Harvest Amsterdam Online Advertising strategy


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Harvest Amsterdam Online Advertising strategy

  1. 1. Advertising optimization How to optimize your advertising pixels in the short term and long runAmsterdam 2012
  2. 2. Buckle-up: online is overtaking print and is expected to continue itsgrowth in the upcoming years Print advertising [US, $b] Online advertising [US, $b] CAGR 24.8 -2% CAGR 34.4 +7% 22.3 24.2 2009 … 2014 2009 … 2014Source: PWC: Global entertainment and media outlook: 2011-2015 2
  3. 3. In NL the online advertising market grew with 10% YoY,despite the tough economic climate in 2010/2011 Online advertising market NL (2010/2011) [€ m] 2010 H1 2011 H1 6.7 5.7 29.5 22.3 70.0 82.9 € 462.6m 221.3 +10% € 507.4m 255.0 57.2 54.9 86.1 78.4 Search Classifieds Affiliate marketing Search Classifieds Affiliate marketing Display Others Unclassified Display Others UnclassifiedSource: IAB Adspend report H1 2011 3
  4. 4. However, tapping into this growth potential is not easy, onlineadvertising formats and models are omnious and developing fast Formats Revenue and advertising models Medium rectangle Roadblock Full roadblock CPO Response based CPC Data buying and Text links Skyscraper Billboard CPM selling Mobile Video Corner ad Retargeting Profile creation Header Automated Year deals Home page take over …. It has become very complex to determine the optimal way of advertising for your siteSource: Harvest analysis 4
  5. 5. This complexity is also seen in the number of businesses trying to gettheir fair share of the advertising market…Source: Improve Digital 5
  6. 6. This hyperdynamic landscape impacts your advertising revenue:Are you ready to tackle the risks and grasp the opportunities? Risks Opportunities  The chewing gum issue: over time you started many new  Better insights on performance of advertising driven by initiatives that individually seem to add value yet: professionalization of reporting tools - cannibalize on the total revenue  Improving CPMs of automated advertising networks - add complexity to your organization and processes  Professionalization of niche markets like - create scattered management data: hard to steer the mobile, video, retargeting and profile trading total advertising business due to lack of analytical  There is more than Google  insights  Shift towards online from huge (trade marketing)  Destroying value by combining the wrong models budgets of FMCG and CE companies and/or formats  Missing out on new formats and/or business modelsSource: Harvest analyses 6
  7. 7. Harvest identified a parallel 2-step approach to optimize youradvertising pixel for the short term and in the long run 1 2 Short term tactical advertising Long term solid advertising optimizations action strategy 3-6 months Direct top line growth by tactical A tailored advertising strategy and improvements based on solid analyses and action plan that grasps the advertising Harvest experienced support implementation opportunity in the smartest way of improvement projects  Detailed data analyses reveals  Analyses of premium vs regular inventory: underperforming advertising What strategy to follow for your pixels networks, formats and/or positions  Work out strategy in a pragmatic action  Detailed front-end comb-through plan combined with Harvest experience reveals  Test and iterate on the action plan to gain opportunities for new/improved insights and preliminary results formats, positions and/or targeting  Future-proof your business through a solid  Prioritize, test and support implementation hand-over of improvement projects 7
  8. 8. 1 2In a short term tactical advertising audit we have provento be able to boost your revenues with double digitsAnalysis 1 Action plan 2 Test and iterate 3 Outcome 4We audit your: We define and prioritize: We work with you to: You will benefit from: Targeting  Relevancy drivers  Implement optimal  Higher relevancy; CTR Placements  New placements targeting up Paging  Better and new pages  Test and measure new  More and better Look & feel  Improvements to ad placements and pages placements; views up Individual ad appearance  Test and tweak optimal  Better paging; views up performance  Improvements to ad ad appearance  Better insight in key functioning  Design and effectuate metrics through a  The size of the prize optimal ad functioning (temp) dashboard  Prioritized next stepsExpected result: Expected result: Expected result: Expected result: List of potential  Action plan with  Tested projects with  Increased revenue and improvements prioritized concrete clear results from pilot pragmatic action plan projects ready to take-offTime: Time: Time: Time: 2 weeks  2 weeks  4-8 weeks  2 weeks 8
  9. 9. 1 2Short term improvement example 1: Bugs and errors Example: Code error on major Dutch publisher Insights  These errors causes that ad space is empty and do not generate clicks  Moreover, this ‘pollutes’ the website making the overall feel less premium, leading erosion of rate card Solution:  technology deepdive revealed error in ad servingSource: Harvest analyses 9
  10. 10. 1 2Short term improvement example 2: Pricing optimization Example: Per country pricing analysis of pre-roll formats Insights  Price differentiation between countries was big, while formats were identical 60 €14.00 Price Volume €12.00  In depth analyses showed great differences 50 in negotiated prices with networks €10.00 40  Competition benchmark showed low and €8.00 high price for rate card compared to 30 competition in some countries €4.47 €6.00 €3.52 20 €2.67 €4.00 Solution: €1.98 €2.09  Renegotiated contracts with 10 €2.00 networks, adjusted rate card price 0 €- NL USA France UK Germany Volume Price High Price Low Average eCPMSource: Harvest analyses 10
  11. 11. 1 2Short term improvement example 3: protect yourpremium inventory Example: Low quality ads on premium pre-roll of Spelletjes.nl Insights  Low quality text ad on premium pre-roll position  Example of the importance of keeping premium positions premium  In order to justify the rate card it is good to only show ads that are premium on these positions Solution:  Replace back-fill of Google text ads from this position with house-adsSource: Harvest analyses 11
  12. 12. 1 2Central model for a long term advertising strategy is a clearsplit between premium and non-premium advertising pixels PREMIUM NON-PREMIUM Premium positions are for high value branding. A customizable look and feel NON-PREMIUM Non-premium inventory can be used to increase monetized real is often offered which adds to the high estate, this is successfully done pricing associated when optimized for clicksSource: Harvest analyses 12
  13. 13. 1 2The big risk of no split between premium and non-premiumadvertising pixels is the dilution of your premium pixels Insights  In just a few moments we were able to start a Google Display campaign targeted at ‘news’ websites with a leaderboard for our start up Offerti.nl  Because there are not many Dutch news sites that are able to show Google leaderboards on premium positions we were almost sure to buy space at Telegraaf.nl at 3% of the ratecard price  Et voila! More than 100k impressions on premium positions for a bargain Advertiser reaction: “Why should I pay an ultra premium price for this inventory?”Source: Harvest analyses 13
  14. 14. 1 2It is desirable to have a clear distinction where to use premiumadvertising and where to use non-premium advertising Homepage Premium Categories Other Categories Fold premium positions -> Filled with direct sales and inventory non-premium positions -> Filled with automated and house adsSource: Harvest analyses 14
  15. 15. 1 2Focus must be on getting premium categories (pixels) in thesweetspot… Average % direct sales on premium and non-premium Dutch publishers’ categories Insights  Hardly any premium category is in the Promising categories Sweetspot sweetspot categories Premium  Goal is to move promising categories to sweetspot  Homepage of diverse Homepage publishers currently Non-premium undermonetized by categories relatively low ratecard 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Monthly visits % Direct sales impressions of total sales impressionsNB: Definition sweetspot: category is premium according to rate card and more than 50% of actual impressions filled with premium inventorySource: Average advertising data Dutch publishers, Harvest analyses 15
  16. 16. 1 2…yet most publishers do not make a distinction betweenpremium and non-premium pixels, thereby wasting opportunity Opportunities Impressions today Impressions ideal  Stop diluting value of Dir Direct Empty premium pixels by Automated 5-15% premium 80% 20% automated advertising 85%  Run premium formats only on premium pixels to increase revenue per pixel Direct, 5-15% Direct, 0-5%  Focus your direct sales Automated non Automated team on premium pixels 85-95% premium 95-100% only, leave non- premium to lean and mean automated  Create premium long term relations with advertising partnersSource: Average advertising data Dutch publishers, Harvest analyses 16
  17. 17. 1 2A focus on increasing direct sales on premium pixels is clear,the average CPM delta vs. networks is ±1000% on these pixels Detailed split of average impressions and revenue from premium pixels Insights  6 times more banners served for 15% more revenue 15% 15%  Homepage take-overs good for 20% of business 30% Networks  Delta of CPM direct sales vs. networks > 85% 3000% Other Specials 85% 20% Homepage take-overs 35% 15% Impressions Revenue Revenue detailSource: Average advertising data Dutch publishers, Harvest analyses 17
  18. 18. 1 2Example from the field: good premium advertising is rather acooperation with related companies than old school advertisingSource: Harvest analyses 18 18
  19. 19. 1 2Example from the field: good special ad integrationwithout being ‘intrusive’ on premium inventory Integrated companion ads Insights  Companion ads integrated into one big, though discrete ad  Complete control on look and feel because these ads are custom made  While the ads are sold for a premium price, they are not intrusive or distracting, yet give good ‘value per pixel’ for advertiserSource: Harvest analyses 19
  20. 20. 1 2Example from the field: make your premium inventory morepremium, while still using regular formats with a twist Example What Benefit  Make your leaderboard part of the  Leaderboard literally stands out of header by let it overlap header which increases visibility and CTR and limits ad space above header  Position your leaderboard between  Leaderboard draws more attention the navigation and first article and still looks premium by playfully melding it in your page  Customize the premium position by  Using the both the spaces at the ‘embracing’ the header outside for a single advertiser improves visibility and recognition  Limit the header ad space by making  Ad space is limited but ad still draws an unfolding header ad attention and making it unfoldable will increase visibility and interactionSource: Harvest analyses 20
  21. 21. On top of the initial premium / non-premium strategic 1 2analyses, ongoing optimization of your advertising pixel is key toexcel Measure Implement must have: Tools must have: Skill 1. State of the art tagging 1. Clear requirements 2. Always up to date dashboard 2. Minimized TTM 3. One touch own drilling Harvest specialists supports your webmaster Harvest builds this for you on tweaks and builds a glossary Analyse Learn must have: Smarts must have: Eagerness 1. Clear KPIs “Nothing great was ever achieved without 2. Understanding of drivers enthusiasm” 3. Analysis templates You bring this to the table Harvest does this and trains your peopleSource: Harvest analyses 21
  22. 22. 1 2A clear overview of all KPIs is crucial for ongoing professionaloptimizations Dashboard example: Conceptual Monitor Deep diveSource: Harvest proprietary HTML 5.0 dashboard 22
  23. 23. 1 2To tackle your long term advertising strategy,Harvest suggests a four step approachAnalyse and divide 1 Make a premium and 2 Implement technical 3 Futureproof your 4inventory non-premium action plan and operational changes businessActions: Actions: Actions: Actions: Action plan for premium  Action plan for premium  Implement product changes  Prioritized next steps in hand- inventory with a.o.: inventory with a.o.: needed over plan - Overview of potential - Overview of potential  Define HR implications and fill  Clear action plan to perform dream-customers dream-customers gaps in skills through training/ ongoing optimizations - Actionable clusters of - Actionable clusters of support in hiring  Detailed dashboard for KPIs of premium inventory premium inventory  Create new sales kit for all advertising revenue, with relevant for clear target relevant for clear target premium advertising, do first deep dive opportunity advertisers advertisers roadshow  Solid hand-over to client team - High level direct sales - High level direct sales  Set-up new client meetings in  Custom trainings to fill final proposition per cluster proposition per cluster co-creation vs sales setting gaps in knowledge and skills - Product adjustments - Product adjustments  Develop high level needed needed dashboards for tracking Action plan for non-premium  Action plan for non-premium  Renew/change/break inventory with a.o.: inventory with a.o.: contracts - Improved analytics plan - Improved analytics plan - 80/20 plan on - 80/20 plan on effort/output effort/outputExpected result: Expected result: Expected result: Expected result: Action plans with prioritized  Action plans with prioritized  First changes  Internal team ready to take concrete projects ready to concrete projects ready to implemented, organization on over the optimized take-off take-off track for new strategy advertising pixelsTime: Time: Time: Time: 4 weeks  4 weeks  4-8 weeks  2-4 weeks 23
  24. 24. Case example: Optimizing the advertising revenue for aglobal leading casual games platformSituation Actions Results achievedClient How Harvest helped  Over EUR 500k additional revenue Casual Games Company  Perform a quick scan to identify quick from quick wins identified and wins and biggest improvement areas realized during this projectChallenge Advertising revenue and performance  Ran quick win optimization projects  Annual advertising revenue grew was low compared to (new and improved advertising) double digit numbers benchmarks, while investments in time and effort were high  Strategic assessment of advertising  Advertising performance (eCPM) proposition leading to high level improved significantlyObjective advertising strategy Optimize advertising in terms of  Advertising team involvement shifted performance and revenue, while  Redefined the premium and regular from mostly tactical to more decreasing the investments in time advertising inventory on the platform strategic, moving our clients and focus advertising business up the value  Zoom in on improvement areas to chainDuration identify suboptimal processes and 6 months front-end and back-end implementations  Ran mid-long term improvement projects to improve advertisement relevance 24
  25. 25. Harvest serves an international portfolio of pure online playersand click-and-brick companies "Harvest is without any doubt one of the very best e-consultancy companies in the world. Excellent knowledge and expertise strategically, tactically, and operationally, always with clear focus on top line results” Francine van Dierendonck, Sr. Director and Head Global Philips Flagship Store "The monetization quick scan that Harvest carried out for Compare Group highlighted tactical improvements with direct upside and a strategic opportunity. The Harvest team is very professional and has great knowledge of e-retail and online in general.” Ben Kerkhof, CEO Compare Group "Harvest supported Experteer in their go-to-market in the Netherlands. The professionalism, drive and in-depth knowledge of the Dutch online were key to the success of the project and the launch of experteer.nl” Nina Zimmerman, Head of Europe Experteer "Harvest combines a strategic view on creating online success with the power to execute. Passion for the online business, dedicated to deliver results. And above all, a pleasure to work with.” Marc de Vries, CEO Hyves 25
  26. 26. Feel free to reach out to us for more information Harvest – Online Business Development
 Herengracht 262-266
 The Netherlands E: info@harvestamsterdam.com
 T: +31 (0) 20 4277796
 I: www.harvestamsterdam.com 26