ISBSM #3 - Intro to Paid Online Marketing

Introduction to Paid Online Marketing Vaibhav Arya Amit Klein March ‘10 #isbsm

Who are we?

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

Why is Paid Marketing Important?

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 - 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

Pricing Models Publisher Low Fixed Cost / Friendly Tech Fixed Duration CPM CPC CPA Advertiser Tech Friendly Intensive

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.

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 Engine Marketing

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

How does Google know which ads to display next to search results?

Google Adwords Demo • Targeting based on keyword, geography, demographic, time. • Search vs. Content network • Bidding (Auto vs. Manual) • Pricing (US vs. India)

Google Adwords Demo

Search - Keywords • Identifying - http://www.google.com/sktool/ • Estimating - https://adwords.google.com/select/TrafficEstimatorS andbox

Impression Share

What should you do with all those ad clicks? Landers meet various goals – Capture a lead – Simplify the buying process – Lead directly to the product advertised – Ensure trials Good for sites where people do not need a greater level of information before they sign up. It’s very important to cater to the specific case at hand

Display Advertising

All Shapes and Sizes

Display Advertising • Goals: • Awareness • Brand Positioning • Can also be used for conversion

Display Advertising • Branding Oriented • Positioning is important: • Premium Inventory • Remnant Inventory

Premium Inventory

Remnant Inventory

Exchanges and Networks • Networks aggregate Publishers and Advertisers • Exchanges aggregate Networks

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

Display Advertising • Measures: • Total number of visitors who see the ad • Total number that click through • Cost per Unique Visitor: • Cost per impression is a proxy • Doesn’t compensate for frequency (one person may see the ad multiple times)

Different Objectives Different Metrics Advertiser Imps Clicks Conversions Click rate (%) Conversion Cost Cost eCPM rate by clicks(%) Advertiser #1 13,594,753 331,888 13,478 2.44 4.06 6,819.95 0.5 Advertiser #2 10,103,536 45,682 939 0.45 2.06 24,167.53 2.39 Advertiser #3 7,225,860 143,455 2,155 1.99 1.5 4,287.46 0.59 Advertiser #4 6,970,203 141,678 1,252 2.03 0.88 476.9 0.07 Advertiser #5 6,139,134 150,030 2,717 2.44 1.81 2,396.03 0.39 Advertiser #6 5,940,754 105,473 1,145 1.78 1.09 2,743.26 0.46 Advertiser #7 5,703,385 163,875 1,664 2.87 1.02 3,890.97 0.68

Email Marketing

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

Email Marketing – EmailBrain

Email Marketing – Analytics

Social Ads

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 #1 – Ad effectiveness Ad Impressions Clicks Cost Music 274,747 2,413 $1,042.56 iTunes 21,075 733 $339.28 Movies 34,404 243 $157.13

Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM $3.79 Music 274,747 2,413 $1,042.56 0.88% $0.43 iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 Movies 34,404 243 $157.13 0.71% $0.65 $4.57

Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM Revenue Music 274,747 2,413 $1,042.56 0.88% $0.43 $3.79 $4,246.88 iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 $2,052.40 Movies 34,404 243 $157.13 0.71% $0.65 $4.57 $21.87

Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM Revenue RPC ROI Music 274,747 2,413 $1,042.56 0.88% $0.43 $3.79 $4,246.88 $1.76 306.53% iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 $2,052.40 $2.80 503.85% Movies 34,404 243 $157.13 0.71% $0.65 $4.57 $21.87 $0.09 -85.38%

Example #2 – Keyword Effectiveness Keyword Impressions Clicks Cost CTR CPC CPM Revenue RPC ROI movies 219,274 656 $284.34 0.30% $0.43 $1.30 $32.80 $0.05 -87.70% music 62,469 391 $384.48 0.63% $0.98 $6.15 $1,102.62 $2.82 186.38% itunes 30,470 385 $182.11 1.26% $0.47 $5.98 $500.50 $1.30 174.37% music downloads 15,286 199 $121.42 1.30% $0.61 $7.94 $19.90 $0.10 -83.54% movie downloads 12,185 222 $77.93 1.82% $0.35 $6.40 $102.12 $0.46 30.84% kanye west music 4,779 176 $61.17 3.68% $0.35 $12.80 $0.00 $0.00 -100.00% a. r. rehman download 3,516 218 $65.18 6.20% $0.30 $18.54 $163.50 $0.75 149.89% twilight dvd 9,446 148 $66.08 1.57% $0.45 $7.00 $828.80 $5.60 1154.12%

Example #3 – Source Effectiveness Impressions Clicks Cost Revenue Average Order Size Conversion Rate Per Visit Value Direct N/A 27,244 0 $12,795.81 $8.15 5.76% $.47 $6,019.56 Google 2,713,257 11,709 $2,597.26 $6.98 3.33% $.22 Facebook 2,221,666 1,333 $253.27 $150.81 $5.32 0.23% $.01 Email 26,796 1,964 $400.00 $710.65 $7.32 4.94% $.36 Display 106,454 2,342 $95.40 $106.21 $5.15 2.70% $.05 Affiliate 52,324 806 $142.08 $710.65 $10.46 3.85% $.40

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

Group Project Update

Group Project Two components • Social Media campaign • proposals due today • Adwords Campaign • Drive traffic to atmamumbai.org • Each team will get $320/teams in Adwords Credits • Not just visitors but quality as well • Score = Visitors * (1 – Bounce Rate)

Thank You! Questions?

ISBSM #3 - Intro to Paid Online Marketing

by Amit Klein on Mar 05, 2010

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ISBSM #3 - Intro to Paid Online Marketing — Presentation Transcript

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