Online Advertising Definition
Updated: May 28, 2018
Online advertising is promoting products or services on the Internet. Ads on social media channels, search engine results pages, blogs, banners and e-mail marketing are all examples of online advertising.
With Internet advertising you can generate more visitors to your website and thus increase sales.
Commission models of online advertising
CPM, CPC and CPA are the three most common ways that online advertising is paid. With CPM, cost is calculated per thousand impressions of the advertisement to a specific target group. With CPC, the advertiser pays for each time someone clicks on the ad and is redirected to his or her website. The advertiser only pays if someone clicks on the ad, not before the screening. CPA, cost per acquisition, is result oriented that only pays for an actual performance, for example, a conversion or sale. CPA is often applied in affiliate marketing.
Benefits of online advertising
Online advertising has many advantages. For example, compared to offline advertising, the costs are low, making it an attractive option for small businesses. In addition, a good return is generally achieved with online ads. Another advantage of online advertising is that it is measurable. With tools such as Google analytics, the effectiveness of advertisements can be measured in many ways, making it possible to optimize your online advertisements. These are only 2 of the many advantages, so online advertising can, for example, target a specific target group with a wide range of possibilities, but you can also have a huge reach with your advertisements. Finally, online ads are generally faster to run than offline ads.
Formats of online advertising?
Online advertising is advertising via the internet. This can be on search engines, on various websites, on social media and via e-mail. The advertisements may have different
formats depending on the placement.
1. text ad
2. product / shopping ad
3. image ad
4. video ad
What is SEO and SEA?
The SEA and the SEO together determine the online findability of a company or organization. SEO = Search Engine Optimization and SEA = Search Engine Advertising. Advertising on search engines is called SEA. SEO is also popularly referred to as 'free findability' and SEA 'paid findability'. SEA can use tools like Google Adwords and Bing Ads. SEO is determined by the customer friendliness of the website and smart social media usage. Both listings can be found on search engines such as google.co.uk, bing.co.uk,
ask.co.uk etc. The SEA can be recognized by 'Ad' in the search results at the top and bottom. A variety of terms are used in online advertising. Below is a brief explanation of
the most important terms:
• CPC = cost per click: the costs you pay when clicking on an advertisement / listing
• CPV = cost per view: the cost of an impression of a film
• Impressions: number of impressions of an advertisement, ie the number of times the ad is shown.
• Click: the number of times that an ad is actually clicked.
• CTR = clickthrough rate: click-through ratio, ie the ratio between the number of impressions and the number of clicks.
• Conversions = achieved goal, this can be a purchase, a completed contact form or a movie viewed etc.
How does online advertising with Google Adwords and Bing Ads work?
Example: Someone is looking for a car insurance policy. He is going to google to do a search. While he googles he gets both SEA and SEO listings. He clicks on the SEA and comes to the website, gets an idea and continues to browse on other websites. A day later he looks again, and again sees SEA and SEO listings and clicks on listings other than those he clicked the day before because he was not finished with browsing. With this information he will think about it for a few days, discuss it at home and so on to finally decide which provider he wants to contact. He goes googling again, now clicks on the SEO entry and buys his car insurance online. In this purchasing process, the figures for this customer are:
• Impressions: 3
• Clicks: 1
• CTR: 33%
• CPC: nothing to say about it here
• CPV: n / a
• Conversions: 1
How expensive is a click (CPC)?
This depends on the landing page, ad text, search term, campaign setting and industry competition. As you see a lot of variables. This is because the CPC is based on an auction system.
Online advertising via search engines is based on the basic principle that the customer (for example, the one looking at www.google.co.uk) finds what he is looking for as
as easily as possible. For every search term there is an auction and at the auction it is checked which ads have the keywords that match the customer’s search term
(what he types in Google) best. Then the quality score is assessed and what is the willingness to pay, there comes a number that determines whether you are visible at the
top, bottom or on the next page. If the keywords match the ad and the landing page, then the Quality Score is higher, which makes it possible to place a bid lower for placing
In other words, there are 4 important components that determine whether an advertisement is shown.
3. Landing page
4. Max CPC (= Cost Per Click) bid - please note that the max CPC could for example be £1.00 but that of the competitors, with an equal quality score, £0.75. Then the advertiser only pays £0.76 for a click. In other words, for a keyword with a maximum bid of £1.00, if you offer £1.00, you would only pay £0.76 if the maximum offered by your competitors was £0.75, ie always one penny above the rest. So this way the advertiser does not pay more than is necessary to show his advertisement.
If the ad is subsequently clicked on, it can be assumed that people are also interested in the product / service / site and that is also charged by Google or Bing. In other
words, the advertiser only pays when one clicks on the advertisement and not for showing it.
A distinction is made between Search network and Display network . In search network all search pages are connected to Google, such as google.co.uk and google.com. These are
text ads. Display network is a network of millions of sites affiliated with Google, well-known examples are YouTube, Blogger, G-mail, but also Marketplace, Mobile apps etc. The ads can then have images or even video. Depending on the target of advertising and the target group, the choice for the network is made per campaign.
The nice thing about online advertising on search engines like Google and Bing is that there is no minimum amount and that you can adjust or stop it at any time.
The possibilities of online advertising are endless. Through a wide range of online channels, companies can bring targeted customers to their website through online advertising. You achieve this by advertising on specific keywords and channels that suit your organization, product / service and target group.
In practice, this means that often the following resources are included and considered in the resources strategy, simply because they turn out to score well:
• Facebook / Instagram
• Comparison sites and shopping platforms
• E-commerce product advertising (Feed marketing and data feed management)
• Google Adwords and the AdWords Display Network
• Remarketing in all possible ways and sites
• Youtube advertising
• Programmatic, Ad Exchanges & Real time bidding
Advertising on Facebook
Advertising on Facebook gives companies the excellent opportunity to increase brand awareness and reach. With more than 1.5 billion users worldwide, Facebook is the place to get in touch with (potential) customers. Advertising on Facebook is possible with the help of an auction model based on cost per click (CPC), cost per 1000 impressions (CPM) or cost per action (CPA). The result and costs can thus be precisely coordinated.
The benefits of online advertising on Facebook
• Wide reach, also among specific target groups
• Increasing the loyalty of the target group
• Specific and extensive targeting possibilities
• Direct interaction with the target group
• Unique tracking options, also across devices
• Wide range on mobile
• Also suitable for video ads and app-install campaigns
Online advertising on Facebook offers excellent targeting opportunities to select relevant target groups. The correct selection of the relevant target group can be the difference between a successful or less successful Facebook campaign.
Targeting options within Facebook
• Demographic (gender, age, country, etc)
• Affinity target groups
• Remarketing, including e-mail retargeting
• Similar target groups (Profiles of users with the same interests and characteristics as followers of the business page)
Many companies worldwide have already preceded you and discovered the possibilities of advertising on Facebook. A targeted social media strategy helps your company grow and
adds values to your other online channels. Advertising on Facebook can be suitable for the following purposes:
Goals of advertising on Facebook
• Generating more fans or followers
• Promoting your brand, company or page
• Creating branding and awareness
• Creating more engagement and loyalty
• Increasing sales or leads
• Realizing app downloads
The possibilities of advertising on Facebook (and Instagram)
• Standard Facebook ads
• Sponsored reports
• Video Ads
• Instagram ads
• Page Post Ads
• Mobile Only Ads
• Sponsored search results
Advertising on LinkedIn
The advantages of advertising on LinkedIn
• Extensive targeting possibilities
• Only pay for results
• Very suitable for recruitment, B2B campaigns and business services
• Increased number of followers of business page
• Supports other online channels
• An extensive business network
• Relevant, specific and targeted advertising
LinkedIn currently has more than 414 million users. LinkedIn campaigns can be targeted very specifically. As a result, the relevance of the campaign increases, increasing the success of a LinkedIn campaign.
Targeting opportunities at LinkedIn
• Demographic characteristics (gender, age, country, etc.)
• Business affinities target groups
• Job title (including management, procurement, or management level!)
• Companies with specific number of employees
• Profiles with specific diplomas
• Function experience
• And much more
Linkedin offers besides the extensive targeting possibilities also a diverse number of online advertising types. The type of advertisement must match the ultimate goal of the campaign.
Advertising types on LinkedIn
• LinkedIn Text Ads
• Linkedin Sponsored Updates
• LinkedIn Display
Advertising on Comparison Sites and Shopping Sites
The importance of product advertising on comparison sites including Google Shopping is growing. The same applies to shopping sites such as Amazon, etc. The choice is great
and they are interesting for all webshops because the visitor has a purchase intent and can compare products with each other. Automated, optimal, integration of your products
on these platforms simply generates - much - extra revenue!
Advertising products through comparison sites?
The comparison sites are actually a combination of the product range of many webshops where the comparison site lists the products and shows the result to the user. A webshop
can become visible on such a platform by uploading products. This can be done manually, but in the vast majority of cases a product feed is better and much less labour-intensive. The requirements for the product feed vary per platform.
Advertising for maximum results on comparison sites
Most comparison sites work on the basis of CPC (cost per click) or CPS (cost per sale). This rate is often also variable. You already know this auction system from AdWords
and Google Shopping.
• Bid management: pay the right amount per product, platform, category etc. based on your turnover
• Feed optimization: optimizie feeds for each platform
• Showing the right products with the highest sales opportunity
• Optimizing the product range for each platform, based on realized sales data
• Optimization not only on the number of sales, but also turnover, or even margin (!)
• Link sales data with Google Analytics
• Conversion attribution: Do not pay too much or double!
E-commerce product advertising (feed marketing)
Feedmarketing is the automated transfer of your website product database to different platforms and comparison sites, such as Google Shopping. Only fine-tune Google Shopping
and your sales can add up to 50% of your total AdWords earnings, and sometimes even more. Integrate your webshop with Amazon and it gets even more.
What is feed marketing and what does it deliver?
Getting started with feed marketing is not that simple. The quality and constant optimization of a feed is decisive for the success of data feed management. Knowledge of feed data feeds and associated tools is absolutely essential. Various feed marketing tools are available in the market.
Feed marketing platforms & channels
The most important platforms that work with feeds are:
• Shopping platforms like Amazon
• Various affiliate networks
• Comparison sites
• Google Shopping
Creating feeds for all platforms is a costly and complex process. Each platform also sets its own specific requirements. Providing a good feed requires knowledge of the platforms and especially the possibilities for optimization. A feed optimized for each individual platform provides better results. A good feed is:
• Clean (no empty fields, punctuation marks, etc.)
• Customized on each individual platform
• Broken down as far as possible as each individual platform allows
• Automatically provided with tracking codes
Once the feeds have been cleaned up, optimized and implemented as per the relevant platforms rules, the optimization process starts. As with AdWords search, optimization of
bids at the product level determines success for a significant part. The fully broken down tracking makes it possible to optimize the results. A lot of sales, a lot of turnover, with maximum margin, at the right costs, that's the goal.
Advertising on the Google Display Network
Via the Google Display Network you can reach over 85% internet users. The reach of the Google Display Network is huge. But how do you optimize the channel?
What is the Google Display Network?
The Google Display Network was previously known as the Google content network. The network includes a large collection of partner websites from Google. They have indicated
that they want to display AdWords ads on their website. The Google Display Network consists of websites such as Youtube, but also a lot of smaller websites / blogs or forums
on various topics. The Google Display Network allows you to advertise both text and image ads. The possibility of using image ads, or banners, is a big difference with advertising on the Google search network.
How does it work?
Due to the large size of the Google Display Network, it is important to focus your arrows correctly. You do not want to shoot with hail, but target your target audience. To
achieve this, Google has a number of targeting methods:
• Placement targeting: Manually or automatically target websites
• Content targeting: Targeting relevant sites based on keywords
• Subject targeting: Choose from relevant topics, compiled by Google
• Keywords selection: show ads on sites that deal with the topic of your keywords
• Interested targeting: focus on the interest of internet users
• Remarketing : only re-reach your existing website visitors
• Combined targeting: combine multiple targeting methods
What does advertising cost on the Google Display Network?
Various payment models also belong to different methods. This allows you to purchase advertising space based on CPM (cost per 1000 impressions) and CPC (cost per click).
In the first instance, Remarketing can best be described with an example that everyone can agree with. Suppose your girlfriend is shopping on the internet, she sees a (far
too expensive) pair of pumps that she (of course) wants. She presses the button and 'hoopla' the pumps are in the shopping basket of the relevant webshop. Unfortunately for
her, you look along and immediately comment on the price of the shiny heels. Your friend therefore decides not to buy them. The next day she starts her computer and starts
surfing the internet. "Interesting!" She thinks. A banner appears on her screen with the same pumps she did not buy yesterday. She is still very interested and looks back, you are not around and (yes) there is a purchase.
1. But how does remarketing actually work?
The above example shows that remarketing has to do with reaching your target group again. Remarketing ensures that visitors who have viewed certain pages of your website are reached again. This is done through a targeted text or image advertisement. There are two ways to use remarketing:
A. Adwords Add a remarketing tag (small piece of code that you receive from Adwords ) to each page on the website. This can be done by placing this tag for your website. You can then create remarketing lists for each desired page. These lists contain the visitors who are targeted by you to be approached again. By then creating a specific
campaign you can shape the segmentation.
B. Analytics Besides Adwords it is also possible to use remarketing via Google Analytics. The advantage of this is the possibility to zoom in on visitors more deeply. That is, segmenting by browser, operating system, region and certain goals . By adjusting the tracking code you can use Google Analytics for remarketing.
2. Is remarketing suitable for me?
In many cases the answer is: yes! People do not all decide at once. In other words, sometimes you have to remind people to choose your product or service. This can be done
through remarketing. In addition, you keep control by setting bids and daily budgets yourself. The data will then show whether remarketing is suitable for your target group.
3. When do I use remarketing?
If you see that there are many visitors to your website, but the conversion is lagging behind. This means that you have to help your target group make the purchase. The
introductory example shows that placing a product in the shopping cart (without purchase) suggests that there is doubt. With remarketing it is possible to respond to this
doubt and to show that your product is really the right choice for the visitor.
4. Remarketing campaigns success factors
• Target group selection: who will you approach again
• Prospecting: the collection of essential information for determining remarketing groups
• Site selection: where will you optimally approach target groups again?
• Continuous result optimization (as you are already used to optimizing your AdWords campaign )
• Testing and analysing target groups and adjusting offer / statements
• Network selection: Facebook, Google AdWords, Exchanges etc.
• The right tools and data enrichment
• Good analysis of results, incl. Conversion attribution, cross-device and post-view conversion
Google Analytics also offers great potential for easy remarketing targeting and target audience data analysis.
5. Remarketing channels & resources
The possibilities in the field of remarketing are increasing rapidly and a good choice is crucial for success. A few examples:
• Facebook: You can retarget your own e-mail file for existing customers or prospects via Facebook ads
• Google AdWords Display Network: The largest website network offers many selection options for remarketing
• AdWords remarketing for search - RLSA: You can now also reach searchers on more general search terms on Google
• AdWords dynamic remarketing: Easily show cart leagues a banner with the last viewed products
• Programmatic and RTB. The possibilities are many.
• Youtube: You can re-view viewers of your Youtube videos with your ads in different ways
• LinkedIn remarketing
6. Benefits of remarketing
• Can score as good as a good AdWords campaign
• Additional scope and (conversion) result
• Many and qualitative reach possible
• Advertising throughout the purchase decision process
• Control from budget to best-scoring target groups and sites, thus becoming more effective budget spending
Advertising on YouTube
After Google, YouTube itself is the largest search engine on the internet. Youtube is by far the largest online advertisement channel for video advertising with spots, also known as prerolls. Due to the high search volume and extensive targeting options, advertisers can reach very specific target groups, without waste. Combined with TV spots.
The benefits of Advertising on YouTube
Youtube offers an important reach addition to the purchase of TV spots:
• Youtube is cheaper (GRP) than TV, on specific target groups
• You can target your target group in a very focused manner.
• No unnecessary waste
• You are usually the only spot / advertiser
• Existing TV spot can be placed 1 on 1
• You can easily advertise with Google AdWords campaign in YouTube
• Your ad has full attention because it always follows after an action by the viewer
• You only pay for really fully viewed spots if you wish
Ad types and targeting
The wide range of advertising opportunities makes advertising on YouTube suitable for almost every company and budget. For advertisers, YouTube currently has several options
for showing a video ad:
• In-stream, the ad appears before, or during, another video. This can be purchased as a "skip-ad".
• In-display, appears as "suggested video". The entire video is the ad.
• In-search, based on search terms, especially suitable for longer videos ads. The ad is the video.
• Remarketing of viewer who have copied the entire spot
• Remarketing of viewers of videos on your channel
• Etc. etc.
The targeting possibilities are diverse. Demographic, topics and interests, keywords, channels. The possibilities change quickly.
Your own Youtube channel
Do you have video and / or audio content then it is almost always worth setting up your own Youtube channel. The channel often forms the basis for the organic findability of
video content, and videos can be promoted from there on Google itself. That does not have to be an advertisement, but can also be another video.
What does an advertising agency deliver
• advice on suitable Youtube advertising types
• the best targetting for your target group
• a calculation of the added value of adding Youtube to TV spot purchase (GRPs, range and frequency)
• advice on transferring the video ad on the Google Display Network
• ad format and spot length advice
• extensive reporting
• advice on monitoring Youtube video and / or spot viewers with remarketing
Prgrammatic and Real Time Bidding
Both online and traditional media purchasing is shifting to "programmatic". This means purchasing AND real-time optimization of digital advertising (banners, mobile, text ads, video, etc.)
• Biddable, through an online auction bid on reach, impressions, clicks or conversion
• Real-time, while the campaign makes adjustments on realized, measured results
• No more budget commitment needed
• Never negotiate rates again
• Outdoor, radio and TV also shifts to programmatic!
What is programmatic?
Programmatic and RTB are often used interchangeably. The core of programmatic is that systems automatically bid on relevant advertising spaces and that the right advertising
message (banners, videos or text ads) is shown to the right person at the right time. The oldest form of programmatic is ...... Google AdWords.
Advantages of programmatic advertising
• Close targeting possible (affinities, time, demographic, device, location etc.)
• No waste
• Linking media (eg showing realtime banners simultaneously to your radio campaign)
• Remarketing possibilities (eg following TV commercials with display)
• Use of data to reach similar target groups to your current one
• Full funnel range across all stages of the purchase decision process
• Measurable and insightful result
The real-time aspect makes it possible to adjust costs to the benefits. The trend is that more and more online media purchasing is shifting to auctions. Because the price is variable for ad auctions, purchasing can often be much cheaper than traditional advertising. Through the use of (external) data sources it is possible to only offer impressions to the "one" person who falls within your target group.