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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 ...
Agenda
-   Marketing Goals
-   Pricing & Terminology
-   Methods of Online Advertising
-   Measurement & Analytics
-   Bud...
Introduction
Case Study – iTunes India
You are the marketing manager responsible for
  launching the iTunes store in India

- What are ...
Objectives - Branding
Objectives - Branding
Objectives - Performance
Objectives - Performance
Marketing Funnel




http://adamhcohen.com/wp-content/uploads/New-Marketing-Funnel1-300x294.jpg
Pricing Models
                                  Publisher      Low
                   Fixed Cost /    Friendly      Tech
...
Terminology & Pricing
Terminology
• Impression – A single appearance of an advertisement on
  a web page.

• CTR – Click Through Rate - The numb...
Pricing Models
• Fixed Cost / Fixed Duration

• CPM - Cost per 1000 Impressions

• CPC - Cost per Click

• CPA - Cost per ...
Methods of Advertising Online
List of Methods & Tools
•   Search Ads - Google, Yahoo, MSN
•   Display Ads – DoubleClick, Right Media Exchange
•   Social...
Search Engine Marketing
Search Ads
•   Goals: Consideration / Conversion
•   Control: Keyword, geography, demographic, time, budget
•   Measure: I...
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 (...
Google Adwords Demo
Google Adwords Demo
Search - Keywords
• Identifying - http://www.google.com/sktool/
• Estimating -
  https://adwords.google.com/select/Traffic...
Impression Share
What should you do with all those
ad clicks?
 Landers meet various goals
 – Capture a lead
 – Simplify the buying process
...
Display Advertising
Display Advertising
Display Advertising
All Shapes and Sizes
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 a...
Display Advertising
• Measures:
  • Total number of visitors who see the ad
  • Total number that click through

   • Cost...
Different Objectives Different Metrics

    Advertiser     Imps       Clicks    Conversions Click rate (%) Conversion    C...
Email Marketing
Email Marketing – EmailBrain
• Goals: Conversion / Loyalty
• Control: Segmentation, frequency, message / look &
  feel
• M...
Email Marketing – EmailBrain
Email Marketing – Analytics
Social Ads
Social Ads
•   Goals: Awareness / Consideration
•   Control: Demographic, message, budget
•   Measure: Impressions, clicks...
Social Ads - Facebook
Social Ads - Facebook
Social Ads - Facebook
Affiliate Marketing
Affiliate Marketing
Affiliate: Outsourced Sales Force
Affiliate Marketing
• Networks
  • TradeDoubler
  • CommisionJunction
Affiliate Marketing
• Goals
   • Conversion / Sales
• Control
   • Can you think of any?
• Measures
   • Impressions
   • ...
Goal Measurement
Goals - Awareness
Goals - Consideration
Leads received:
• Creating an iTunes account
• Playing snippits of a song / video
• Browsing the iTu...
Goals - Conversion
Goals - Conversion
Goals - Loyalty
Goals - Loyalty
Destroy Competition:
Budget Allocation
Example #1 – Ad effectiveness
Example #1 – Ad effectiveness


  Ad       Impressions             Clicks           Cost



  Music                  274,7...
Example #1 – Ad effectiveness


Ad       Impressions       Clicks         Cost             CTR       CPC           eCPM


...
Example #1 – Ad effectiveness


Ad       Impressions       Clicks         Cost             CTR       CPC           eCPM   ...
Example #1 – Ad effectiveness


Ad       Impressions Clicks    Cost        CTR      CPC           eCPM       Revenue     R...
Example #2 – Keyword Effectiveness

Keyword        Impressions Clicks         Cost             CTR           CPC          ...
Example #3 – Source Effectiveness
             Impressions    Clicks        Cost     Revenue Average Order Size   Conversi...
Conclusion
Conclusion
When planning a marketing campaign:
- Define criteria and how you will measure success
- Get historical data
- ...
Group Project Update
Group Project
Two components
• Social Media campaign
   • proposals due today
• Adwords Campaign
   • Drive traffic to atm...
Thank You! Questions?
ISBSM #3 - Intro to Paid Online Marketing
ISBSM #3 - Intro to Paid Online Marketing
ISBSM #3 - Intro to Paid Online Marketing
ISBSM #3 - Intro to Paid Online Marketing
ISBSM #3 - Intro to Paid Online Marketing
ISBSM #3 - Intro to Paid Online Marketing
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ISBSM #3 - Intro to Paid Online Marketing

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Third part of #isbsm course at ISB Term 8 2010.

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  • Guys is having more fun then everyone else
  • Overall ad spending will decline but: Online marketing spend will jump from 12 percent to 21 percent by 2014 SMM is fastest growing in spend 34% annually, all others average 17% SEM still dominates and will continue to for the forseeable future in terms of spend Theme: Paid marketing is giving way to earned loyalty… but slowly
  • Guys is having more fun then everyone else
  • Online vs. offline Reach Speed / Immediacy Testing Targeting Measuring
  • Guys is having more fun then everyone else
  • Guys is having more fun then everyone else
  • Overarching objectives are branding and performance…. Broken down leads to these
  • CPM was the norm… now CPC… only recently starting CPA
  • Conversions = Goals by Clicks (clicks translate to visitors) …. You want to buy an ad on a website what are your options
  • CPM was the norm… now CPC… only recently starting CPA
  • Consideration – Music store want to see iTunes Placement – next to negative stuff about your brand Competition – expensive, people could be obfuscating, your competitiors could be targeting your brand directly Obscured – sometimes gets lost
  • Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  • Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  • Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  • Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  • Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  • Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  • Not only Image Banners Also Rich Media (Video) Interactive (flash)
  • Not only Image Banners Also Rich Media (Video) Interactive (flash)
  • Should we use this insight for offline as well?
  • Should we use this insight for offline as well?
  • Brand is Important Where is my ad being shown What ad is being shown on my page Prime Inventory – Sold by branded publishers Remnant Inventory – Sold by thrid parties (ad-networks). Used to be leftovers that couldn’t be sold as prime No control over placement – advertise an albumn next to a page trashing the lead singer
  • Brand is Important Where is my ad being shown What ad is being shown on my page Prime Inventory – Sold by branded publishers Remnant Inventory – Sold by thrid parties (ad-networks). Used to be leftovers that couldn’t be sold as prime
  • How do you improve conversion rates Quality of publishers page - quality of advertisement
  • If you are not measuring e-mail marketing, there is almost no point in doing it What are the metrics that should be captured, how do you evaluate email campaigns…
  • If you are not measuring e-mail marketing, there is almost no point in doing it What are the metrics that should be captured, how do you evaluate email campaigns… Goals, control, measure, Limitations - reach
  • If you are not measuring e-mail marketing, there is almost no point in doing it What are the metrics that should be captured, how do you evaluate email campaigns… Goals, control, measure, Limitations - reach
  • If you are not measuring e-mail marketing, there is almost no point in doing it What are the metrics that should be captured, how do you evaluate email campaigns… Goals, control, measure, Limitations - reach
  • Demo When is this good Branding Target based on specific info (b2b target certain companies… recruitment top b schools)
  • Demo When is this good Branding Target based on specific info (b2b target certain companies… recruitment top b schools)
  • Demo When is this good Branding Target based on specific info (b2b target certain companies… recruitment top b schools)
  • Fansite Many Programs Ticket Master
  • Fansite Many Programs Ticket Master
  • Should we use this insight for offline as well?
  • Networks aggregate affiliate sites * Easier to Start * Loss of control?
  • Strong Policy Enforcement -- fraud
  • Get new customers
  • Depends how you define goals
  • Sell stuff New signup user Subscribing to a newsletter
  • Tata nano – signingup for more info / test drive as conversion
  • The number of times people return to your site
  • Stock volatility vs search volume
  • Which ad is more effective Mad men – 60’s Advertisements used to be about creatives, now its about performance / numbers
  • Example… let’s say our goal was just getting new visitors on the site… how do we know what is best for us?
  • Again if goal wasn’t to generate revenues but generate leads, how do you measure quality?
  • Again if goal wasn’t to generate revenues but generate leads, how do you measure quality?
  • Are there reasons when it makes sense to run movie ads? When entering a new market (haven’t sold movies before, generate awareness, other forms of measurement – trials / leads)
  • Some keywords perform better then others Be careful about where you spend your money Search volumes
  • Depends how you define goals
  • Atmamumbai is an ngo that helps ngos They focus mainly on education
  • Atmamumbai is an ngo that helps ngos They focus mainly on education
  • Next week Gaurav mishra Brian Burns Radian 6
  • Transcript of "ISBSM #3 - Intro to Paid Online Marketing"

    1. 1. Introduction to Paid Online Marketing Vaibhav Arya Amit Klein March ‘10 #isbsm
    2. 2. Who are we?
    3. 3. Vaibhav & Amit vaibhav@arya.net.in ak@amitklein.com
    4. 4. Why is Paid Marketing Important?
    5. 5. 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
    6. 6. Agenda - Marketing Goals - Pricing & Terminology - Methods of Online Advertising - Measurement & Analytics - Budget Allocation - Q&A
    7. 7. Introduction
    8. 8. 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?
    9. 9. Objectives - Branding
    10. 10. Objectives - Branding
    11. 11. Objectives - Performance
    12. 12. Objectives - Performance
    13. 13. Marketing Funnel http://adamhcohen.com/wp-content/uploads/New-Marketing-Funnel1-300x294.jpg
    14. 14. Pricing Models Publisher Low Fixed Cost / Friendly Tech Fixed Duration CPM CPC CPA Advertiser Tech Friendly Intensive
    15. 15. Terminology & Pricing
    16. 16. 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
    17. 17. 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.
    18. 18. Methods of Advertising Online
    19. 19. 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
    20. 20. Search Engine Marketing
    21. 21. Search Ads • Goals: Consideration / Conversion • Control: Keyword, geography, demographic, time, budget • Measure: Impressions, clicks, cost, revenue • Limitations: Placement, competition/expensive, obscured
    22. 22. How does Google know which ads to display next to search results?
    23. 23. Google Adwords Demo • Targeting based on keyword, geography, demographic, time. • Search vs. Content network • Bidding (Auto vs. Manual) • Pricing (US vs. India)
    24. 24. Google Adwords Demo
    25. 25. Google Adwords Demo
    26. 26. Search - Keywords • Identifying - http://www.google.com/sktool/ • Estimating - https://adwords.google.com/select/TrafficEstimatorS andbox
    27. 27. Impression Share
    28. 28. 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
    29. 29. Display Advertising
    30. 30. Display Advertising
    31. 31. Display Advertising
    32. 32. All Shapes and Sizes
    33. 33. All Shapes and Sizes
    34. 34. Display Advertising • Goals: • Awareness • Brand Positioning • Can also be used for conversion
    35. 35. Display Advertising • Branding Oriented • Positioning is important: • Premium Inventory • Remnant Inventory
    36. 36. Premium Inventory
    37. 37. Remnant Inventory
    38. 38. Exchanges and Networks • Networks aggregate Publishers and Advertisers • Exchanges aggregate Networks
    39. 39. 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
    40. 40. 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)
    41. 41. 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
    42. 42. Email Marketing
    43. 43. Email Marketing – EmailBrain • Goals: Conversion / Loyalty • Control: Segmentation, frequency, message / look & feel • Measure: Opens, clicks, unsubscribe, forwards • Limitations: Reach
    44. 44. Email Marketing – EmailBrain
    45. 45. Email Marketing – Analytics
    46. 46. Social Ads
    47. 47. 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
    48. 48. Social Ads - Facebook
    49. 49. Social Ads - Facebook
    50. 50. Social Ads - Facebook
    51. 51. Affiliate Marketing
    52. 52. Affiliate Marketing
    53. 53. Affiliate: Outsourced Sales Force
    54. 54. Affiliate Marketing • Networks • TradeDoubler • CommisionJunction
    55. 55. 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
    56. 56. Goal Measurement
    57. 57. Goals - Awareness
    58. 58. Goals - Consideration Leads received: • Creating an iTunes account • Playing snippits of a song / video • Browsing the iTunes store
    59. 59. Goals - Conversion
    60. 60. Goals - Conversion
    61. 61. Goals - Loyalty
    62. 62. Goals - Loyalty Destroy Competition:
    63. 63. Budget Allocation
    64. 64. Example #1 – Ad effectiveness
    65. 65. 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
    66. 66. 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
    67. 67. 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
    68. 68. 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%
    69. 69. 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%
    70. 70. 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
    71. 71. Conclusion
    72. 72. 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
    73. 73. Group Project Update
    74. 74. 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)
    75. 75. Thank You! Questions?
    1. A particular slide catching your eye?

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