Advertising Exam 3

Establish Campaign Goals

(Advertiser Side Function) - done by agencies and marketers -1

Plan and develop creative

(Advertiser side function) - measurement and analytics - media planning tools -2

Natural Market Forces

(Basic Level of Regulation) - Tend to regulate advertising through "hands off", "laissez faire" approach - assumes quality products and good advertising will prevail and bad products and deceptive advertising will fade away. - problem: Market forces take time to work, allowing bad actors to victimize consumers in the short run.

Automation

(Evolution of Markets) - Increasing investment from multiple constituents led to the creation of _________. = enabling more transactions and growing markets globally. - sheer volume of transactions and money behind them fueled innovation to create enterprise products such as bloomsberg terminals. -fueled innovation - so much action, need to be automated

Liquidity

(Evolution of Markets) - First stock market was born in the 1600's in Holland -Volume of transactions were low; sophistication of transactions were not yet needed - markets later moved indoors with more buyers and sellers growing the markets -Holland - 1600s - trade markets - turn what it is you're selling into money - Italy Cheese

National Advertising Review Council

(NARC) - Formed by American Advertising Federation (AAF), American Association of Advertising Agencies (AAAA) and Association of National Advertiser (ANA) - decisions are non binding - they do not have the rule of law - most advertisers and agencies abide by NARB decisions. -enlightened self interest -however people can still appeal to the us government (the FTC), if they don't like the decision (or if the opposing party refuses to abide by the decision)

Preferred Deal

(Programmatic Umbrella) - Programmatic Direct - No RTB and inventory not guaranteed - These buys occur when a publisher makes its inventory available at a set price for a single buyer - These deals leverage RTB infrastructure, but allow the publisher to give preference and better rates to specific demand-side partners. - These transactions are also known as unreserved fixed rates or private access.

Programmatic Guaranteed

(Programmatic Umbrella) - Programmatic Direct - No RTB and inventory guaranteed - The buyer and seller negotiate directly for guaranteed inventory at a fixed price. -It's never an auction environment. Prioritizing is typically at the highest level (the same as other direct deals and/or sponsorships) -Typically the RFP process is automated -Good for strict brand safety, inventory control, high-value placements, and so on. -Safest Option

Return on Investment

(ROI) - (Gain - cost)/cost = ROI -allows for direct comparison of ALL types of investments - marketing/advertising investment - financial investment - infrastructure investment - education investment - etc.

Buy and Sell

(advertiser side function) -direct sales - exchanges -ad networks -4

Place and optimize

(advertiser side function) - creative optimization -retargeting/ BT - DSPs -3

Self-Regulatory Forces

(basic level of regulation) - 1. industry ______ _______ 2. the idea of "enlightened self interest" whereby industries regulate themselves to avoid government intervention. 3. does not involve the government -function is to investigate complaints about advertising -most cases involve claim substantiation, evaluating whether the advertiser had enough information or a good justification for making a claim.

Private Policy

(basic level of regulation) - Advertisers and agencies internal regulatory policies -media clearances -broadcasters are awarded licenses by the Federal communications commission based in part on how well they "serve public interest, convenience and necessity" -CBS decided to air tim tebow "pro-life" ad during 2010 super bowl but not a gay dating website ad. -many agencies have ______ ______ about what they will and won't do.

Organized Market Forces

(basic level of regulation) - Boycotts and protests -professional association self-regulation - many associations (amercian bar association, american medicial association) have rules about what/how members can advertise. -while ostensible to protect consumers from unscrupulous practitioners these laws more often limit competition. - These types of advertising restrictions are no longer legal (supreme court decisions)

Cost Per Order

(behavioral measure) -cost/order (CPO) -allows for direct comparison of different advertising channels or programs to see which is most efficient at generating orders. -cost of program/orders generated

Optimisation

(evolution of markets) - Access to markets data and the ability to transact quickly on the basis data has led to fully 50% of financial trades were now being conducted electronically, between two machines. -How do we choose the best option from a vast set of alternatives? How do we optimise? - stock markets hard to do by hand - computer programs buy and sell stocks. You're not making the decisions, you're letting a computer program do it for you - need more controls so market doesn't crash completely - programs aren't perfect.

Ad network

(fading away) - an online advertising service provider, often with proprietary technology that helps marketers run display advertising campaigns across various sources of online inventory, including direct publishers and ad exchanges - advertisers and agencies use it to reach audiences -publishers use it to sell remnant inventory

Bid Price

(for each impression) - Goal value x action rate = ____

Private Marketplace

(programmatic Umbrella) -RTB - but restricted (not public) auction - _________ exchanges are more controlled environments, typically run by major publishers or a group of them, without ads sold through carefully selected agencies or advertisers using trading desk and demand-side-platforms (DSPs) -________ _______ assumes: - full transparency of buyers - publisher control - premium inventory

Open Exchange

(programmatic Umbrella) -RTB -The public ad exchange is akin to a virtual auction place with buyer bidding on the billions of ads that flow through daily. - operated by companies like google, yahoo, openX, The rubicon project, and AppNexus -over 70 billion impressions daily flowing through ____ _____s, policing them has become increasingly difficult

Buy and Sell

(publisher side function) -4

Package and price

(publisher side function) -DMP's -Date Suppliers -SSP's -2

Implement and Optimize

(publisher side function) -ad servers -ad ops -media management -analytics -3

Develop Audience

(publisher side function) -publisher tools/cms -sharing tools -search engines -social networks -1

Qualitative Methods

(research method) -Focus groups -one on one interviews -observations -word association -drawing/collages --- data not reduced to numbers for analysis

Quantitative Methods

(research methods) -Surveys - random sample of audiences -experiments - allows researcher to control for other variables --- data reduced to numbers for analysis

SSP

(sell/supply side platforms) - an advertiser technology platform which represents the suppliers of online ads (publishers) that makes it easier for publishers to manage and sell their inventory on multiple ad exchanges and networks. -give publishers the ability to increase their website advertising revenues by engaging with multiple demand style channels (ad networks, ad exchanges, and DSPs) through a single vendor. - used by publishers

Typical Measurement Factors

- Advertising promotion 1. media placements 2. program rating/share 3/4. CPM and CPPs measures 5. Number of different ad executions - creative produced

Forms of Internet Advertising

- Banners - Sponsorships - Pop ups/Pop Unders - Interstitials - Search - Social Media

Programmatic Advertising Pricing Models

- Cost per thousand (CPM) - used in direct deals (no RTB) and in buys from ad networks - Cost per click - used in search - Dynamic CPM (dCPM) - used in programmatic RTB

Keyword Search Advertising

- factors that impact placement (appearing at the top of the paid search results) 1. Bid - (not just about highest bid) (volume over price) 2. Landing Page quality - domain with search term in it - want good ad ranks -looks at stuff on your website too - site structure -relevance/popularity - customer service - contact us - secure transactions - private policy

Critics of Advertising have attacked

- overall effect on society - advertising of specific products -types of advertising appeals used -Targeting practices

Physiological Measures

- pupil dilation - galvanic skin response - eye tracking - brain waves -latent _____ _______ reduce concerns over "lying," social desirability and other cognitive response biases

truthful advertising for legal products can be regulated

- substantial state interest -ban on advertising will advance state interest -there is a "reasonable fit" between state interests being asserted and the regulation

Government forces

- the most coercive type of regulation -federal regulation -federal trade commission -adjudicates complaints from competitors consumers or any other source (FTC staff) on a case-by-case basis. -evaluates if ad is "unfair" or "deceptive" based on a number of specific criteria - does "net impression" of ad create "false beliefs"

Dynamic CPM

- used in programmatic RTB - Looks to mix the best of all pricing models, but requires additional technology - an algorithm to succeed. -DSP's buy media via Real time bidding (RTB) -Marketers enter their desired goal (such as reaching an audience, generating brand awareness, driving site traffic, driving purahces) and their technology partner translates this goal into a dynamic impression by modeling how well each impression is predicted to achieve the desired goal.

Sources of NAD cases

-Competitor challenges - 61% -NAD monitoring - 32% -Local BBB Challenges - 1% -Consumer challenges - 6%

Disadvantages of Internet Advertising

-Measurement Problems -Annoyance -Clutter -Potential for Deception -Privacy -Poor Reach -Irritation

2 types of commercial speech that receive no protection

-false, misleading, or deceptive -unlawful goods or services

Behavioral measures

-sales -inquiries/leads -website visits -800 numbers called -coupons redeemed -sweepstakes or other contest submissions -loyalty program enrollments -direct response ad inquiries

Advantages of Internet Advertising

-target marketing -message tailoring -interactive capabilities -information access -sales potential -creativity -exposure/speed -complement to IMC

National Advertising Division (NAD)

..Of the council of Better Business Bureau (CBBB) - operates through - National advertising review board - main self regulatory body for advertising industry -children's advertising review unit (CARU) - focuses on advertising to minors the Narc operates in cooperation and conjunction with the NAD to self-enforce standards of advertising fairness and decency.

Federal Agencies involved in regulating agencies

1. Federal Trade Commission - prevent deceptive advertising -affirmative disclosure - advertising substantiation - dealing with deceptive advertising after it occurs -cease and desist orders -corrective advertising 2. Federal communications committee 3. Food and drug administration 4. U.S Postal Service 5. Bureau of Alcohol, Tobacco, and Firearms (BATF)

Awareness/knowledge/attitude change/intention

1. brand awareness 2. brand feature knowledge 3. attitude toward the brand 4. increased intention to purchase

behavioral outcomes

1. increased sales 2. website visits 3. coupons redeemed

Cost Per Click

A Performance based form of online advertising pricing model - Sometimes called Pay per click - advertiser pays nothing until the user clicks on their sponsored link (or takes some other action) - Online bidding system used to determine costs for millions of keywords - search advertising is built on this model - has to be relevant to what someone is looking for - google = top result = most relevant - people stop using a search engine/stop clicking because it wasn't helpful

Puffery

Advertising or other sales perceptions which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely, and generally stating no specific facts - nestle - "the very best chocolate" - BMW - "the ultimate driving machine" - Snapple "made from the best stuff on earth" - Bayer - "The wonder drug that works wonders"

Relative Value

Bid price/Market price = ______ What its worth to me/ what I have to pay = _______

Search

Customer searches - ad words selected words for ads to come up based on your search.

Relative value <1

Do not bid

300 x 250

Good size for ads - good for mobile and web (medium rectangle) - measured in IMU

CPM

Online advertising pricing model (Cost per thousand) - similar to the cost per thousand model for print advertising - unlike traditional advertising, online display ads are "used up" as they are served up to users; no need to estimate "opportunity" to see - most banner advertising is sold using this model - but this is changing - online directory and lead generation sites are also often sold on this basis.

Ad exchange

Online auction marketplaces that facilitates the buying and selling of inventory across multiple ad networks and demand side platforms (DSPs) - used by advertisers and agencies to reach audiences - Ad networks and DSPs use it to sell their public partners inventory - buying and selling platform

Programmatic Advertising

Programmatic ad buying typically refers to the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations, and manual insertion orders - Digiday

Interactive Advertising Bureau

Size standards for Internet Ads set by:

Agency Trading Desks

Specialized media buying groups most commonly working within or for an advertising agency. They use either proprietary technology or a demand side platform (DSP) to buy and optimize media campaigns on ad exchanges, ad networks, and other available inventory sources they are connected with. -some ____ will use one DSP, others will use multiple. - Used by agencies and advertisers. - internal DSPs

real time bidding

The valuation and bidding on individual impressions in real time. The buying takes place over online media exchanges, basically media marketplaces - which connect sellers (publishers) and buys (advertisers). - used by publishers and advertisers.

Demand Supply Platform

an advertising platform which allows marketers to manage their online media campaigns by facilitating the buying of auction based display media and audience data across multiple inventory and data suppliers in a centralized management form. - allows for: - sophisticated targeting and optimization algorithms - Serious number crunching via decisioning engines which establishes the value of an incoming impression, then places bids accordingly. - used by agencies and marketers.

Relative value >1

good impression opportunity to bid on

Most unethical

high harm product, high susceptibility target

can be unethical

high harm product, low susceptibility target

least unethical

low harm product, low susceptibility target

can be unethical

low harm product,high susceptibility target

Advertising = market power

more critical view of the role of advertising

advertising = information

more supportive view of the role of advertising