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Jennifer G and Derek B

Page history last edited by Jennifer Giles 12 years, 11 months ago

 The Progression of Online Advertising

by

Jennifer Giles

Derek Booth

 

 

                                                                                                                                   


Introduction: 

This wiki page gives you an idea of how popular online advertising has become as the internet has progressed. We break down various categories of online advertising and how it has changed over time. According to New York Times article author Vega (2011) states " [online] search advertising was still the most popular ad format with $12 billion ad dollars spent in 2010, representing nearly half of the overall ad revenue". Banner ads and Pop-up ads seem to be the way of the past and advertisers are getting up close and personal, on social media sites, and your search engines. Online advertising has expanded significantly over the years and with the progression of advertising there are more opportunities for advertisers to reach consumers. 

                                                           

                                      This is a video with statistics and showing the growth of social media and the opportunities there are for advertisers.

Overview Online Advertising:

Everyone has come into contact with online advertising at some point. The annoying pop-up ads or the flashing banner ads. Online advertising has become popular because it is instant and can be seen by anyone who has access to the internet. In an article in Ad Age Bernoff (2009) states "If you're in advertising, you'd better learn to speak digital, because that's the way the world is going". This is true a majority of advertising has turned to online and advertisers are learning more about you because nothing that you search is private. Advertising has become more intrusive over time, so that advertisers can focus in on specific target markets. Privacy has become a concern of consumers and a threat to advertisers. Google Ad words,  Facebook, and more current advertising sites base advertising off consumer interest.

                                                                                

We will take you through the various forms of advertising and show you how online advertising has developed. Advertising online has greatly progressed over the years and is still changing today to learn more about the overview of online advertising and how it works visit this informational Wikipedia page.  

 

 

Banner Advertising:  

The late 1990's and early 2000's, because of the growth of internet hosts is when online advertising became more prominent. Banner advertising was one of the first forms of online advertising and would appear on various sites, email, and chat rooms. According to Cho (2001) "The use of banner ads on the WWW began in October 1994 when AT&T first advertised on HotWired.com" (p 45) .  Looking at articles from the 2000's shows us how consumers responded to banner advertisements. In an article by Dahlen (2001) he studies the response and click through rate of banner ads, he found " for familiar brands, click through rates decreased with repeated exposure, and for unfamiliar brands, click through rates increased with repeated exposure"(p. 28). This makes sense if you don't know a company or what they are about but are repeatedly seeing their name then you are more likely to click on the ad. I think this still stands true today, banner ads are still popular with various sites and it is beneficial for new companies to use banner advertisements to create more brand awareness and recognition. 

                                                                    

                                                  This is an example of the various ways you can advertise with a banner ad some are even interactive.

 

Pop-up Advertising:                                          

Every one knows what a pop-up advertisement is and most people would say that they are annoying.  Pop-up ads appear in a new browser window when yo visit a page, and pop-unders go behind the browser so it is visible to see when you exit the page.  However do pop up ads get you attention? or create brand awareness?

                                                                      

                                                              A funny video about pop-up advertisements to show how intrusive and annoying they can be.

In a study done by Edwards and Lee (2002) they found that people thought that pop-up ads  were intrusive, they examined how people react to pop-up advertisements and if its beneficial for companies to use them. Edwards states " research indicates that consumers' criticisms of advertising are generally directed at the tactics advertisers employ that make the experience of processing advertising negative, rather than at the institution itself" (p. 84). The rest of the study found that people would automatically click out of the ad and either not remember the company, or have a negative connotation toward it.  

 

 

                                                                         

Email Advertising:

Email has become an important way in which people communicate with each other, and advertisers saw this as good an opportunity. Advertising through email has various forms, therefore is a very effective way of advertising. The home pages of your email account can have advertising some times you can even choose the ad it displays based on your preferences Yahoo helps you do that. Websites such as Google have options set up for advertisers to choose how they want to advertise to consumers based on consumer interests, these ads are now showing up in Gmail. Miller (2011) from the New York Times stated " Ads in Gmail have always been related to e-mail messages. For instance, if Gmail users are corresponding with friends about planning a vacation to Mexico, ads for flights or hotels in Mexico might appear." Whatever people email about or even search advertisers pay money to find out this information about the consumer so they can narrow in on their target markets.

                                                                 

                                                                        An example of an advertisement on an email home page. 

Spam is another form of email advertising that seems a bit dated but is still occurring today. With the help of spam controls on email sites and virus blockers the amount of spam has decreased. With the expansion of the internet it is hard to control what is being distributed on the internet. An interesting study by Goldfarb (2011) looks at whether the growth of the internet has reduced the effectiveness of the government regulation on advertising" (p. 207). The study does show that because the internet has expanded it is more difficult to monitor advertising.Whether we realize it or not we have a part in some of the spam that we receive.  An interesting article in The New York Times talks about how we are asking for more spam. Cullen (2002) stated in the article "The more you respond to commercial e-mail, the more marketers know about you--and whether that's for better or worse depends on the marketer. Many companies tailor e-pitches to where you live and what you've bought in the past." If you ever give a store your email or sign up for something on a website you are asking for your inbox to be flooded with promotions and spam. Some people enjoy getting the promotions, and updates but this gives the company the right to your email to send you anything else. 

 

 

News: 

Gradually online news has become the main source of information, because of advancements of technology. Online news is fast, convenient, and you can search for exactly what you want and read different points of view. This change from the popularity of print news to online news has changed advertising over the years. An article from The New York Times poses the question " Do you still use print ads?" In the article the author Downs (2011) mentions I still get calls from people trying to sell me print ads — the local magazines and newspapers, various directories. I politely decline, of course. I have better ways to spend my ad dollars.  Many advertisers don't want to waste money on print they would rather advertise online. A recent Pew (2009) study found that "79% of online news consumers say they have never or only rarely clicked on an online ad". This makes one wonder is there really much more money in online news advertising? 

 

                                                    

                                                                This shows the many places there are for advertising on an online news homepage.

 

Twitter:

With social media transforming into a staple-point of our lives, businesses are finding new ways to advertise with consumers on a real-time basis using Twitter. Businesses can pay a fee, and Twitter will promote their account(which advertisers can use to promote products) or their name will be on the top of the trending topic list.  Companies like Best Buy, Amazon, Jet Blue, and Etsy are now all on Twitter. According to the Twitter advertising site, Etsy originally only used Twitter as a way to promote their website, which is known as a “newbie mistake” They found out the best way to utilize Twitter was to advertise new products, and update their followers of new events.

 

This screen shot captures the essence of Twitter advertising. The Droid phone paying for a "promoted" tag that will display on the homepage, as well as Baskin Robbins trending topic as a result of their 39c scoop day.

 

Since businesses have been able to advertise, one constant that has remained is the use of celebrities to promote their product. Advertisers have just gotten more creative in how they use celebrities to promote their product. According to Brad Stone of the New York Times celebrities are being paid upwards of 10,000 dollars to tweet about a product(2009).  With celebrities like Kim Kardashian having over 7 million followers at her fingertips, advertisers are being able to tap into a resource that was not available before. Stone goes on to say that, Amazon.com is beginning to pay commission to people who refer buyers to their site via Twitter(2009). Stone says “It is perhaps the last frontier in advertising — getting regular people to send a sentence or two of text, on behalf of paying advertisers, to their friends and admirers”(2009).

 

Facebook:

Social media and networking sites have taken over the top spot for advertisers. According to an article by Amir Afrati of the Wall Street Journal, Facebook has grabbed the top spot for banner, video, and interactive ads(2011). Efrati says that this year alone Facebook could make 2.2 billion dollars in ad revenues(2011). According to the Facebook advertising site companies could set up two different advertisements. The first advertisement will “drive traffic to something on Facebook, whether it’s your business page, event page, application or whatever. The other advertisement will “drive traffic to an external website”, this is for advertisers that want users to see the full website, as oppose to just a page. Oren Gil-Or in an Advances in Management Journal study says “social networks provide an opportunity for companies and brands to maintain a ‘socialnetwork’ entity. This entity can help the company keep ongoing "social" relationships with the social network users. Marketing in the network should leverage these capabilities in order to maintain a much more conversational, bi-directional or even multidirectional communication between the companies and the network member”(2010).

                    Facebook is now the leading website in advertising revenue. This is an example of how a company might set up a site to try and advertise for their business.

 

YouTube:

YouTube(now owned by Google) has become one of the most frequently visited websites in the world. After 5 years, YouTube gets an average of 2 billion video hits per day(Rubin, 2010). Advertisers took note of this phenomenon, with ad space selling out every day in 20 different countries. According to the YouTube advertising website, they have two available advertisements. The first type is a content advertisement. This is either a video that will play before your video plays, or an actual channel that advertisers can control and upload videos themselves.

 

This is an Axe commercial that went viral on YouTube. As opposed to the traditional pre-video advertising this is an example of creative viral advertising

 

 

The other type of advertisement, is more of a traditional banner ad that will appear near the content. YouTube allows advertisers to select which video they would like to place their advertisements with. Due to the recent influx of advertisements on the site, Elliot Van Buskirk from Wired says that advertisers are going to have to get increasingly more creative in order to hold the audience’s attention when making the advertisements(2009).

This is a screen shot of a YouTube music video displaying two forms of advertising. The first being, a streaming advertisement that plays at the beginning of many videos. The other being a promo for YouTube partner VEVO and their "Best Videos of 2010"

Hulu:

Thanks to Hulu internet users have found a new medium to be able to watch their favorite television programs. According to The Economist internet has become the second largest source of advertising revenue(2010). Hulu was at the forefront of video advertising on the internet. The Hulu website offers a variety of different advertising options for their partners. There is a traditional 30 second video advertisement that will appear before some of the smaller video content, as well as a brief 5 second “brought to you by” advertisement that will also include a banner at the top of the content. The other option Hulu provides is for some of it’s longer content, such as movies or television programs, that allows the users to select whether they want to watch one longer trailer advertisement at the beginning and then enjoy “commercial-free” programming, or they could select traditional advertising that will play intermittently throughout the content. According to a study done by Helen Katz, this ad selector model was the most successful not only for viewers, but advertisers as well(2010).

 

This video comes from the Hulu advertising website. Hulu will allow the user to pick whether they want to watch a long commercial before the video, or smaller commercials intermittently throughout.

Google:

Google has revolutionized the way advertising is being done on the internet. According to a Wired article by Steven Levy, Googles AdWords is “the most successful business idea in history”(2009). Levy says the way it works is “AdWords analyzes every Google search to determine which advertisers get each of up to 11 "sponsored links" on every results page... and it takes place every time you search”(2009).  Google owns YouTube as well, ad has implemented the AdWords software onto the videos as well. According to Wikipedia, Google’s AdWords offers a pay-per-click advertising which allows businesses to generate revenue based on the amount of times their link was clicked in a search(2011). This AdWords has helped Google generate over 20 billion dollars in profits in 2008, with the revenue increasing every year(Levy, 2009).

This provides an example of how the AdWords appear in a Google search.


Scholarly Sources:

 

*Cho, C. (2001) Different forced-exposure levels to banner advertisements. Journal of Advertising Research 41:(4), 45-46 http://web.ebscohost.com.libaccess.sjlibrary.org/ehost/detail?vid=33&hid=126&sid=83e56471-87cb-4603-adf5-18cc21002f6f%40sessionmgr110&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=ufh&AN=5331598.

 

*Dahlen, M. (2001). Banner advertising through a new lens. Journal of Advertising Research 41:(4), 23-30 http://web.ebscohost.com.libaccess.sjlibrary.org/ehost/detail?vid=31&hid=126&sid=83e56471-87cb-4603-adf5-18cc21002f6f%40sessionmgr110&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=ufh&AN=5331582/

 

*Edwards, S. Li, H. & Lee, J. (2002) Forced exposure and psychological reactance: antecedents and consequences of the perceived intrusiveness of pop-up ads. Journal of Advertising 31:(3), 83-95

http://web.ebscohost.com.libaccess.sjlibrary.org/ehost/detail?vid=35&hid=126&sid=83e56471-87cb-4603-adf5-18cc21002f6f%40sessionmgr110&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=ufh&AN=7780344 

 

*Gil-Or, O. (2010). Building consumer demand by using viral marketing tactics within an online social network. Advances in Management, 3(7), DOI: 52548166

 

*Goldfarb, A. & Tucker, C. (2011). Advertising bans and the substitutability of online and online advertising. Journal of Market Research 48, 207- 277

DOI: 10.1509/jmkr.48.2.207. 


*Katz, H. (2010). The pool lane one: making a splash with online video. Journal of Interactive Advertising, DOI: 49023254


*Vohra, N. (2010). The world of online: new opportunities for marketeers. Vikalpa: The Journal for Decision Makers, doi: 54461959

 

*Yann, T., McColl, R., & Kitchen, P. (2010). Practitioners' perceptions of advertising strategies for digital media. International Journal of Advertising, 29(5), 709-725. doi:10.2501/S0265048710201439

 

Articles:

 

Bernoff, J. (2009, July 20.) Advertising will change forever. Ad Age Digital, Retrieved from http://adage.com/article/digitalnext/advertising-change-forever/138023/

 

*Buskirk, E. (2009, November 11). Youtube’s skippable ads could command a premium. Wired, Retrieved from http://www.wired.com/epicenter/2009/11/youtubes-skippable-ads-could-command-a-premium/

 

*Cullen, L. (2002, November 11). Some more spam, please. Time Magazine, Retrieved from http://www.time.com/time/magazine/article/0,9171,1003613,00.html 

 

*Downs, P. (2011, March 31.) Do you still use print ads? The New York Times, Retrieved from http://boss.blogs.nytimes.com/2011/03/31/do-you-still-use-print-ads/?ref=onlineadvertising

 

*Economist. (2010, September 30). The return of advertising the box rocks. Retrieved from http://www.economist.com/research/articlesBySubject/displaystory.cfm?subjectid=1780456&story_id=17149050

 

*Efrati, A. (2011, February 28). Internet ad forecast: Google, Facebook expand clout. Wall Street Journal, Retrieved from http://blogs.wsj.com/digits/2011/02/28/internet-ad-forecast-google-facebook-expand-clout/?KEYWORDS=online+ad

 

*Miller, C. (2011, January 27). Google mail shows ads with images in gmail. The New York Times, Retrieved from http://bits.blogs.nytimes.com/2011/01/27/google-shows-ads-with-images-in-gmail/

 

Rubin, C. (2010, May 17). Youtube reaches two billion hits a day. Inc., Retrieved from http://www.inc.com/news/articles/2010/05/youtube-celebrates-fifth-birthday.html

 

*Stone, B. (2009, November 21). A friend’s tweet could be an ad . New York Times, Retrieved from http://www.nytimes.com/2009/11/22/business/22ping.html?ref=facebookinc

 

*Vega, T. (2011, April 13.) Online revenue continues to rise. The New York Times, Retrieved from http://mediadecoder.blogs.nytimes.com/2011/04/13/online-ad-revenue-continues-to-rise/?scp=3&sq=online%20advertising&st=cse

 

 

Websites:

AdWords. (2011, April 26). Retrieved from http://en.wikipedia.org/wiki/AdWords

 

*Ad choices: Learn more about this ad. (2010) Retrieved from http://info.yahoo.com/privacy/us/yahoo/relevantads.html

 

*Ad experience. (n.d.). Retrieved from http://www.hulu.com/about/advertising/adexperience

 

*Broadcast your campaign. (n.d.). Retrieved from http://www.youtube.com/t/advertising_overview 

 

*Google ads. (2011). Retrieved from http://www.google.com/ads/

 

*Guide to facebook ads. (n.d.). Retrieved from http://www.facebook.com/adsmarketing/

 

*Online Advertising. (2011, April 27) Retrieved fromhttp://en.wikipedia.org/wiki/Online_advertising  

 

 

Pew:


*Hitlin, P. (2005, February 18). Advertising and online videos. Retrieved  fromhttp://www.pewinternet.org/Commentary/2005/February/Advertising-and-online-videos.aspx

 

*Rainie, L. & Purcell, K. (2010, March 15). The state of the news media. Retrieved from http://www.pewinternet.org/Reports/2010/5--The-economics-of-online-news/Media.aspx

 

Comments (16)

Jay Barton said

at 9:46 pm on Apr 20, 2011

Hillarious!! You two crack me up! "How can guys clean their balls so that they're more enjoyable to play with?" Wow. I love the blonde dude who turns away when she says "why don't we start with these small balls." LMFAO fo sho!! So I been tryin to check out ev1s wiki to get the comment-o- ev1s-extra credit...you guys have the best page by far. Pretty much all because of that Axe vid. I'm going to go out and buy an Axe product immediately! How'd you set in those sweet boarders between Scholarly, Non-Scholarly, etc.? Let me know when you guys can breath...double the work seems crazy to me, but you guys are rock'n it. Can't wait to see the final product.

Aubrey Lee said

at 2:15 am on Apr 21, 2011

Derek and Jen, Well mainly Derek. Loved the Axe commercial, which I am sure that you picked out. Super funny. I like that you guys are going more on an entertainment track for this project. It makes viewing the work that you have done much more fun and enjoyable. Keep up the good work!!

uismiguel@... said

at 10:46 am on Apr 21, 2011

This is what i am talking about it, i like the idea that you both are actually having fun with your research, which i think it is very important because we get to enjoy more those topics..

Jenna Saenz said

at 5:39 pm on Apr 26, 2011

OH MY GOSH! I love the Axe clean your balls commercial!! I just love your page! There's so much going on! Way to have some fun with it!

gre_89@hotmail.it said

at 12:01 pm on Apr 27, 2011

Jennifer and Derek, this is a very interesting topic. It is true that advertising is adapting to new online media. The example you mentioned in one of your sources- YouTube playing commercials before many of their videos- is a perfect example of this!

victorngo85@... said

at 2:08 pm on Apr 28, 2011

i liked your pictures and your topic looks really interesting.

jt_thizzle@... said

at 3:13 pm on Apr 28, 2011

you guys created a good wiki here. Lots of multimedia and tons of information! way to go! just be sure to edit your APA!

Justine Cranford said

at 10:47 pm on Apr 28, 2011

The video in the beginning is awesome. I think you both did a fantastic job. I an looking forward to your presentation. Good job guys! :)

Justine Cranford said

at 11:22 pm on May 16, 2011

your topic is really awesome. I felt informed and interested during your presentation. very nice job you guys.

Bobby Menbari said

at 11:08 pm on Apr 28, 2011

This is pretty similar to mine...i think you were eavesdropping...nonetheless, good job!

Aubrey Lee said

at 1:30 am on Apr 29, 2011

Niiiiiice job Derek and Jen!!! Your wiki turned out very nicely. My fave part is still the Axe commercial :)

reilingss2b7@... said

at 6:54 pm on May 2, 2011

you guys had a well organized and factual wiki! good job!

Lena Zubaid said

at 8:00 pm on May 4, 2011

Jennifer and Derek, advertising is a very interesting topic. I haven’t thought of that one. I like all the information you have, it is very simple yet includes almost all aspects of advertising, so good job on that. I liked how you put a section for each type of advertising, it really helps people think of all of them. Your videos and are pictures are interesting; I love the funny video about pop up ads. There is some grammar that grabs my attention that needs fixing but other than that, your topic is simple and complex at the same time, and looks like you guys really worked on this. Good job.

ericadeguzman@yahoo.com said

at 10:43 pm on May 8, 2011

Great topic choice guys! Jennifer, I’m glad you got to put your advertising courses into use while making this wiki. It was definitely a very interesting read. And good choice of media, I especially enjoyed your youtube video on the pop-up ads. I hate those! And that commercial definitely summed up my feelings towards them. I appreciated how you two divided up your wiki into different sections for each type of advertising strategy.. that made it easy to follow. I find that banner and pop up ads do absolutely nothing for me or my friends. Sometimes I even wonder, “do people really even pay attention to these?” They seem like such a waste of time and space to me. And although the ads that show before and during youtube and hulu videos are annoying I find that I pay a lot more attention to those. Overall awesome wiki!

Serena Sharma said

at 5:37 pm on May 12, 2011

I think you guys did a really good job presenting your topic. I never realized the amount of advertising done on facebook until you brought it to my attention during your presentation now I cannot help but notice all the different banner advertisement all over the page. I do not really see many advertisements anymore on the internet because pop up blockers but they do pop up once in a great while but I never even read the ad before I decide to close the window. The pop up video you have used I think really shows how people feel about them and how ridiculous they can be at times. Good job guys!

Juleane said

at 9:34 pm on May 12, 2011

Great job on your topic!
Personally, I don't know whether to think that advertisers are getting better/smarter or consumers are paying less and less attention and becoming numb, but I bet it's a little of both. I think that because of how we are continuously bombarded day in and day out with advertisements, billboards, like pages and all this other stuff that we are becoming desensitized to it that we aren't conscious of the amount of just complete nonsense thrown at us. The video you showed hit the nail on its head perfectly because that is literally exactly what I believe it would be like if advertisements were put in front of our faces as regular parts of our lives.

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