Kellogg HTC - Web Monetization

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  • Kellogg HTC - Web Monetization

    1. 1. Web Monetization January 28, 2009 Ryan Metzger
    2. 2. Introduction Formats History Lesson Optimization Metrics New Impression Sources Advanced Topics
    3. 3. Introduction WARNING! (This contains data and charts)
    4. 4. Introduction Formats History Lesson Optimization Metrics New Impression Sources Advanced Topics
    5. 5. Formats Online Advertising Goal Characteristics Brand Building <ul><li>Goal is to increase awareness or acceptance of a brand, product or idea </li></ul><ul><li>Difficult to measure awareness online and often requires survey data </li></ul><ul><li>Likely to take the form of banner advertising or rich media </li></ul><ul><li>Usually willing to pay higher CPMs than those concerned with Direct Response </li></ul><ul><li>Some advertisers (Ford, movies like Borat ) are limited to brand building because they have no way to transact online. </li></ul>Direct Response <ul><li>Goal is ROI on marketing investment </li></ul><ul><li>Ideally suited for online advertising. Clicks, impressions, and conversions can all be measured and tied back to advertising. </li></ul><ul><li>Can take the form of anything online, but most successful with CPC and CPA vehicles like search and affiliates </li></ul><ul><li>Can be difficult to compete with brand-building advertisers for CPM placements </li></ul>
    6. 6. Formats <ul><li>Search </li></ul><ul><li>CPC Pricing </li></ul><ul><li>Google, Yahoo, Microsoft </li></ul><ul><li>Auction Buying (Bid + Relevancy) </li></ul><ul><li>Direct Response and Brand Advertisers </li></ul>
    7. 7. Formats <ul><li>Search - Content </li></ul><ul><li>CPC Pricing </li></ul><ul><li>Also known as “AdSense” </li></ul><ul><li>Google, Yahoo, Microsoft </li></ul><ul><li>Auction Buying </li></ul><ul><li>Direct Response and Brand Advertisers </li></ul><ul><li>“ TAC” </li></ul>
    8. 8. Formats <ul><li>Banner Ads </li></ul><ul><li>CPM Pricing (limited CPC) </li></ul><ul><li>Direct Buying and Ad Networks </li></ul><ul><li>Remnant and Premium </li></ul><ul><li>Brand Advertisers and Direct Response </li></ul>
    9. 9. Formats <ul><li>Rich Media </li></ul><ul><li>CPM Pricing </li></ul><ul><li>Atlas, Doubleclick (tech) </li></ul><ul><li>Web Sites (content) </li></ul><ul><li>Direct Buying </li></ul><ul><li>Brand Advertisers </li></ul>
    10. 10. Formats <ul><li>Classifieds </li></ul><ul><li>CPC Pricing (or free) </li></ul><ul><li>Craigslist, Kijiji, niche sites </li></ul><ul><li>Direct Buying </li></ul><ul><li>Direct Response </li></ul>
    11. 11. Formats <ul><li>Referral / Lead Gen </li></ul><ul><li>CPA Pricing </li></ul><ul><li>Also Known as Affiliates </li></ul><ul><li>Mileage Plan “Malls,” Upromise, PriceGrabber, etc. </li></ul><ul><li>Direct Response </li></ul><ul><li>Done internally (Amazon) or through network (Linkshare, Commission Junction, etc.) </li></ul>
    12. 12. Formats <ul><li>Interstitial </li></ul><ul><li>Quiz: What is this? </li></ul>
    13. 13. Introduction Formats Optimization Metrics New Impression Sources History Lesson Advanced Topics
    14. 14. History Lesson Source: Morgan Stanley, Mary Meeker Web 2.0 Summit, 11/5/08.
    15. 15. History Lesson Source: Interactive Advertising Bureau
    16. 16. History Lesson Source: Confidential Internet Retailer
    17. 17. Introduction Formats History Lesson New Impression Sources Optimization Metrics Advanced Topics
    18. 18. Optimization Metrics <ul><li>Pageviews (Traffic) </li></ul><ul><li>Holding all else constant, will increase site revenue </li></ul><ul><li>Increasing Marginal Cost to new visitors </li></ul><ul><li>Decreasing Marginal Revenue from advertisers </li></ul><ul><li>Note connection between unique users, pageviews and pages per visitor </li></ul>Source: Quantcast
    19. 19. Optimization Metrics <ul><li>Coverage </li></ul><ul><li>% of Pages with Ads </li></ul><ul><li>Dependent on sales force / Ad Network (banners) or Pure Demand + Matching Algorithm (search) </li></ul>No Ads Ads
    20. 20. Optimization Metrics <ul><li>Depth </li></ul><ul><li># of Ads per Page </li></ul><ul><li>Dependent on sales force / Ad Network (banners) or Pure Demand (search) </li></ul><ul><li>More relevant for display than search (why?) </li></ul>5 Total Ads 11+ Total Ads
    21. 21. Optimization Metrics <ul><li>Relevancy </li></ul><ul><li>Typically measured by CTR </li></ul><ul><li>Relevant in short-term for search </li></ul><ul><li>Relevant in long-term for banner / rich media </li></ul>Source: Doubleclick
    22. 22. Optimization Metrics <ul><li>Price </li></ul><ul><li>Varies by Pricing Model </li></ul><ul><li>Search = bid + relevancy </li></ul><ul><li>Banner / Rich Media = contractual </li></ul><ul><li>Can make apples:apples by some simple math </li></ul>Source: Morgan Stanley, Mary Meeker Web 2.0 Summit, 11/5/08.
    23. 23. Optimization Metrics Mastering Tradeoffs is Key to Monetization! <ul><li>Pageviews </li></ul><ul><li>(user experience) </li></ul><ul><li>Coverage </li></ul><ul><li>Depth </li></ul><ul><li>Relevancy </li></ul><ul><li>Depth </li></ul><ul><li>(exclusivity) </li></ul><ul><li>Price </li></ul><ul><li>Relevancy </li></ul><ul><li>(diminishing returns) </li></ul><ul><li>Depth </li></ul>
    24. 24. Introduction Formats History Lesson Optimization Metrics New Impression Sources Advanced Topics
    25. 25. New Impression Sources Source: Morgan Stanley, Mary Meeker Web 2.0 Summit, 11/5/08.
    26. 26. New Impression Sources Site Issue Response Low CTR / Relevancy “ Engagement Ads” Low CTR / Relevancy Hyper-targeted “MyAds” Questionable / Copyright Content “ Claim Your Content” Low CTR / Relevancy Pre-roll, Overlay Ads, “The Pool”
    27. 27. Introduction Formats History Lesson Optimization Metrics New Impression Sources Advanced Topics
    28. 28. Advanced Topics - Frequency Source: Finding the Missing Piece in Online Frequency , Atlas Institute.
    29. 29. Advanced Topics - Targeting Contextual Behavioral Demographic
    30. 30. Advanced Topics - Attribution Where is sale attributed? Ramifications for marketing mix

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