LC3: Online advertising

Question 1

What is PPC and how is it known in the digital marketing world?

Answer 1

PPC, often known as pay-per-click, paid search, or SEM (search engine marketing), is a form of digital marketing where advertisers can reach their audience at their desired time and budget.

Question 2

How does PPC work in terms of targeting and reaching users?

Answer 2

PPC is an auction-based system where advertisers place bids to target and reach users online. It allows businesses of any size to leverage the channel to reach interested prospects and drive valuable, measurable traffic.

Question 3

How can advertisers use the display network in connection with PPC?

Answer 3

Advertisers can show their ads on the display network, which includes sites partnered with search engines like Google or Bing. These sites can show various types of ads (text, image, video) based on targeting methods like contextual targeting and remarketing.

Contextual marketing = The process that matches ads to relevant sites in the Display Network using your keywords or topics, among other factors.

Question 4

What is contextual targeting?

Answer 4

The process that matches ads to relevant sites in the Display Network using your keywords or topics, among other factors.

Question 5

What are some targeting capabilities offered in PPC?

Answer 5

PPC offers various targeting capabilities such as geography (targeting specific cities, states, or countries), time of day, type of device (mobile or desktop), and individual websites or ad slots.

Question 6

How does PPC differ for different business types, such as e-commerce or local businesses?

Answer 6

In e-commerce, PPC ads focus more on pricing and shipping, while local businesses focus on locality and direct calls to action. The approach varies based on the business type and the target audience.

Question 7

What is the process involved in setting up a PPC campaign?

Answer 7

Choosing keywords, writing ads for those keywords, setting bids for clicks, displaying ads upon searches, and measuring revenue and conversions to refine keywords, targeting, and bids.

Question 8

How can paid search be used for different business goals and types?

Answer 8

Paid search can be used for direct response, increasing brand visibility and awareness, targeting different audiences with specific ads, and promoting various actions like purchasing, watching videos, or subscribing to emails.

Question 9

What are the ‘three Rs’ in PPC and how do they benefit businesses of all sizes?

Answer 9

Reach
Relevance
ROI

Reach allows targeting from local to international levels, Relevance ensures ads are shown to interested users, and ROI is measurable, making PPC effective for any business size.

Question 10

What is programmatic advertising and when did it start to grow rapidly?

Answer 10

Programmatic advertising, which involves the use of technology to automate and optimize ad buying in real time, has grown rapidly since the early 2010s.

Question 11

What are the key features of programmatic media buying?

Answer 11

The key features of programmatic media buying include automation, real-time bidding, and targeted advertising.

Question 12

How does Real-Time Bidding (RTB) function in programmatic advertising?

Answer 12

RTB allows individual ad impressions to be bid on in real-time, much like a financial market, enabling advertisers to analyze each impression and decide if it’s worth bidding for their marketing goals.

Question 13

What role do cookies play in programmatic advertising?

Answer 13

Cookies, which are small pieces of code stored on a user’s computer, track browsing activity and help in personalized targeting and detailed analysis for programmatic advertising.

Question 14

What are the differences between first-party and third-party cookies?

Answer 14

First-party cookies come from the website visited and store user data like login credentials, while third-party cookies are from advertisers or ad agencies tracking web activities anonymously for ad impressions and conversions.

Question 15

How does the programmatic buying process work?

Answer 15

The process starts with a user visiting a webpage, followed by the publisher’s Supply Side Platform (SSP) sending a request to the ad exchange. The Demand Side Platform (DSP) used by advertisers then bids on the ad impression based on user information and ad slot details.

Question 16

What are the main benefits of programmatic media buying?

Answer 16

Efficiency in work and budget, scaling ad reach, targeted advertising, cross-site analytics, and increased transparency in ad transactions.

Question 17

What are ad networks and ad exchanges, and how are they used in online marketing?

Answer 17

Ad networks and ad exchanges are marketing technologies used to transact billions of impressions daily.
- Ad network combines inventory from various publishers and offers it to advertisers
- Ad exchange allows advertisers to directly buy from different websites, providing more transparency and optimization options.

Question 18

How do ad networks and ad exchanges differ in terms of inventory and transparency?

Answer 18

Ad networks combine inventory from different websites and sell it to advertisers, often with a profit.

Ad exchanges provide transparency where advertisers can see and choose the websites they are buying from and know the exact cost without profit.

Question 19

What is the role of a Demand Side Platform (DSP) in online advertising?

Answer 19

A DSP, such as Google AdWords, allows advertisers to demand and buy inventory from various suppliers. It is used for setting up and managing advertising campaigns on networks like Google’s display and search networks.

Question 20

What are the limitations of buying from an ad network?

Answer 20

When buying from an ad network, there are limitations in scalability and variety. For instance, Google AdWords partners with over 2 million websites, but to access a broader range on the internet, an ad exchange would be more powerful.

Question 21

Can you give an example of an ad exchange and its market share?

Answer 21

An example of an ad exchange is DoubleClick, which holds about 57% of the market share. It is a technology platform that allows advertisers to directly buy from various publishers.

Question 22

How did Google’s getting of DoubleClick impact the digital advertising landscape?

Answer 22

This purchase enhanced Google’s presence in the field, considering their dominant position in search engines like Google.com, YouTube, and Google Maps.

Question 23

What should new advertisers consider when choosing between an ad network and an ad exchange?

Answer 23

New advertisers might start with ad networks for a simpler, more self-serve approach. More sophisticated advertisers with larger budgets might consider ad exchanges for greater scalability and variety in digital investment.

Question 24

What is the recommended facebook ad account structure for small businesses with a budget under $5,000 per month?

Answer 24

For small businesses spending under $5,000 per month, it’s advised to keep the ad account structure simple with one sales campaign, focusing on creative development. Within this, start with one broad ad set and one interest ad set.

Question 25

What types of creatives are suggested for a small budget on Facebook ads?

Answer 25

Test three types of creatives:
1. Features point-out creative
2. From the founders’ style ad
3. Problem-solution style User Generated Content (UGC) ad.

Question 26

How should you optimize your Facebook ad account for a budget of around $100 per day?

Answer 26

For a daily budget of around $100, optimize the account by evaluating the ads once a week, turning off those with a high cost per purchase, and focusing on improving creatives. Add a new creative every other week at a minimum.

Question 27

What is the recommended approach for scaling Facebook ads?

Answer 27

To scale Facebook ads effectively, increase the budget by 20% every 3 to 4 days as long as the results remain profitable. Focus on ensuring profitability on the backend, like in Shopify, and consider the overall impact on the business.

Question 28

How should advertisers approach targeting multiple countries on Facebook?

Answer 28

For larger budgets (above $50,000 per month), it’s effective to split out countries to manage spend efficiently. However, for smaller budgets (under $10,000 per month), start by keeping all targeted countries in one ad set or campaign, focusing on one country initially to gain creative insights and scale from there.

Question 29

What is the suggested strategy for advertising multiple products on Facebook?

Answer 29

When advertising multiple products, focus on finding creative winners rather than creating funnels for specific products. Not every product may be effective for acquiring customers, so it’s better to concentrate on one or two best-selling products and create the most compelling creatives for them. Avoid spreading the budget too thin across multiple products, especially with smaller budgets.

Question 30

[Nik Armenis]
What is Google Ads and what was its previous name?

Answer 30

Google Ads, previously known as Google AdWords, is a paid form of digital advertising platform allowing advertisers to showcase their products and services across Google’s platforms.

Question 31

[Nik Armenis]
What are the main forms of Google advertising channels?

Answer 31

Shopping, YouTube, Display, Search, Discover, Gmail, and Maps.

Question 32

[Nik Armenis]
Which campaign type is most suitable for e-commerce businesses selling physical goods?

Answer 32

Google Shopping campaigns are primarily designed for e-commerce businesses selling physical products. These campaigns allow businesses to showcase their products with images, titles, prices, and more, making them ideal for retail and e-commerce.

Question 33

[Nik Armenis]
Which campaign type is recommended for brand awareness?

Answer 33

Google Display. They enable advertisers to reach a wide audience with visually engaging ads as users browse various websites, apps, and Google-owned properties.

Question 34

[Nik Armenis]
What is the purpose of YouTube video campaigns?

Answer 34

YouTube video campaigns allow businesses to show video ads on YouTube, which is the second-largest search engine globally. These campaigns are used to make people aware of products, services, or brands and can be effective for driving conversions through video content.

Question 35

[Nik Armenis]
What are Smart campaigns, and for whom are they suitable?

Answer 35

Smart campaigns are designed to be easy to set up and automate the advertising process. They are suitable for beginners or those with limited experience in setting up ad campaigns. Smart campaigns optimize targeting, bidding, and ad creation to maximize results, whether for sales or lead generation.

Question 36

[Nik Armenis]
What is the key benefit of Performance Max campaigns?

Answer 36

Performance Max campaigns provide access to all Google Ads inventory channels within a single campaign. They are designed for advertisers who want to simplify campaign management and leverage Google’s algorithm to optimize budget, bids, and ad placements across various channels in real time.

Question 37

[Nik Armenis]
What factors should businesses consider when selecting the right campaign type?

Answer 37

• Marketing goals
• Brand strategy
• Time and experience
• Campaign goals (sales, leads, traffic, brand awareness)

Question 38

[Matthew Miller]
What significant change has Google made in its advertising approach, and how does it impact keyword targeting?

Answer 38

Google has shifted its advertising approach from being search-based to intent-based. This means that even if someone types in variations of a keyword, Google’s AI interprets them as having the same intent, allowing ads to appear for related searches. This change makes keyword targeting more flexible and less reliant on exact matches.

Question 39

[Matthew Miller]
What is the recommended ad group structure to adapt to Google’s intent-based advertising approach, and why is it effective?

Answer 39

Single content groups, which group keywords with similar intent together. This approach is effective because it aligns with Google’s intent-based algorithm, allowing ads to be triggered by various related keywords. It simplifies the account structure, making it easier to manage and optimize.

Question 40

[Matthew Miller]
How can dynamic keyword insertion be used to create more customized ad headlines?

Answer 40

Dynamic keyword insertion allows advertisers to generate ad headlines based on the triggered keywords. By using dynamic keyword insertion, advertisers can create highly relevant and customizable headlines that match the user’s search query, improving click-through rates and ad relevance.

Question 41

[Matthew Miller]
Why is phrase match recommended over broad match for keyword targeting in Google Ads?

Answer 41

It allows ads to appear for search queries with similar intent, ensuring relevance while avoiding overly vague matches. This helps in generating relevant traffic without going to the extremes of broad match or exact match.

Question 42

[Matthew Miller]
How many ads are recommended for each ad group, and why is this number suggested?

Answer 42

It is recommended to have 3 ads for each ad group. This number is suggested because it allows Google to test ad variations effectively, which can lead to better optimization over time. Having multiple ads per group provides more data to work with, helping improve ad performance and click-through rates.

Question 43

[Aaron Young]

Question 44

[Aaron Young]
How should a business choose the right Google Ads campaign type?

Answer 44

Consider three main factors:
1. Your marketing goals
2 Your overall brand strategy
3. How much time you can invest, which goes hand in hand with your level of experience.

Question 45

[Aaron Young]
What are Google Search campaigns and who are they suitable for?

Answer 45

Google Search campaigns are text ads that appear at the top of search results, suitable for both services and physical products. These campaigns are high-intent marketing, ideal for generating leads or direct sales.