[MUSIC] A core strategy to reach target consumers is through online advertising. Much like print media, such as newspapers and magazines, online publishers can allocate various digital spaces on their web pages to display advertising messages. Different sizes and locations of such advertising spacing, or banner, are priced differently depending on the likelihood of attracting a website visitor's potential. For example, when our visitor reaches the website for the News Gazette, a local newspaper in the twin cities of Champaign and Urbana, where our university is located. They may see ads in various positions, a banner may appear at the top of the web page, just like this one here. You'll notice that this banner is visually separated from the news content. Displacement is optimal because web page readers typically pay more attention to the upper left section of the web page as they read from top to bottom and from left to right. Top banners used to be a common and effective way to capture the first glance of a website visitor. However, recent research suggests that web users have gotten so used to the traditional layout of web pages that they start to consciously, or subconsciously, dismiss certain regions on a web page, such as the top banner position to avoid advertising messages. This is known as banner blindness, this however, does not mean that banner ads do not have any impact on viewers. Website viewers may not be consciously aware of an ad, but it can still have an unconscious influence on their behavior. An online publisher can display ads in any position on the web page. However, they must consider the interests and user experience of the readers. So that the ads do not become a distraction, or worse, a disruption. As website visitors become desensitized to static web ads, advertisers must do more to grab their attention. Rich media ads are web ads that are animated and interactive. Compared to traditional banner ads, rich media displays typically occupy bigger spots on a web page and are much harder to ignore. Here's an example of how rich media display work. As you can see, the combination of a larger display, prominent positioning, and animation allows rich media content to command a strong presence on the web page. The visitors are much more likely to pay attention to these ads than they are traditional banners. Overlays are another type of display ad commonly found on the web. Unlike banners, overlays are displayed on top of the primary content. Overlay ads are most commonly seen on YouTube videos. The advantage of overlays is the users cannot skip or avoid these ads, but the disadvantages are also obvious. The users may find the overlay distracting and annoying. Also, by clicking on the overlays, the user is taken away from the primary content which can be cumbersome and disruptive. Even more disruptive to the web browsing experience. Interstitials and pop-ups ads heavily interrupt a user's viewing experience. The users have to minimize all closed interstitial ads in order to reach the content they seek. And interstitials force the users to view and interact with the advertising message. But such forced engagement comes with the potential cost of alienation and annoyance. Online advertising also includes pre-roll and in-stream video ads. These ads are similar to and often are television commercials. Instead of being aired during television programs, the pre-roll videos are placed before online videos, and the in-stream ads are inserted between them. Pre-roll and in-stream video ads can be found on video hosting sites such as YouTube and streaming services such as Hulu. Instead of competing for a few spots during popular TV programs, online video ads allow companies to directly target consumers and deliver high quality, high production valued marketing messages to millions of web users. I'll discuss these issues related to online video advertising in more depth in a separate lesson. Another issue marketers must address is adblocking technologies, which filter out most online display ads. In 2016 ad blocker usage surged 30% and nearly 25% of all web users in the US use some sort of adblocking software. To address this problem, more and more advertisers are choosing to blend their marketing messages within interesting and relevant media content and display them in conjunction with the user's interest. This form of digital advertising is called native advertising. Now, here's an example of a native ad appearing in a Facebook feed. Instead of purchasing space on the popular website, the advertiser here won a bid to have Facebook show the ad to a population of Facebook users that matches the profile of the company's existing customers, they're called look-a-like audience. When used appropriately, native ads can precisely target and reach customers who are likely to be more receptive to the marketing message. It is a great tactic to reduce advertising avoidance and circumvent ad blocking. In addition to display ads, such as banners and pop-ups, online advertising also include advertising that appears in search results or mobile apps. In-game advertisement or games that are themselves advertisements, and email advertisement. I'll cover search advertising again in a separate lesson. Like its offline counterparts, online advertising can be used for a variety of objectives. Online advertising is largely visual, which makes it a good candidate for building brand awareness. In the early days of the Internet, marketers thought that online ads should be used for primarily for specific product messages or direct responses. However, as computer graphics and display technologies improve, and as more and more Internet users seek entertainment and information on the web, brand awareness campaigns are becoming increasingly common. Online advertising can stimulate demand, creating customer demand is a 3 step process. First inform, then persuade, and then remind. Customers can't want what they don't know about, thus advertising needs to inform them about what they should want, and why they should want it.
