Web Advertising

Topics to Cover
• What is web advertising?
• Some Numbers
• Types of Online Advertising
• Webwide Trends
• Thai Web Advertising Pricing Models
• Questions?

Web Advertising
 What is Web Advertising?
• A form of
advertising that
utilizes the
Internet and
World Wide Web
in order to
deliver
marketing
messages and
attract
customers.

Web Advertising
 Some Numbers
The Web is huge and growing rapidly

• 10 million Websites globally by the end of this year (Alexa

International)
• 60% are publicly accessible (Online Computer Library Center, Inc.),
• Amounts to over 7 billion pages of publicly indexed
information (NEC Research Institute)
• 70% of those pages containing commercial content
(eMarketer).
• Number of advertiser-supported Web sites anywhere
between 6,000 (Forrester) and 19,000 (Myers Group).

Web Advertising
 Some Numbers
Web Advertising Revenues

• Last year, Web ad spending topped $7 billion,

representing nearly 3% of total ad spending in the
US ($244 billion).

• Newspapers ($48.9 billion), broadcast TV ($45

billion) and direct mail ($42.5 billion) were the
largest venues for advertising.

• But Web spending grew by 97%, while total

advertising grew by 7% overall and papers grew by
5%, TV by 7% and direct mail by 3%.
Source: eMarketer, 2001.
Web Advertising
 Some Numbers
Web Advertising Revenues

• Triple-digit growth rates are over, but Web

advertising is still strong and growing faster than
traditional media. Should grow 7% this year and
around 40% on average annually through 2005.

• Media most likely affected in the long-run will be

newspapers and direct mail, and also Yellow
Pages, and local/regional magazines.

Source: eMarketer, 2001.

Web Advertising
 Some Numbers
• A few key Web site categories grab most
of the Web ad spending (Internet Advertising Bureau Q2,
2000):

– Search sites and portals 36%

– Business/Finance 15%
– Classified 12%
– Technology 11%
– News/Info 10%

Web Advertising
 Some Numbers
• Biggest Web ad spenders: (Internet Advertising
Bureau Q3, 2000 and eMarketer 2001):

– Consumer 30%
– Computing 18%
– Financial Services 14%
– Media/New Media 11%
– Business Services 10%

Web Advertising
Types of Web Advertising

• Banner
• Sidebar
• Pop-ups
• Pop-unders
• Floating
• Unicast
• Websites

Web Advertising
 Banner
• HTML code loads a
specific website

• Varies in content and

shape

• Horizontal

• 50 cents/ 1000

Web Advertising
 Sidebar
• Skyscraper

• Vertical

• 2-3 times larger than

banner

• Harder to scroll it off

page

• $1.00 - $1.50/ 1000

Web Advertising
 Pop-ups
• Opens in its own
window

• Obscures the page

your viewing

• Forced to close or
move it

Web Advertising
 Pop-unders
• Opens under the content
your viewing

• Less intrusive

• Both are more effective

than banner

• Banners: 2-5 clicks/ 1000

• Pop-ups: 30 clicks/ 1000

• Can cost 4-10 times more

than banner

Web Advertising
 Floating
• Float or fly over page 5-30s

• Obscure view; block mouse

input

• Gets attention: animation &

sound

• Powerful branding tool -

hard to ignore

• 30 clicks/1000

• $3 - $30/ 1000
Web Advertising
 Unicast
• TV commercials that
run in pop-up

• 10-30s

• Same branding
power as TV
commercial + being
able to go to website

• 50 clicks/1000 From AOL.com

• $30/1000
Web Advertising
 Types of Online Marketing Spending
• Banner Ads & Buttons (52%)
• Web Sponsorships (27%)
• Classifieds (7%)
• Referrals (4%)
• Interstitials (3%) Related Tools:
• eMail Marketing (2%)
Affiliate Programs & Networ
• Rich media (2%) Search Engine Optimization
• Keyword Search (1%)
(Internet Advertising Bureau, Q2 2000)

Web Advertising
Top 5 Ad Banners Viewed in the US
Week ending May 13, 2001

Web Advertising
 Sponsored Content
• Advertiser-supported links on a publisher’s
site take on many forms:

– Direct link to sponsor’s site

– Microsites & Co-Branded Pages
– Featured Sponsorship
– Editorial Sponsorship

Web Advertising
Web Advertising
Web Advertising
Web Sponsorships

Web Advertising
Web Advertising
Web Advertising
Affiliate

Web Advertising
Web Advertising
Web Advertising Pricing Models
• Flat Fee
– original model (c. 1994/1995)
– Sponsorships

• CPMs (“cost per thousand” impressions)

– Official average CPM per rate cards is $28.28 (9/2000).
– Ranges from $1 to $100 or more.

• Click-Throughs (CTR=Click-Through Rate)

– Currently 0.3%
– $2/click-through based on a $10CPM with a 0.5% CTR.

Web Advertising
 Webwide Trends
• Significant unsold inventory in the online advertising
industry.

• CPMs are down dramatically (down from an average of $40 in

1997 to below $30 this year).

• Click through rates have plummeted (down from an average

2-3% to 0.24% in December 2000).

• Online consumer lacks interest in banners (online

“billboards” represent a primitive form of new media advertising).

Web Advertising
 Webwide Trends

• Meanwhile, industry trends favor more accountable

forms of online advertising.

• Online managers are increasingly dissatisfied with

banner ads and flat fee portal deals:
Need a way to measure ROI!

Web Advertising
 Webwide Trends
• Firms are increasingly looking for ways to integrate
offline with online.

• Major advertisers increasingly compensating their

agencies based on results rather than fixed
commissions (15% of billings).

• Direct marketers are now moving onto the Web and

bringing significant database and fulfillment
experience online.

Web Advertising
 Emerging Pricing Models
• The Web belies John Wanamaker’s oft-quoted
lament:
– I know half the money I spend on advertising is
wasted, but I can never find out which half.”

• Enter Pay-for-Performance Pricing Models

(“Cost per Action”)
– Cost per click
– Cost per lead
– Cost per registration
– Cost per download
– Cost per purchase
– Cost per whatever

Web Advertising
 Webwide Trends
Pricing Models (Internet Advertising Bureau, Q3, 2000)
Pure CPMs 41%
Hybrid Models 48%
Performance-Based 11%

• By 2003, 83% of Web ad spending will be performance

based or hybrid (Forrester).

• By 2002, 25% of online retail sales will be driven by

affiliates (Jupiter).

Web Advertising
 How is WA related to IA?
• 2. Organize your website
for better ad placement
– Wireframes - Depict how
an individual page or
template should look
from an architectural
perspective

– Placing ads on a
website
• Dark orange
(strong), light
yellow (weak)
• Ads near rich
content and
navigation, and at
the top-left do
better
Web Advertising
 How is WA related to IA?
• Placing ads on a forum
site

– Get attention of repeat

users

– Best placement:
• Ads above & below
first post are more
effective
• Place leaderboard
after last post,
before navigation

– Blend ads in well, but

don’t deceive
Web Advertising
 How is WA related to IA?
• Placing ads on blogs

– Challenges:
• Predetermined page
format
• Highly targeted
content
• Regular visitors

– Suggestions:
• After the first post is
more effective
• Skyscraper on the
right
• Offer referrals and
searches
• Link units

Web Advertising
  Front Page
Baht/Mont AVG/IM
Banner Size Baht/Week AVG/IMP AVG/CPM AVG/CPM
h P
A1 (728x90 Pixels) AVAILABLE PER IMPRESSION(IMP) ONLY
A2 (728x90 Pixels) 30,000   133 108,000   120
B1 (300x250 Pixels) 60,000   267 216,000   240
900,00
B2 (300x250 Pixels) 55,000 225,000 244 198,000 220
0
B3 (300x250 Pixels) 55,000   244 198,000   220
B4 (300x250 Pixels) 55,000   244 198,000   220
C1 (180x150 Pixels) 30,000   133 108,000   120
C2 (180x150 Pixels) 25,000   111 90,000   100
C3 (180x150 Pixels) 20,000   89 72,000   80
C4 (180x150 Pixels) 20,000   89 72,000   80
240
 
D (300x110 Pixels) 60,000   269 216,000   IMP= Impressions or
Pageviews
CPM=Cost Per Thounsand

Web Advertising
Questions??

Web Advertising
Questions??

Web Advertising
Questions??

Web Advertising