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ISBSM #3 - Intro to Paid Online Marketing

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Third part of #isbsm course at ISB Term 8 2010.

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ISBSM #3 - Intro to Paid Online Marketing

  1. 1. Introduction to Paid Online Marketing Vaibhav Arya Amit Klein March ‘10 #isbsm
  2. 2. Who are we?
  3. 3. Vaibhav & Amit vaibhav@arya.net.in ak@amitklein.com
  4. 4. Why is Paid Marketing Important?
  5. 5. Goals At the end of today you should be able to: - identify your marketing objectives - determine which methods/tools are best to achieve them - measure your results / calculate ROI - and optimize your campaigns
  6. 6. Agenda - Marketing Goals - Pricing & Terminology - Methods of Online Advertising - Measurement & Analytics - Budget Allocation - Q&A
  7. 7. Introduction
  8. 8. Case Study – iTunes India You are the marketing manager responsible for launching the iTunes store in India - What are your objectives? - How can you go about achieving those objectives?
  9. 9. Objectives - Branding
  10. 10. Objectives - Branding
  11. 11. Objectives - Performance
  12. 12. Objectives - Performance
  13. 13. Marketing Funnel http://adamhcohen.com/wp-content/uploads/New-Marketing-Funnel1-300x294.jpg
  14. 14. Pricing Models Publisher Low Fixed Cost / Friendly Tech Fixed Duration CPM CPC CPA Advertiser Tech Friendly Intensive
  15. 15. Terminology & Pricing
  16. 16. Terminology • Impression – A single appearance of an advertisement on a web page. • CTR – Click Through Rate - The number of people who clicked your ad divided by the number of people who viewed it. • Goal – An action performed on your site (download, checkout, registration, etc…) • Conversion Rate – The number of people who completed a goal divided by the total number of visitors to your site
  17. 17. Pricing Models • Fixed Cost / Fixed Duration • CPM - Cost per 1000 Impressions • CPC - Cost per Click • CPA - Cost per Action - The advertiser pays a fixed amount for each specified action linked to the ad. Action could be a form submission, a sale (CPS) a lead (CPL) etc.
  18. 18. Methods of Advertising Online
  19. 19. List of Methods & Tools • Search Ads - Google, Yahoo, MSN • Display Ads – DoubleClick, Right Media Exchange • Social Ads – FB, Orkut, LinkedIn • Email Marketing – Blue Sky Factory, EmailBrain • Affiliate – Amazon, Commission Junction
  20. 20. Search Engine Marketing
  21. 21. Search Ads • Goals: Consideration / Conversion • Control: Keyword, geography, demographic, time, budget • Measure: Impressions, clicks, cost, revenue • Limitations: Placement, competition/expensive, obscured
  22. 22. How does Google know which ads to display next to search results?
  23. 23. Google Adwords Demo • Targeting based on keyword, geography, demographic, time. • Search vs. Content network • Bidding (Auto vs. Manual) • Pricing (US vs. India)
  24. 24. Google Adwords Demo
  25. 25. Google Adwords Demo
  26. 26. Search - Keywords • Identifying - http://www.google.com/sktool/ • Estimating - https://adwords.google.com/select/TrafficEstimatorS andbox
  27. 27. Impression Share
  28. 28. What should you do with all those ad clicks? Landers meet various goals – Capture a lead – Simplify the buying process – Lead directly to the product advertised – Ensure trials Good for sites where people do not need a greater level of information before they sign up. It’s very important to cater to the specific case at hand
  29. 29. Display Advertising
  30. 30. Display Advertising
  31. 31. Display Advertising
  32. 32. All Shapes and Sizes
  33. 33. All Shapes and Sizes
  34. 34. Display Advertising • Goals: • Awareness • Brand Positioning • Can also be used for conversion
  35. 35. Display Advertising • Branding Oriented • Positioning is important: • Premium Inventory • Remnant Inventory
  36. 36. Premium Inventory
  37. 37. Remnant Inventory
  38. 38. Exchanges and Networks • Networks aggregate Publishers and Advertisers • Exchanges aggregate Networks
  39. 39. Display Advertising • Control: Where the ad is shown -Sources Who do you show it to -Demography What are the persons interests? What else has he seen? What has he been searching for? - Behavior / Intent
  40. 40. Display Advertising • Measures: • Total number of visitors who see the ad • Total number that click through • Cost per Unique Visitor: • Cost per impression is a proxy • Doesn’t compensate for frequency (one person may see the ad multiple times)
  41. 41. Different Objectives Different Metrics Advertiser Imps Clicks Conversions Click rate (%) Conversion Cost Cost eCPM rate by clicks(%) Advertiser #1 13,594,753 331,888 13,478 2.44 4.06 6,819.95 0.5 Advertiser #2 10,103,536 45,682 939 0.45 2.06 24,167.53 2.39 Advertiser #3 7,225,860 143,455 2,155 1.99 1.5 4,287.46 0.59 Advertiser #4 6,970,203 141,678 1,252 2.03 0.88 476.9 0.07 Advertiser #5 6,139,134 150,030 2,717 2.44 1.81 2,396.03 0.39 Advertiser #6 5,940,754 105,473 1,145 1.78 1.09 2,743.26 0.46 Advertiser #7 5,703,385 163,875 1,664 2.87 1.02 3,890.97 0.68
  42. 42. Email Marketing
  43. 43. Email Marketing – EmailBrain • Goals: Conversion / Loyalty • Control: Segmentation, frequency, message / look & feel • Measure: Opens, clicks, unsubscribe, forwards • Limitations: Reach
  44. 44. Email Marketing – EmailBrain
  45. 45. Email Marketing – Analytics
  46. 46. Social Ads
  47. 47. Social Ads • Goals: Awareness / Consideration • Control: Demographic, message, budget • Measure: Impressions, clicks, cost, revenue • Limitations: Low click through rate, people don’t go to social networks to buy
  48. 48. Social Ads - Facebook
  49. 49. Social Ads - Facebook
  50. 50. Social Ads - Facebook
  51. 51. Affiliate Marketing
  52. 52. Affiliate Marketing
  53. 53. Affiliate: Outsourced Sales Force
  54. 54. Affiliate Marketing • Networks • TradeDoubler • CommisionJunction
  55. 55. Affiliate Marketing • Goals • Conversion / Sales • Control • Can you think of any? • Measures • Impressions • Clicks • Conversions • Limitation • Loss of control over affiliate choice • Brand conflict positioning • Gaming the system • Expensive to setup
  56. 56. Goal Measurement
  57. 57. Goals - Awareness
  58. 58. Goals - Consideration Leads received: • Creating an iTunes account • Playing snippits of a song / video • Browsing the iTunes store
  59. 59. Goals - Conversion
  60. 60. Goals - Conversion
  61. 61. Goals - Loyalty
  62. 62. Goals - Loyalty Destroy Competition:
  63. 63. Budget Allocation
  64. 64. Example #1 – Ad effectiveness
  65. 65. Example #1 – Ad effectiveness Ad Impressions Clicks Cost Music 274,747 2,413 $1,042.56 iTunes 21,075 733 $339.28 Movies 34,404 243 $157.13
  66. 66. Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM $3.79 Music 274,747 2,413 $1,042.56 0.88% $0.43 iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 Movies 34,404 243 $157.13 0.71% $0.65 $4.57
  67. 67. Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM Revenue Music 274,747 2,413 $1,042.56 0.88% $0.43 $3.79 $4,246.88 iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 $2,052.40 Movies 34,404 243 $157.13 0.71% $0.65 $4.57 $21.87
  68. 68. Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM Revenue RPC ROI Music 274,747 2,413 $1,042.56 0.88% $0.43 $3.79 $4,246.88 $1.76 306.53% iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 $2,052.40 $2.80 503.85% Movies 34,404 243 $157.13 0.71% $0.65 $4.57 $21.87 $0.09 -85.38%
  69. 69. Example #2 – Keyword Effectiveness Keyword Impressions Clicks Cost CTR CPC CPM Revenue RPC ROI movies 219,274 656 $284.34 0.30% $0.43 $1.30 $32.80 $0.05 -87.70% music 62,469 391 $384.48 0.63% $0.98 $6.15 $1,102.62 $2.82 186.38% itunes 30,470 385 $182.11 1.26% $0.47 $5.98 $500.50 $1.30 174.37% music downloads 15,286 199 $121.42 1.30% $0.61 $7.94 $19.90 $0.10 -83.54% movie downloads 12,185 222 $77.93 1.82% $0.35 $6.40 $102.12 $0.46 30.84% kanye west music 4,779 176 $61.17 3.68% $0.35 $12.80 $0.00 $0.00 -100.00% a. r. rehman download 3,516 218 $65.18 6.20% $0.30 $18.54 $163.50 $0.75 149.89% twilight dvd 9,446 148 $66.08 1.57% $0.45 $7.00 $828.80 $5.60 1154.12%
  70. 70. Example #3 – Source Effectiveness Impressions Clicks Cost Revenue Average Order Size Conversion Rate Per Visit Value Direct N/A 27,244 0 $12,795.81 $8.15 5.76% $.47 $6,019.56 Google 2,713,257 11,709 $2,597.26 $6.98 3.33% $.22 Facebook 2,221,666 1,333 $253.27 $150.81 $5.32 0.23% $.01 Email 26,796 1,964 $400.00 $710.65 $7.32 4.94% $.36 Display 106,454 2,342 $95.40 $106.21 $5.15 2.70% $.05 Affiliate 52,324 806 $142.08 $710.65 $10.46 3.85% $.40
  71. 71. Conclusion
  72. 72. Conclusion When planning a marketing campaign: - Define criteria and how you will measure success - Get historical data - If not possible: execute small tests - Iterate and optimize constantly - Use analytics data to develop insights
  73. 73. Group Project Update
  74. 74. Group Project Two components • Social Media campaign • proposals due today • Adwords Campaign • Drive traffic to atmamumbai.org • Each team will get $320/teams in Adwords Credits • Not just visitors but quality as well • Score = Visitors * (1 – Bounce Rate)
  75. 75. Thank You! Questions?

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