Published on March 13, 2014
Digital Marketing Broad term that describes a set of marketing processes that utilize all available digital channels to promote a product or service. Difference between Digital Marketing /internet advertising/internet marketing/online advertisements Digital Marketing include:Web sites, Social media platforms, Banner placement, email marketing, mobile marketing, SEO, pay per click campaigns,WebTV, SMS, billboards and anything else with a digital foundation. Internet Marketing is a subset of Digital Marketing which is our main focus and where we work.
Types of Internet Marketing Website, SEM, SEO, SMM, Content Marketing, Email Marketing, Mobile Marketing and BannerAdvertising. SEO : On page SEO and Off page SEO . SMM :Social Media Marketing is how much you spend your budget promoting your products on Social Media like Facebook,Twitter, Google Plus, Instagram, Pin interest.. Content Marketing :This simply means that good content has become again the foundation of SEO and it is through content that you will build a better Internet presence and not through cheap link building techniques.
EVOLUTION - The History BeforeThe BannerThere was SPAM :The first ever Spam email to annoy email owners was sent on May 3, 1978. The recipient list was 400 users long and was taken from theARPAnet directory. ARPAnet, for the geeks in all of us, stands for Advanced Research ProjectsAgency Network. It is considered to be the precursor to what we now know as Internet. The first spam email advertisement ever to hit the inbox was GaryThuerk, also known as the father of spam, not a very inspiring title.
The Birth of Banner Ads Global Network Navigator, in 1993, was the first commercial website to sell a clickable ad (later they were termed as “banner ads”). It was sold to the law firm Heller EhrmanWhite & McAuliffe By April 1995, advertisers like Mastercard and Zima were paying GNN $110 to $11,000 per week for ad spots. However, it was in October 1994, when the team at Hotwired – the first commercial web magazine –the idea came in the form of selling ad spaces in large quantities and the term “banner advertising” was coined AT&T was one of the first companies to buy ads on Hotwired.
AT&T revolution on Hot Wired The first banner ad on Hot wired was by AT&T, who wanted to use it as a means to promote their new campaign “You will”. When the users clicked on the ad they were taken on a virtual tour of seven of the world’s greatest museums.The thought behind this concept was to impress upon the users howAT&T could help them travel across time and space through Internet. The ad space was bought for three months at the price of $30,000. It produced a click through rate of whopping 44%
Chapters from 1995 Yahoo transformed itself from just being a web directory to a commercial business, the same year in which they did the first keyword based advertisement. Same year, an important change happened, Netscape and Infoseek changed their advertisement pricing model to CPM (Cost perThousand Impressions) based. August 1995: MSN online is launched by Microsoft. CBS launches itsWeb site. AT&T and Saturn purchased banner ads on Pathfinder for $30,000 The Internet Advertising Council is assembled. A new Era begins –Advertising in Internet.
Double click - major milestone in the banner ad industry • An online ad-related-services providing agency- in 1996+ • Before Doubleclick, the ads were not organized or coordinated. Not only that, before its creation it was hard for websites to find parties interested in buying ad spaces. • Doubleclick developed a technology called DART (DynamicAdvertising Reporting and Targeting) which helped advertisers to track the clicks and optimize their ads before the campaign ends. • Doubleclick was seen as quite successful and raised multiple round of funding. In fact, it was one of the few companies which had a lot of money in the bank ($900 Million to be exact) and survived the Dot com bubble. • In March 2008,Google acquired DoubleClick for US$3.1 billion.The 3rd biggest acquisition for Google after Motorola andYouTube.
Pay Per Click Advertising Model By 1999, the online advertising industry had already reached $1 billion.With the number of web sites increasing in the late 90′s , the need for search engines became more predominant. For Google, textually relevant ads instead of banner ads seemed like a good option. Google launched its search engine service in 1999 and it was in 2000 that the Adwords was introduced. Google reintroducedAdwords which included the option of PPC advertising.The “Click through rate” feature means that if an ad with a lower bid got more clicks than the others above it, it would climb up the ranking ladder.A more sophisticated version is called the Quality Score today. Google did not invent the Pay per click model, but it simply adapted and perfected it.Today, almost 96% of Google’s revenue comes from advertising.
Era of Social Media Advertising Social media has revolutionized the online advertising industry, online advertising has gotten powerful in a very short period of time thanks to social media. Let’s first look at Facebook. Reports show that advertisers have spent more than $4 billion on Facebook advertising. In 2008, Facebook launched “Facebook ads for businesses and it also established the ad platform Beacon and introduced engagement ads. In March 2013, Facebook acquired Microsoft’s advertising platform –Atlas. Fun fact :As of 2012,Twitter’s mobile advertising revenue has exceeded Facebook’s mobile ad revenue, with $129.7 million to $72.7 million. Another powerful force in the social media advertising realm is, off course, YouTube. YouTube launched promoted videos and pre-roll ads. In the first quarter of 2013 alone,Youtube generated $350 million in mobile ad revenue.
The Present Banner advertising -Although the effectiveness of banners is low now, according to MediaMind, banner ads account for a huge part of online ad impressions. I’m sure this will not continue for a long time and we as a part ofAdvertising industry should not promote banner ads. It leads to banner blindness. Retargeting – Retargeting is one of the technologies which really helped increase the relevance of banner ads and improved the ROI for advertisers significantly. Remarketing lists for search ads (RLSA) - Recently launched by GoogleAdwords, RLSA allows advertisers to differentiate individuals based on the information if they have visited the advertisers’ site or not. Pay Per Click Advertising, Social Media Advertising etc..
The Future RealTime Bidding: RealTime Bidding has been slowly but surely revolutionizing the way online advertising works. Sales from RTB : 2010 - 4%, 2011 - 10%, 2012 – 16%, 2015 – 27% (expected) Advertisers submit their bids using automated software. Using the DSP (demand side platform) the publisher then wins a bid request based on the visitors’ demographics. Right now, a lot of Ad Networks use a RTB Exchange to increase their fill rates. One of the biggest RTB Platform/Exchange is Rubicon project. In fact, in January 2013, it surpassed Google in U.S.Audience Reach. Tools will combine data visualization and manipulation with content creation capabilities (imagine the merging of the desktop of a designer with that of aWall Street broker). There is a fundamental shift in media buying from buying placements to buying audiences. Mobile and video advertising provide new ways of reaching and engaging with users.
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