Sponsors' Acknowledgments xiii

CHAPTER 1 Introduction 1

CHAPTER 2 Targeting Approaches: A Unique Element in Online Advertising 7

Demographic Targeting

Contextual Targeting

Behavioral Targeting

Geographic Targeting

Daypart Targeting

Affinity Targeting

Purchase-Based Category Targeting

Key Considerations in Online Targeting

Winning Plays

CHAPTER 3 Online Advertising Reach and Frequency Concepts 33

Strategies for Managing Online Reach and Frequency

Experience with Frequency of Online Advertising

Interplay of Reach and Site Visiting

Winning Plays

CHAPTER 4 Winning Strategies in Online Advertising 51

Generate Leads and Acquire Customers

Generate Brand Preference to Stimulate Sales

Brand Growth, Rewards, and Loyalty

CHAPTER 5 Display Advertising Online: What to Choose? 81

Standard Online Advertising Formats

Creative Factors That Influence Display Advertising Effectiveness

Rich Media Advertising on Broadband

Online Video Advertising

Games: An Emerging Online Advertising Medium

Pay Attention to Online Advertising Clutter

Winning Plays

CHAPTER 6 The Connection of Online Search and Advertising 101

Portrait of the Online Searcher

Consumers Search for Personally Relevant Information

Search Is a Journey

Paid Search Advertising Spending

Search Engine Marketing Techniques

Appeals of Natural Listings: Organic Search Engine Optimization

Paid Inclusion

Measuring Search Engine Marketing Campaigns

Strategies for Effective Paid Placement Advertising

Winning Plays

CHAPTER 7 Online Shopping and Buying 133

Retail Sales and E-Commerce

The Multichannel Marketplace

Today's Online Shopper Profile

The Importance of User-Friendly Shopping Sites

Routes to the Cash Register Are Multichannel

Smart Research Strategies for Retail Growth

Winning Plays

CHAPTER 8 Advertising Personally: Email and Word of Mouth 151

Win the In-Box Battle

Email Influences Consumer Purchasing

Advertiser Spending on Email

Email for Relationship Building

Word of Mouth

Measuring Word of Mouth

Winning Plays

CHAPTER 9 Futures 173

A Look Ahead at Emerging Plays

Comments on the Future

Jeff Cole, University of Southern California

Vincent Barabba, Market Insight Corporation

Bobby J. Calder, Kellogg School of Management

Joanne Bradford, Microsoft

Greg Rogers,TACODA

Rishad Tobaccowala, Denuo

Dan Stoller and Jane Clarke,Time Warner Global Marketing

Noel Capon and Jeremy Kagan, Columbia University

Brian McAndrews, aQuantive

David Kenny, Digitas

APPENDIX Online Audience and Advertising Effectiveness Measurement 205

Offline Audience Measurement

Online Audience Measurement

Online Campaign Measurement

Site-Side Analytics

Brand Measurement

Emerging Measurement

Business Metrics for Online Advertising

Winning Plays

Glossary 233

References 265

Index 291

About the Authors 301

"Finally, someone has documented all we know about online advertising and how to do it right. As much as this confirms that online advertising really works, we know that marketers don't always get it right. The ARF's The Online Advertising Playbook provides critical insight on what sticks and what doesn't in online advertising and marketing."
—Greg Stuart, CEO and President, Interactive Advertising Bureau and coauthor of What Sticks

"The Online Advertising Playbook's principles, case studies, and strategic insights equip marketers with the best knowledge available. It will help your online advertising achieve the full range of marketing objectives, from lead generation and customer acquisition to driving trial and loyalty."
—Tim Kopp, Vice President, Global Interactive Marketing, The Coca-Cola Company

"To grow interactive marketing from here we need to institutionalize our wisdom and experience about what works. This book explains, in a disciplined way, what marketers have learned from a decade of massive change."
—Ted McConnell, Interactive Innovation Director, Procter & Gamble

"The Online Advertising Playbook is a milestone in the maturation of interactive advertising, but also an invaluable go-to guide for managers trying to make smart decisions with their advertising budgets."
—Van Riley, Vice President of Research, AOL

"The best marketing communication is spawned from what I call 'informed intuition.' After reading The Online Advertising Playbook, I am far better informed on how to optimize the online channel in our advertising and promotional programs. It's a perfect blend of case studies and research-backed learning."
—Rod DeVar, Manager, Advertising and Promotion, United States Postal Service

"Savvy marketers should take advantage of The Online Advertising Playbook's findings and principles to get real results."
—Chris Theodoros, Director of Industry Relations, Google

"A work of wisdom and rigor in the digital space that is as relevant for the newbie as it is for the digerati."
—Mike Donahue, Executive Vice President, American Association of Advertising Agencies

"This is a must-read for any marketing executive involved in online advertising. It's high time that a book looks at online advertising in the context of an integrative promotional strategy, one meant to set objectives, establish creative strategies, and measure results. The book nicely ties the various components of online advertising to relevant case studies, and the emphasis on measurement and results is refreshing. Not only is it relevant for marketing executives, it would also be a good basic text for any Internet advertising course and a good adjunct to any Internet marketing course."
—Henry Assael, Professor of Marketing, Stern School of Business, New York University

This comprehensive guide will serve as a go-to resource for marketers and brand managers with industry standards for:

• Reaching your customers with relevant advertising

• Design principles for effective online ads

• Budgeting online advertising, and the risks of under-allocating

• Integrating online advertising with the "traditional" parts of the campaign

• Achieving marketing objectives—from lead generation to retention and loyalty

• Measuring the effectiveness of Internet ads and campaigns

• And much more

Written by experts from The Advertising Research Foundation, The Online Advertising Playbook synthesizes research and learning from over 1,200 research documents on Internet advertising. Marketers, brand managers, and agency professionals who need actionable, scientifically solid principles for successful advertising in this new medium will find it in the Playbook.

The Advertising Research Foundation was founded in 1936 by the Association of National Advertisers and the American Association of Advertising Agencies. It is the preeminent professional organization in distributing fact-based knowledge to aid decision making in the advertising, marketing, and media industries. The ARF's combined membership represents more than 325 national advertisers, advertising agencies, research firms, media companies, educational institutions, and international organizations.