How to calculatewhat portion of moneyspent on internet marketingis wasted?MARTA KLEPKASofia, 14.06.2012
2
Everything isPeter Druckner                 marketing                 and marketing is   ,,                 everything    ...
Half the money                 I spend on advertisingJohn Wanamaker                 is wasted;                 the trouble...
?                 What wouldJohn Wanamaker   knew about the   ,,                 Wanamaker say if he                 inter...
ROI is one of the biggest                 problems of marketing                 executives.John Wanamaker   Online results...
CLICK         FILL IN      CALL TO ACTION!ROI         BUY                   REGISTER                              7
COST PER CLICK                 8
CLICK = SALES        ?   Image source: http://www.ydeveloper.com/blog/ecommerce/php-ecommerce-shopping-cart-features      ...
BRANDAWARENESS       LOYALTY            ?    OFFLINE SALES                          10
BE VISIBLE             11
Impressions in users’ AREA OF VIEW in (in %)                                   The share of impressions visible for the us...
SCREEN           TOO SLOW DISPLAYSMALLER          OF THE CREATIVETHAN SITE      WHY THOSE THINGS  SCREEN          HAPPEN? ...
IN SCREEN VISIBILITY&DWELL REPORT                       14
DON’T BE TOO VISIBLE                       15
WHAT IS OPTIMAL NUMBEROF CONTACTS?EVERY PENNY SPENTOVER OTS IS A LOSS                         16
Number of contacts with                                   New users    Impressions         Costscampaing (per user) - freq...
• Spending of €21k was the „empty part of the  glass”• It was 42% of all budget• It brought only 15% of new users• The cos...
PAY ONLY FORREACHING YOURTARGET GROUP                19
Brand A                  Brand B                 Impressions                         12 983 743                4 300 668  ...
THREE GOLDEN RULES                           REACH YOURBE VISIBLE                   TARGET                             GRO...
Insanity:                  doing the same thing                  over and over andAlbert Einstein                  expecti...
What works in display advertising?                                     23
Average CTR per country0.60                            In-stream ad formats also                                prove to b...
Popularity vs. effectiveness of online advertisingformats - Bulgaria                    100%   95%                        ...
Popularity vs. effectiveness of online advertisingformats - Romania                    100%   95%                         ...
Popularity vs. effectiveness of online advertisingformats - Poland                      100%                              ...
0%                                                                                          5%                            ...
Share of ad impressions per sector - Bulgaria    1,7%    1,2%                                                  Leisure Tim...
Ranking of the sectors with highest average CTR –Bulgaria                                 Pharmaceuticals                 ...
Let’s spend the money on    internet advertisingconsciously and measure the           effects-         it pays off        ...
THANK YOU!Questions?                            Authors:Join us @:                            Marta Klepka              Ác...
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Which_part_of_your_online_marketing_budget_is_money_well_spent?_Gemius_Marta_Klepka

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How to check which part of the marketing budget is wasted in online campaigns? Marta Klepka, PR & Communications Director from Gemius, proves that it is possible by measuring the effectiveness plus optimizing the campaign. Be visible, but not to visible and reach your target group!

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Which_part_of_your_online_marketing_budget_is_money_well_spent?_Gemius_Marta_Klepka

  1. 1. How to calculatewhat portion of moneyspent on internet marketingis wasted?MARTA KLEPKASofia, 14.06.2012
  2. 2. 2
  3. 3. Everything isPeter Druckner marketing and marketing is ,, everything 3
  4. 4. Half the money I spend on advertisingJohn Wanamaker is wasted; the trouble is ,, I dont know which half 4
  5. 5. ? What wouldJohn Wanamaker knew about the ,, Wanamaker say if he internet marketing? 5
  6. 6. ROI is one of the biggest problems of marketing executives.John Wanamaker Online results mean more qualified leads. 6
  7. 7. CLICK FILL IN CALL TO ACTION!ROI BUY REGISTER 7
  8. 8. COST PER CLICK 8
  9. 9. CLICK = SALES ? Image source: http://www.ydeveloper.com/blog/ecommerce/php-ecommerce-shopping-cart-features 9
  10. 10. BRANDAWARENESS LOYALTY ? OFFLINE SALES 10
  11. 11. BE VISIBLE 11
  12. 12. Impressions in users’ AREA OF VIEW in (in %) The share of impressions visible for the users in the total number of impressions the share of visible impressions reach in the total reach80%70%60%50%40%30%20%10%0% placement placement placement placement placement placement 1x300x250 2x300x250 3x300x250 4x300x251 5x300x252 6x300x253 Source: gemiusDirectEffect , 2012; international FMCG brand campaign 12
  13. 13. SCREEN TOO SLOW DISPLAYSMALLER OF THE CREATIVETHAN SITE WHY THOSE THINGS SCREEN HAPPEN? SCREEN SIZE DIFFERENT RESOLUTIONS BROWSERS 13
  14. 14. IN SCREEN VISIBILITY&DWELL REPORT 14
  15. 15. DON’T BE TOO VISIBLE 15
  16. 16. WHAT IS OPTIMAL NUMBEROF CONTACTS?EVERY PENNY SPENTOVER OTS IS A LOSS 16
  17. 17. Number of contacts with New users Impressions Costscampaing (per user) - frequency 1,00 4 768 577 4 768 577 47 686 PLN 2,00 2 497 837 4 995 674 49 957 PLN OPTIMAL PART OF THE 3,00 1 071 054 3 213 162 32 132 PLN SUMMARY 8 337 468 12 977 413 129 774 PLN CAMPAIGN 4,00 503 647 2 014 588 20 146 PLN 5,50 490 963 2 700 297 27 003 PLN 8,00 294 353 2 354 824 23 548 PLN 12,00 119 017 1 428 204 14 282 PLN 17,00 17 111 290 887 2 909 PLN „EMPTY PART OF THE 27,00 6 917 186 759 1 868 PLN GLASS” 42,00 1 758 73 836 738 PLN 62,00 1 001 62 062 621 PLN 87,00 393 34 191 342 PLN 100,00 645 64 500 645 PLN SUMMARY 1 435 805 9 210 148 92 101 PLN ALL 9 773 273 22 187 561 221 876 PLN Source: gemiusDirectEffect , 2012; international FMCG brand campaign 17
  18. 18. • Spending of €21k was the „empty part of the glass”• It was 42% of all budget• It brought only 15% of new users• The cost of acquiring 1 user was 3-times higherThis means that for this campaign optimal setting offrequency limits was 3/user. Beyond that numberthe effectiveness declined significantly, bringingprofit only to the publisher. 18
  19. 19. PAY ONLY FORREACHING YOURTARGET GROUP 19
  20. 20. Brand A Brand B Impressions 12 983 743 4 300 668 Impressions in Target Group 3 936 906 1 778 859Impressions in TG as part of all impressions in % 30% 41% Reach in cookies - (UU) 6 082 041 1 095 176 Reach in Real Users (RU) 2 604 385 552 671Reach in RU in % in whole internet population – base is number of RU from gA data. 13,79% 2,93% Number of RU in TG that have contact with campaign (from gPE) 885 711 241 973 Reach in TG (base of gPE & gA data) 17,01% 4,49% Target Index* (my own indicator – this is in %number of impressions that generate 1% of TG group) 5,88% 22,28% Source: gemiusDirectEffect , 2012; international FMCG brand s campaign 20
  21. 21. THREE GOLDEN RULES REACH YOURBE VISIBLE TARGET GROUP DON’T BE TOO VISIBLE 21
  22. 22. Insanity: doing the same thing over and over andAlbert Einstein expecting different results ,, 22
  23. 23. What works in display advertising? 23
  24. 24. Average CTR per country0.60 In-stream ad formats also prove to be one of the0.50 most effective in terms of CTR0.40 For pre-roll CTR vary from0.30 ~1.9% -3.4%0.20 Still rich-media and video ads constitute not more0.10 than a few % of internet advertising budgets in0.00 CEE Source: gemiusAdMonitor, H2 2011 24
  25. 25. Popularity vs. effectiveness of online advertisingformats - Bulgaria 100% 95% 4,0% Regular banners 90% 3,5% are still the most 80% frequent used 3,0% online 70% 2,5% advertising Campaign share 60% format 50% 2,0% 40% The highest CTR 1,5% 30% value is CTR / UCTR 1,0% 20% characteristic for 11% 0,5% Preroll 10% 2% 2% 2% 1% 0% 0% 0,0% Campaign share Average CTR Source: gemiusAdMonitor, H2 2011 25
  26. 26. Popularity vs. effectiveness of online advertisingformats - Romania 100% 95% 7,0% 90% 6,0% 80% 70% 5,0% Campaign share 60% 4,0% CTR 50% 3,0% 40% 30% 2,0% 20% 1,0% 10% 5% 5% 4% 2% 2% 1% 1% 0% 0,0% Campaign share Average CTR Source: gemiusAdMonitor, H2 2011 26
  27. 27. Popularity vs. effectiveness of online advertisingformats - Poland 100% 3,0% 90% 86% 2,5% 80% 70% 2,0% Campaign share 60% CTR 50% 1,5% 40% 1,0% 30% 18% 20% 12% 11% 0,5% 10% 10% 10% 8% 7% 5% 4% 1% 1% 1% 0% 0,0% Campaign share Average CTR Source: gemiusAdMonitor, H2 2011 Analysed ads: Regular banners + rich media (Toplayer, Preroll, Expand, etc.) 27
  28. 28. 0% 5% 10% 15% 20% 25% 30% 35% 40% Leisure Time Finance, Insurance, Brokerage Bulgaria Food Finance, Insurance, Brokerage Telecommunications Czech Republic Automotive Finance, Insurance, Brokerage Telecommunications Hungary Automotive Telecommunications Which industries invest in online ads? Trade Poland Finance, Insurance, Brokerage Trade Finance, Insurance, Brokerage Romania Leisure Time Leisure Time Finance, Insurance, Brokerage Slovakia Food Source: gemiusAdMonitor, H2 201128
  29. 29. Share of ad impressions per sector - Bulgaria 1,7% 1,2% Leisure Time 0,9% Finance, Insurance, Brokerage 0,4% 0,2% Food 6,7% 18,3% Telecommunications 2,6% 3,2% Automotive Trade 3,9% Computers and Audio Video 4,1% Household Equipment, Furniture And Decorations 15,2% Media, Books, CD & DVD 4,2% Travel, Tourism, Hotels & Restaurants Clothing & Accessories 8,9% Beverages and Alcohol 9,8% Pharmaceuticals 9,3% Personal Care and Hygiene 9,6% Real Estate Household Products Other Source: gemiusAdMonitor, H2 2011 29
  30. 30. Ranking of the sectors with highest average CTR –Bulgaria Pharmaceuticals Trade Beverages and Alcohol Automotive Household Equipment, Furniture And Decorations Household Products Real Estate Personal Care and Hygiene Finance, Insurance, Brokerage Computers and Audio Video Food Travel, Tourism, Hotels & Restaurants Telecommunications Leisure Time Media, Books, CD & DVD Clothing & Accessories Source: gemiusAdMonitor, H2 2011 30
  31. 31. Let’s spend the money on internet advertisingconsciously and measure the effects- it pays off 31
  32. 32. THANK YOU!Questions? Authors:Join us @: Marta Klepka Ács Tamás PR & Communications Agency Segment ManagerFacebook.com/GemiusGroup Director tamas.acs@gemius.comTwitter.com/GemiusSlideshare.net/Gemius_com marta.klepka@gemius.comYouTube.com/WwwGemiusCom
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