How to calculate
what portion of money
spent on internet marketing
is wasted?
MARTA KLEPKA
Sofia, 14.06.2012
2
3
,,
Everything is
marketing
and marketing is
everything
Peter Druckner
4
Half the money
I spend on advertising
is wasted;
the trouble is
I don't know which half
John Wanamaker ,,
5
,,John Wanamaker
What would
Wanamaker say if he
knew about the
internet marketing?
?
6
John Wanamaker
ROI is one of the biggest
problems of marketing
executives.
Online results mean more
qualified leads.
7
CALL TO ACTION!
REGISTER
BUY
ROI
FILL INCLICK
8
COST PER CLICK
9
CLICK = SALES
Image source: http://www.ydeveloper.com/blog/ecommerce/php-ecommerce-shopping-cart-features
?
10
?
BRAND
AWARENESS LOYALTY
OFFLINE SALES
11
BE VISIBLE
12
0%
10%
20%
30%
40%
50%
60%
70%
80%
placement
1x300x250
placement
2x300x250
placement
3x300x250
placement
4x300x251
plac...
13
WHY THOSE THINGS
HAPPEN?
TOO SLOW DISPLAY
OF THE CREATIVE
SCREEN
RESOLUTIONSDIFFERENT
BROWSERS
SCREEN
SMALLER
THAN SITE...
14
IN SCREEN VISIBILITY
&
DWELL REPORT
15
DON’T BE TOO VISIBLE
16
WHAT IS OPTIMAL NUMBER
OF CONTACTS?
EVERY PENNY SPENT
OVER OTS IS A LOSS
17
Number of contacts with
campaing (per user) - frequency
New users Impressions Costs
1,00 4 768 577 4 768 577 47 686 PLN...
18
• Spending of €21k was the „empty part of the
glass”
• It was 42% of all budget
• It brought only 15% of new users
• Th...
19
PAY ONLY FOR
REACHING YOUR
TARGET GROUP
20
Brand A Brand B
Impressions 12 983 743 4 300 668
Impressions in Target Group 3 936 906 1 778 859
Impressions in TG as p...
21
THREE GOLDEN RULES
REACH YOUR
TARGET
GROUP
DON’T BE
TOO VISIBLE
BE VISIBLE
22
,,Albert Einstein
Insanity:
doing the same thing
over and over and
expecting different
results
23
What works in display advertising?
24
In-stream ad formats also
prove to be one of the
most effective in terms
of CTR
For pre-roll CTR vary from
~1.9% -3.4%
...
25
95%
11%
2% 2% 2% 1% 0%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CTR/UCT...
26
95%
5% 5% 4% 2% 2% 1% 1%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CTR
Campai...
27
86%
18%
12% 11% 10% 10%
8% 7% 5% 4%
1% 1% 1%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
...
28
Which industries invest in online ads?
Source: gemiusAdMonitor, H2 2011
0%
5%
10%
15%
20%
25%
30%
35%
40%
LeisureTime
F...
29
18,3%
15,2%
9,8%
9,6%
9,3%
8,9%
4,2%
4,1%
3,9%
3,2%
2,6%
1,7%
1,2%
0,9%
0,4%
0,2% 6,7%
Leisure Time
Finance, Insurance,...
30
Pharmaceuticals
Trade
Beverages and Alcohol
Automotive
Household Equipment, Furniture And Decorations
Household Product...
31
Let’s spend the money on
internet advertising
consciously and measure the
effects-
it pays off
Authors:
Join us @:
Facebook.com/GemiusGroup
Twitter.com/Gemius
Slideshare.net/Gemius_com
YouTube.com/WwwGemiusCom
Marta K...
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2012_06_14_Which_part_of_your_online_marketing_budget_is_money_well_spent?_Marta_Klepka_Gemius_WebitBulgaria_conference

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How to check which part of the marketing budget is wasted in online campaigns? Let's prove that it is possible by measuring the effectiveness plus optimizing the campaign. Be visible, but not to visible and reach your target group!

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2012_06_14_Which_part_of_your_online_marketing_budget_is_money_well_spent?_Marta_Klepka_Gemius_WebitBulgaria_conference

  1. 1. How to calculate what portion of money spent on internet marketing is wasted? MARTA KLEPKA Sofia, 14.06.2012
  2. 2. 2
  3. 3. 3 ,, Everything is marketing and marketing is everything Peter Druckner
  4. 4. 4 Half the money I spend on advertising is wasted; the trouble is I don't know which half John Wanamaker ,,
  5. 5. 5 ,,John Wanamaker What would Wanamaker say if he knew about the internet marketing? ?
  6. 6. 6 John Wanamaker ROI is one of the biggest problems of marketing executives. Online results mean more qualified leads.
  7. 7. 7 CALL TO ACTION! REGISTER BUY ROI FILL INCLICK
  8. 8. 8 COST PER CLICK
  9. 9. 9 CLICK = SALES Image source: http://www.ydeveloper.com/blog/ecommerce/php-ecommerce-shopping-cart-features ?
  10. 10. 10 ? BRAND AWARENESS LOYALTY OFFLINE SALES
  11. 11. 11 BE VISIBLE
  12. 12. 12 0% 10% 20% 30% 40% 50% 60% 70% 80% placement 1x300x250 placement 2x300x250 placement 3x300x250 placement 4x300x251 placement 5x300x252 placement 6x300x253 Impressions in users’ AREA OF VIEW in (in %) The share of impressions visible for the users in the total number of impressions the share of visible impressions reach in the total reach Source: gemiusDirectEffect , 2012; international FMCG brand campaign
  13. 13. 13 WHY THOSE THINGS HAPPEN? TOO SLOW DISPLAY OF THE CREATIVE SCREEN RESOLUTIONSDIFFERENT BROWSERS SCREEN SMALLER THAN SITE SCREEN SIZE
  14. 14. 14 IN SCREEN VISIBILITY & DWELL REPORT
  15. 15. 15 DON’T BE TOO VISIBLE
  16. 16. 16 WHAT IS OPTIMAL NUMBER OF CONTACTS? EVERY PENNY SPENT OVER OTS IS A LOSS
  17. 17. 17 Number of contacts with campaing (per user) - frequency New users Impressions Costs 1,00 4 768 577 4 768 577 47 686 PLN 2,00 2 497 837 4 995 674 49 957 PLN 3,00 1 071 054 3 213 162 32 132 PLN SUMMARY 8 337 468 12 977 413 129 774 PLN 4,00 503 647 2 014 588 20 146 PLN 5,50 490 963 2 700 297 27 003 PLN 8,00 294 353 2 354 824 23 548 PLN 12,00 119 017 1 428 204 14 282 PLN 17,00 17 111 290 887 2 909 PLN 27,00 6 917 186 759 1 868 PLN 42,00 1 758 73 836 738 PLN 62,00 1 001 62 062 621 PLN 87,00 393 34 191 342 PLN 100,00 645 64 500 645 PLN SUMMARY 1 435 805 9 210 148 92 101 PLN ALL 9 773 273 22 187 561 221 876 PLN Source: gemiusDirectEffect , 2012; international FMCG brand campaign OPTIMAL PART OF THE CAMPAIGN „EMPTY PART OF THE GLASS”
  18. 18. 18 • Spending of €21k was the „empty part of the glass” • It was 42% of all budget • It brought only 15% of new users • The cost of acquiring 1 user was 3-times higher This means that for this campaign optimal setting of frequency limits was 3/user. Beyond that number the effectiveness declined significantly, bringing profit only to the publisher.
  19. 19. 19 PAY ONLY FOR REACHING YOUR TARGET GROUP
  20. 20. 20 Brand A Brand B Impressions 12 983 743 4 300 668 Impressions in Target Group 3 936 906 1 778 859 Impressions in TG as part of all impressions in % 30% 41% Reach in cookies - (UU) 6 082 041 1 095 176 Reach in Real Users (RU) 2 604 385 552 671 Reach in RU in % in whole internet population – base is number of RU from gA data. 13,79% 2,93% Number of RU in TG that have contact with campaign (from gPE) 885 711 241 973 Reach in TG (base of gPE & gA data) 17,01% 4,49% Target Index* (my own indicator – this is in % number of impressions that generate 1% of TG group) 5,88% 22,28% Source: gemiusDirectEffect , 2012; international FMCG brand s campaign
  21. 21. 21 THREE GOLDEN RULES REACH YOUR TARGET GROUP DON’T BE TOO VISIBLE BE VISIBLE
  22. 22. 22 ,,Albert Einstein Insanity: doing the same thing over and over and expecting different results
  23. 23. 23 What works in display advertising?
  24. 24. 24 In-stream ad formats also prove to be one of the most effective in terms of CTR For pre-roll CTR vary from ~1.9% -3.4% Still rich-media and video ads constitute not more than a few % of internet advertising budgets in CEE0.00 0.10 0.20 0.30 0.40 0.50 0.60 Average CTR per country Source: gemiusAdMonitor, H2 2011
  25. 25. 25 95% 11% 2% 2% 2% 1% 0% 0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5% 4,0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CTR/UCTR Campaignshare Campaign share Average CTR Regular banners are still the most frequent used online advertising format The highest CTR value is characteristic for Preroll Source: gemiusAdMonitor, H2 2011 Popularity vs. effectiveness of online advertising formats - Bulgaria
  26. 26. 26 95% 5% 5% 4% 2% 2% 1% 1% 0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CTR Campaignshare Campaign share Average CTR Popularity vs. effectiveness of online advertising formats - Romania Source: gemiusAdMonitor, H2 2011
  27. 27. 27 86% 18% 12% 11% 10% 10% 8% 7% 5% 4% 1% 1% 1% 0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CTR Campaignshare Campaign share Average CTR Source: gemiusAdMonitor, H2 2011 Analysed ads: Regular banners + rich media (Toplayer, Preroll, Expand, etc.) Popularity vs. effectiveness of online advertising formats - Poland
  28. 28. 28 Which industries invest in online ads? Source: gemiusAdMonitor, H2 2011 0% 5% 10% 15% 20% 25% 30% 35% 40% LeisureTime Finance,Insurance,Brokerage Food Finance,Insurance,Brokerage Telecommunications Automotive Finance,Insurance,Brokerage Telecommunications Automotive Telecommunications Trade Finance,Insurance,Brokerage Trade Finance,Insurance,Brokerage LeisureTime LeisureTime Finance,Insurance,Brokerage Food Bulgaria Czech Republic Hungary Poland Romania Slovakia
  29. 29. 29 18,3% 15,2% 9,8% 9,6% 9,3% 8,9% 4,2% 4,1% 3,9% 3,2% 2,6% 1,7% 1,2% 0,9% 0,4% 0,2% 6,7% Leisure Time Finance, Insurance, Brokerage Food Telecommunications Automotive Trade Computers and Audio Video Household Equipment, Furniture And Decorations Media, Books, CD & DVD Travel, Tourism, Hotels & Restaurants Clothing & Accessories Beverages and Alcohol Pharmaceuticals Personal Care and Hygiene Real Estate Household Products Other Share of ad impressions per sector - Bulgaria Source: gemiusAdMonitor, H2 2011
  30. 30. 30 Pharmaceuticals Trade Beverages and Alcohol Automotive Household Equipment, Furniture And Decorations Household Products Real Estate Personal Care and Hygiene Finance, Insurance, Brokerage Computers and Audio Video Food Travel, Tourism, Hotels & Restaurants Telecommunications Leisure Time Media, Books, CD & DVD Clothing & Accessories Source: gemiusAdMonitor, H2 2011 Ranking of the sectors with highest average CTR – Bulgaria
  31. 31. 31 Let’s spend the money on internet advertising consciously and measure the effects- it pays off
  32. 32. Authors: Join us @: Facebook.com/GemiusGroup Twitter.com/Gemius Slideshare.net/Gemius_com YouTube.com/WwwGemiusCom Marta Klepka PR & Communications Director marta.klepka@gemius.com THANK YOU! Questions? Ács Tamás Agency Segment Manager tamas.acs@gemius.com

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