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UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
UW Biz School Lecture - Fall 2009
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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.

Published in: Business, Technology
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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 WINNER TWIISTUP3BEST IN SHOW PRICEWATERHOUSECOOPERS – ENTRETECH BEST STARTUP AMERICAN BUSINESS AWARDS - STEVIES ‘08 FINALIST BEST NEW COMPANY AMERICAN BUSINESS AWARDS - STEVIES ‘08 FINALIST MOST INNOVATIVE COMPANY AMERICAN BUSINESS AWARDS - STEVIES ‘08 FINALIST NEW PRODUCT OR SERVICE – SERVICES #24 ON FAST COMPANY FAST 50 READER FAVORITES
    • 2. o Serial entrepreneur – 4 startups so far o >6 years experience in online advertising market o About the Rubicon Project (current employer) o Advertising Infrastructure Company o Mission: To automate the buying & selling of online advertising o 150 passionate employees LA (HQ) - New York – San Francisco – London – Sydney – Hong Kong o $42MM funding o Pioneered Ad Network Optimization 10.07 A little about me ….
    • 3. Today I’ll Talk About • High-level market discussion – Online advertising history – Trends and challenges • More practical and hands-on … – Using the Web to gain exposure • Online advertising 101 (media you buy) • Evaluating three example campaigns • Social media marketing (media you earn) • Examples of social media marketing – New forms of measurement
    • 4. The People-Driven Web • Business-driven  people-driven • Authentic and open communications • No one has control! 1999 2007
    • 5. Online Marketing Version 2.0 • Banners • 1-2 ad networks • Category/site targeting • “bought” media • Text, video, rich media, etc. • >400 ad networks • Incredible targeting • “earned” media
    • 6. US Online Ad Market Size US Online Ad Market ($ Billions) $- $5 $10 $15 $20 $25 $30 $35 2001 2002 2003 2004 20005 2006 2007 2008 2009 2010 2011 Actual Estimated
    • 7. Share of US Online Ad Market 0% 10% 20% 30% 40% 50% 60% 70% 2001 2002 2003 2004 20005 2006 2007 Display vs. Search Advertising Display Advertising • Untargeted • 25x volume of search yet half the market share • 83% sold <$1 CPM Search Advertising • Targeted • $81.65 revenue per 1000 searches Growth lies in targeting people and behaviors. Search Display
    • 8. 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
    • 9. Earned Media • Word of mouth • Social media marketing • PR • Media interaction • Email forwarding Media attention earned the hard way, not bought.
    • 10. 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
    • 11. Paid Media Online Advertising 101
    • 12. Online Advertising Eco-System Advertisers / Agencies Publishers Ad Networks Optimizers Online Consumers Advertisers want to reach people. Web sites are the proxy. 80% of ad inventory flows thru networks.
    • 13. 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)
    • 14. Targeting Options Traditional • Geographic location • Demographic • Site • Category/channel • Search keywords • Day part Newer • Interest / affinity • Context • Purchase intent • Persona • Social graph • Influencers
    • 15. 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
    • 16. Elements of a Campaign 1. The advertisement (creative) 2. Where the ad displays, and to whom, when 3. The landing page 4. The call to action, or purchase funnel All are variables to performance, so all must be optimized.
    • 17. 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
    • 18. Campaign A Campaign B Campaign C Campaign parameters: Cost 54.00$ 60.00$ 300.00$ Type CPC CPC CPM Campaign Results: Impressions 100,000 7,500 300,000 Clicks 145 75 600 Click-through rate 0.15% 1.00% 0.20% Cost per thousand 0.54$ 8.00$ 1.00$ Cost per click 0.37$ 0.80$ 0.50$ User Actions (the funnel) Landing page visits 145 75 600 Browse catalog 100 65 200 Shopping cart 25 30 50 Completed purchases 5 15 25 Average purchase size 22.50$ 34.75$ 26.50$ Margin (25%) 5.63$ 8.69$ 6.63$ ROI Analysis Cost per customer acquisition 10.80$ 4.00$ 12.00$ Margin per customer 5.63$ 8.69$ 6.63$ Example ROI Analysis
    • 19. Campaign A Campaign B Campaign C Campaign parameters: Cost 54.00$ 60.00$ 300.00$ Type CPC CPC CPM Campaign Results: Impressions 100,000 7,500 300,000 Clicks 145 75 600 Click-through rate 0.15% 1.00% 0.20% Cost per thousand 0.54$ 8.00$ 1.00$ Cost per click 0.37$ 0.80$ 0.50$ User Actions (the funnel) Landing page visits 145 75 600 Browse catalog 100 65 200 Shopping cart 25 30 50 Completed purchases 5 15 25 Average purchase size 22.50$ 34.75$ 26.50$ Margin (25%) 5.63$ 8.69$ 6.63$ ROI Analysis Cost per customer acquisition 10.80$ 4.00$ 12.00$ Margin per customer 5.63$ 8.69$ 6.63$ Example ROI Analysis
    • 20. Campaign A Campaign B Campaign C Campaign parameters: Cost 54.00$ 60.00$ 300.00$ Type CPC CPC CPM Campaign Results: Impressions 100,000 7,500 300,000 Clicks 145 75 600 Click-through rate 0.15% 1.00% 0.20% Cost per thousand 0.54$ 8.00$ 1.00$ Cost per click 0.37$ 0.80$ 0.50$ User Actions (the funnel) Landing page visits 145 75 600 Browse catalog 100 65 200 Shopping cart 25 30 50 Completed purchases 5 15 25 Average purchase size 22.50$ 34.75$ 26.50$ Margin (25%) 5.63$ 8.69$ 6.63$ ROI Analysis Cost per customer acquisition 10.80$ 4.00$ 12.00$ Margin per customer 5.63$ 8.69$ 6.63$ Example ROI Analysis
    • 21. 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
    • 22. 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
    • 23. “Earned” Media
    • 24. Earned Media is “Linkbait” • Funny, useful or controversial content • People online are bored! – If you've got the next "shiny object" to feed the ADHD of the Web, then you too can be a success! • Examples – Videos – Widgets – Games – Blog posts – Pictures – Facebook status updates – Twitter posts – Emails – Craigslist postings – Contests
    • 25. 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.
    • 26. Example: KogiBBQ http://twitter.com/kogibbq 50,000 followers
    • 27. Example: Seattle 2.0 • http://www.seattle20.com • >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
    • 28. Example: Monk-e-mail
    • 29. 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
    • 30. 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.
    • 31. New Forms of Measurement (because of Earned Media)
    • 32. “Buzz” and Sentiment Measurement • Monitor chatter about your product/brand – What people are saying – Where people are talking about you – Overall sentiment trends
    • 33. Friends, Followers, Votes, Retweets
    • 34. The Power of Passed 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 • http://meteorsolutions.com/?fbid=TY2Xsky3p5I • Measures how much of your traffic was from “socially shared links”
    • 35. Conclusion • Use search engine marketing to: – Optimize your 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
    • 36. Jordan Mitchell 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

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