Module III
Digital Advertising
& Analytics Digital Me
This module covers the landscape of digital advertising channels, hands-on tools like Google Ads and Facebook
Ads, and how to measure campaign performance using web analytics. By the end you should be able to plan, run,
and evaluate a basic digital ad campaign.
9 Types of Digital Advertising Channels
DEFINITION
Digital Advertising is the practice of promoting products or services through internet-based platforms and
technologies, targeting specific audiences with measurable, paid messages.
■ Pay-Per-Click (PPC)
• Advertiser pays only when a user clicks on the ad — zero cost for mere impressions.
• Primarily used on search engines (Google, Bing) — ads appear above organic results.
• Works on a bidding system: highest bid + quality score wins placement.
• Best for businesses wanting immediate traffic for specific keywords.
• Example: A shoe brand bids on 'buy running shoes online' and pays ■15 per click.
■ Display Ads
• Visual banner, image, or video ads shown on websites and apps within ad networks.
• Charged on CPM (Cost Per Mille) — cost per 1,000 impressions — or CPC.
• Used for brand awareness and retargeting past visitors.
• Google Display Network (GDN) reaches 90 %+ of internet users worldwide.
• Rich media formats include animated GIFs, HTML5 banners, and video overlays.
■ Other Key Channels
Channel How It Works Best For
Social Media Ads Sponsored posts on Facebook, Instagram, Engagement, leads
etc.
Video Ads Pre/mid-roll on YouTube, OTT platforms Storytelling, reach
Native Ads Blend with editorial content Non-intrusive reach
Email Ads Paid slots in newsletters Niche targeting
Influencer Ads Paid posts by creators Trust, Gen-Z reach
Key Terms:
PPC CPM CPC CTR
Retargeting Ad Network Impressions
1 Google Ads & Facebook Ads for Business Promotion
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■ Google Ads — Overview
• World's largest digital advertising platform, formerly Google AdWords (rebranded 2018).
• Ads appear in Google Search, YouTube, Gmail, and the Google Display Network.
• Keyword targeting: ads trigger when users search specific terms.
• Uses Ad Rank = Max Bid × Quality Score to determine ad position.
• Campaign types: Search, Display, Shopping, Video (YouTube), App, Smart.
■ Quality Score (1–10) is Google's rating of keyword relevance, ad copy, and landing page experience. A higher Quality
Score lowers your cost per click.
■ Setting Up a Google Ads Campaign
• Step 1 — Goal: Choose objective (sales, leads, website traffic, brand awareness).
• Step 2 — Campaign type: Search / Display / Video / Shopping.
• Step 3 — Budget & bidding: Set daily budget; choose manual CPC or Smart Bidding.
• Step 4 — Targeting: Location, language, device, audience segments.
• Step 5 — Keywords: Use Keyword Planner; choose match types (broad/phrase/exact).
• Step 6 — Write ad copy: Headlines (30 chars), Descriptions (90 chars), Display URL.
• Step 7 — Launch & monitor: Track CTR, conversions, ROAS in the dashboard.
■ Facebook Ads — Overview
• Managed through Meta Ads Manager; covers Facebook, Instagram, Messenger, Audience Network.
• Powerful demographic & interest targeting: age, location, interests, behaviour, life events.
• Custom Audiences: upload customer email lists; Lookalike Audiences: find similar users.
• Ad formats: Image, Video, Carousel (multiple images), Collection, Stories, Reels.
• Pricing models: CPC, CPM, CPL (Cost Per Lead), CPA (Cost Per Action).
■ Google Ads vs. Facebook Ads
Aspect Google Ads Facebook Ads
Intent High (user is searching) Interest-based (passive)
Targeting Keywords, location Demographics, interests
Best for Immediate purchase intent Brand awareness, engagement
Ad format Mostly text (search) Visual-first (image/video)
Audience Active searchers Social media users
Cost Generally higher CPC Lower CPM, flexible budget
Key Terms:
Ad Rank Quality Score Keyword Match Types Meta Ads Manager
Custom Audience Lookalike Audience ROAS
1 Basics of Web Analytics Tools (e.g., Google Analytics)
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DEFINITION
Web Analytics is the collection, measurement, and analysis of website data to understand user behaviour,
improve user experience, and optimise digital marketing decisions.
■ Google Analytics 4 (GA4)
• Free tool by Google; tracks how users find and interact with your website or app.
• Installed by adding a small JavaScript tracking tag (G-XXXXXXX) to every page.
• GA4 is event-based: every action (page view, click, scroll, purchase) is an 'event'.
• Real-time reports show active users, top pages, and traffic sources live.
• Integrates with Google Ads, Search Console, and BigQuery for advanced analysis.
■ Key Reports in Google Analytics
• Acquisition Report: Where your traffic comes from — Organic, Paid, Social, Direct, Referral, Email.
• Engagement Report: Pages visited, time on page, scroll depth, events triggered.
• Monetisation Report: E-commerce revenue, transactions, conversion funnel.
• Retention Report: New vs returning users, user lifetime.
• Demographics: Age, gender, location, device type, operating system.
■ Other Popular Analytics Tools
Tool Purpose
Google Search Console SEO performance, keyword impressions, clicks
Meta Insights Facebook / Instagram page and ad analytics
Hotjar Heatmaps, session recordings, user feedback
Semrush / Ahrefs Competitor SEO & paid traffic analysis
Mixpanel Product and app user event tracking
Key Terms:
GA4 Tracking Tag Session Bounce Rate
Conversion UTM Parameters Funnel
1 Interpreting Key Metrics for Campaign Performance Assessment
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WHY METRICS MATTER
Metrics transform raw data into actionable insights. Tracking the right KPIs tells you whether your ad spend is
generating results and where to optimise.
■ Essential Advertising Metrics
CTR — Click-Through Rate CPC — Cost Per Click
Clicks ÷ Impressions × 100. Measures ad relevance. Industry Total Spend ÷ Total Clicks. Lower CPC = more efficient use of
average: 2–5 % for search. budget.
CPM — Cost Per Mille Conversion Rate
Cost per 1,000 impressions. Key for brand awareness Conversions ÷ Clicks × 100. Measures how well your landing
campaigns. page converts.
CPA — Cost Per Acquisition ROAS — Return on Ad Spend
Total Spend ÷ Conversions. Key for ROI evaluation. Revenue ÷ Ad Spend. A ROAS of 4 means ■4 earned per ■1
spent.
Impressions Reach vs Frequency
Total number of times your ad is displayed, regardless of clicks. Reach = unique users who saw the ad. Frequency = average
times each user saw it.
■ Website Performance Metrics
• Sessions: A group of user interactions within a 30-minute window on your site.
• Bounce Rate: % of visitors who leave after viewing only one page — high bounce = poor relevance.
• Pages per Session: Average number of pages viewed — indicates engagement depth.
• Average Session Duration: Time spent on site per visit — longer is generally better.
• Traffic Sources: Organic, Paid, Direct, Social, Referral — helps allocate budget.
■ Campaign Assessment Framework (A–B–C)
• A — Awareness: Are impressions, reach, and CPM on target? Is your ad being seen?
• B — Behaviour: Is CTR healthy? Are users engaging with the ad?
• C — Conversion: Is CPA acceptable? Is ROAS positive? Are goals being met?
■ Use A/B testing (split testing) to compare two versions of an ad or landing page. Change only one variable at a time
(headline, image, CTA) to identify what drives better performance.
Key Terms:
KPI CTR CPA ROAS
A/B Testing Bounce Rate Conversion Funnel Attribution
■ Likely Exam Questions
Q1 What is Pay-Per-Click advertising? Explain with an example how it differs from display advertising.
Q2 Describe the steps involved in setting up a Google Ads campaign for a small business.
Q3 Compare Google Ads and Facebook Ads — when should a business choose one over the other?
Q4 What is Google Analytics? Explain any four key reports available in GA4.
Q5 Define CTR, CPC, CPM, CPA, and ROAS. How are these metrics used to assess campaign performance?
Q6 Explain the concept of Quality Score in Google Ads and its impact on Ad Rank.
Q7 What is A/B testing in digital advertising? Why is it important for campaign optimisation?
Q8 Discuss the role of web analytics in evaluating the effectiveness of a digital marketing campaign.
UK4SECCOM201 · Digital Media Marketing · Module III Study Notes · Kerala University Commerce