Presentation from Blue Glass conference on marketing in the era of search, social and video and how many people are wasting money by advertising where there is banner blindness or measuring vanity metrics.
2. Ex software developer
(‘91)
BuildOnline
(’99)
Koral /
Both Sides Of The Table
Salesforce.com (’05)
VC at GRP Partners
(‘07)
3. The Marketing Landscape Changes Very Quickly These
Days
Pre Web 95 - 2007 08 - Now 10 - Now Future
Mobile,
Mobile, Who The F
Who The F
Offline
Offline Online
Online Social
Social Video,
Video, Knows?
Knows?
Images
Images
• TV • Display • FB Ads • Pre-roll
• Print • Email • FB Likes • Overlays
• Radio • SEO • Twitter • Brand Integration
• SEM • FB Timeline • CPI
4. What IS Clear
Pace of change will accelerate
You need a strong POV / strategy
Are FB “Likes” better than FB ads that convert directly?
Are Twitter Sponsored Tweets a good ad unit?
You need to be metrics driven & test a lot
You need to monitor emerging trends
Should we put energy into Pinterest?
Is the celebrity endorsement model worth it?
5. As a VC it’s my job to stay
ahead of these trends
Investment strategy
Portfolio advice
6. The Move to Online Forced Standards That Sub-
Optimize Experience & Performance
Banner
Banner
Skyscraper
Skyscraper
99% of
99% of
User Attention
User Attention
7. Banners are a brand category. The Internet has been
about purchasers (DR)
11. Paid Search Worked as a Text-Based Side Link
Because of “Intent”
1. Intent-
Based Ads
2. Organic
Result
3. Google
Comparison
Shopping
12. Many technologists confuse
this. They think:
“The best ads are those
that are ‘not in the way of
the user experience’ ”
13. Facebook Ads initially much less effective without
intent & integration (but targeting helps)
SAP?
Seamless?
Is My Site
Optimized?
Get Sales
Cloud?
14. We all know what really converts
in non-intent ads: Cleavage
Not joking. Ad studies consistent
15. Twitter’s came up with a “side link” product –
“Promoted Tweets”
#Droid Charge
“Screwed up battery”
“Not the phone I’m looking for”
“What the fuck is a Droid
Charge?”
16. My Biggest Marketing Themes
of Past 5 Years Have Been
Integrated
Targeted
Personalized
Measurable
17. We Know How Powerful Images are in Advertising.
Images = Content = Ad (integrated)
18. We Even Know How Valuable Images are in Today’s
Applications
19. Images avoid the blind spots & aren’t spammy like
double-underlined text
Banner
Banner
Skyscraper
Skyscraper
21. In video, YouTube standard ad units work well at scale
$4 CPM
Pre-Roll
Pre-Roll
Video
Video
Translucent Overlay
Translucent Overlay
$1 CPM
22. But integrated campaigns are performing off the
charts, even for niche audiences. Example: Style Hauls
Blair Fowler Elle Fowler
750,000 views
23. Integrated YouTube Campaigns Have Proven Successful
at Conversion
Authentic
Engaging
Youth Demo
Call-to-Action
24. Mobile Games have offered opportunities for
“integrated ads”
Ad as Part of Game Incentivized Ads
25. And an increasing part of media conversions is moving
to “sponsored stories” – an integrated ad unit
Excellent engagement,
even on sponsored
posts
26. Other companies betting big sponsored story model
Converts better media-to-media
More cost effective than SEM
Gravity is even personalized
27. Measurement is an important
part of managing effective
campaigns.
But social has been measuring
vanity metrics, not business
Likes
Clicks
28. Link tracking shows clicks. Awe.sm tracking shows
bottom-of-funnel conversions.
$18.41 $68.11 $34.60 $72.41
… $57.50
$2159.0 61 SHARING:
3 + 1 + 321
downstream
$1134.29 =
downstream
$3293.32
purchases clicks clicks purchases total revenue
from this post
29. It also tracks down-stream influence / conversion
$57.50 $331.22
direct purchases downstream
purchases
15 6 58
clicks downstream downstream
shares clicks
$74.
$94.09 $97.09 21 $65.02
direct purchases downstream direct direct purchases
purchases purchases
19 2 14 11 1 7 7
clicks downstream downstream clicks downstream downstream clicks
shares clicks share clicks
$78.12 $19.78 $18.41
direct purchases
direct purchases direct purchases
9 5 7
clicks clicks clicks
30. And through cookies can auto incentivize your best
“sharers”
Welcome back, Suzy!
4 of your friends have bought because of your
sharing — you’re a Fashion Maven!
Thanks for spreading the word! Enjoy 50% off
your next purchase.
Share the good news with your friends!
31. Internet marketing is changing
rapidly. It favors those who are
Integrated
Targeted </end>
Personal
Thank you
Measurable
Mark Suster :: BlueGlass – April 2012 :: @msuster