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By: Liam Bourassa, Albert Hallal, Iain
Macdiarmid, Andrea Cordeiro, Emily
Teitelbaum, Ilana Schacter, Madison Currier
and Rachel Cohen.
Outline

Part 1 - History of Online Advertisements: Timeline

Part 2 - Economics of Online Advertisements

Part 3 - Online Advertisements Today


How’s everyone feeling today ?
Part 1 -History of Online Ads -Timeline
Print Advertisements (Summary)
The rise of online advertisements and
subliminal messages 1950-70
Can you spot the subliminal messages in these online adverts?
Psychographics and the tobacco industry
1970-90
The introduction of Google and Banner
advertisements 1990s
Present Day Advertising
Do you believe it is wrong for advertising companies to
have so much information on consumers ?
Part 2 - Economics of Online Advertisements
Why do you think online ads became popular
so quickly?
Internet Causes Online Ads to Boom
● When the internet became a mass medium in the
1990’s, companies had to evaluate which kinds of ads
to invest in.
● This coincided with the building popularity of
smartphones and tablets in the 2000’s, followed by
the rise in users on various social media platforms
like Twitter, Instagram, and Facebook in the 2010’s.
● In 2005, television ads dominated the advertising
game, internet ads accounted for only 6% of all ad
spending.
● However, by 2017 internet ads accounted for 35% of
all ad revenue in the U.S.
What do you think is the most effective form of
advertising for young people (adults 18-34)?
Answer: Social Media! Why is this the case?

Let us know why you think


digital advertisements (like
Social Media ads) are the most
effective when marketing
towards young people…
Why digital advertisements?
● Adults aged 18-49 are frequent consumers of
online media, and are frequently exposed to
various marketing messages.
● Most adults aged 18-34 own their own computer,
and young adults are 68% more likely to make an
online purchase than the average internet user.
● Over 80% of young adults use Social Media.
● This has caused marketers to focus their resources
on digital advertising to target young adults who
spend the majority of their time online.
How do search engines like Google make
money on digital advertisements?
Pay-Per-Click Advertisements

PPC is an online advertising model in


which advertisers pay each time a
user clicks on one of their online ads.
What percentage of internet advertisements
sold today do you think are mobile ads?
Search Engines and Mobile Ads
● Search engines led the way in the internet ad revolution. Today,
paid search advertising dominates sites such as Google, Yahoo!,
and Bing.
● These sites sell sponsored links associated with search terms,
and distribute online ads to affiliated web pages.
● In 2005 Google's ad revenue was a mere 70 million USD.
● In 2017, Google's ad revenue was a whopping 95.4 billion USD.
● Mobile ads saw a rise in popularity and profitability in the mid
2010’s.
● In 2012, mobile’s share of Internet advertising was only 11%.
● By 2021, it is projected to account for nearly 75% of all Internet
ads.
What type of advertisement is this? Are these
kinds of ads expensive to run?
Economics of Political Advertisements
● Political Advertisements: the use of ad
techniques to promote a candidate’s image
and persuade the public to adopt a particular
viewpoint.
● In 2016, the total amount of money spent on
presidential and congressional campaigns in
the U.S. was over $6.5 billion USD!
● As a result, only very wealthy candidates, or
those with the wealthiest patrons, have
typically been able to afford these expensive
promotional strategies.
● What sort of issues might this lead to for
potential voters?
Part 3 - Online Advertisements Today
Persuasive techniques in contemporary
advertising
Conventional Persuasive strategies
Can you recall ever being persuaded to
purchase a product with one of the six
strategies previously mentioned?
1. Famous person testimonial
2. Plain-folks pitch
3. Snob appeal
4. Bandwagon effect
5. Hidden-fear appeal
6. Irritation advertising
Associating products with values

Online ad, 2017

Print ad, 1950s Online ad, 2019


Commercial Speech and Regulating Advertising
Criticisms: Do you think the FTC does an
effective job protecting the youth from harmful
ads?
Targeting Children and Teens
Triggering poor body image
Questions or Comments?

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