Advertising is becoming one of the colorful part of life Online as well as Offline ! There are now pop-up ads, ads that play music and sound tracks, ads that swim across the screen, and so on.Here We will take a look about Online Advertising what it is?How it works and who are the Market players.
2. Online Advertising
• What is Online Advertising?
Online Advertising or Internet Advertising is based on Internet to
deliver promotional messages to consumers.
• How is Online Advertising done?
– Email marketing
– Search engine optimization
– Search engine marketing
– Social media marketing
– online video marketing
– Display advertising
– Web banner
– Mobile advertising
– Adware
– Affiliate Marketing
– Other platforms
13. Tools to Measure: Compensation Methods
• Advertisers and publishers use a wide range of payment calculation
methods.
• CPI (cost per impression)
• CPC (cost per click)
• CPA (Cost Per Action )
• CPA (Cost Per Acquisition)
• PPP (Pay Per Performance)
Online advertising transactionsAdvertisers calculation,2012
cost-perimpression (CPI)
• Click-through rate (CTR)
customer
performance
(CPC/CPA)
• Pay Per Lead(PPL)
hybrid
• Fixed Cost
14. What is CPM? How to calculate?
• To calculate CPM, marketers first state the results of a media campaign
(gross impressions). Second, they divide that result into the relevant media
cost:
• Advertising Cost ($) / Impressions GeneratedFor example:
• Total cost for running the ad is $15,000.
• The total estimated audience is 2,400,000 people.
• ($15,000/2,400,000) = $0.00625
• CPM is calculated as: $0.00625 x 1000 (meaning per thousand views) = $6.25
• Note: Notice how the CPM is $6.25 and not $0.00625, this is because we are
looking at cost per thousand.
• In online advertising, if a website sells banner ads for a $20 CPM, that means
it costs $20 to show the banner on 1000 page views.
15. Other Measures
• CTR = (Clicks /Impressions) x 100
• VTR=(Viewthrough/Impressions) x 100
• CPA and affiliate marketing campaigns are publisher-centric.
Advertisers cede control over where their brand will appear, as
publishers browse offers and pick which to run on their websites.
Advertisers generally do not know where their offer is running.
• CPL campaigns are usually high volume and light-weight. In CPL
campaigns, consumers submit only basic contact information.
The transaction can be as simple as an email address. On the
other hand, CPA campaigns are usually low volume and complex.
Typically, consumer has to submit credit card and other detailed
information
16. Current Trends : SEM & PPC
• SEM and specifically pay-per-click marketing (PPC) are fastgrowing advertising methods.
• Begin with solid keyword research: Keyword research is the core
component of effective online marketing and using keywords in
advertising. Make sure your research is data-driven.
• Organize and group your keywords: Keyword grouping allows for
more strategic online advertising for both PPC and SEO
campaigns.
• Commit to Advertising Online: To see continuous benefits, you
should regularly update and improve your online marketing
campaigns.
17. Industry Revenue
• In 2011, Internet advertising revenues in the United States
surpassed those of cable television and nearly exceeded
those of broadcast television.
• In 2012, Internet advertising revenues in the United States
totaled $36.57 billion, a 15.2% increase over the $31.74 billion
in revenues in 2011.
• The Indian M&E industry is projected to grow 11.8 per cent
to clock revenues worth Rs 91, 700 crore (US$ 15 billion) in
2013
18. Some Indie-View
• The Indian media and entertainment (M&E) industry grew from Rs
728 billion (US$ 11.91 billion) in 2011 to Rs 820 billion (US$ 13.42
billion) in 2012; marking a growth of 12.6 per cent.
• Total advertising expenditure (AdEx) across media stood at Rs 327.4
billion (US$ 5.36 billion) in 2012 while advertising revenues increased
by 9 per cent.
• Print continued to be the largest beneficiary, accounting for 46 per
cent of the advertising pie at Rs 150 billion (US$ 2.45 billion).
• Furthermore, television continued to be a dominant segment in the
M&E industry while new media sectors (like animation/VFX) and
Films and Music segments recorded strong growth. Radio is expected
to witness great emancipation, post the roll-out of Phase 3 licensing,
at a compounded annual growth rate (CAGR) of 16.6 per cent over
2012-17.
Source : Aug’13 http://www.ibef.org/industry/consumer-markets/advertising-marketing-india.aspx