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Display Advertising 101 [PowerPoint]

  1. Display Advertising 101 Presented by: Mani Iyer, CEO @iyermani #demandgen
  2. AGENDA Webinar Objectives Educate Demand Marketers on Display – You may know about marketing through your website or email, but are new to display. What this webinar is NOT Not for advanced marketers who know all about display.
  3. AGENDA 1. Display advertising terminology – CPM, CPC, CPA, CPL and more 2. Display advertising ecosystem – Ad networks, Exchanges, RTB & Ad platforms 3. Brand versus Demand – Making Sense of all the Jargon 4. Prospecting and Re-targeting - How are they different? 5. Putting together a display campaign – What does it take? 6. Budget - How to secure budget for display ad campaigns
  4. Display Advertising Terminology • Advertiser = The business that placed this ad (e.g. SAP) • Publisher = • Media Agency = works for the advertiser in designing the ad (creative), then buying ad placements (media buying), and determines ad budget (media spend) • Inventory = how many impressions of the ad are available through a specific publisher
  5. Buying Ads Ads are bought in units of: 1. Impressions, in units of 1000 (CPM) Impression = each view or showing of the ad e.g. $1 CPM = 1000 impressions for every $1 $2 CPM = 500 impressions for every $1 2. Clicks or Click-throughs, with a cost per click (CPC) e.g. $5 CPC = each click on the ad costs $5 3. Leads, with a cost per lead (CPL), sometimes cost per (user) acquisition (CPA) Risk shifts from advertiser to publisher as we go from CPM -> CPC -> CPL / CPA “As an advertiser, your lowest risk is buying leads - IF you are confident of the quality of the lead that you will get”.
  6. Types of Display Ads Ad Formats • banner ads / image ads / flat ads - simple images (PNG, JPG) • rich media ads - Flash-based or Dynamic HTML-based. Ads can have forms for lead capture, polling, social sharing, etc.
  7. Ad Sizes There are many standard sizes defined by the Interactive Advertising Bureau (IAB): • leaderboard (728x90) = 728 pixels wide, 90 pixels high • medium rectangle (300x250) most available inventory across ad sizes • Other common sizes • 300x600 • 160x600 • 180x150 • mobile ad sizes (iPhones, Androids, iPads) • 468x50 • 300x50 • 320x50
  8. Ad Sizes
  9. Placing Ads Ad Platforms: where you log-in, upload ads, and they serve the ads Placing Display Ads – Your options: • Direct Media Buy - you would pay for placing 1 or more ad sizes on a specific publisher website, and a specified # impressions, for a period of time. • e.g. 200,000 impressions per month on from July to Dec 2013. • You can have more rules around your ad buy such as: • Viewable impressions - they must be “Above the Fold”, 60% of ad visible in a viewable area or in-focus page for at least 1 sec • Time of Day - Ads shown during specific hours (e.g. 9 AM to 6 PM PST) a.k.a. “Dayparting Display Ads”
  10. Ad Network Buy Each ad network (e.g. GDN) will have an inventory of impressions available by: • Type of Audience - Demographic (B2C), Firmographic (B2B) • Demographic - Male/Female, Income, Location, Interests (News, Fashion, Movies, etc.) • Firmographic - Industry, Job Function, Company Size, Company Revenue, Location Ad Exchanges + Buy Side Platforms with Real-time Bidding • Google DoubleClick Bid Manager (DBM) • AppNexus • MediaMath • TheTradeDesk • Set caps on price, define targeting rules (on what sites / places / to which audiences will the ad be served) List of Kwanzoo-supported Ad Networks and Platforms today: networks-exchanges/ (constantly updated)
  11. Display Placement Opportunities Google Other Networks Retargeting Exchange Networks B2B Audiences
  12. Brand vs. Demand Brand Marketers • Brand Recall - how many of the consumers who are surveyed recall your brand with its key attributes. • e.g. BMW = performance, Toyota = innovation • Brand Lift - did the display ad campaign increase brand recall, and by how much • Engagement - what % of users clicked on the ads, or engaged with the brand via the ad • Click-through - visits to the Company’s website as a result of the brand ads • View-through - users view the ad, and visit your website directly without clicking on the ad • E.g. View-through at 9X of click-through the ad.
  13. Demand Generation Terms Demand Marketers • Conversion - turning an unknown user into a known prospect (first name, last name, email, company, etc.) • Landing Pages - where conversions typically happen today • user clicks on a flat ad, then redirected to the landing page in a new browser window
  14. Calculating Cost per Lead for a Display Campaign Calculating Cost Per Lead • 1 month display ad campaign • $5,000 media buy @ $5 CPM • You would serve 1 million impressions (1,000,000) • If your click-through rate on the ads is 0.1% • You would generate (1,000,000 x 0.001) = 1000 clicks • Landing Page Conversion Rate = 5%, 1/20 of your clicks result in a form fill on the Landing Page • Each form fill on the Landing Page = A lead capture • # Leads = 1000 clicks x Landing Page conversion rate = 1000 clicks x 5% = 50 Your cost per lead = $5000 / 50 = $100 Goal = As many high quality leads as possible, for your media spend
  15. A/B Testing A/B Testing - running different versions of the ads (brand or demand) to test which messages and offers resonate the most with the audience, and drive the highest results (i.e. lead conversions)
  16. In-Banner Lead Forms – New Way to Increase Conversions Banner Ads: Engage & gather insights with rich media ads (ex: polls) Capture lead in the ad with in-banner lead forms Disrupt user by redirecting them to branded landing pagePlace ad on 3rd party site Traditional New Way Collect info in CRM/MAP
  17. New Prospecting vs. Retargeting New Prospecting • Prospects NOT already in the advertiser’s database. Reach new “watering holes” and place ads to attract new prospects, get them to opt-in into further conversation. Re-targeting • Already a bit familiar with the brand. Visited your site and bounced. • Conversion rates for re-targeting = typically higher than for new prospecting.
  18. How Retargeting Works Your Website Ad Network Organic Search Email Social PPC & Display Visitors get tracked for retargeting (cookie’d) Tracking works beyond your website across the web Retargeted Ads Example: • 10,000 website visitors • 20 impressions / visitor / month • Total of 200,000 retargeted impressions per 30 day period
  19. Putting Together a Display Campaign 1. Define the goal - brand awareness ? demand creation? both? 2. Target audience - Persona(s)? Buyer needs messaged via the ad? 3. Budget - finalize number based on goals re: brand – reach, engaged, or demand – leads 4. Placement - targeting, media buying. In-house, outsource? 5. Creative - copy, design, messaging, content offers, brand guidelines 6. Execute & Review - analytics, reporting, key metrics 7. Campaign Management – • Targeting - update sites, audience segments, etc. based on what works • Bid Management – set bid prices to meet volume goals (daily/weekly) • Creative updates - changes in mid-flight based on engagement / lead capture metrics
  20. Securing Your Pilot Display Budget 1. Speak the same language - as your brand colleagues / agency 2. Understand ultimate business objective = sales, revenues • Be ready to discuss how display will contribute to final objective e.g. Display will generate 200 new leads / month. • Display will deliver 30 new marketing-qualified-leads (MQLs) per month via follow-on email nurture campaigns • 30 MQLs => 3 new closed-win deals/month with $50K Annual Contract Value (ACV) 3. Ask for pilot budget, prove success, and seek larger budget • Define a pilot budget of say 100 leads/month, that is then further measured with a lead => MQL conversion goal that is validated in follow-on months • As soon as you see acceptable CPL / CPA and lead => MQL conversion rates, increase your media spend to scale your closed-win deals/month.
  21. Sample Kwanzoo Pilot Campaign Monthly Fixed: • Tech Fee = $999 per month Monthly Variable: • Impression Fees = $1000 (1 million impressions) per month • Campaign Management Fee = $1050 ($15% of media spend) • Media Spend = $7000 paid to Ad Networks & Exchanges Total: $10,049 per month (plus one-time creative dev fees) Goals: • Generate 30% higher lead conversions versus typical banner ads (e.g. 100 leads with banner ads => 130 leads with Kwanzoo tech.) • Generate more leads for same media budget • Demonstrate same / better quality of leads via strong lead => MQL conversion rates in follow-on months • Leverage real-time bidding (RTB) to spend on media more wisely, and open up new audiences to your products / services
  22. Questions? For more information, contact: Phone: 408-216-7025 Email: Twitter: @kwanzoo @iyermani Resources:

Editor's Notes

  1. - Brand and Demand today are two different worlds. With in-banner lead forms, rich media polls with capture of insights, they are coming together today. - You can also measure in one place:Impressions - Engagement - Click-throughs - Lead Captures - A/B tests of different versions