India’s First Corporate ezine
Issue No 54 – Aug 2010
Published by Prime Point Foundation
Theme of this Issue
Online Advertising
Guest Editor
Divya Sesha
In this Issue:
P3 What is Online
advertising
P4 Advertising
networks
P5 Global Ad-spend
P6 Glossary
P7 Search Marketing
P9 Affiliate
Marketing
P10 PRince Toon
P11 Display
Advertising
Contact
www.corpezine.com
[email protected]
PR-e-FACE: From the desk of Editor-in-Chief
Online advertisement is growing very fast globally
Online Advertising has come to stay in the When we conducted an online survey in
marketing and branding strategies. August 10 for this purpose, we realised
Presently, the global internet the lack of knowledge about the online
penetration is around 30% advertisement in developing countries.
and it is growing at fast rate. Hence, we decided to publish this ezine
With the emergence of with more of fundamentals, to create a
internet technology, the taste in this new area of marketing tool.
concept of advertising is
undergoing a tremendous Ms Divya Sesha, who is presently working
change. in an online advertising firm at London
has taken lot of efforts in putting together
A recent study shows that online the concept in a simple language, to
advertisement, which was around 6% enable every one to understand the
over the total global ad-spend in 2006 has concept. Please keep reading this ezine
now become 12% in 2010 and is growing and send your feedback to us.
at fast rate. Another study reveals that in
UK alone, the online advertisement
constitutes around 25% of the total ad-
spend.
Guest Editor
After working in an Advertising Company in Mumbai
(India), Divya Sesha, pursued her higher studies in
Advertising and Marketing Communication in UK. She is
presently working in a Digital advertising company at
London. She is interested in music, travel and movies.
Video Introduction Hi
Thanks for giving me the great opportunity
of guest editing this ezine on “online
advertising’. I have attempted to bring
out the various features of this new digital
tool. Please listen to my video
introduction in the following link and share
your feedback.
http://www.youtube.com/watch?v=vvv2gOERslw
What is online Advertising?
Online advertising is a form of advertising, which uses the Internet and WWW in order
to communicate its messages to the right target audience. There are various forms of
online advertising like search engine result pages, banner ads, rich media (using
animation and video), social network advertising, interstitial ad, online classified
advertising, advertising networks etc.
Rich Media example Interstitial Ad
What are advertising networks?
Networks are those companies, which connect advertisers to the websites, which want to
host their advertisements online. For example, Google has acquired an ad networks
called Double-Click through which their ads are hosted. Many third party networks work
with websites for a charge in return for their advertising space.
The most common methods of purchasing online space are CPM, CPA and CPC. Detailed
explanation of these revenue models are given below.
One major advantage of online advertising is that it is not limited by geographic regions
and can be targeted according to the appropriate audience requirement. The different
types of targeting models are:
Contextual targeting – where display/graphic/text-only ads are webcast
based on a keyword search conducted by the user. For e.g. If one searches for
Edinburgh Hotels, they would be targeted with hotel offers and packages in and
around Edinburgh, alternatively, on Google, they would be subjected to the top
websites, based on Google ranking, on their search page.
Behavioural Targeting – This kind of targeting is based on a users
click/browsing history, for exa,[;e. if an user is known to have searched for
automotive web pages, based on their cookie data, they can be re-targeted
with an auto related ad even when they are not surfing through an automotive
website.
Semantic Advertising – this method semantically (to study the relation
between words, signs and symbols) analyses each web page to understand the
meaning and purpose of them. This ensures that the ad server only displays
advertising, which is suited to the web page. Semantic advertising increases the
chance that the viewer will click-thru because only advertising relevant to what
they are viewing, and therefore their interests, should be displayed.
The disadvantage of behavioural and contextual advertising in comparison to
semantic advertising is that, while semantic checks the entire web page,
behavioural and contextual only check keywords. For example, Jaguar as a
keyword may mean the animal/the car. Semantic would check other content on
the web page to identify the actual product, whereas Behavioural/contextual
may not.
Source: http://www.webanalyticsbook.com/
When online, people read differently
When online, people read very differently, than when they are reading a book
or magazine. On the Internet people try not to read until they find what they are
looking for and reach the content they need. Up to that point, they scan, looking
for keywords. What does this mean? People do not read introductory text,
instruction text, navigation options... almost anything if they can avoid it. This
must be taken into account during website design, and content creation. Following
are the ways to reduce the problem:
ü Reduce the word count of each page (ideally by half)
ü Try to remove/minimise instruction text
ü Highlight key words
ü Use lists/bullet points where possible
ü Break up text using clear sub-headings
ü Try to start each page/paragraph with the conclusion, so that users can
decide whether to read the page/paragraph early
ü Use images instead of words where possible
Source: http://www.webcredible.co.uk
GLOSSARY
Impressions: The number of times an online ad (any format) has been seen
by a user. It is often hard to obtain an accurate impression count as they can
be miscounted due to issues relating to cache incomplete requests.
Clicks: The number of click through occurred as a result of a user viewing an
online ad (any format) and being re-directed to the advertiser’s page.
Click through Rate (CTR): The number of clicks of the online ad (any format)
divided by the number of impressions of the online ad (any format).
Cost per thousand (CPM): is one of the online payment models by which
advertisers pays for every 1000 impressions of their advertisement. Prices
typically range from £1 to over £50 per thousand impressions. This is an ideal
method of payment for advertisers who want to guarantee only the number of
people who sees their online ad. The "M" in CPM is from the Roman numeral for
1000, "mille" meaning "thousand".
Cost per click (CPC): is one of the online payment models by which
advertisers pay for each click through made on their online ad (any format).
Prices typically range from £0.01 - £50 per click through. This is an ideal
method of payment for advertisers who need to guarantee they only pay for
those viewers of the banner that click on it and visit a page on their site.
Cost per action (CPA): is one of the online payment models by which
advertisers pay for every action (sale or registration) completed as a result of a
visitor clicking on their advertisement. Prices typically range from £0.50 to £50
or if a percentage of a sale 5% to 25%. This is an ideal method of payment for
advertisers who want to guarantee only the number of customers generated as
a result of an advertisement.
Cost per Lead (CPL): One of the types of CPA, a cost per lead (CPL) method
allows advertisers to pay for every lead or customer inquiry that resulted from
a visitor who clicked on their advertisement. Prices typically range from £1 to
£6. This is an ideal method of payment for advertisers who want to guarantee
only the number of potential customers with an interest generated as a result
of an advertisement. Also known as cost per inquiry (CPI).
Rich Media: A type of advertisement technology that often includes richer
graphics, audio or video within the advertisement. Unlike static or animated GIF
banner advertisements, rich media advertisements often enable users to
interact with the banner without leaving the page on which it appears. Some
popular types of rich media banners are created with HTML, Shockwave &
Flash.
Contextual Advertising: Contextual Advertising is also known as content-
targeted advertising, which means that an advertisement is shown on a web
site that is "in context" to a company's specific product or service. For e.g. If
one searches for Edinburgh Hotels, they would be targeted with hotel offers and
packages in and around Edinburgh, alternatively, on Google, they would be
subjected to the top websites, based on Google ranking, on their search page.
Source: http://www.adglossary.com/
Search Marketing
By Mr Rajeev Balasubramanian, CEO,
,Havas Digital, South East Asia and India,
Singapore
What is Search Marketing?
Search Engine Advertising is advertising that is placed on a new type of
media; Search Engine Result Pages (SERPs). Search Engine Result Pages are
the pages printed out by a Search Engine (like Google) when someone
"queries" the engine. This medium is very young, but growing rapidly; it is
estimated that Google gets over 20 Billion dollars in advertising revenue from
this channel yearly.
With Search advertising, it is possible for brands to target consumers by their
intent, as represented by what query they type into Google. Targeting by
content, in general, is not particularly efficient; only 1 person out of every
1000 people exposed to the ad is likely to respond to the ad. The precise
targeting by intent that Search Advertising offers make it possible for far less
wastage and can result in very high conversion from exposure to consumer
response (typically upwards of 1-2%, sometime reaching 100% based on the
specific keyword)
Historically advertisers bought media on a cost per exposure model, which
meant large investments concentrated in "bursts" of a few weeks/months.
Given that Search Advertising offers multiple flexibilities, such as payment
only on a cost per response model, choosing of specific keywords and daily
budgets, it is possible for brands to maintain yearlong activity on Search
Advertising. Search Advertising is also a cost efficient way of targeting low
hanging fruit for the brand. Search Advertising needs to be woven into the
fabric of any brand, which wants to connect with its customers.
What is the future of Search Marketing?
The growth of Search for me is in the area of the Organic Listings. This part
of the page has the maximum impact of Brand metrics (Unaided top of mind
brand recall, as documented by Enquiro eye-tracking studies). The growth of
Universal Search and Web 2.0 content repositories (Youtube, Slideshare)
mean that content hosted here can impact a brand's visibility on the SERP.
The challenge for brands is to develop expertise in building and distributing
Digital Persuasion Assets, which help grow the brand's visibility on SERPS,
thereby growing top-of-mind recall.
Ezine ‘PreSense’ and ‘prpoint’ online discussion
group win National Awards from PRSI
Public Relations Society of India (PRSI) celebrates 6th August every year as
“PR Education Day” to provide focus on PR and Communication education.
PRSI celebrated PR Education Day on 6th August 2010 at Hyderabad. During
this event, their Hyderabad Chapter presented National Awards for the books,
blog, print magazine, online ezine, online discussion group, PR students and
teachers for their contribution towards PR and communication education
during 2009-10.
Prpoint online discussion group and your ezine PreSense (both published by
Prime Point Foundation) have won the National Awards from PRSI, Hyderabad
for the contribution towards PR and Communication education. Prpoint group
is the largest Indian group for PR and Communication professionals.
Mr P B Raghavendra Rao, a
senior member of PRSI and a
regular contributor to prpoint
group and the ezine PreSense
received the Award from Prof
Joye C Gordon, Kansas State
University, USA, in the presence
of Dr CV Narasimha Reddy,
Editor, Public Relations Voice.
Mr P B Raghavendra Rao (4th
from left) visited Chennai on
29th August 2010 and handed
over both the Awards and
certificates on behalf of PRSI,
in the presence of the
participants of Business
Communication Course at
Bharatiya Vidya Bhavan.
Ms Janani and Ms Rekha (5th and 6th from left), Editorial Team members of
ezine PreSense received the Awards from Mr Raghavendra Rao, on behalf of
the Editorial Team. Prof. Krishnamurthy, K. Srinivasan (Editor in Chief) and
Dr Manivannan (1st, 2nd and 3rd from left) are looking on.
To join prpoint group, please click
http://finance.groups.yahoo.com/group/prpoint/
Affiliate Marketing
By Cindrella Vani Prakash, Marketing
Communication Manager, Mumbai
Affiliate Advertising is a technologically advanced and contemporary way of
advertising. Affiliate marketing is a working relationship whereby a merchant
(online shop or advertiser) has consumers driven to it by adverts on an affiliate
(website). If a consumer visiting the affiliate’s site clicks on an advertisement
and goes on to perform a predetermined action (usually a purchase) on the
advertiser’s site then the affiliate receives a payment. In its simplest form
affiliate marketing is the process by which an affiliate agrees to promote
products and services of an advertiser in exchange for commission paid out by
a network.
The affiliate is the entity that drives online traffic to advertiser sites in exchange
for commission paid out. The advertiser could be any company that sells or
provides a service online. Networks provide their advertisers with the
technology and service while acting as a gateway and support centre to large
numbers of individual affiliates. It is not just cost-effective (for most parts, that
is the main answer one looks for while advertising) but also effective about its
reach. Affiliate Advertising drives the affiliate to work harder towards achieving
their goals in the lure of gaining rewards. The benefit for the advertisers is
obvious; they only pay out on results.
Methods of affiliate marketing are as follows:
Niche content and personal interest websites
Loyalty and reward websites
Pay Per Click (PPC) and search affiliates
However, Affiliate Advertising in India is still to grab the attention of the
Corporate World, it is sure to be popular soon. Only a small chunk of the Indian
Industry today practices affiliate advertising, though small, this chunk is bound
to increase in due time. The future of affiliate marketing is bright and ever
growing as ONLINE is the most wanted medium for everything and anything.
There will come a time when all major corporate houses would be vouching on
affiliate marketing/advertising more than the hygiene/generic types. That would
be the safest time to say that the Affiliates have arrived!
Display Advertising
By Tony Laskar
CEO, Audience2Media, London, UK
Online Display advertising is ‘display banners’ being shown on websites,
illustrating advertisers’ ad campaigns. The most commonly used ad formats
are the Leader-boards (top of the page), Medium Rectangle (centre of page),
Standard Banner (top or bottom of the page), and Skyscraper (on the side of
the page). These are all coded in HTML / JavaScript which allows ad servers
(the technology used) to call the specific ads and display them on specific
websites.
Images within the ad formats can be either in text but most commonly used
today are flash enhanced moving images. Most common metrics used are:
CPM (cost per mille), CPC (cost per click) or on a CPA (cost per acquisition).
Online advertising will continue to grow in future and overtake all other
mediums. This will be the advertising of choice.
What is banner blindness?
People do not notice banners. It's been found in eye tracking studies their gaze
literally avoids settling on any area that looks like an advert instead it seems people
actively try to avoid looking at them. This effect is called banner blindness.
Banner blindness affects most people, and has a startling side effect. Useful areas
of the site that are overly graphically designed (and end up looking like an advert)
are ignored by users as though they were adverts.
A good way to avoid banner blindness is to ensure your site banners are mostly
text, so that they look as much like useful site content as possible. If you wish
push adverts as much as possible, use text adverts, like those to the right hand
side of Google search results, or in the TFL website.
Source: http://www.webcredible.co.uk/
Online poll – Readers’ Questions
Your ezine PreSense conducted an online poll to understand
the perception of the readers. We also requested them to
submit any question seeking clarification on the theme ‘online
advertising’. Probably, due to lack of knowledge about this
theme, we did not get sufficient response. Ms Divya Sesha,
Guest Editor, answers few questions submitted by the readers.
– Editorial Team
Kavitha Prakash, USA
Q: How can I improve my advertising style? I used to post a
message in azindia.com, sulekha.com.
A: Hello Kavitha, Your best bet would be to use Search Marketing. As
explained in the article, search makes use of keywords and it can be
targeted according to region. This would ensure that you are at the right
place; however, this would require monetary input from your end. The
other option is to join a social media network, which is popular among your
already existing clients and create a page for yourself. Make the most of
social media. Become an active blogger. Promote yourself using sites like
Facebook, LinkedIn, Twitter and other social media tools. Learn all you can
about how to use these very powerful and effective lead generators. Here
you can keep updating your new offers and products and sending people
messages. You can read the previous editions on social media if you
require any help with setting up an account. Continue to advertise on
Sulekha and AZIndia. Also, as an option, I would suggest organising
weekly or fortnightly meetings with your existing customers just to update
them or asking them to bring along their friends, which could then be leads
for you. If you have any questions on the above-mentioned options, please
feel free to contact me further.
Vibuti Agarwal, Mumbai
Q: I would want to seek more knowledge on this subject.
Therefore, can you recommend any reading material?
A: Hello Vibhuti, I would suggest that you get your hands on some books,
which are called Internet Marketing or Online Advertising. If you are not
able to find these in India then the best way to read on Online Advertising
is Wikipedia or Internet Advertising Bureau website.
Online poll – Readers’ Questions (contd.)
Shailesh, Delhi
Q; What are the best uses of online Advertising in B2B space? Any
success stories?
A: Hello Sailesh, some of the recent B2B activities that are popular online
are related to social media and there are many new social media tools that
have come up which may be new and effective in the B2B space, this
website might be of use to you http://www.b2bm.biz/ (This talks about
B2B marketing and also has some case studies in it. Apart from this, you
must be aware that B2B campaigns work best with higher leads and PPC is
the best way to generate leads and only requires monetary input.
Prof. S Krishnamurthy, Chennai
Q: How do we know the rating on online advt.? On what basis the
online advertisements are solicited for web sites? How do we verify
the authenticity of hits a site gets?
A: Hello, the rating of online advertising is only measure in the search
channel, which is determined by Google, called Quality Score and Page
Ranking; these are determined based on the website which is analysed and
how closely the keywords are related to the website. This does not exist for
display advertising, as display does not work on bidding for best keywords
and best position on search engines. Authenticity of hits for a website are
verified by platforms like Hit wise which are in the business of analysing
websites and identifying their relevance in the industry
2000 years Saint Thiruvalluvar, who lived 2000 years back, has written
old Twitter Thirukkural in Tamil. Thirukkural contains 1330 Kurals (short
two lined couplets). Each Kural is written only in 7 words (25 to
40 characters). Every Kural contains management tips and
advices for good governance. Though written two thousand
years back, it is more relevant even for the present situation.
Every week, we are explaining two Kurals to suit the modern
day requirement. Please visit the following link:
http://www.kural.co.cc/
Online poll – Readers’ Questions (contd.)
Benz Thomas, Hyderabad
Q: 1. How do we integrate online advertisement with Social media
apart from buying as space on social websites such as FaceBook,
etc. 2. For pay-per-click advertising how do we ensure that we
get 100% interests/genuine customers?
Hello Benz, I am going to answer your question based on my experience.
I have recently worked on a campaign for World of Warcraft for social
media and I have worked with a network (who buys advertising space on
various websites). World of Warcraft is an online role playing game which
is very famous and doing well. Since World of Warcraft is a community
based offering, social media involvement would be ideal to generate more
and more subscriptions. Ofcourse we brought space on Facebook but also
apart from that, we asked the network to create a community page on
their website where users could share videos of their gaming (What level
they are playing, new weapons unlocked in new levels etc) They also
generated a poll surrounding the game and we received a very good
number of responses for the same. We also asked users to voluntarily
write blogs on the websites about their game play. There were many
discussion forums as well. YouTube and Justin TV are also spaces where
you can have your advertising (display) on specific channels like Gaming,
Shopping etc The best way to identify whether PPC users are genuine is
to see the conversion rates, those who convert would be genuine and
those who don’t would be leads and can be re-targeted
Important links of Prime Point Foundation
www.prpoint.com www.indiavision2020.org
www.imageaudit.com www.action2020.co.cc
www.corpezine.com www.eltf.co.cc
www.poduniversal.com http://prpoint.blogspot.com
Online poll – Readers’ Questions (contd.)
S Sakthi Prasanna, Chennai
Q: When people think of online advertisements, only pop up ads
come to their mind. Most of the people who use internet feel that
pop up ads are very disturbing and irritating. Can there be any
balance of online ads, which creates an impact without disturbing
the online users?
A: Hello Sakthi, yes at one point of time this was my exact impression of
online advertising but nowadays things have changed and it is not about
pop-ups anymore. There are many different types of advertising like site-
skins, home page takeovers, rich media etc, which do not obstruct the
content on the web page and allow the users to view the content/ad at
ones leisure. The advantage of online advertising is that there is always a
Call-to-action which means that you always can either 'make a purchase',
'sign up for a newsletter/magazine, ' donate money' or other at that
moment. This makes it all the more convenient than going to a store. In
UK, there is hardly anything that you cannot do by sitting in front of a
computer. I have only recently gone to a post-office to send a post to
India and that was because I had to send the post, whereas all my other
activities right from shopping for groceries - to booking a ticket - to bank
transfers is done online. This is the future of online advertising in India.
Latest Podcasts in PodUniversal
India will be the education capital of the world in 20 years
http://www.poduniversal.com/2010/08/india-will-be-education-capital-of.html
Challenges in the use of Internet
http://www.poduniversal.com/2010/08/challenges-in-use-of-internet-radio.html
Spare two hours a week to achieve Vision 2020
http://www.poduniversal.com/2010/08/spare-two-hours-week-to-achieve-vision.html
e-Governance enables citizens to feel the Government, without seeing it
http://www.poduniversal.com/2010/08/e-governance-enables-citizens-to-feel.html
PResenters of PReSENSE
Divya Sesha K. Srinivasan V. Rajendran Triambak Sharma
Guest Editor Editor-in-Chief Strategic Editor Cartoon Editor
A. Rekha K. Bhavani Archana Verma R Janani
Coordinating Editor International Editor International Editor Content Editor
(South Asia) (USA)
Singapore
Published by
Prime Point Foundation
Feedback and sponsorship
[email protected] Past issues may be downloaded from
www.prpoint.com
www.primepointfoundation.org
www.corpezine.com
Listen to India’s first pod-magazine
www.poduniversal.com
one stop shop for podcasts on all subjects
To subscribe to this ezine.
Awards www.prpoint.com/PR-e-Sense
