Advertising on the Internet

and digital media

Magdalena DanilukInternational ConferenceSGH, Warsaw, April 2008

What is it all about?1. Word&Mind

2. About advertising

3. The meaning of webvertising

4. Pros and cons of webvertising

5. The Internet – the new, fast growing medium

6. Players on the arena

7. Terminology

8. Ad formats

9. The measurement of the effectiveness

10. Further materials

11. MOVIE SHOW

About Word&Mind

• Internet advertising agency• On the market for 4 months• Our people worked for MTV, Pepsi, Canon,

SsangYong and many more• Now we are working for small, medium and

large businesses in Poland• We promote brands on the Internet• We use different tools to reach our goals & to

make efficient advertising campaigns• We will go into mobile marketing

Advertising• Advertising is the information connected with a persuasive statement. Its

goal is to make a consumer buy or get some products or services, to endorse some things or ideas (eg. brand promotion).

• An interactive ad means each advertising that needs or allows an action from the user (clicking on the button; rolling over some area, picture; asking about information; sending the link further to your friends etc).

• Webvertising is a term describing an ad on the web site. It is the connection of two words: web and advertising.

• e-advertising allows for two-way communication. The client can click on the ad and get more information, more data or send an email and ask a question. But on the internet marketers can easily indentify advertising recipients and use the advertising channel more efficiently while targeting the ad to proper groups of interests.

Meaning of webvertising

• Cybernauts' amount still grows

• Such an ad can go to the receivers in the wide geographic area

• Production and emission costs still cheaper than in ATL (traditional advertising channels)

• Use of multimedia = sound + graphics + animation

• Internet ad can be personalized or targeted very precisely

• Advergaming – flash games, Second Life

Targeting

Context ad

Pros...

• Works even if you sleep

• Gets the selected users attention

• Creates more attractive, multimedia communication with the receiver

• May be personalized (ad that says Hello John! or Hello Eva!)

• May be contextual (enriches the web site)

• May be targeted precisely (geotargeting, meteotargeting, behavioral or demographic targeting)

• Involves many different techniques (articles, links, multimedia)

..and cons

• NONE! :)

...and cons

• Lack of interchangeable effectiveness measurement methods

• Still smaller audience than TV has• Annoying advertising forms – bad for the

brand• Ad blocking systems• Some formats are not effective, eg. banners

have very low CTR (Click Through Rate) ratio –few clicks on graphic ad formats

Annoying ad formats

Can we really close this ad?

Is it a good or bad medium?

YOU DECIDE!YOU CHOOSE!

New media?

• Internet is still described as a new medium

• Fast growing e-population• Everybody wants to be on the „net”• More people, more brands, more ideas• New ideology:

web 2.0 (communities)web 3.0 (semantic web)

• Internet includes other media: tv, press, radio

Web 2.0 portals

E-population

• 824 Million Cybernauts this year according to comScore

• audience has slowed in the US and other developed countries, it has accelerated in other regions of the world, particularly Asia-Pacific and Eastern Europe

• 309 million Internet users in Asia - 14% increase over 2007

• 233 million Internet users in Europe - 6.8% increase over 2007

• 173 million Internet users in the US = 21% of Internet users worldwide

• 59 million Internet users in Latin America (16.6% increase)

• 40 million Internet users in Africa/Middle East (20% increase)

Spendings (mln PLN)Share in media mix

More $$ on webvertising

• Each year brands spend more money on webvertising:logarythmical tendence is shown on the chart below (Poland)

More $$ on webvertising

• The UK leads Europe in terms of total online advertising spending. The total rose by over 30% in 2007 and it will rise another 27% in 2008. (emarketer)

More $$ on webvertising

• Spending on online advertising in the UK will overtake spending on TV ads as early as 2009 (emarketer)

• Few months later it may be the same in Sweden...

More $$ on webvertising

Players

• Who profits from the net in the advertising chain:

- marketers and brands initiate contact with the ad

- media transmit the information

- ad / media agencies create the advertising channels

- consumers get (allow/read/see) the advertisements

Teminology used in web advertising area

• Audience – number of unique visitors exposed to an ad within specified period of time

• Reach is a measure of the size of an audience; quantity of people who have seen the ad within a specific time period

• Frequency describes how many times the user has seen the ad (the message)

• Visit – access to the web site within specified period of time• CPM (Cost Per Mile) – cost of 1000 gross impressions• CPC (Cost Per Click) – payment for each click on the ad (eg.

AdWords)• CTR (Click-Through Rate) - a measure of the success of an

online advertising campaign; how many users clicked on the ad

• Click – interaction with the ad

Ad formats - text

text formats

graphic formats

mixed

mailing, newsletter, ePR,sponsored articles, spam,

spambuzz, wordlayer,keyword advertising,

GPT (Get Paid To read)

Ad formats - graphic

text formats

graphic formats

mixed

banner, billboard, rectangle, skyscraper, button, interstitial,

expand or floating banner,link cursor, popup, pop-under,

brandmark, toplayer,videostitial, videobanner

Ad formats - other

text formats

graphic formats

mixed

search engines resultpositioning, digg,viral marketing

Interesting examplesof online advertising

campaigns

„Before you enter (wear condoms)”

Arc Warsaw

Campaign in polish search engine

„HEIDIES 15 MB OF FAME”FarFar

„Six video cameras, live 24 hours a day, 5 days in a row on www.diesel.com. Two gorgeous and crazy girls wanted to become famous. These two girls, The Heidies, steal the new and unreleased Diesel Intimate collection, kidnap a guy from Diesel, and lock themselves (and him) into a hotel room for five days. They want to show the world what they are doing! The Heidies interacted and chatted with their growing audience, uploading their shenanigans to the site as well as a chunk load of other popular sites.”

Great Pockets Website for Nokia

„Squeeze” for Coca-Cola

„See more side effects” for Reversa

„See more side effects” bannerfor Reversa

„See more side effects” banner for Reversa

How to measure effectiveness?

• Statistics of site traffic• Campaigns statistics – advertising

tracking• Online impact surveys – aided and unaided

brand awareness, purchase or behaviour intent

• Blogosphere searches, use eg. blogpulse.com – buzzmetricstechnorati.com – blogger central

• Media monitoring and analysis

Site traffic statistics

Blogger central tool

The tool shows:- trends- tags- posts in blogs

Blogger central tool

Interesting links

• www.emarketer.com - emarketing reports• www.adweek.com - online advertising magazine• www.iabeurope.ws - standards for interactive media• www.canneslions.com cannes lions awards – cyberlions• www.advertolog.com - advertising archive• www.campaignbrief.com - blog on advertising• www.thefwa.com - best flash web sites

SHOWTIME

• Let’s watch the movie NOW!

• Dove Evolution – viral campaign example:http://www.youtube.com/watch?v=iYhCn0jf46U

• Samsung – contest & viral in Poland, example:http://www.youtube.com/watch?v=NyK37eRyUyI

Thank you!Magdalena Daniluk

„Word&Mind” Internet Advertisingwww.wordandmind.pl

m.daniluk@wordandmind.pl