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UW Biz School Lecture - Fall 2009

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Slide deck used for November 24th "guest lecture" to UW business students, as part of the entrepreneurial program.

Slide deck used for November 24th "guest lecture" to UW business students, as part of the entrepreneurial program.

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  • 360+ collective years of online advertising experienceA team of entrepreneurs who’ve founded 50+ companies

Transcript

  • 1. Online Marketing – Version 2.0
    Marketing your small business across the new landscape of the Web.
    “COMPANY OF THE YEAR” ALWAYSON ONMEDIA 2009
    2009 TiE50 WINNER
    2008 ALWAYSON 250 GLOBAL WINNER & ONMEDIA 100 WINNERTWIISTUP3 BEST IN SHOWPRICEWATERHOUSECOOPERS – ENTRETECH BEST STARTUPAMERICAN BUSINESS AWARDS - STEVIES ‘08 FINALIST BEST NEW COMPANYAMERICAN BUSINESS AWARDS - STEVIES ‘08 FINALIST MOST INNOVATIVE COMPANYAMERICAN BUSINESS AWARDS - STEVIES ‘08 FINALIST NEW PRODUCT OR SERVICE – SERVICES
    #24 ON FAST COMPANY FAST 50 READER FAVORITES
  • 2. A little about me ….
    • Serial entrepreneur – 4 startups so far
    • 3. >6 years experience in online advertising market
    • 4. About the Rubicon Project (current employer)
    • 5. Advertising Infrastructure Company
    • 6. Mission: To automate the buying & selling of online advertising
    • 7. 150 passionate employeesLA (HQ) - New York – San Francisco – London – Sydney – Hong Kong
    • 8. $42MM funding
    • 9. Pioneered Ad Network Optimization 10.07
  • Today I’ll Talk About
    High-level market discussion
    Online advertising history
    Trends and challenges
    More practical and hands-on …
    Using the Web to gain exposure
    Online advertising 101 (media you buy)
    Evaluating three example campaigns
    Social media marketing (media you earn)
    Examples of social media marketing
    New forms of measurement
  • 10. The People-Driven Web
    Business-driven  people-driven
    Authentic and open communications
    No one has control!
    1999
    2007
  • 11. Online Marketing Version 2.0
    Banners
    1-2 ad networks
    Category/site targeting
    “bought” media
    • Text, video, rich media, etc.
    • 12. >400 ad networks
    • 13. Incredible targeting
    • 14. “earned” media
  • US Online Ad Market Size
    Estimated
    Actual
  • 15. Display vs. Search Advertising
    Search
    Display
    Growth lies in targeting people and behaviors.
    Display Advertising
    • Untargeted
    • 16. 25x volume of search yet half the market share
    • 17. 83% sold <$1 CPM
    Search Advertising
    • Targeted
    • 18. $81.65 revenue per 1000 searches
  • Overall Trends
    Focus on performance and ROI
    Continued market growth
    2006 online ad spend per household was $217:
    $980 for newspapers,
    $980 for telemarketing, and
    $576 for direct mail
    Self-service
    Audience-level targeting and optimization
    “Earned” media
  • 19. Earned Media
    Media attention earned the hard way, not bought.
    Word of mouth
    Social media marketing
    PR
    Media interaction
    Email forwarding
  • 20. Challenges and Opportunities
    Challenges
    Signal/noise ratio
    Capturing and holding attention
    “Banner blindness”
    Nothing works continually
    Opportunities
    More free exposure venues
    No limit to what can work; blank slate
    Easy and cheap to test different approaches
  • 21. Paid MediaOnline Advertising 101
  • 22. Online Advertising Eco-System
    Advertisers / Agencies
    Ad Networks
    Optimizers
    Publishers
    Online Consumers
    Advertisers want to reach people.
    80% of ad inventory flows thru networks.
    Web sites are the proxy.
  • 23. Rate Structures
    Objectives
    Performance (ROI)
    Brand (audience reach)
    Rate structures
    CPM (cost per thousand impressions)
    CPC (cost per click)
    CPA (cost per action)
    CPV (cost per view)
    Sponsorships (cost per time period)
  • 24. Targeting Options
    Traditional
    Geographic location
    Demographic
    Site
    Category/channel
    Search keywords
    Day part
    Newer
  • Where to Buy
    Specific Web site(s)
    Specialty ad networks
    By format (text ad, video, display, etc.)
    By vertical (sports, travel, etc.)
    By publisher type (blog, community, owned, etc.)
    By targeting capabilities (behavioral, contextual, etc.)
    By rate type (CPA/affiliate, CPM, CPC, etc.)
    Ad marketplaces
  • 30. Elements of a Campaign
    The advertisement (creative)
    Where the ad displays, and to whom, when
    The landing page
    The call to action, or purchase funnel
    All are variables to performance, so all must be optimized.
  • 31. Tracking and Measuring ROI
    Define your “return” in the form of an “action”?
    Registration
    Purchase
    Monetary value
    Measure cost per action against monetary value
    Simple example: selling UW t-shirts
  • 32. Example ROI Analysis
  • 33. Example ROI Analysis
  • 34. Example ROI Analysis
  • 35. Optimizing Your Campaign
    Measure, compare, change …
    Campaign funnel
    Display location
    Creative (click through rate)
    Landing page (click through rate)
    Web site funnel
    General usability (eliminating points of friction)
    Catalog navigation
    Ease of purchasing
  • 36. Tools to Use
    Google AdSense
    Messaging optimization
    Keyword optimization
    Landing page optimization
    Google Analytics
    Compare all your advertising sources
    Count impressions, clicks, etc.
    Creative optimization
    Landing page optimization
    A/B and multivariate testing
  • 37. “Earned” Media
  • 38. Earned Media is “Linkbait”
    Funny, useful or controversial content
    People online are bored!
    If you&apos;ve got the next &quot;shiny object&quot; to feed the ADHD of the Web, then you too can be a success!
    Examples
    Videos
    Widgets
    Games
    Blog posts
    Pictures
  • Earned Media
    Benefits
    Can be enormously effective
    Can be extremely easy/cheap
    Helps with SEO
    Helps attract/keep people’s attention
    People remember it
    Challenges
    No recipe for success
    Can go horribly wrong
    Posers usually get called out. Don’t be one.
  • 43. Example: KogiBBQ
    http://twitter.com/kogibbq
    50,000 followers
  • 44. Example: Seattle 2.0
    http://www.seattle20.com
    &gt;25K Web site visitors/month
    PR, word-of-mouth, and social media
    Facebook group
    Seattle Startup Index, top blogger index, etc.
    Blog posts, twitter posts, etc.
    First event drew over 300 people @ $50/ticket
  • 45. Example: Monk-e-mail
  • 46. The Monk-e-mail Result
    2 spots on the Superbowl
    $5MM cost
    10M people exposed for 30-60 seconds
    (but not engaged!)
    One viral campaign
    $250K cost
    30M people interacting for 8 minutes
  • 47. Earned Media Advice
    Contribute
    Write interesting stuff frequently
    Comment on other’s blog posts, tweets, etc.
    Be generous with links
    Be authentic!
    Build your audience
    Linkbait
    Content that people just naturally link to and share
    Funny, useful or controversial!
    Spend time on it. Put value into it.
  • 48. New Forms of Measurement(because of Earned Media)
  • 49. “Buzz” and Sentiment Measurement
    Monitor chatter about your product/brand
    What people are saying
    Where people are talking about you
    Overall sentiment trends
  • 50. Friends, Followers, Votes, Retweets
  • 51. The Power of Passed Links
    • http://meteorsolutions.com/?fbid=TY2Xsky3p5I
    • 52. Measures how much of your traffic was from “socially shared links”
    20% of site visits from links shared (earned)
    14-24 year old demo
    88% of links followed were sent to them by friends
    2-4x increase in conversion rates
  • 53. Conclusion
    Use search engine marketing to:
    Optimizeyour messaging
    Optimize your creative, landing page conversion, funnel, etc.
    Use social media to reinforce your messaging
    SEO “link juice”
    Just be authentic and contribute value
    Develop a following and keep at it
    Continue with other forms of paid online marketing, optimizing for ROI
  • 54. Thank you!
    Jordan Mitchell
    VP of Data Intelligence, the Rubicon Project
    Email: jordan@rubiconproject.com
    Blog: http://kickstand.typepad.com
    Twitter: http://twitter.com/kickstand
    Jordan Mitchell