Display Advertising Budget Allocation

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If you must do display ads, then shift dollars from large media buys on portals to ad networks and even to Facebook, where CPMs are orders of magnitude lower.

If you must do display ads, then shift dollars from large media buys on portals to ad networks and even to Facebook, where CPMs are orders of magnitude lower.

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  • 1. Optimizing DisplayAd Budgets Dr. Augustine Fou http://www.linkedin.com/in/augustinefou July 18, 2012.
  • 2. Display Advertising Big Portals Ad Networks Facebook Large audience Lots of long-tail Massive number of small websites impressions Publisher/portal has more power Advertiser has “Junk” quality and more power super-low prices CPM 10’s of dollars 1’s of dollars 10’s of cents CTR 0.1% 0.01% 0.001% Shift allocation to get more impressions or lower costJuly 18, 2012 2
  • 3. Budgets Shifting to Social As more budget shifts to lower CPM social networks, it has the effect of depressing industry-wide CPMs for display ads.July 18, 2012 3
  • 4. Display Ad Ecosystem Source: http://www.iabuk.net/video/the-evolution-of-online-display-advertisingJuly 18, 2012 4
  • 5. Bad Guys Rob Display Advertisers 1 • Pages are auto generated by script to optimize for high value search 2 keywords and content 3 • 10 – 15 display ads per page plus text ads and videos ads, in rotation 4 6 • Advertisers should minimize ad dollars spent on impression (CPM) basis and 5 7 focus on paying only when they get the click (CPC) • They also auto-refresh pages to load another 10 – 15 ads 8 9 • Many other examples of display ads 10 shown next to unsavory content Source: http://www.satelliteguys.us/archive/t-232266.htmlJuly 18, 2012 5
  • 6. Dr. Augustine Fou – Agency Czar “I advise clients on optimizing their digital spend and integrating across channels.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefouJuly 18, 2012 6 acfou@mktsci.com