Advertising optimization                        How	  to	  opmize	  your	  adversing	  pixels	  in	  the	  short	  term	  ...
Buckle-up: online is overtaking print and is expected to continue itsgrowth in the upcoming years  Print	  adver+sing	  [U...
In NL the online advertising market grew with 10% YoY,despite the tough economic climate in 2010/2011  Online	  adver+sing...
However, tapping into this growth potential is not easy, onlineadvertising formats and models are omnious and developing f...
This complexity is also seen in the number of businesses trying to gettheir fair share of the advertising market…  	  	  	...
This hyperdynamic landscape impacts your advertising revenue:Are you ready to tackle the risks and grasp the opportunities...
Harvest identified a parallel 2-step approach to optimize youradvertising pixel for the short term and in the long run    ...
1	             2	  In a short term tactical advertising audit we have provento be able to boost your revenues with double ...
1	         2	  Short term improvement example 1: Bugs and errors  Example:	  Code	  error	  on	  major	  Dutch	  publisher...
1	      2	  Short term improvement example 2: Pricing optimization  Example:	  Per	  country	  pricing	  analysis	  of	  p...
1	           2	  Short term improvement example 3: protect yourpremium inventory  Example:	  Low	  quality	  ads	  on	  pr...
1	     2	  Central model for a long term advertising strategy is a clearsplit between premium and non-premium advertising ...
1	       2	  The big risk of no split between premium and non-premiumadvertising pixels is the dilution of your premium pi...
1	     2	  It is desirable to have a clear distinction where to use premiumadvertising and where to use non-premium advert...
1	     2	  Focus must be on getting premium categories (pixels) in thesweetspot…  Average	  %	  direct	  sales	  on	  prem...
1	        2	  …yet most publishers do not make a distinction betweenpremium and non-premium pixels, thereby wasting opport...
1	     2	  A focus on increasing direct sales on premium pixels is clear,the average CPM delta vs. networks is ±1000% on t...
1	     2	  Example from the field: good premium advertising is rather acooperation with related companies than old school ...
1	      2	  Example from the field: good special ad integrationwithout being ‘intrusive’ on premium inventory  Integrated	...
1	         2	  Example from the field: make your premium inventory morepremium, while still using regular formats with a t...
1	     2	  On top of the initial premium / non-premium strategic analyses,ongoing optimization of your advertising pixel i...
1	              2	  A clear overview of all KPIs is crucial for ongoing professionaloptimizations  Dashboard	  example:	  ...
1	             2	  To tackle your long term advertising strategy,Harvest suggests a four step approachAnalyse	  and	  divi...
Case example: Optimizing the advertising revenue for aglobal leading casual games platformSitua+on	                       ...
Harvest serves an international portfolio of pure online playersand click-and-brick companies                            	...
Feel free to reach out to us for more information                               Harvest	  –	  Online	  Business	  Developm...
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Harvest advertising optimization approach

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How to optimize your advertising pixels in the short term and long run.

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Harvest advertising optimization approach

  1. 1. Advertising optimization How  to  opmize  your  adversing  pixels  in  the  short  term  and  long  run  Amsterdam  2012  
  2. 2. Buckle-up: online is overtaking print and is expected to continue itsgrowth in the upcoming years Print  adver+sing  [US,  $b]   Online  adver+sing  [US,  $b]           CAGR     24.8   -­‐2%   34.4   CAGR     +7%   22.3   24.2   2009   …   2014   2009   …   2014  Source:  PWC:  Global  entertainment  and  media  outlook:  2011-­‐2015     2  
  3. 3. In NL the online advertising market grew with 10% YoY,despite the tough economic climate in 2010/2011 Online  adver+sing  market  NL  (2010/2011)  [€  m]         2010  H1   2011  H1   6.7   5.7   29.5   22.3   70.0   82.9   €  462.6m   221.3   +10%   €  507.4m   255.0   57.2   54.9   86.1   78.4   Search   Classifieds   Affiliate  markeng   Search   Classifieds   Affiliate  markeng   Display   Others   Unclassified   Display   Others   Unclassified  Source:  IAB  Adspend  report  H1  2011   3  
  4. 4. However, tapping into this growth potential is not easy, onlineadvertising formats and models are omnious and developing fast Formats   Revenue  and  adver+sing  models                 Medium  rectangle   Roadblock   Full  roadblock   CPO   Response  based   CPC   Data  buying  and   Skyscraper   Billboard   Text  links   CPM   selling   Mobile   Video   Corner  ad   Retargeng   Profile  creaon   Header   Automated   Year  deals   Home  page  take  over   ….   It  has  become  very  complex  to  determine     the  op+mal  way  of  adver+sing  for  your  site  Source:  Harvest  analysis   4  
  5. 5. This complexity is also seen in the number of businesses trying to gettheir fair share of the advertising market…        Source:  Improve  Digital   5  
  6. 6. This hyperdynamic landscape impacts your advertising revenue:Are you ready to tackle the risks and grasp the opportunities? Risks   Opportuni+es     The  chewing  gum  issue:  over  me  you  started  many  new     Becer  insights  on  performance  of  adversing  driven  by   iniaves  that  individually  seem  to  add  value  yet:   professionalizaon  of  repor+ng  tools   -­‐  cannibalize  on  the  total  revenue     Improving  CPMs  of  automated  adversing  networks   -­‐  add  complexity  to  your  organizaon  and  processes     Professionaliza+on  of  niche  markets  like  mobile,  video,   -­‐  create  scaVered  management  data:  hard  to  steer  the   retargeng  and  profile  trading   total  adversing  business  due  to  lack  of  analycal     There  is  more  than  Google     insights     ShiZ  towards  online  from  huge  (trade  markeng)     Destroying  value  by  combining  the  wrong  models  and/ budgets  of  FMCG  and  CE  companies   or  formats       Missing  out  on  new  formats  and/or  business  models      Source:  Harvest  analyses   6  
  7. 7. Harvest identified a parallel 2-step approach to optimize youradvertising pixel for the short term and in the long run 1   2   Short  term  tac+cal  adver+sing     Long  term  solid  adver+sing     op+miza+ons   ac+on  strategy     3-­‐6  months   Direct  top  line  growth  by  taccal   A  tailored  adver+sing  strategy  and   improvements  based  on  solid  analyses  and   ac+on  plan  that  grasps  the  adversing   Harvest  experienced  support  implementaon   opportunity  in  the  smartest  way   of  improvement  projects     Detailed  data  analyses  reveals     Analyses  of  premium  vs  regular  inventory:   underperforming  adversing  networks,   What  strategy  to  follow  for  your  pixels   formats  and/or  posions     Work  out  strategy  in  a  pragmac  acon     Detailed  front-­‐end  comb-­‐through   plan   combined  with  Harvest  experience  reveals     Test  and  iterate  on  the  acon  plan  to  gain   opportunies  for  new/improved  formats,   insights  and  preliminary  results   posions  and/or  targeng     Future-­‐proof  your  business  through  a  solid     Priorize,  test  and  support  implementaon   hand-­‐over   of  improvement  projects   7  
  8. 8. 1   2  In a short term tactical advertising audit we have provento be able to boost your revenues with double digitsAnalysis   1   Ac+on  plan   2   Test  and  iterate   3   Outcome   4  We  audit  your:   We  define  and  priori+ze:   We  work  with  you  to:   You  will  benefit  from:    Targeng     Relevancy  drivers     Implement  opmal     Higher  relevancy;  CTR    Placements     New  placements   targeng   up    Paging     Becer  and  new  pages     Test  and  measure  new     More  and  becer    Look  &  feel     Improvements  to  ad   placements  and  pages   placements;  views  up    Individual  ad   appearance     Test  and  tweak  opmal     Becer  paging;  views  up   performance     Improvements  to  ad   ad  appearance     Becer  insight  in  key     funconing     Design  and  effectuate   metrics  through  a       The  size  of  the  prize   opmal  ad  funconing   (temp)  dashboard         Priorized  next  steps        Expected  result:   Expected  result:   Expected  result:   Expected  result:    List  of  potenal     Acon  plan  with     Tested  projects  with     Increased  revenue  and   improvements   priorized  concrete   clear  results  from  pilot   pragmac  acon  plan   projects  ready  to         take-­‐off              Time:   Time:   Time:   Time:    2  weeks     2  weeks     4-­‐8  weeks     2  weeks   8  
  9. 9. 1   2  Short term improvement example 1: Bugs and errors Example:  Code  error  on  major  Dutch  publisher   Insights       These  errors  causes  that  ad  space  is  empty   and  do  not  generate  clicks     Moreover,  this  ‘pollutes’  the  website   making  the  overall  feel  less  premium,   leading  erosion  of  rate  card   Solu+on:       technology  deepdive  revealed  error  in  ad   serving  Source:  Harvest  analyses   9  
  10. 10. 1   2  Short term improvement example 2: Pricing optimization Example:  Per  country  pricing  analysis  of  pre-­‐roll  formats   Insights     Price  differenaon  between  countries   was  big,  while  formats  were  idencal   Volume   Price   60    €14.00       In  depth  analyses  showed  great  differences   50    €12.00     in  negoated  prices  with  networks      €10.00     40     Compeon  benchmark  showed  low  and    €8.00     high  price  for  rate  card  compared  to   30   compeon  in  some  countries    €4.47      €6.00      €3.52     20    €2.67      €4.00     Solu+on:      €1.98      €2.09       Renegoated  contracts  with  networks,   10    €2.00     adjusted  rate  card  price   0    €-­‐         NL   USA   France   UK   Germany   Volume   Price  High   Price  Low     Average  eCPM  Source:  Harvest  analyses   10  
  11. 11. 1   2  Short term improvement example 3: protect yourpremium inventory Example:  Low  quality  ads  on  premium  pre-­‐roll  of  Spelletjes.nl   Insights       Low  quality  text  ad  on  premium  pre-­‐roll   posion     Example  of  the  importance  of  keeping   premium  posions  premium     In  order  to  jusfy  the  rate  card  it  is  good  to   only  show  ads  that  are  premium  on  these   posions   Solu+on:       Replace  back-­‐fill  of  Google  text  ads  from   this  posion  with  house-­‐ads  Source:  Harvest  analyses   11  
  12. 12. 1   2  Central model for a long term advertising strategy is a clearsplit between premium and non-premium advertising pixels PREMIUM   NON-­‐PREMIUM   Premium  posions  are  for  high  value   branding.  A  customizable  look  and  feel   NON-PREMIUM Non-­‐premium  inventory  can  be  used   to  increase  monezed  real  estate,   is  oqen  offered  which  adds  to  the  high   this  is  successfully  done  when   pricing  associated   op+mized  for  clicks  Source:  Harvest  analyses   12  
  13. 13. 1   2  The big risk of no split between premium and non-premiumadvertising pixels is the dilution of your premium pixels         Insights     In  just  a  few  moments  we  were  able  to   start  a  Google  Display  campaign  targeted   at  ‘news’  websites  with  a  leaderboard  for   our  start  up  Offer.nl     Because  there  are  not  many  Dutch  news   sites  that  are  able  to  show  Google   leaderboards  on  premium  posions  we   were  almost  sure  to  buy  space  at   Telegraaf.nl  at  3%  of  the  ratecard  price     Et  voila!  More  than  100k  impressions  on   premium  posions  for  a  bargain   Adver+ser  reac+on:     “Why  should  I  pay  an  ultra  premium  price  for  this  inventory?”  Source:  Harvest  analyses   13  
  14. 14. 1   2  It is desirable to have a clear distinction where to use premiumadvertising and where to use non-premium advertising Homepage   Premium  Categories   Other  Categories                           Fold   premium  posi+ons     -­‐>  Filled  with  direct  sales   and  inventory     non-­‐premium  posi+ons     -­‐>  Filled  with  automated   and  house  ads  Source:  Harvest  analyses   14  
  15. 15. 1   2  Focus must be on getting premium categories (pixels) in thesweetspot… Average  %  direct  sales  on  premium  and  non-­‐premium  Dutch  publishers’  categories   Insights             Hardly  any  premium   category  is  in  the   Promising  categories   Sweetspot   sweetspot   categories   Premium     Goal  is  to  move   promising  categories  to   sweetspot     Homepage  of  diverse   Homepage   publishers  currently   Non-­‐premium   undermonezed  by   categories   relavely  low  ratecard   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   Monthly  visits   %  Direct  sales  impressions    of  total  sales  impressions  NB:  Definion  sweetspot:  category  is  premium  according  to  rate  card  and  more  than    50%  of  actual  impressions  filled  with  premium  inventory  Source:  Average  adversing  data  Dutch  publishers,  Harvest  analyses   15  
  16. 16. 1   2  …yet most publishers do not make a distinction betweenpremium and non-premium pixels, thereby wasting opportunity Opportuni+es   Impressions  today   Impressions  ideal     Stop  dilung  value  of   Dir   premium  pixels  by   Automated   Direct   Empty   5-­‐15%   premium   80%   20%   automated  adversing   85%       Run  premium  formats   only  on  premium  pixels   to  increase  revenue  per   pixel   Direct,  5-­‐15%   Direct,  0-­‐5%     Focus  your  direct  sales   Automated   non   Automated   team  on  premium  pixels   85-­‐95%   premium   95-­‐100%   only,  leave  non-­‐ premium  to  lean  and   mean  automated     Create  premium  long   term  relaons  with   adversing  partners  Source:  Average  adversing  data  Dutch  publishers,  Harvest  analyses   16  
  17. 17. 1   2  A focus on increasing direct sales on premium pixels is clear,the average CPM delta vs. networks is ±1000% on these pixels Detailed  split  of  average  impressions  and  revenue  from  premium  pixels   Insights     6  mes  more  banners  served  for  15%     more  revenue   15%   15%     Homepage  take-­‐overs  good  for  20%  of   business   30%   Networks       Delta  of  CPM  direct  sales  vs.  networks  >   85%   3000%   Other  Specials   85%   20%   Homepage  take-­‐overs   35%   15%   Impressions   Revenue   Revenue  detail  Source:  Average  adversing  data  Dutch  publishers,  Harvest  analyses   17  
  18. 18. 1   2  Example from the field: good premium advertising is rather acooperation with related companies than old school advertisingSource:  Harvest  analyses   18   18  
  19. 19. 1   2  Example from the field: good special ad integrationwithout being ‘intrusive’ on premium inventory Integrated  companion  ads   Insights           Companion  ads  integrated  into  one  big,   though  discrete  ad     Complete  control  on  look  and  feel  because   these  ads  are  custom  made     While  the  ads  are  sold  for  a  premium  price,   they  are  not  intrusive  or  distracng,  yet   give  good  ‘value  per  pixel’  for  adverser  Source:  Harvest  analyses   19  
  20. 20. 1   2  Example from the field: make your premium inventory morepremium, while still using regular formats with a twist Example   What   Benefit     Make  your  leaderboard  part  of  the     Leaderboard  literally  stands  out  of   header  by  let  it  overlap   header  which  increases  visibility  and   CTR  and  limits  ad  space  above   header     Posion  your  leaderboard  between     Leaderboard  draws  more  acenon   the  navigaon  and  first  arcle   and  sll  looks  premium  by  playfully   melding  it  in  your  page     Customize  the  premium  posion  by     Using  the  both  the  spaces  at  the   ‘embracing’  the  header   outside  for  a  single  adverser   improves  visibility  and  recognion     Limit  the  header  ad  space  by  making     Ad  space  is  limited  but  ad  sll  draws   an  unfolding  header  ad     acenon  and  making  it  unfoldable   will  increase  visibility  and   interacon  Source:  Harvest  analyses   20  
  21. 21. 1   2  On top of the initial premium / non-premium strategic analyses,ongoing optimization of your advertising pixel is key to excel Measure   Implement   must  have:  Tools   must  have:  Skill   1.  State  of  the  art  tagging   1.  Clear  requirements   2.  Always  up  to  date  dashboard   2.  Minimized  TTM   3.  One  touch  own  drilling     Harvest  specialists  supports  your  webmaster   Harvest  builds  this  for  you   on  tweaks  and  builds  a  glossary   Analyse   Learn   must  have:  Smarts   must  have:  Eagerness   1.  Clear  KPIs   “Nothing  great  was  ever  achieved  without   2.  Understanding  of  drivers   enthusiasm”   3.  Analysis  templates     You  bring  this  to  the  table   Harvest  does  this  and  trains  your  people    Source:  Harvest  analyses   21  
  22. 22. 1   2  A clear overview of all KPIs is crucial for ongoing professionaloptimizations Dashboard  example:  Conceptual   Monitor   Deep  dive  Source:  Harvest  proprietary  HTML  5.0  dashboard   22  
  23. 23. 1   2  To tackle your long term advertising strategy,Harvest suggests a four step approachAnalyse  and  divide   1   Make  a  premium  and     2   Implement  technical     3   Futureproof  your     4  inventory   non-­‐premium  ac+on  plan   and  opera+onal  changes   business  Ac+ons:   Ac+ons:   Ac+ons:   Ac+ons:    Acon  plan  for  premium     Acon  plan  for  premium     Implement  product  changes     Priorized  next  steps  in  hand-­‐ inventory  with  a.o.:   inventory  with  a.o.:   needed   over  plan   -­‐  Overview  of  potenal     -­‐  Overview  of  potenal       Define  HR  implicaons  and  fill     Clear  acon  plan  to  perform   dream-­‐customers   dream-­‐customers   gaps  in  skills  through  training/   ongoing  opmizaons   -­‐  Aconable  clusters  of   -­‐  Aconable  clusters  of   support  in  hiring     Detailed  dashboard  for  KPIs  of   premium  inventory   premium  inventory     Create  new  sales  kit  for   all  adversing  revenue,  with   relevant  for  clear  target   relevant  for  clear  target   premium  adversing,  do  first   deep  dive  opportunity   adversers   adversers   roadshow     Solid  hand-­‐over  to  client  team   -­‐  High  level  direct  sales   -­‐  High  level  direct  sales     Set-­‐up  new  client  meengs  in     Custom  trainings  to  fill  final   proposion  per  cluster   proposion  per  cluster   co-­‐creaon  vs  sales  sexng   gaps  in  knowledge  and  skills   -­‐  Product  adjustments   -­‐  Product  adjustments     Develop  high  level     needed   needed   dashboards  for  tracking      Acon  plan  for  non-­‐premium     Acon  plan  for  non-­‐premium     Renew/change/break     inventory  with  a.o.:   inventory  with  a.o.:   contracts     -­‐  Improved  analycs  plan   -­‐  Improved  analycs  plan       -­‐  80/20  plan  on  effort/ -­‐  80/20  plan  on  effort/     output   output          Expected  result:   Expected  result:   Expected  result:   Expected  result:    Acon  plans  with  priorized     Acon  plans  with  priorized     First  changes  implemented,     Internal  team  ready  to  take   concrete  projects  ready  to   concrete  projects  ready  to   organizaon  on  track  for  new   over  the  opmized   take-­‐off   take-­‐off   strategy   adversing  pixels        Time:   Time:   Time:   Time:    4  weeks     4  weeks     4-­‐8  weeks     2-­‐4  weeks   23  
  24. 24. Case example: Optimizing the advertising revenue for aglobal leading casual games platformSitua+on   Ac+ons   Results  achieved  Client   How  Harvest  helped     Over  EUR  500k  addional  revenue    Casual  Games  Company     Perform  a  quick  scan  to  idenfy  quick   from  quick  wins  idenfied  and     wins  and  biggest  improvement  areas   realized  during  this  project  Challenge    Adversing  revenue  and  performance     Ran  quick  win  opmizaon  projects     Annual  adversing  revenue    grew   was  low  compared  to  benchmarks,   (new  and  improved  adversing)   double  digit  numbers   while  investments  in  me  and  effort   were  high     Strategic  assessment  of  adversing     Adversing  performance  (eCPM)     proposion  leading  to  high  level   improved  significantly    Objec+ve   adversing  strategy    Opmize  adversing  in  terms  of     Adversing  team  involvement  shiqed   performance  and  revenue,  while     Redefined  the  premium  and  regular   from  mostly  taccal  to  more  strategic,   decreasing  the  investments  in  me   adversing  inventory  on  the  playorm   moving  our  clients  adversing   and  focus   business  up  the  value  chain         Zoom  in  on  improvement  areas  to    Dura+on   idenfy  subopmal  processes  and    6  months   front-­‐end  and  back-­‐end     implementaons     Ran  mid-­‐long  term  improvement   projects  to  improve  adversement   relevance     24  
  25. 25. Harvest serves an international portfolio of pure online playersand click-and-brick companies    "Harvest  is  without  any  doubt  one  of  the  very  best  e-­‐consultancy  companies  in   the  world.  Excellent  knowledge  and  experAse  strategically,  tacAcally,  and   operaAonally,  always  with  clear  focus  on  top  line  results”     Francine  van  Dierendonck,  Sr.  Director  and  Head  Global  Philips  Flagship  Store   "The  moneAzaAon  quick  scan  that  Harvest  carried  out  for  Compare  Group   highlighted  tacAcal  improvements  with  direct  upside  and  a  strategic   opportunity.  The  Harvest  team  is  very  professional  and  has  great  knowledge   of  e-­‐retail  and  online  in  general.”     Ben  Kerkhof,  CEO  Compare  Group   "Harvest  supported  Experteer  in  their  go-­‐to-­‐market  in  the  Netherlands.  The   professionalism,  drive  and  in-­‐depth  knowledge  of  the  Dutch  online  were  key  to   the  success  of  the  project  and  the  launch  of  experteer.nl”   Nina  Zimmerman,  Head  of  Europe  Experteer   "Harvest  combines  a  strategic  view  on  creaAng  online  success  with  the  power   to  execute.  Passion  for  the  online  business,  dedicated  to  deliver  results.  And   above  all,  a  pleasure  to  work  with.”   Marc  de  Vries,  CEO  Hyves   25  
  26. 26. Feel free to reach out to us for more information Harvest  –  Online  Business  Development       Herengracht  262-­‐266     1016  BV  AMSTERDAM     The  Netherlands     E:  info@harvestamsterdam.com     T:  +31  (0)  20  4277796     I:  www.harvestamsterdam.com   26  
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