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PART I: WHAT IS DIGITAL ADVERTISING AND WHY IS IT IMPORTANT?<br />

HOW HAS DIGITAL ADVERTISING EVOLVED?<br />

Digital advertising has evolved considerably since we saw the first banner ad in 1994. Now we see<br />

advertising everywhere—on websites across the internet, on mobile devices, on smart watches, and<br />

on other items that we wear. We see them on social media, and we can now even see connected<br />

billboards that change based on traffic conditions.<br />

Just think about how quickly digital<br />

advertising has progressed! Do you<br />

remember surfing the web with<br />

Netscape? Do you remember how<br />

slowly the pages loaded? Do you<br />

remember how much slower the<br />

pages loaded when there was a<br />

banner ad to display?<br />

A Brief History of<br />

Digital Ads<br />

In 1994, the banner ad took over the<br />

web. According to Wired Magazine,<br />

the company HotWired launched<br />

banner ads from 14 companies.<br />

Each banner ad was 468 pixels wide<br />

by 60 pixels deep. And legend has it<br />

that the very first one of these ads<br />

was from AT&T. The ad asked, “Have<br />

you ever clicked your mouse right<br />

HERE? You will”. And they were right.<br />

From there we saw the first ad server<br />

NetGravity in 1996, the first Google<br />

AdWord in 2002, the first YouTube<br />

ad in 2005, and the first Facebook<br />

ad in 2007.<br />

The Rapid Evolution<br />

of Digital Ads<br />

We may joke and reminisce about<br />

the early days of Netscape and<br />

banner ads, but digital advertising has<br />

experienced a rapid transformation in<br />

the past two decades. Why? Well,<br />

people love content and they love to<br />

consume it at a rapid pace.<br />

Consider how you consume content.<br />

TV is no longer the primary screen<br />

that you or your audience uses to<br />

consume media—now you spend<br />

almost six hours online vs. four and a<br />

half hours in front of the TV. You are<br />

constantly moving from screen to<br />

screen, media to media. You click on<br />

one BuzzFeed article and quickly<br />

click on other articles on the page<br />

that interest you.<br />

So how have ads evolved alongside<br />

today’s buyers’ insatiable appetite for<br />

online content? Let’s take a look at a<br />

few advancements:<br />

First Banner Ad: AT&T

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