iPad/tablets to use web ad sizes?
– 728x90, 300x250
• Retina display scales x2
From Code to Product Lecture 6 — BM — Advertising— Slide 45 gidgreen.com/course
46. Ads in email
• Past: text
• Now:
images
– Not always
displayed
• Direct sales
• Some small
networks
From Code to Product Lecture 6 — BM — Advertising— Slide 46 gidgreen.com/course
47. Lecture 6
• Introduction
• Types of targeting
• Price models
• Ad formats
• Ethical issues
• Web Sudoku
From Code to Product Lecture 6 — BM — Advertising— Slide 47 gidgreen.com/course
48. Core problems
• Ceding control of user experience
– Weakens brand/message
– Bad ads and bad sites
• Users don’t like ads
– Can harm word of mouth
• An effective ad is clicked
– User gone elsewhere
– To competitor?
From Code to Product Lecture 6 — BM — Advertising— Slide 48 gidgreen.com/course
49. Privacy and cookies
• Ad networks and cookies
– Track users within sites
– Worse: across sites
– Enables behavioral targeting
• User’s identity not revealed
– But: IP address
– Google searches
From Code to Product Lecture 6 — BM — Advertising— Slide 49 gidgreen.com/course
50. Bad ads: Ugly
From Code to Product Lecture 6 — BM — Advertising— Slide 50 gidgreen.com/course
51. Bad ads: Offensive
From Code to Product Lecture 6 — BM — Advertising— Slide 51 gidgreen.com/course
52. Bad ads: Misleading
From Code to Product Lecture 6 — BM — Advertising— Slide 52 gidgreen.com/course
53. Bad sites: Spyware
From Code to Product Lecture 6 — BM — Advertising— Slide 53 gidgreen.com/course
54. Bad sites: Gambling
From Code to Product Lecture 6 — BM — Advertising— Slide 54 gidgreen.com/course
55. Bad sites: Scams
From Code to Product Lecture 6 — BM — Advertising— Slide 55 gidgreen.com/course
56. User complaints
“Your advertisement in support of
Rick Santorum is enough to cause
me to use some other website for
this game. I will avoid coming
here again!”
“Why do you accept advertising
from nomorerack? They are an out
and out scam. Read the feedback.”
From Code to Product Lecture 6 — BM — Advertising— Slide 56 gidgreen.com/course
57. Ad network filters
From Code to Product Lecture 6 — BM — Advertising— Slide 57 gidgreen.com/course
58. Lecture 6
• Introduction
• Types of targeting
• Price models
• Ad formats
• Ethical issues
• Web Sudoku
From Code to Product Lecture 6 — BM — Advertising— Slide 58 gidgreen.com/course
59. Amazon ads
From Code to Product Lecture 6 — BM — Advertising— Slide 59 gidgreen.com/course
60. Direct ad deals
From Code to Product Lecture 6 — BM — Advertising— Slide 60 gidgreen.com/course
61. AdSense + our own products
From Code to Product Lecture 6 — BM — Advertising— Slide 61 gidgreen.com/course
62. Banners on puzzle page
+4%
Bright static banners
+2%
Quiet static banners
+0%
-2%
-4%
-6%
Moving banners
-8%
7 Aug 7 Sep 8 Oct 8 Nov
From Code to Product Lecture 6 — BM — Advertising— Slide 62 gidgreen.com/course
63. The big break
From Code to Product Lecture 6 — BM — Advertising— Slide 63 gidgreen.com/course
64. AdSense + new affiliation
From Code to Product Lecture 6 — BM — Advertising— Slide 64 gidgreen.com/course
65. Very highly targeted
From Code to Product Lecture 6 — BM — Advertising— Slide 65 gidgreen.com/course
66. Where we are today
• Ads are biggest source of revenue
– Display ads after puzzle
– AdSense above puzzle
– Direct deals
• 3 big display ad networks
– Monitor performance weekly
– Rebalance in response
– Ad quality a constant challenge
From Code to Product Lecture 6 — BM — Advertising— Slide 66 gidgreen.com/course
