Digital Advertising Overview
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Digital Advertising Overview
- 2. MARKETING MIX • Advertising • PR/ Direct Marketing • Sales promotion • …. Product Promotion PlacementPrice “A form of marketing communication used to persuade an audience to take or continue some action, usually with respect to a commercial offering, or political or ideological support” Aric Rindfleisch “Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor” Philip Kotler “Advertising involves the creation of messages, the delivery of them, and the measurement of their effects” Irwin Gotlieb
- 3. “In fact, the history of modern advertising is a story about continually changing media technologies and the creation of messages for and adapted to these modes of communication.”
- 4. Source: The Joins Hopkins University A SCHEMATIC HISTORY OF ADVERTISING MEDIA Sender Medium Receiver Seller Interpersonal One, a few Client + Agency Mass Many, all at one Client + Agency Mass Many, all at one Client + Agency Mass Many, all at one Client + Agency Mass Fragmented and able to shift viewing time Client + Agency + Consumer Personalized Atomized Salesmanship Print Radio TV Narrowcasting Internet
- 5. Source: Google HOW MARKETING ACTIVITY HAS EVOLVED “Now it's not simply two-way - I speak and you speak back. it's multi- way: I speak and you might take the message and give it to a friend or you might decide to speak to me before I even started to speak.” Rishad Tobaccowala, CEO of Denuo
- 6. DISTRIBUTION OF ADVERTISING SPENDING WORLDWIDE IN 2013 AND 2018
- 7. • Around the world, advertisers will spend $578 billion in 2015, an increase of 6.0% over 2014. • Digital’s share of total advertising will reach 29.6%, $171 billion. • Mobile advertising is the key driver of growth around the world, and advertisers will spend $68.7 billion worldwide on mobile in 2015, an increase of nearly 60% over 2014 Source: eMarketer.com SHARE OF ADVERTISING SPENDING, BY CHANNEL, 2014
- 8. SHARE OF ADVERTISING SPENDING, BY CHANNEL, VIET NAM 2013
- 10. COMMUNICATION PROCESS SENDER ENCODING MESSAGE DECODING RECEIVER RESPONSEFEEDBACK NOISE MEDIA Identify the Target Audience Determining the Communication Objective Source: Principles of Marketing
- 11. ADVERTISING RESPONSE MODELS Source: Principles of Marketing Cognition Attention Awareness Knowledge Affect Interest Desire Liking Preference Conviction Behavior Action Purchase Stages AIDA (1898) Hierarchy of Effects (1999) Advertising communication may not lead to immediate behavioral response or purchase; rather, a series of effects must occur, with each step fulfilled before the consumer can move to the next stage in the hierarchy.
- 12. ADVERTISING OBJECTIVES Source: Principles of Marketing
- 13. CASE STUDY: PEPSI REFRESH 2010 Source: Illinois Edu The Pepsi Refresh Project was launched in January 2010. Pepsi decided to take the money ($1.3M) budgeted for its annual Super Bowl ad, and instead of running an ad, devote this money to social causes. To do this, it created a website in which anyone could submit a proposal for a social project such as sending care packages to soldiers or building a new playground. These proposals were voted on by visitors to the website and based on these votes, Pepsi picked a few winning submissions each month. In total, this website had over 18 million unique visitors, obtained about 80 million votes, and generated nearly 150,000 tweets. The project attracted nearly 3 billion earned media impressions. Pepsi jumped from number 16 to number 5 on the Forbes list of the country's most reputable brands. 2010, Pepsi sales fell 6 percent, a sharper decline than the 4.3 percent decline overall in carbonated sales beverages.
- 14. COMMUNICATION PROCESS SENDER ENCODING MESSAGE DECODING RECEIVER RESPONSEFEEDBACK NOISE MEDIA Identify the Target Audience Determining the Communication Objective Choosing Media Selecting the Message Format Source: Principles of Marketing
- 15. MESSAGE FORMATS & COMMUNICATION CHANNEL Base on IAB Ad Format definition • Banner advertising & Rich media • Sponsorship • Digital Video advertising • Email & Classifieds • Search & Social media ads • Mobile advertising Base on WHAT the message is served • Text • Image • Video • Rich media Base on HOW the message is served • Standard ad • Floating ad • Pop-up/pop-under • Wallpaper • Expandable Base on WHERE the message is served • Display & PR • Search & Portals • Mobile (+wifi) & Map • In Game • Email (Spam & Opt-in) • Viral marketing • Online Partnerships Base on Philip Kotler definition • Personal communication channels – Word-of-mouth – Buzz marketing • Non-personal communication channels – Mass media – Atmospheres – Event Base on WHO the message is served • Owned Media • Paid Media • Earned Media Formats Channel
- 16. MESSAGE FORMATS & COMMUNICATION CHANNEL Base on IAB Ad Format definition • Banner advertising & Rich media • Sponsorship • Digital Video advertising • Email & Classifieds • Search & Social media ads • Mobile advertising Base on WHAT the message is served • Text • Image • Video • Rich media Base on HOW the message is served • Standard ad • Floating ad • Pop-up/pop-under • Wallpaper • Expandable Base on WHERE the message is served • Display & PR • Search & Portals • Mobile (+wifi) & Map • In Game • Email (Spam & Opt-in) • Viral marketing • Online Partnerships Base on Philip Kotler definition • Personal communication channels – Word-of-mouth – Buzz marketing • Non-personal communication channels – Mass media – Atmospheres – Event Base on WHO the message is served • Owned Media • Paid Media • Earned Media Formats Channel
- 17. Big 3 = TV ads + Print ads + Out of Home ads (OOH – DOOH) Big 3 Display Search CRMSocial Store/Site Consideration Evaluate Purchase Enjoy Advocate Bond CHOOSING MEDIA CHANNEL
- 18. COMMUNICATION PROCESS SENDER ENCODING MESSAGE DECODING RECEIVER RESPONSEFEEDBACK NOISE MEDIA Identify the Target Audience Determining the Communication Objective Choosing Media Selecting the Message Format Source: Principles of Marketing
- 19. REVENUE BY AD FORMAT Internet advertising revenue by ad format: 1998 – 2013, US (Percent) 1998 1999 2000 2001 2002 2004 Banner ads 56 56 48 36 29 21 Sponsorships 33 27 28 26 18 10 Interstitials 5 4 4 3 5 2 Email 0 2 3 3 4 3 Classifieds 0 0 7 16 15 17 Rich media 0 0 2 2 5 8 Keyword search 0 0 1 4 15 35 Rreferrals 0 0 4 2 1 1 Slotting fees 0 0 0 8 8 3 Other 6 11 3 0 0 0 Source: IAB 56% 21%
- 20. REVENUE BY AD FORMAT Internet advertising revenue by ad format: 1998 – 2013, US (Percent) 2008 2009 2010 2011 2012 2013 Keyword search 46 47 46 47 46 43 Banner ads 21 23 24 21 21 19 Classifieds 13 9 10 8 7 6 Rich media 7 7 6 4 3 3 Lead generation 7 6 5 5 5 4 Digital Video 3 5 5 6 6 7 Email 2 1 1 1 0 0 Sponsorships 1 2 3 4 2 2 Mobile 0 0 0 5 9 17 Source: IAB ~ 20%
- 24. BANNER & RICH MEDIA ADVERTISING
- 25. DIGITAL VIDEO
- 28. SOCIAL MEDIA ADVERTISING Facebook.com Webtretho.com
- 29. MOBILE ADVERTISING Medium Banner Pop-up Inpage
- 31. SPONSORSHIP Sponsored Topic Sponsored Contest
- 32. COMMUNICATION PROCESS SENDER ENCODING MESSAGE DECODING RECEIVER RESPONSEFEEDBACK NOISE MEDIA Identify the Target Audience Determining the Communication Objective Collecting Feedback Selecting the Message Format Source: Principles of Marketing Advertising Evaluation Choosing Media Designing a Message
- 33. ELEMENT OF AN EFFECTIVE COMMUNICATION CAMPAIGN Source: Communication Campaign Best Practives, Glaad & Map, 2008 Campaign Element The question you need to answer If You only remember one thing, remember this Campaign objective or goal What are you trying to accomplish? If you try to do too much, you won’t do anything well. Target audience Who are you trying to reach? If you try to reach everyone, you’ll end up reaching no one. Messages and research What are you going to say to your audience so they’ll take notice, listen, and hopefully become supportive? The difference between messaging that you like and messaging that is effective can be huge. Media communications plan How are you going to reach your audience? People generally need three exposures to a message before they hear it. Messengers or spokespeople Who’s going to say it? There’s often a big difference between who you like and trust, and who your target audience likes and trusts. Budget How much money do you have to make it happen? If you don’t have enough money to launch an effective campaign that’s based on research, you’re better off not doing it. Campaign evaluation How will you know what worked and what didn’t? Investing in campaign evaluation is worthwhile. It helps you gain credibility with funders and ensures that money is well spent in the future.
- 35. BENEFITS OF DIGITAL ADVERTISING Source: Digital Data Opportunitiews/Ey.com Customer Signals Targeting Tailor promotion offer Budget control
- 36. BENEFITS OF DIGITAL ADVERTISING Source: Digital Data Opportunitiews/Ey.com Customer Signals Targeting Tailor promotion offer Budget control
- 37. BENEFITS OF DIGITAL ADVERTISING Customer Signals Targeting Tailor promotion offer Budget control What Data-Driven Marketing Looks Like in 2015 Source: Adweek.com
- 38. Customer Signals Targeting Tailor promotion offer Budget control BENEFITS OF DIGITAL ADVERTISING Source: Illinois Edu User Generated Content
- 39. Customer Signals Targeting Tailor promotion offer Budget control BENEFITS OF DIGITAL ADVERTISING Source: Illinois Edu User Generated Content Low cost promotion Product sales Keep content fresh
- 40. Customer Signals Targeting Tailor promotion offer Budget control BENEFITS OF DIGITAL ADVERTISING Low cost promotion Product sales Keep content fresh Source: Illinois Edu Warby Parker is a manufacture and retailer of eye glasses that has a few physical retail locations but does the majority of its online business. This company offers a service called home try on. User Generated Content
- 41. Customer Signals Targeting Tailor promotion offer Budget control BENEFITS OF DIGITAL ADVERTISING Low cost promotion Product sales Keep content fresh User Generated Content 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Online banner ads Display ads on mobile devices Ads served in search engine results Online video ads Ads on social networks Billboards and other outdoor advertising Ads on radio Ads in magazines Ads in newspapers Ads on TV Editorial content such as newspaper articles Consumer opinions posted online Branded websites Recommendations from people I know 2007 2013 Source: Nielsen 2013 GLOBAL TRUST IN ADVERTISING
- 42. Targeting Tailor promotion offer Budget control BENEFITS OF DIGITAL ADVERTISING User Generated Content Low cost promotion Product sales Keep content fresh Real-time Optimization Sense & response Customer Signals
- 43. Targeting Tailor promotion offer Budget control BENEFITS OF DIGITAL ADVERTISING User Generated Content Low cost promotion Product sales Keep content fresh Real-time Optimization Sense & response Customer Signals
- 44. RESEARCH FIDING: DIGITAL VIDEO ADS & TIVI ADS Source: BrightRoll, 3/2013
- 45. RESEARCH FIDING: DIGITAL VIDEO ADS & TIVI ADS Source: Nielsen & IAB 2012
- 49. Source: Cohn & Wolfe “In a world of ‘digital everything’, there is no privacy and nowhere to bury bad news, the truth will emerge.” “This is an insight which global brands must understand: embrace the Age of Authenticity or risk being left behind.” Bphone scandal (2015) Lumia 920 scandal (2012)
- 50. Proportion of global respondents who would be extremely angry if a company were to: Source: Cohn & Wolfe Global consumers would buy from a company they consider to be authentic, over and above competitors. Global consumers would recommend an authentic organization to family and friends 63% 59% “In a world of ‘digital everything’, there is no privacy and nowhere to bury bad news, the truth will emerge.” “This is an insight which global brands must understand: embrace the Age of Authenticity or risk being left behind.”