A short slide presentation on the basic principles of Online Advertising...for my Fundamentals of Interactive Design class.

1. ONLINE ADVERTISING
FUNDAMENTALS
by Ray Villalobos

2. HISTORY
Fighting the last war is always a losing
proposition

3. HISTORY
Fighting the last war is always a losing
proposition
• Online Advertising started out as display advertising

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

5. 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

6. 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

7. THE RISE OF GOOGLE

8. THE RISE OF GOOGLE
• Contextual Advertising

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

10. THE RISE OF GOOGLE
• Contextual Advertising
• Ads sold based on it’s surroundings
• CPC - Cost Per Click model

11. 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

12. FACEBOOK REVOLUTION

13. FACEBOOK REVOLUTION
• Behavioral targeting

14. FACEBOOK REVOLUTION
• Behavioral targeting
• Ads based on a person’s interests

15. FACEBOOK REVOLUTION
• Behavioral targeting
• Ads based on a person’s interests
• Requires large amount of data

16. FACEBOOK REVOLUTION
• Behavioral targeting
• Ads based on a person’s interests
• Requires large amount of data
• Perfect for Social Networks

17. E MAIL MARKETING

18. E MAIL MARKETING
• Click Through Rates (CTR)

19. E MAIL MARKETING
• Click Through Rates (CTR)
• Percentage of how many people see an ad versus how many
people click on it. Avg . 02%

20. 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

21. 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

22. DEAL OFFERS

23. DEAL OFFERS
• CPA

24. DEAL OFFERS
• CPA
• Pay only if someone performs an action

25. DEAL OFFERS
• CPA
• Pay only if someone performs an action
• Groupon charges businesses half of the discounted price

26. AFFILIATE NETWORKS

27. AFFILIATE NETWORKS
• Gives advertisers way to buy group of sites

28. AFFILIATE NETWORKS
• Gives advertisers way to buy group of sites
• Google AdSense

29. THE END