Friday, 15 April 2016

Basics of Online Advertising

Over the last decade, advertising landscape has evolved in a huge way. There was a time, not so long ago when advertising was all about print/newspapers until the time Television took over the world by storm. Even today, almost 80% of the advertising spend is on Print and Television. Online advertising has come in a big way in the last 15 years to capture close to 10% of the advertising pie in India. Online advertising is projected at grow at an annualized rate of 30% in 2016 according to Pitch Madison Media Advertising Outlook. Given the rate at which online advertising has been growing over the past few years it is imperative that every marketer has a good understanding of how it works.
So let's look what exactly Online advertising is -
It can broadly be classified into 3 buckets, although there is always some over lap between them -
Search Advertising -  It involves placing 'text' advertisements on the 'search results page', when a user types in a query such as 'taxi services in Hyderabad'
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Search Ad
Display Advertising - This type of advertising happens in places like blogs, websites etc. Companies like Google, Yahoo etc has their own network of affilited websites where they serve advertisements. In order to be part of this network of websites, the blog/website owner will have to enroll into their respective affilite network programs - Adsense and Bing Ads
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Display Ad
Video Advertising - A large chunk of video adverting happens on Youtube (owned by    Google) and Facebook. These are all ads that are shown while you are watching a video on Youtube  or sponsored videos on Facebook.
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Video Ad
Although, online advertising can be broadly classified this way there is a lot of overlap between these 3 segments and each of these segments have several products/features developed in order to serve the needs of a marketer!

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