CLUSTER 1: THE DIGITAL ADVERTISING LANDSCAPE
Defining digital marketing
“Any marketing methods conducted through electronic devices which utilize some form of a computer. This
includes online marketing efforts conducted on the internet.” (American Marketing Association)”
Defining digital advertising
… advertising that employs digital technology (hardware, soft-ware, and communication technologies) in the
execution of marketing plans (Boddu et al., 2022).
DIGITAL MARKETING (R)EVOLUTION
STARTING FROM A VISIONARY QUOTE…
• “In the future, there will be computers everywhere and we will not notice their presence. They will just
be there, seamlessly integrated into the world at large”
o Concept of “calm computing” and “ubiquitous computing”
• Mark Weiser (head of the Computer Science Laboratory at the Xerox Palo Alto Research Center) (1952
–1999)
o In the 70’s, he said that there will be computers everywhere (emphasis). Mark was one of the
people who were very important for computer science. ‘Computers are all around us’
§ He was a visionair (he lived in the 70’s).
o We are not even aware that computers are everywhere.
“UBIQUITOUS COMPUTING”
Examples:
• We are wearing smartwatches, using ipads, tablets, phones, … and using in the background.
• There is a matras that controls the baby. It doesn’t hinder (?) the baby, it is in de background.
• Digitsole: a sole that can connect to your devices to measure and analyze every movement and activity.
You don’t even need to take your smartphone with you
DIGITAL DISRUPTION
• = major marketplace changes or sector transformation following the application of technology
o This all happens in the advertising landscape as well.
• Examples:
o 1995: Amazon disrupted the traditional book-selling market
o 1997: Netflix disrupted the traditional video-hire market
o 2008: Airbnb disrupted the accommodation sector
o 2009: Uber disrupted taxi services
1
,RESHAPING FINANCING MODELS/AD SYSTEM CONTENT PLATFORMS (E.G. STREAMING SERVICES, PODCASTING)
“A cheaper, ad-supported Netflix tier”
• as the company tries to stem the loss of more than 1 million subscribers in 2022.
• Netflix is also looking for this digital shift. They want to create an ad supported platform (a cheaper
system where you can watch ads, so you pay less for the streaming)
o This is also happening in the podcast world. They are trying to get into this market and how
they can advertise there (e.g. adidas advertising on Spotify - Adidas Nite Jogger).
• Goal: to target night-time listeners worldwide. They look at behavioural data to discover different
persona in Spotify users at night based on their streaming habits. (what music was trending at that time
at that specific place)
TO A MARKETING (R)EVOLUTION
à AI, deepfakes (compagnied with the dangers of it), the Metaverse, AR, VR (how is that evolving in world), …
Timeline history of Digital Advertising
1970’S EMAILMARKETING (THE START OF DIGITAL ADVERTISING)
• First unsolicited bulk commercial email by Gary Thuerk (marketing representative for Digital Equipment
Corporation (DEC), a major American computer company
o “On May 3, 1978, Thuerk composed an email advertising an open house for DEC's latest
computer systems and sent it to 393 recipients. The message was addressed to every user with
an ARPANET account on the West Coast of the United States, an unprecedented move that
shocked the community.
• Response to Thuerk's email was … negative BUT The open house generated a significant amount of
interest, with attendees purchasing more than $12 million worth of computer equipment,
o He wanted to select only the people who would be interested
à The birth of SPAM
2
,FIRST CLICKABLE DISPLAY AD 1994
• “First (claimed) clickable web ad was a banner advertisement for AT&T on HotWired.com in 1994”
→ 44% CTR
• “Part of AT&T’s larger “You Will” campaign, which included a series of television commercials featuring
predicted scenes from an internet-enabled future—in many cases quite accurately.”
o The ‘YOU WILL’ campaign was to show that the company was really invested in this new
advertising branche. A lot of people clicked on it (44% is a very high CTR!) They also predicted
a lot in 1994 of what is really happening today (and is normalized)
1997 – POP-UP ADS
This slowed down, because it was very intrusive and annoying. They started to use pop-up blockers. But still, it is
not fully gone. It can be done very useful and not intrusive. But we’ll take a look at it later on in the classes.
2000S - THE RISE OF SEARCH ADVERTISING & PROGRAMMATIC ADVERTISING
They are a lot of changes, but these are some of them.
• Programmatic Advertising
o really trending and was developed over time
• Google launched AdWords
• Introducing the pay-per-click (PPC) model
o you get paid only when they click on the word/site/…
Keywords: google ads, funnel (trickle down effect), organic search results, paid ads, conversion, PPC, CTR,
(longtail) keywords
3
, (HYPER-) TARGETTED ADS & PROGRAMMATIC ADVERTISING
Whatever content they’re watching or what they’re doing online à hyper targetted
TARGETTED ADS IN SOCIAL MEDIA
PROGRAMMATIC ADVERTISING
How do platforms cope with programmatic advertising?
They want to connect with internetusers. Brands need to do this while using DSP’s. Publishers use SSP’s. While
analyzing online, they choose the best ad for that user. This is based on device, cookies and other things.
4
Defining digital marketing
“Any marketing methods conducted through electronic devices which utilize some form of a computer. This
includes online marketing efforts conducted on the internet.” (American Marketing Association)”
Defining digital advertising
… advertising that employs digital technology (hardware, soft-ware, and communication technologies) in the
execution of marketing plans (Boddu et al., 2022).
DIGITAL MARKETING (R)EVOLUTION
STARTING FROM A VISIONARY QUOTE…
• “In the future, there will be computers everywhere and we will not notice their presence. They will just
be there, seamlessly integrated into the world at large”
o Concept of “calm computing” and “ubiquitous computing”
• Mark Weiser (head of the Computer Science Laboratory at the Xerox Palo Alto Research Center) (1952
–1999)
o In the 70’s, he said that there will be computers everywhere (emphasis). Mark was one of the
people who were very important for computer science. ‘Computers are all around us’
§ He was a visionair (he lived in the 70’s).
o We are not even aware that computers are everywhere.
“UBIQUITOUS COMPUTING”
Examples:
• We are wearing smartwatches, using ipads, tablets, phones, … and using in the background.
• There is a matras that controls the baby. It doesn’t hinder (?) the baby, it is in de background.
• Digitsole: a sole that can connect to your devices to measure and analyze every movement and activity.
You don’t even need to take your smartphone with you
DIGITAL DISRUPTION
• = major marketplace changes or sector transformation following the application of technology
o This all happens in the advertising landscape as well.
• Examples:
o 1995: Amazon disrupted the traditional book-selling market
o 1997: Netflix disrupted the traditional video-hire market
o 2008: Airbnb disrupted the accommodation sector
o 2009: Uber disrupted taxi services
1
,RESHAPING FINANCING MODELS/AD SYSTEM CONTENT PLATFORMS (E.G. STREAMING SERVICES, PODCASTING)
“A cheaper, ad-supported Netflix tier”
• as the company tries to stem the loss of more than 1 million subscribers in 2022.
• Netflix is also looking for this digital shift. They want to create an ad supported platform (a cheaper
system where you can watch ads, so you pay less for the streaming)
o This is also happening in the podcast world. They are trying to get into this market and how
they can advertise there (e.g. adidas advertising on Spotify - Adidas Nite Jogger).
• Goal: to target night-time listeners worldwide. They look at behavioural data to discover different
persona in Spotify users at night based on their streaming habits. (what music was trending at that time
at that specific place)
TO A MARKETING (R)EVOLUTION
à AI, deepfakes (compagnied with the dangers of it), the Metaverse, AR, VR (how is that evolving in world), …
Timeline history of Digital Advertising
1970’S EMAILMARKETING (THE START OF DIGITAL ADVERTISING)
• First unsolicited bulk commercial email by Gary Thuerk (marketing representative for Digital Equipment
Corporation (DEC), a major American computer company
o “On May 3, 1978, Thuerk composed an email advertising an open house for DEC's latest
computer systems and sent it to 393 recipients. The message was addressed to every user with
an ARPANET account on the West Coast of the United States, an unprecedented move that
shocked the community.
• Response to Thuerk's email was … negative BUT The open house generated a significant amount of
interest, with attendees purchasing more than $12 million worth of computer equipment,
o He wanted to select only the people who would be interested
à The birth of SPAM
2
,FIRST CLICKABLE DISPLAY AD 1994
• “First (claimed) clickable web ad was a banner advertisement for AT&T on HotWired.com in 1994”
→ 44% CTR
• “Part of AT&T’s larger “You Will” campaign, which included a series of television commercials featuring
predicted scenes from an internet-enabled future—in many cases quite accurately.”
o The ‘YOU WILL’ campaign was to show that the company was really invested in this new
advertising branche. A lot of people clicked on it (44% is a very high CTR!) They also predicted
a lot in 1994 of what is really happening today (and is normalized)
1997 – POP-UP ADS
This slowed down, because it was very intrusive and annoying. They started to use pop-up blockers. But still, it is
not fully gone. It can be done very useful and not intrusive. But we’ll take a look at it later on in the classes.
2000S - THE RISE OF SEARCH ADVERTISING & PROGRAMMATIC ADVERTISING
They are a lot of changes, but these are some of them.
• Programmatic Advertising
o really trending and was developed over time
• Google launched AdWords
• Introducing the pay-per-click (PPC) model
o you get paid only when they click on the word/site/…
Keywords: google ads, funnel (trickle down effect), organic search results, paid ads, conversion, PPC, CTR,
(longtail) keywords
3
, (HYPER-) TARGETTED ADS & PROGRAMMATIC ADVERTISING
Whatever content they’re watching or what they’re doing online à hyper targetted
TARGETTED ADS IN SOCIAL MEDIA
PROGRAMMATIC ADVERTISING
How do platforms cope with programmatic advertising?
They want to connect with internetusers. Brands need to do this while using DSP’s. Publishers use SSP’s. While
analyzing online, they choose the best ad for that user. This is based on device, cookies and other things.
4
