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ONLINE ADVERTISING
 FUNDAMENTALS




    by Ray Villalobos
HISTORY
Fighting the last war is always a losing
              proposition
HISTORY
Fighting the last war is always a losing
              proposition
• Online Advertising   started out as display advertising
HISTORY
Fighting the last war is always a losing
              proposition
• Online Advertising   started out as display advertising

• Ads   sold based on impressions
HISTORY
Fighting the last war is always a losing
              proposition
• Online Advertising   started out as display advertising

• Ads   sold based on impressions

• CPM     - Cost per thousand
HISTORY
Fighting the last war is always a losing
              proposition
• Online Advertising   started out as display advertising

• Ads   sold based on impressions

• CPM     - Cost per thousand

 • How    many times the ad is shown
THE RISE OF GOOGLE
THE RISE OF GOOGLE
• Contextual   Advertising
THE RISE OF GOOGLE
• Contextual     Advertising

 • Ads   sold based on it’s surroundings
THE RISE OF GOOGLE
• Contextual     Advertising

 • Ads   sold based on it’s surroundings

• CPC    - Cost Per Click model
THE RISE OF GOOGLE
• Contextual     Advertising

 • Ads   sold based on it’s surroundings

• CPC    - Cost Per Click model

 • You   pay only for ads people click on
FACEBOOK REVOLUTION
FACEBOOK REVOLUTION


• Behavioral   targeting
FACEBOOK REVOLUTION


• Behavioral   targeting

  • Ads   based on a person’s interests
FACEBOOK REVOLUTION


• Behavioral   targeting

  • Ads   based on a person’s interests

• Requires   large amount of data
FACEBOOK REVOLUTION


• Behavioral   targeting

  • Ads   based on a person’s interests

• Requires   large amount of data

• Perfect   for Social Networks
E MAIL MARKETING
E MAIL MARKETING

• Click Through   Rates (CTR)
E MAIL MARKETING

• Click Through   Rates (CTR)

 • Percentage  of how many people see an ad versus how many
   people click on it. Avg . 02%
E MAIL MARKETING

• Click Through   Rates (CTR)

  • Percentage of how many people see an ad versus how many
   people click on it. Avg . 02%

• Better   targeting
E MAIL MARKETING

• Click Through   Rates (CTR)

  • Percentage of how many people see an ad versus how many
   people click on it. Avg . 02%

• Better   targeting

• Higher   for Email Marketing
DEAL OFFERS
DEAL OFFERS


• CPA
DEAL OFFERS


• CPA

 • Pay   only if someone performs an action
DEAL OFFERS


• CPA

 • Pay   only if someone performs an action

• Groupon   charges businesses half of the discounted price
AFFILIATE NETWORKS
AFFILIATE NETWORKS



• Gives   advertisers way to buy group of sites
AFFILIATE NETWORKS



• Gives   advertisers way to buy group of sites

• Google AdSense
THE END

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Online Advertising

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