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CHP 14: Display Ads

Terms in this set (49)

pay per click ads
display ads
content ads
There are a number of different types of digital ads
Pay Per Click ads (PPC)
also called Cost Per Click (CPC) - typically displayed as part of search engine marketing
-show up when you try to search
-only pay if they click on the ad, don't pay when the ad is shown
Display ads
also referred to pay per impression ads (PPI) - typically placed on 3rd party web sites
-placing ads on a separate website that isn't your own
-whether a person clicks on your ad or not is irrelevant, you pay per impression (like a billboard)
Content ads
typically placed on YOUR web site with some type of promotional opportunity for the customer
-you've already required the ad, these ads pop up and show "we have a 20% off coupon"
-focused on conversion
Banner ads
Skyscraper ads
Pop up ads
Interstitial ads
And more...

There is an entire class taught on that subject alone. This is just a brief overview to make sure we are on the same page
Not only are their different types, there are many different formats
difficult

creating an effective ad is more difficult
Creating a digital ad is not that
Adobe Photoshop
There are a number of programs like ____ to make ad design easier
Google Website Designer
Platforms like ______ also have tools available to allow a beginner to make ads easier with templates and full creative control over your ads. You can even animate them.
monitored constantly to be more efficient (and more competitive) with our marketing spend
In the realm of analytics, there are many metrics we can collect to improve our ad effectiveness
Those metrics are crucial and need to be
our objectives
The number one decision tool on picking which metric to use is
outbid and suddenly your PPC search ad isn't being displayed any longer
The world of digital ads is very very competitive and dynamic
Your keyword bid today could be easily
Cost Per Acquisition
Campaign Revenue
Return on Advertising Spend
Cost per Click
Cost per Conversion
Pay per Click
There are many digital ad metrics... some more important than others
CPA -
CR -
ROA -
CPC -
CPCO -
PPC -
Impressions... and more
costs
effectiveness
traffic
Be careful! Some digital ad metrics measure _____, others measure "_______" and others measure "_____"
CPC
is a rate you calculate based on the total ad cost divided by the number of clicks (effectiveness)
PPC
is the cost you must pay to a 3rd party when someone clicks your ad (cost)
irrelevant to our analytic efforts
There are many metrics to choose from and we don't want to track or monitor all of them as many of them would be
What is your campaign objective?
Customer Lifetime Value (Customer Retention)
Conversion
Brand Awareness
Acquisition
Etc.
As usual, the number one criteria for selecting a metric is the answer to this question:
...
COST PER ACQUISITION
Total Cost of the Advertisement / # Acquired or Converted
CPA =
$8,166 / 84 = $91.21 CPA
Example of CPA: I placed a digital ad on a web site and spent $8,166 on the entire ad placement. During that time I had 84 people click on the ad and come to my web site. CPA =
other ways as well. It could be an estimate or forecast numbers as well as an actual results number.
One thing to be careful of - CPA can be calculated in
rate
CPA is a _____ and can be used to measure effectiveness of an ad or numerous ads over time.
lower

A CPA of $71.14 is better than a CPA of $91.21
The ____ the CPA the more effective you are.
conversion. You have to be careful and clearly communicate what you are measuring

we are just driving traffic to our website
Also note that this is strictly the cost of acquisition... which some interpret as
...
you can use the CPA for Cost per click or cost per impression
...
Legal firms, medical, and employment firms have to pay a lot for search ads because you only ever search for a doctor until you NEED one...why pay for a display ad? anyone looking at a display ad would be like ok, but I dont need a job/doctor/lawyer right now

the intent of the customer shopping NEEDS help and is searching, that is why the firms pay more for search advertising
...
CAMPAIGN REVENUE
Total Revenue Generated by a Digital Ad campaign
CR =
I placed a digital ad with Google Adwords and the number of orders placed because of that ad resulted in CR of $41,089.
Example of CR:
simple
Calculating CR is not as ____ as it may seem.
related to the ad or not?


ad may generate interest but that person could buy the product a few days later
It is easier to track when someone clicks on an ad, links to your home web page then makes a purchase (revenue)

It is much more difficult - but possible using behavioral tracking - to track when someone sees your ad then purchases the item later. Was that purchase
ad related - whether it was done directly (ad clicking / immediately linked) or later.
To truly get a solid CR number you would need to know definitively that a purchase was
...
ROA - Return on Advertisement
Total Revenue Generated / Total Cost of the Ad
ROA =
If an ad campaign had a total cost of $73,553 and it generated $312,077 then

ROA = $312,077 / $73,553 or 4.24 or for every $1 we spent on advertising we received $4.24 in return
Total Cost of the Ad could be as simple as the cost of ad placement, cost of ad clicks, etc. or it could include every single cost - ad creation, impression costs, click costs, etc.
Example of ROA:
ROI
This is not the same as ____ which focuses on profit more than advertising and is calculated differently
...
ROA FOCUSES ON REVENUE
...
COST PER CLICK
a PPC ad you placed
CPC is the rate set by
Rate set by

OR

CPC = Total cost of an Ad / number of people who clicked on it

also can be based on impressions
CPC =
the rate we set with hosting site and the other is calculated based on clicks
There are two CPCs
agree upon. You bid or agree to pay $.79 per click on your ad.
The first CPC amount is a rate that you and the ad hosting site
cost of an ad that might be impression based and then divide the total cost by the number of those that clicked on it.

For example if I agree to have my ad show up on your web site and you promise 5,000 impressions (views) for .02 per impression then the total cost is $100. If 40 people click on that ad then the CPC is $100 / 40 = $2.25
The second CPC calculation is when you calculate the total
interchangeably. Be careful!


THEY ARE NOT THE SAME
CPC and CPA (cost per acquisition / action) are frequently used
...
COST PER CONVERSION
"What is a conversion?"
A "like" on facebook?
An acquisition?
A purchase?
Setting a doctor appointment?
The first thing to settle on when calculating cost per conversion is to answer the question:
of the beholder... it would depend on your area of responsibility


If you're a social media marketing manager then "likes" on facebook might be a conversion to you

If you're a product manager in marketing and trying to calculate then the sales in your shopping cart online web page might be a "conversion"
"conversion" is in the eye
what it takes to get the consumer to take action or do something - "like" on facebook, "register" on a web page form, "sale" after a completed shopping cart check out
Basically, a cost per conversion is the costs associated with
There are a number of digital ad formats and types
-PPC ads, Display Ads, Content Ads - know the difference
-Formats include Banner Ads, Skyscraper Ads, PopUp Ads, Interstitial Ads, etc.
-Digital Ads are typically measured in IMU's - internet marketing units


There are many metrics available for marketing analytics and many different rates / calculations we can use to assess the effectiveness of our marketing efforts
-CPA, CR, ROA, CPC, CPCO, PPC, etc.
-We have to be careful as some of those terms mean different things to different agencies, companies, people!
Digital Ad MetricsSummary
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