Basics of Online Advertising - IIM Shillong

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ONLINE ADVERTISING? WHY DO WE NEED January 30, 2011 Arpit Dhariwal | For IIM, Shillong

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“ Half of my advertising spend is wasted; I just don't know which half ” ~ John Wanamaker

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#1. Better Targeting.

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Advertising On Facebook

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#2. Accuracy in measurement (Better ROI)

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Omniture – Analytics Tool

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#3. Less Wastage.

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Cost Per Click (CPC) The advertiser pays on a per click basis; a click being a user clicking on the ad, to visit the advertiser’s site. Cost Per Action (CPA) The advertiser pays a fixed amount per user action; the action can be an inquiry or lead (CPI, CPL), a sale (CPS), or any other kind of transaction. Cost Per Impression (CPM) The advertiser pays a fixed amount per thousand impressions; an impression being a user seeing the ad.

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#4. User Engagement.

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25 BILLION. The amount of content (web links, news stories, blog posts, notes, photos, etc) shared each month on Facebook . 2 BILLION. The number of YouTube videos viewed per day. 27 MILLION. The average number of “tweets” per day on Twitter. 4 BILLION. The number of images hosted on Flickr .

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#5. Immediate Response & Message Tailoring.

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Now, Exactly How To Do It?

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Advertiser AD Agency Publisher AD Network AD Exchange User/Customer Ads directly placed by Advertiser Ads placed with Ad Network AD network connected to an Exchange Advertisers/AD Agencies connected to an Exchange Ads displayed to clients by publishers Outsourced

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Display Advertising

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Search Engine Marketing (SEM) & Search Engine Optimization (SEO) ORGANIC LISTINGS These listings are influenced by SEO. SEO is defined as the process of building pages in a manner which enables the pages to rank highly in 'algorithmically' determined search results, which are generally displayed on the left hand side of the page. PAID LISTINGS SEM is effectively paid advertising in search engines, where you 'Pay Per Click' (PPC). It is text advertising delivered in response to 'trigger' words typed into the search box.

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Affiliate Advertising Affiliate Marketing is also known as Performance Based Marketing. A publisher receives a commission for generating a transaction, such as a lead or sale, for an advertiser that the publisher is promoting.

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Email Marketing

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Social Media Marketing Social Media is a conversation supported by online tools and many more…

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Case Study: Nike+

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Nike’s market share (running shoes) jumped from 48% in 2006 to 61% in 2008. A significant amount of the growth comes from Nike+. Business Week.

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Nike Plus community website: tracks each run, pace, distance comparison with other runs, runners offline running communities Competitions – Human Race 10k Run (800k people) Blogging Network Flickr (4,000+ photos for Human Race) Youtube (1,000+ videos for Nike+)

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Facts: Dell

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Dell has made $3 Million in 2 years as a result of delloutlet on Twitter (650k+ followers) by sending coupons, tweeting about clearance events, new arrival information etc.

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THAT’S ALL FOLKS! Arpit Dhariwal E: arpit.dhariwal@gmail.com

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