Intro to Paid Online Marketing

Introduction to Online Marketing
VaibhavArya
Amit Klein
November ’09

Who are we?

Vaibhav & Amit
vaibhav@arya.net.in
ak@amitklein.com

Goals
At the end of today you should be able to:
identify your marketing objectives
determine which methods/tools are best to achieve them
measure your results / calculate ROI
and optimize your campaigns

Agenda
Marketing Goals
Pricing & Terminology
Methods of Online Advertising
Measurement & Analytics
Budget Allocation
Insights
Q&A

Introduction

Case Study – iTunes India
You are the marketing manager responsible for launching the iTunes store in India
- What are your objectives?
- How can you go about achieving those objectives?

Objectives - Branding

Objectives - Performance

Marketing Funnel
http://adamhcohen.com/wp-content/uploads/New-Marketing-Funnel1-300x294.jpg

Terminology & Pricing

Terminology
Impression – A single appearance of an advertisement on a web page.
CTR – Click Through Rate - The number of people who clicked your ad divided by the number of people who viewed it.
Goal – An action performed on your site (download, checkout, registration, etc…)
Conversion Rate – The number of people who completed a goal divided by the total number of visitors to your site

Pricing Models
Fixed Cost / Fixed Duration
CPM - Cost per 1000 Impressions
CPC - Cost per Click
CPA - Cost per Action - The advertiser pays a fixed
amount for each specified action linked to the ad. Action
could be a form submission, a sale (CPS) a lead (CPL) etc.
Publisher Friendly
Advertiser Friendly

Methods of Advertising Online

List of Methods & Tools
Search Ads - Google, Yahoo, MSN
Display Ads – DoubleClick, Right Media Exchange
Social Ads – FB, Orkut, LinkedIn
Email Marketing – Blue Sky Factory, EmailBrain
Affiliate – Amazon, Commission Junction

Search Ads
Goals: Consideration / Conversion
Control: Keyword, geography, demographic, time, budget
Measure: Impressions, clicks, cost, revenue
Limitations: Placement, competition/expensive, obscured

Search – Google Adwords
Targeting based on keyword, geography, demographic, time.
Search vs. Content network
Position of ads depend on location, bid, relevance (quality score)

Search - Keywords
Identifying - https://adwords.google.com/select/KeywordToolExternal
Estimating - https://adwords.google.com/select/TrafficEstimatorSandbox
Bidding (Auto vs. Manual)
Pricing (US vs. India)

Display Advertising
Might not need to pay for traffic you are getting based on search:

Display Advertising

All Shapes and Sizes

Display Advertising
What do you think are the goals?
Awareness
Brand Positioning
Can also be used for conversion

Display Advertising
Brand is Important
Prime Inventory
RemnantInventory
Ad Networks
Ad Exchanges

Display Advertising
Networks aggregate Publishers and Advertisers
Exchanges aggregate Networks

Display Advertising
What can you control?
Sources - Where the ad is shown
Demography - Who do you show it to
Behavior / Intent - What are the persons interests? What else has he seen? What has he been searching for?

Display Advertising
What can you measure?
Total number of visitors who see the ad
Total number that click through
More importantly, cost per person who sees the ad
Cost per impression is a proxy
Doesn’t compensate for frequency (one person may see the ad multiple times)

Some Sample Banner Ad Data

Email Marketing – EmailBrain
Goals: Conversion / Loyalty
Control: Segmentation, frequency, message / look & feel
Measure: Opens, clicks, unsubscribe, forwards
Limitations: Reach

Email Marketing – EmailBrain

Social Ads
Goals: Awareness / Consideration
Control: Demographic, message, budget
Measure: Impressions, clicks, cost, revenue
Limitations: Low click through rate, people don’t go to social networks to buy

Social Ads - Facebook

Affiliate Marketing

Affiliate: Outsourced Sales Force

Affiliate Marketing
Networks
TradeDoubler
CommisionJunction

Affiliate Marketing
Goals - Conversion / Sales
Control - Can you think of any?
Measures
Impressions
Clicks
Conversions
Limitation
Loss of control over affiliate choice
Brand conflict positioning
Gaming the system
Expensive to setup

Goal Measurement

Goals - Awareness

Goals - Consideration
Leads received:
Creating an iTunes account
Playing snippits of a song / video
Browsing the iTunes store

Goals - Conversion

Goals - Loyalty

Goals - Loyalty
Destroy Competition:

Budget Allocation

Example #1 – Ad effectiveness

Example #2 – Keyword Effectiveness

Example #3 – Source Effectiveness

Insights

Insight #1
We should be investing more in high performing states like Wyoming, Alaska, DC and Colorado:

Insight #2
Non-paid search traffic provides higher quality of visitors then paid. Invest in SEO.

Insight #3
Might not need to pay for traffic you are getting based on search:

Conclusion

Conclusion
When planning a marketing campaign:
Define criteria and how you will measure success
Get historical data
If not possible: execute small tests
Iterate and optimize constantly
Use analytics data to develop insights

Thank You! Questions?

Intro to Paid Online Marketing

by Amit Klein on Dec 01, 2009

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Intro to Paid Online Marketing — Presentation Transcript