I could create a laundry list of things that I’ve found helpful in running a good display campaign. But, all great speakers say that you should be able to communicate things in 3 points, so we’ll stay true to that mantra. With that said, we’ll focus today on 3 key principles. First, why your media campaigns should be diversified. Second, understanding some of your key levers in a display campaign. And lastly, staying true to your core marketing fundamentals.
For those who remember buying print, radio and television, they understand why they needed more than just one media channel for their message. Not every consumer’s time was spent in one medium and as a result, if you wanted higher reach or higher ROI you had to diversify your spend across those channels. Diversification is a simple financial principle that we fully except in our investment strategies, but one that we need to constantly remind ourselves about in marketing.
And as we get into Online, there is even more compelling reasons to diversify across Display and Search, for example. Any smart marketer will pull both display and search levers, balancing their media spend to maximize ROI and reach. But most salient to us discussing Display today is the fact that within Display, you need to also diversify. For two reasons: First, as we’ve discussed, there are multiple marketplaces in display – across ad exchanges, networks, publishers, etc. and Second, the internet audience is fragmented across Display. Let’s understand those a bit more.
Here are all those marketplaces we’ve talked about so far. One can buy through exchanges; one can buy through ad networks; one can buy directly from publishers. Now there are benefits to buying through all of these three channels. First of all, not all inventory flows via exchanges and networks. So if there are particular sites you need to be on, it makes sense to work directly with publishers. Where you have broader ROI goals and which site you are on is not as important, working through a marketplace like an exchange or network makes sense. But having a tool to manage these multiple campaign channels is important. You need to allocate budget, manage bids and effectively monitor and navigate pricing differences to understand how you should weight what you buy through each channel. And you need to do this without having to hire a bunch of people to manage this.
And just to underscore the fragmented audience point. Take a look at this. Yes, with that bottom blue area we can see the dramatic rise in social networking (particularly on Facebook). But across the board, consumers spend their time across a lot of different categories of internet sites. And within each of these categories there are literally thousands of web sites. So, working with a tool that helps you take advantage of and buy across this fragmented audience is critical. Buy-side tools help you do just that.
So, assuming we all agree that buying diversified media is important, let’s move onto point number two! Perhaps the most important lever for an advertiser is the one that helps them be successful out of the gate. For a lot of us that don’t have multi-million dollar budgets, we don’t have a lot of time for trial and error and testing to get things right. We want to know within days (not weeks or months) that our dials are tuned correctly and that we are maximizing what is important to us. The most important lever is in understanding the dynamic – or balance – between volume and performance. Most marketers have a goal to achieve a certain number of actions (volume or delivery) within a certain budget parameter. This could be an effective CPM, CPC or CPA. Usually one’s budget is the determinant of this. And, lastly your ‘bid’ – or price you are willing to pay – is the tool at your disposal to getting the right volume at the right performance. If you know how to set your bid appropriately, all is good. if you don’t, you are shooting in the dark and will spend valuable time and precious dollars on honing in on your sweet spot bid.
There is an efficient frontier up to which it makes sense to bid more to achieve more of your delivery or volume goals – within reason. Understanding this curve is critical, and having a technology partner that makes it easy for you to understand this is the way to make this happen quicker. Historical data of like-minded campaigns in aggregate is a great way to model the efficient frontier for what your campaign should bid to achieve your goals. In talking with technology providers you should be using this terminology and trying to understand how they help you in this manner.
Targeting is another great lever – it is perhaps the most talked about lever in the industry, so I will not belabor the obvious, which is that as you increase your targeting parameters, you also increase performance, but can drastically reduce volume. The tighter the targeting segment, the smaller the pool of available users. So, in conjunction with a good bid strategy, you also need a diversified targeting strategy, where you are spending enough working media dollars at the bottom of the pyramid to push more prospects up. This is so that your highly targeted campaigns at the top of the pyramid have a ‘feeder’ system of sorts. What does this look like? Let’s use an example on the next slide.
We all know that retargeting campaigns are golden. They speak to the most likely prospects and have the greatest return. But are obviously limited in the volume that you can achieve. Here is a campaign strategy that is basic, but demonstrates the importance of diversified approach to targeting. Starting with a RON campaign or a bottom of the pyramid campaign, you should be driving traffic to your web site, where you will be identifying prospects who may not convert and who become immediate prospects for retargeting. In addition, a behavioral campaign can be very useful in understanding the behavioral qualities of good prospects. Not only does it drive very qualified traffic to your site, but is a useful tool to understand who are likely converters and clickers based on the profile of the behavioral segment. There are many other ‘diversified’ targeting strategies that employ geographic, demographic, contextual and other forms of targeting. What’s important is that your media plan not be one dimensional in this regard and employ multiple sets of targeting levers so you can feed your highly targeted campaigns at the top.
So we’ve gone through a couple levers to employ – smart bidding strategies and smart targeting strategies. Now, bringing that all together with a smart account person and a smart tool is critical. Even the most well thought out plans can suffer if not executed correctly, or if they are too complicated to be executed correctly. Here’s a quick example of how a tool can help the user understand what they should do with their bids and how it will benefit their campaigns. The ability to make these changes should be front and center, and the data should be available in a simple way. Here you can see recommendations on particular campaigns and a signal of the potential improvement to whichever metric is most important to the customer.Which leads me to the last topic in this section.
Big computing is exciting, but make it work for you. We are in a very good spot today as marketers. We have tons of commoditized computing power that can churn through terabytes of data in seconds. We also have very intelligent algorithms that can make sense of the data. Just 5 or 10 years ago this technology and scale was only available to only the largest companies – now we all can benefit.
But make it work for you. Make sure that the tool or data service you employ is customer focused and does not lead with technology, but rather with benefits. We believe technology should enable. Algorithms only matter if they lead to actions. And data should not be siloed. Ultimately you should get up and going and be generating faster ROI then before. Data should not slow you down.
Okay, we’re in the home stretch here. Last principle to cover here is around fundamentals. Perhaps the most important lever you have in driving display ROI comes from within… having a keen understanding of your customer and how to position your message towards them.
One great example of a brand knowing their customers and coming up with a great marketing approach to reach new audiences is Old Spice.It was an ailing brand up to just a couple years ago with very limited growth. Their challenge was how could a brand with the word “Old” in it ever be hip and cool in today’s youth-obsessed culture?The creative insight was to market not to men, but to women who will buy Old Spice for their husbands/boyfriends.
Introducing the Old Spice guy – appealing directly to women as target audience. Old Spice’s strategy was to show a great looking guy and tell women that he is ‘the man their man could smell like.’ And as we said, everyone knows that when it comes to bath products for guys, a huge purchaser is likely women.
Campaign skyrocketed Old Spice to the top of their category and became a cultural phenomenon.6 million hits on youtube in 1 day.To put that in perspective:- It had more viral views in the first 24 hours than Obama’s inauguration. - Bush dodging a shoe.- And the Susan Boyle video.
Performance Marketing Success
Performance MarketingConfidential Information
Today‟s conversation Goa: Answer a couple of questions: What is performance marketing? How is it connected to Branding v/s Direct Response marketing? How can you think about doing it well? Strategy, Tactics, Metrics Media Planning Creative Optimization How do affiliates play in this space? Who are some of the top partners to work with? What are the gotchas to avoid? Confidential Information 2
Performance Marketing is aboutPerformance The best performing creative had a clickthrough rate more than 5x higher than the worst performer Hypothetical budget of $5,000 @ $2.50 eCPM: 8,400 clicks vs. 1,800 clicks Confidential Information 3
Performance Marketing Is about Performa& another way to describe Direct Response Marketing DR Marketing is designed to get a “response” from a prospect Brand Marketing is more “upper funnel” tactics (TV, Print, Outdoors) Above the line, Below the line, Thru the line Where‟s the line? PurchaseFunnel AWARE Branding--ATL CONSIDER SHOP BUY Direct OWN Response--BTL Confidential Information 4
Performance Marketing online Online, Performance marketing is about getting a prospect to take an action. Examples include: Buy a product/service (ROI) Registration: Cost Per Lead (CPL) Whitepaper download: Cost Per Action (CPA) Performance Marketing is not: Affiliates or publisher marketing who are paid when a specific action is completed =Affiliate marketing Confidential Information 5
Measuring Success Lots of metrics—can be confusing Have to understand your ultimate goals Make sure to test, learn, and test Confidential Information 6
Performance Marketing=The challenge Create a media plan that: 1. Achieves a tough goal 2. Stays within a tight budget 3. Delivers within a limited time frame You have to “Scale the Pyramid” Confidential Information 7
What is the Pyramid? Purchase Funnel Retargeting RON AWARE Brand Keyword (Display) Geographic Competitor Keyword (Display) Demographic CONSIDER Category Content Keyword (Display) SHOP Channel Site BUY Site Channel Content Category Keyword (Display) OWN Demographic Competitor Keyword (Display) Geographic Brand Keyword (Display) RON Retargeting Confidential Information 8
Scale the Pyramid: Run of Network Best practice: Monitor performance by site and content. Run of Network Confidential Information 9
Scale the Pyramid: Geographic Targeting Best practice: Target neighboring cities. Use zip code targeting. Geographic Confidential Information 10
Scale the Pyramid: Demographic Targeting Best practice: Use unique messaging by age group. Demographic Confidential Information 11
Scale the Pyramid: Content Targeting Best practice: Weather and finance sites work well for travel. Content Confidential Information 12
Scale the Pyramid: Site Specific Targeting Best practice: Place your brand next to other brands that your target consumers value. Site Specific Targeting Confidential Information 13
Scale the Pyramid: Content Keyword Targeting Best Practice: Target your brand, competitive brands and category keywords. Keyword Content Confidential Information 14
Scale the Pyramid: Behavioral Targeting Best Practice: Buy your cookies and your media separately. Behavioral Targeting Confidential Information 15
Scale the Pyramid: Retargeting Best practice: Retargeting Implement as many unique retargeting pixels as possible. Confidential Information 16
Best Practice: Test a variety of publishers and networks Multiple targeting profiles Match each targeting profile to the inventory sources that support it. Confidential Information 17
Performance Media Success Create a media plan that achieves tough goals on a tight budget in a limited time frame by: 1. Aligning your goals with your budget 2. “Scale the pyramid” RON Geographic targeting Demographic targeting Content targeting Behavioral targeting Retargeting •g 3. Testin a variety of publishers Confidential Information 18
Creative Performance SuccessDon‟t assume you know the best creative Make your message simple and clear Include a prominent call to action Test multiple themes in all standard sizes in both SWF and GIF Begin with a minimum of 3 to 5 ad themes Test themes side by side Confidential Information 19
Best PracticeCustomize Creative by Segment Offer Images, p Target Segment roduct Logo shots Call to action Confidential Information 20
Best PracticeYour testing is never complete Little things mean a lot Modifying even small elements of a creative can have meaningful results +125% CTR Just because an ad worked last month doesn‟t mean it will next month, or three months from now Freshness Seasonality 22 Confidential Information
Real challenges, real solutions VisionDirect Atlantis Resorts BMW Retarget users salescreative consistency while allowing by Increase ticket who had shopped but not purchased with custom Maintain brand and for an upcoming Miley Cyrus concert creative. messages for its local/regional dealer network‟s targeting a local audience with custom, time-sensitive creative. customized campaign. Confidential Information 23
Re-cap Don‟t assume you know the best creative Customize creative by segment Creative testing is never complete Leverage AdReady‟s creative templates, your clients‟ pre-existing ads, or create your own custom templates Confidential Information 24
Display vs Search Optimization What has made Search Advertising successful Easy to use buying and control over placement Sophisticated analytics, measurement and reporting behind the scenes The most successful display advertisers today rely on some key pieces of “Tribal Knowledge” That help them configure campaigns That guide them in optimizing campaigns AdReady is working to marry this knowledge, with advanced analytics and machine learning to make all advertiser‟s campaigns successful Confidential Information 25
Affiliate Marketers An advertiser relinquishes control of ad location and frequency to the publisher. The publisher agrees to forego payment in advance. The advertiser pays only after a validated lead or other action of value — such as a click, a download, or a registration by a prospect who meets agreed-upon quality criteria — is generated. Confidential Information 26