1. Oriented Media Online Advertising Alchemy : a media accountant’s perspective Web Wednesday - Guangzhou Wednesday 15 th October 2008
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7. Bums on seats and Online Advertising Alchemy R f ([P x A x N x G] x [S x C] x [D]) x [Ym]
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11. R f ([ P x A x N x G ] x [S x C] x [D]) x [Ym] The Number of ads per page ( N ) combined with Adsize ( A ) can have a significant impact on the revenue earning potential of a web page.
12. Economist.com 6.8 revenue units! 728x90 1 rev unit 160x600 just above fold 2.5 rev units 300x250 3.3 rev units
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17. End Thank you A white paper covering this topic is available at: http://www.activ8worldwide.com/download/Activ8OnHowToMonetiseYourWebsite.pdf http://www.activ8worldwide.com/download/Activ8OnYieldManagement.pdf Contact - Peter Burton Oriented Media Limited [email_address]
Editor's Notes
Focus on the economic drivers for publishers for generating revenue. Talk about Physical aspects: such as page views, adsizes and mix, geographic locales, channel splits. Soft aspects: Yield management.
This dictates how the tickets are sold. Ym dovetails into the management of overbooking and into leading edge CRM systems. Your service level is dependant on your value to the airline. Gone are the days when you could flirt with the check-in clerk and get an upgrade… Upgrades and key economy bulk-head and emergency exit seats are reserved for passengers with “brand” equity. Your upgrade or seat allocation is based on your value to the airline!
The Alchemist in Search of the Philospher’s Stone discovers Phosphorus. Joseph Wright of Derby 1771 Image copyright the Derby Museum. "The painting is believed to depict the discovery of phosphorous by Hennig Brandt, nearly 100 years earlier."
Hour in Day Time – 24 hour clock Mon to Fri Sat Sun 0 to 1 0.3% 0.4% 0.0% 1 to 2 0.1% 0.4% 0.5% 2 to 3 0.0% 0.0% 0.5% 3 to 4 0.0% 0.0% 0.3% 4 to 5 0.0% 0.1% 0.0% 5 to 6 0.0% 0.0% 0.0% 6 to 7 0.2% 0.0% 0.0% 7 to 8 0.2% 0.5% 0.0% 8 to 9 2.8% 2.7% 0.7% 9 to 10 10.4% 11.3% 2.2% 10 to 11 11.3% 14.8% 6.9% 11 to 12 12.3% 17.1% 9.5% 12 to 12 8.5% 9.6% 11.7% 13 to 14 9.2% 6.4% 7.6% 14 to 15 12.2% 6.8% 6.3% 15 to 16 10.0% 6.3% 8.6% 16 to 17 8.3% 6.2% 7.1% 17 to 18 4.1% 3.1% 7.6% 18 to 19 2.9% 3.6% 9.8% 19 to 20 2.8% 3.2% 7.5% 20 to 21 1.7% 2.9% 4.1% 21 to 22 1.4% 2.2% 4.1% 22 to 23 1.0% 1.5% 3.0% 23 to 24 0.3% 0.9% 2.0% Total 100.0% 100.0% 100.0% Day in week Day 7 days Monday 23.0% Tuesday 17.0% Wednesday 15.0% Thursday 18.0% Friday 16.0% Saturday 6.0% Sunday 5.0% Total 100.0% Week in month Week number Week 1: 27.00% Week 2: 24.00% Week 3: 20.00% Week 4: 29.00% Total 100.00% Month in year Month Jan 10.7% Feb 10.7% Mar 7.1% Apr 7.1% May 7.1% Jun 3.6% Jul 3.6% Aug 3.6% Sep 7.1% Oct 10.7% Nov 14.3% Dec 14.3%
A dSize matters. 728x90 px banner is 1.0 revenue unit. 120x600 px banner is 2.2 revenue units. 160x600 px banner is 2.5 revenue units. 300x250 px banner is 3.3 revenue units. 468x60 px banner is 0.37 revenue units. G eography of visitor matters. • Africa (ex ZA), South America and the RoW is 1 revenue unit. • USA, UK and Canada is 33.5 revenue units • Europe (excluding the UK) is 10 revenue units • Australia, New Zealand and South Africa is 8 revenue units • Hong Kong, Singapore and Malaysia is 5 revenue units • Asia (ex HK, SG& MY) is 1.5 revenue units
S easonality matters. October to December is high season. January to February is mid season (the Christmas follow-on, mainly holiday bookings). March to May is mid-to-low season. June to August is low season (summer heat and holidays). September to October is mid season (beginning of the Christmas run up). C ontent channel matters. • User-generated content is 1 revenue unit. • Webmail sites is 2 revenue units. • Automobile, Shopping is 4 revenue units. • Business, Technology, Travel is 6 revenue units. • Investing, Parenting, Games is 8 revenue unit. • IT is 10 revenue units.
Based on data built up over time that includes allowances for seasonality we look at: the base eCPM by channels by country / region. This is our key metric. the pool of ad suppliers – what one might call Supplier Risk Management. Based on this available inventory is allocated. A typical scenario looks at: the expected eCPM and the pool of advertisers who offer guaranteed CPM rates for given inventory. the pool of tier 1 adnetworks based on their actual returns. For example, an increase in volume to a given high performing advertising supplier sometimes results in a decrease in effective CPM [total revenue/(total impressions /1000)], particularly if the advertising supplier does not have the capacity for the additional volume and therefore ends up filling that additional capacity with lower grade ads from secondary providers the pool of tier 2 and tier 3 adnetworks based on their actual eCPMs the pool of affiliate networks that typically work on a CPM, CPC or CPA basis. We manage performance here on eCPM. In-house and Public Service campaigns. The daisy chaining process.
So for publishers driving revenue. There are the: Physical aspects: such as page views, adsizes and mix, geographic locales, channel splits etc Soft aspects: Yield management – the mix of suppliers, the mix of cpm, cp?, daisy chaining…
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