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Online advertising: simple slides that explain how it works
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ADVERTISING
A world behind a word
Definition
• From the La+n words “ad vertere” ("to turn toward”), adver+sing is a form of marke1ng communica1on used to
an audience (viewers, readers or listeners) to take or con+nue to take some ac+on.
ENCOURAGE
PERSUADE
MANIPULATE
Types of Advertising
• Television adver+sing • Music adver+sing • Press adver+sing • Radio adver+sing • …
Online ADVERTISING
Increasingly, other media are overtaking many of the
"tradi+onal" media because of a shi: toward consumer's usage of the
Internet
Advertising Online
Email marke1ng
Search engine marketing
Display advertising Mob
ile
adve
rtising
Social media marke1ng
Uses the Internet to deliver promotional
marketing messages to consumers
It involves
Advertisers Publishers
Integrate adver1sements into its online content
Provide the adver1sements to be displayed on the
publisher’s content
It’s all about buyers and sellers, and how they transact!
AND IN THE MIDDLE?
• Buy ad units on publisher’s proper+es • Pay for each ad unit “delivered”
• Aggregator of ad spaces supplied by publishers • Acts as a “broker”, buying the publisher’s unsold,
aggrega+ng data, and selling the packages to the adver+sers
• “Sales channel” that drives traffic to adver+sers’ sites
• Categorized based on how they drive traffic
• Open technology plaWorm for trade of ad units • Provides a transparent forum for all par+es in
the ecosystem to coordinate and transact
• Popular websites and portals • Sell ad units on their proper+es
Publishers
Advertisers
Ad Networks
Ad Exchanges
Ad
affiliates
ADVERTISER Places promo1ons of a specific product, service or event in a public medium to aHract poten+al new or repeat customers.
AGENCY Represent the adver1sers, and helps them to communicate with their
target audience. They create marke1ng plans and adver+sing campaigns, considering of the right publishers that represent the right
audience.
MEDIA PLANNERS
Within the agency, they work directly with the publishers and their direct sales. Entails finding media plaNorms for a client's brand or product. It involves determining the best combina1on of media to
achieve the marke1ng campaign objec1ves.
NETWORK Aggregates and buys the publisher’s unsold inventory, and categorizes
it in a way that could be easily consumed by media. Similar to exchanges.
TRADING DESKS
A centralized, service-‐based organiza+on, typically on top of a licensed demand-‐side plaWorm (DSP). Manages programma1c, bid-‐based
media and audience buying (so it’s connected with exchanges). Works as an agency’s internal “center of excellence”. It’s a plaWorm that uses data and technology to help adver1sers more effec1vely to purchase audiences at scale across digital media. A trading desk is integrated
with ad exchanges, SSPs and networks.
DSP Helps the buyers (demand side). Demand Side PlaWorms provide centralized (aggregated) media buying from mul+ple sources,
leveraging real 1me bidding capabili1es of said sources.
PUBLISHERS A person or company that makes content (in any form) available for consump1on, for free or for sale.
THIRD PARTIES (audience networks)
They work with publishers, and they focus on the WHO, iden+fying and targe1ng an audience. This audience was target
based on a wide variety of data points. Ability to target a specific audience upon specific interests & demographic
aHributes.
EXCHANGE
Ad exchange trades the (correct) audience rather than inventory (as network) à opportunity to buy the specific audience. They bring a technology plaWorm that facilitates
automated auc+on-‐based pricing and buying in real-‐+me. Born because of the efficiency needed a^er the “network’s boom”.
Some publishers sell directly on the exchange.
SSP
Other publishers invested in SSP à Sell Side PlaWorms provide outsourced media selling and ad network management
services for publishers, op+mizing the selling points for the publishers. The SSP provide a way for publishers to gain control over how their inventory was being sold and delivered to the
networks.
DATA AGGREGATORS
An organiza+on that collects and compiles data from individual sites to sell to others.
…HOW TO CONNECT THE
WHOLE THING??
GOALS
• Collect much more data as possible; • Get the ad in front of the
right person at the right time.
RELEVANT ADS IN FRONT OF RELEVANT PEOPLE!
Data Aggregator gathers data from the desired segment across various networks. From there, third-‐party data companies overlay more specific informa1on to help to narrow the segment to its most ideal.
Once the Data Aggregator has the right segment for the Agency’s client (that is, the segment with the necessary shared a_tudes to
meet the adver+ser’s requirements) the agency buys the segment.
The Agency then puts that affluent travel segment into its own Demand Side PlaNorm (DSP) which is then plugged into the Ad Exchange.
The DSP cookie matches the segment purchased from the Data Aggregator, using exis+ng cookies to match the audience to the ad.
The DSP is used to FIND THE BEST USER
Why? ADVANTAGE DISADVANTAGE
Using a DSP takes less manpower, since it’s
completely automated and was built specifically to find
the best audience.
The agency and the adver+ser won’t typically know which sites the ads
will run on.
Everybody wins!
The Agency did its job on behalf of its client, whose ads are now reaching their best audience;
The Publisher happily accepts more relevant advertising for their audience;
The users now get -and click on- a relevant ad, thanks to an advertising process based on relevance.
The (super complex) Ecosystem boxing
Goal: SIMPLIFICATION
Red for publishers Blue for adver+sers and buyers Purple for companies that sit between them ("aggregators”)
WHICH ARE THE DIFFERENT POSSIBLE FORMATS FOR ONLINE ADS?
Boring
www.ovk.de
Super Boring
www.ovk.de
transforms boredom into pleasure
THE FUTURE:
Irene De Nicolo �
Business intern at Pixelplant GmbH��
Twitter: @irenelladn89 ��
Email: [email protected]�
