Nma Live Cost per Engagement i-level

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This presentation was given by Matt Bailey, Head of Affiliate, and Kirsten Nielsen, Account Director, from i-level at the NMA Live event on Friday 22nd January 2010. This was an introductory presentation on examining the future of cost per engagement payment models in online advertising.

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  • Who we areHead of affiliates vs. COI account directorSales vs. behaviour changeNorth vs. SouthWhy we’re suitable to talk to you about CPEWhat is engagement? CPE?CPE is a new payment metric designed to reward media owners for the value that they drive for the merchant
  • We’ve all seen this image a hundred times…the evolution of man from chimpanzee to computer geek but we’ve continued to evolved since this image first became famous and our use of the internet as consumers has evolved and so has our use of the internet as advertisers.It’s fair to say that initially humans used the internet primarily for research and purchase, so advertisers used it as a DR sales channel and so our focus was on hard metrics like CPC and CPA.
  • Nma Live Cost per Engagement i-level

    1. 1. NMA Live<br />Online Engagement Demystified<br />22nd January 2010<br />
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    5. 5. What is Cost Per Engagement?<br />CPE is a new payment metric designed to reward media owners more accurately based on the value that they add to the client <br />
    6. 6. Why are we talking about it?<br />
    7. 7.
    8. 8. Less function; more entertainment<br />
    9. 9. Purchase journey is made complex by digital<br />Games consoles<br />Awareness<br />Seeding<br />Outdoor<br />SEO<br />Mobile alerts<br />Wikis<br />Awareness<br />Online PR<br />Consideration<br />Paid search<br />Consideration<br />MMOPRG<br />TV<br />Preference<br />WAP<br />Preference<br />Radio<br />Action<br />Widgets<br />RSS<br />Action<br />Loyalty<br />E-readers<br />Blogs<br />SMS<br />Loyalty<br />IM<br />Affiliates<br />eCRM<br />Press<br />Apps<br />Bluetooth<br />Augmented reality<br />DVR<br />Peer reviews<br />Cinema<br />
    10. 10. &quot;Rather than a clean, linear path, the real process looks more like a complex network of detours, back alleys, alternate entry and exit points, external influences and alternative resources.<br /> Forrester report 2008<br />Remember the consumer journey is complex<br />
    11. 11. “The greatest generation gap since Rock’n’ roll”New Yorker magazine<br />
    12. 12. Merging of digital and physical <br />HMV New Format Store Dudley UK<br />Borders New Concept store Michigan US<br />
    13. 13.
    14. 14. Internet has evolved<br />Consumer use of the internet has evolved<br />Advertising on the internet must evolve<br />
    15. 15.
    16. 16.
    17. 17.
    18. 18.
    19. 19.
    20. 20. Identify our end goal<br />Understand the key milestones along the journey<br />Reward media owners for driving the desired behaviour<br />
    21. 21. ‘Forget taxonomy, ontology, and psychology. Who knows why people do what they do? The point is they do it, and we can track and measure it with unprecedented fidelity. With enough data, the numbers speak for themselves’<br />Chris Anderson | Wired | The End of Theory: The Data Deluge Makes the Scientific Method Obsolete <br />Get the data…<br />
    22. 22.
    23. 23. Understand customers complex journeys<br />4<br />
    24. 24. Pistemap analysis informs media investment in terms of engagement <br />What media attract people who really engage with the site?<br />Pre rolls 4 x more effective than standard display<br />
    25. 25. Professional networks<br />Picture sharing<br />Bookmarking<br />Consumer review<br />Social networks<br />Microblogs<br />Blogs<br />Forums<br />Communities of interest<br />Crowd sourcing<br />Video blogs<br />Lifestyle networks<br />What we mean by social media?<br />People talking online<br />Image source: flickr.com/shanebee<br />
    26. 26. Reward affiliates for value added<br />To reward value we need to move away from a last click attribution model<br />
    27. 27. Universal search drives increased interaction<br />
    28. 28. What’s in it for…<br />End user <br />Relevant, engaging advertising<br />Client <br />Reward on value<br />Make online advertising accountable<br />
    29. 29. What’s in it for…<br />Agency<br />Drive innovation that adds demonstrable value<br />Media Owners<br />Justify increased investment<br />
    30. 30. The Challenge<br />Unchartered territory<br />Are we prepared to invest time & resource to test & refine?<br />The milestones are key<br />Can clients define the end goal and the milestones?<br />Agencies need to be prepared<br />How will they get the job done?<br />Media owners need to be onboard<br />Are they willing to walk away from traditional metrics? <br />

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