Introduction To Online Media Planning And BuyingPresentation Transcript
Increasing Online Confidence Understanding online media planning and buying Alastair Cartwright July 2009
A bit about me
11 years online experience
Part of senior management team that launched a Guardian Media Group website into the market in 2000 – Workthing.com
Founded Enhance Media in 2001 - Online recruitment communications agency
First UK recruitment ad agency to be Google qualified
Developed range of online courses which were accredited to BTEC level 2 standard
Clients included PwC, T-Mobile, AXA Sunlife, Cap Gemini
Sold Enhance Media in 2008, now working as a consultant to a number of technology companies
10.00am Introductions and day one objectives
10.15am The online advertising market
10.30am UK Online Adspend Study – IAB/PwC
11.00am Break – coffee
11.15am Different types of online advertising solutions
11.30am Understanding social media and how to develop attraction strategies
12.15pm Basic Principles of online creative
12.45pm Recap and summary – unanswered questions
What do we want from today?
The online advertising market
Market background and trends
Marketing budgets to hit new low in Q4 08
… .And so it came to pass….
Markets in crisis
Disappeared from the High Street
Shoppers find convenience and value online
In uncertain times ……
… .when budgets are being slashed
… ..Marketing has to be accountable
This is the first recession
since the internet has become a
Accountability is Online’s trump card A A A K Q
Number of internet users in the UK Source: NRS UKOM: Jul-Dec 2008; Jul-Dec 2007 66% UK Pop 71% UK Pop 37% Online Pop 44% Online Pop Internet users going online more than once a day Number of people online
2 thirds of broadband services are now above 2 MB Base: All who know speed of broadband connection at home. Q: Do you know the connection speed of your home broadband package? (Nov 06; Nov 07; Nov 08) Source: BMRB Internet Monitor Nov 2006; Nov 2007; Nov 2008 48% of home broadband users have used wireless broadband at home in the last month (Nov 2008)
Weekdays Saturdays Sundays Source: BMRB Internet Monitor, November 2008 Base: All Internet users aged 15+ Online second only to TV - % of media time for all internet users
UK Online Adspend Study Results for the full year of 2008 Prepared by PricewaterhouseCoopers for the IAB
£3,349.7m market in 2008 An increase of £537.1m year-on-year Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
17.1 % increase 2008 vs. 2007 on a like for like basis Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
Online advertising reaches £846m in Q3 £ millions Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC ‘ 01 ‘ 03 ‘ 02 ‘ 04 ‘ 05 ‘ 06 ‘ 07 ‘ 08
Online in context… Breaking market trends in the UK ad industry
% share of revenues for January to December 2008
2008 market share 19.2% (15.5% in 2007) Total advertising market £17.5bn Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
Online only medium showing growth in 2008 Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories. Total advertising market growth = -3.5% Year on year growth for 2008
Market Share Online’s share growth accelerates to 20% Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC
Summary – Full year 2008
Online advertising is the only medium showing growth in 2008
Internet advertising reaches £3,349.7m in 2008
Online achieved a share of 19.2%, up nearly 4 points from 2007 (15.5%)
The market grew on a like for like basis by 17.1% year-on-year, still maintaining strong growth
Online now on a level pegging with Press Display
The digital media mix The developing mix of ad products
The digital media mix Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures. Full year total £3,349.7m % share of revenues for the full year 2008
The digital media mix £ millions +7.7% +22.2% +22.7% Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures. All online formats are still experiencing growth
The digital media mix £ millions IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures. Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC Year on year comparison
Classifieds led by key players
The display digital media mix Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures. Full year display total £637.4m % share of display revenues for the full year 2008 £495.8m £11.8m £15.5m £13.0m £11.7m £52.4m £12.7m £24.5m
44% of gross display spend through networks
The online agency landscape
The definitions of trading online and engaging key audiences online are blurring and the leading companies are now looking at digital in totality and implementing numerous fully tracked initiatives to achieve a range of KPI's.
The following sections touch upon the majority of areas which need to be considered when using the digital medium
Generally a brand entering the digital space will require two different agency capabilities; a digital media agency and a creative agency.
Most digital media agencies will offer creative but many brands prefer to keep them separate. The reason for this can range from pure creative houses being more creative, existing relationships, costs and not putting all eggs in one basket etc.
KPI's for digital direct response marketing should be ROI but can also include such things such as e-mail addresses collected / registrations.
KPI's for digital brand marketing should reflect the ambitions of the brand such as dwell time on site, reach of a brand messages, weighted scores for visiting different areas of the site, repeat user acquisition etc.
Each business generally has different ambitions and with comprehensive tracking all KPI's can be measured against.
Media agencies are generally responsible for all paid for media excluding affiliate marketing.
Roles covered will be planning and buying online media and search, full responsibility for tracking and reporting, creative asset coordination, forecasting and updating the client on key digital developments.
Naturally these responsibilities can be broadened or reduced but the above is generally considered a bare minimum.
Creative agencies must be renowned for their creativity, but also taking into account the need for a direct response message – results!
With digital being a medium for both direct response and branding it is key to find a relationship between the two and measure both with different KPI's.
Direct response creative
Direct response creative tends to be placed on cheaper high reach less targeted sites on a CPC or CPA basis.
The creative needs to on the whole be commerce led with a strong brand presence.
Creative placements tend to be standard without the use of rich media (i.e. overlays etc).
DR campaigns are generally measured on pure return on investment i.e. the cost of the media (including agencies, tracking etc) versus the direct financial return (could include life time user value when known).
Brand led creative
Brand led creative is generally a richer creative execution and may involve the use of rich media and highly targeted media placements.
The media value of highly targeted placements is traditionally higher in cost and is normally charged on a CPM basis.
Brand creative on the whole is not about driving sales but changing the consumers views of the brand / products.
KPI's can range and various digital brand measurement tools such as Dynamic Logic are available to track progress.
The digital media armoury
How to buy online media
Digital media is traditionally purchased via the following mechanics:
CPM - Cost per mille (1000) - High risk often mechanic for prime inventory
2. CPC - Cost per click - Favourable but still element of risk
3. CPA - Cost per acquisition - Most favourable
Key display media channels Portals Definition: Web sites that feature numerous content categories and receive a high volume of web traffic Social media Definition: A social structure made of nodes (which are generally individuals or organizations) that are tied by one or more specific types of interdependency Verticals Definition: Web media that is focused on a specific area of content or targeted at a specific audience Networks Definition: Companies that aggregate ad inventory from hundreds of websites of various content categories Affiliate Networks Definition: Companies that provide a third party solution for advertisers to form relationships with thousands of smaller websites
Typically the largest potential reach in the market
Availability of inventory creates opportunity for higher volume, but lower conversion rates due to competing advertising and a less qualified audience
Requires constant testing and optimisation
Expensive - requires significant investment to generate results
Traditionally bought on a CPM with a CPC element
Every portal performs differently by market
Your advert Your advert
Enormous reach and easy to implement.
Can be bought on CPC or free for Twitter
Engagement to advertising is very low and risks of poor brand exposure are very high
If mastered sales can be grown to unprecedented levels
Sites can be teen focused which can lead to small basket sizes
Your advert Your advert
Typically very expensive. High CPM rates
Smaller audience, even though more targeted cannot generate volume efficiently
More difficult to work with publishers as they tend to be less sophisticated
Provides enormous reach with only one agreement
Requires a great deal of testing and is difficult to optimize, since you do not know on what sites your media is placed (media is purchased by category)
Inconsistent performance which depends on network, inventory availability and available creative sizes
Upon CPC test CPA agreements can be reached which is mutually rewarding for all parties
Very favorable as able to drive cost efficient volume which is paid on CPA
Requires full-time person devoted to managing affiliate relationships
Slight lack of brand control
Provides continual advertising presence at no cost
One of the most effective ways to trade online as brand reaches sites which could not profitably be worked with