Traffic Driving Using Search & Networks & Exchanges 7.9.09


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Digital Leap Seminar 07 October 2009
The Good Agency
Roger Jones
Henry Stokes

Published in: Technology
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  • Two areas you may be familiar and ad networks one new area – exchanges. They are new and I think potentially very disruptive to the existing way that online media is bought and campaigns are put together. As with all new things it brings challenges and opportunities… I want this to stimulate your thinking and questions – not necessarily got all the answers but should stimulate discussion with us your agency about what can be done…
  • I want to shift your way of thinking – online media / advertising is now a very different type of buy I want to start by explaining the market dynamics that have driven this change, explain new platforms and then show how you can take advantage
  • So…traffic driving…I see this a lot on briefs and to be honest a little bit of my dies each time I see it. I have a problem with it… It is not a strategic marketing objective Traffic has to do something – there is always an interaction What do you want users to do when you advertise to them or they reach your website? You have to ask yourself may be with your traditional marketing hat on: What is the real objective of your online campaign? What does success look like?
  • So we know that with digital you can always interact. This is the most fundamental of all the attributes of digital media. When you someone interacts with your site or ad or asset or brand we need to think the value that has to your company and business. So…I think we should all be trying to get specific about our objectives and say what we want users to do….and what is the value of that interaction. Can we put a target value on it. Can we measure the value of an interaction
  • To prove this point. Who do you think has greater share of spend? It shows how important having a solid objective that can be valued and can be matched back to an ROI is. FMCG’s still haven’t worked out the value of having someone interact with their brand. Some use couponing to indicate value, some registrations, some use ‘engagement measure’ to indicate a positive ‘brand experience’. But what it’s the value of this. Ultimately they need to test and model.
  • This DR and brand dynamic shapes the type of ads that are bought in the market and the media split… NB Display market of £168m similar in size to the cinema market which is at 0.9% share £166m
  • I want to shift your way of thinking – online media / advertising is now a very different type of buy I want to start by explaining the market dynamics that have driven this change and then show how you can take advantage
  • The over-riding major dynamic in the display market is OVER-SUPPLY A huge number of page views in the market. Could actually result in a larger number of ad views because of two/three ads to a page Can anyone tell me what that number says…I’m number dyslexic!
  • So ultimately this over-supply is off-loaded to networks who then re-sell to advertisers… This is rife and a large part of the online display market..
  • This results in a large chunk of the display spend running through networks who are trading off the excess inventory available in the market Based on Display market = £504 in 2008 Network market = £206m market in 2008
  • But there are dynamics affecting this market – Decreasing cpm And decreasing ctr (performance) This creates challenges for the online ad companies (media owners)
  • There is a different story in the search market: Increasing cpc’s but still decreasing performance – driven by greater competition However….
  • We are only seeing this story among head keywords (the head of the long tail) Therefore advertisers are looking for lower cpc’s and better ctr’s in the long tail…. which to be honest google are fine with…they have the platform and technology to cope. However, for companies that don’t...
  • This is what companies need to do… How?
  • The answer is to create new ad platforms that focus on the following areas: New trading model to maximise yield Improved performance thru targeting Better intelligence and hence performance Simplified, cost effective process powered by technology
  • So what we see is the birth of companies and ad platforms like these. They have the following characteristics: Automated, targeting tech, dynamic pricing, tracking tech. They are a force to be reckoned with…huge cumulative reach. Big players like Google, Yahoo and Microsoft all in the game Unique Users (000) 32,943 Google adwords 28,327 Google Content network 26,938 Facebook 17,894 Yahoo 4,798 Technorati 2,298 Federated 178 Stumble
  • Sounds great ! Lets look into a bit more detail so you can understand how these platforms work and what the opportunities are: Never speak to a human Speed up the workflow Use technology and actual data and not some planning conjecture based on panel research…
  • Go into online interfaces – ask audience to suggest targeting options…
  • Which brings me nicely onto the first of my four T’s - trading. We are going to examine how this auction model works…
  • Currently – these were the metrics Cost per 1000 Cost per click Cost per acquisition or action you booked fixed amounts at fixed costs and generally got what you paid for… However, as a media owner it was risky to take CPC and CPA campaigns as you were be-holdent to the performance of the brand and creative. So the exchanges have sought to find trading solutions to maximise yield…what they came up with was an auction model aligned to performance and ROI
  • Network takes out the ability of Networks/publishers/agencies to force pricing Everyone can get involved – and have a place at the table. Advertisers only ever bidn what they can afford. The CPM is directly linked to the performance of the impression in delivering a action at a acceptable CPA. Opportunities – simplified workflow, each impressions valued, higher quality remnant is competed for therefore will drive prices up. But what if the network sells on a CPC?? Well the network still evaluates on a CPM…called eCPM
  • This is the google model…. Promotes the advertiser who makes Google the most money
  • Remember – we are looking to improve performance
  • Networks & exchanges collect data on individual's web-browsing behavior, to select which advertisements to display to that individual. Pages visited Searches made Videos viewed, links clicked etc Recency of view You can get very specific which results in small segments What does it mean? Ultimately you can buy less impressions to reach the same volume of audience and to get a better response. cpc / cpm is aligned to ROI and that but that is where optimisation and bid management comes in. This is more cost effective and will deliver greater ROI. Data is key – networks need data on users to allocate them to a valuable segment. Cookie dropping and data gathering is becoming very important.
  • Porn is leading this innovation as usual. Advertisers are also using their ads to drop cookies on users when they are on ‘in market’ sites
  • Demographic and geographic data is merged with behavioural segments to further refine targeting It’s the large sites online that gather data The ones with xs inventory
  • Uses the content of the page to define the ad served on that page This is the Google Adsense model However, in order to make this work it is important to use: Bespoke creative Very specific keywords (not over specific long tail keywords) Negative keywords to ensure you are not served against irrelevant content
  • Google, Yahoo and Microsoft see this as the future of media… All have exchange plays and all are employing behavioural targeting algorithms Microsoft sales director Chris Maples calling behavioural targeting “the panacea advertisers have been looking for”
  • This is about doing the basics well What dictates success? Measure it and establish ROI. Then you want to analyse by site, section, creative format, creative execution, day part, geography…
  • As we said some of these platforms offer tracking solutions in order to help the optimisation process What would using different click and conversion tracking solutions across all of these platforms result in? DUPLICATION The only way to solve this is to categorically use SINGLE SOURCE TRACKING at all times Who would provide this…
  • Complete campaign visibility from PR to email to social to paid banner ads – no duplication – true ROI
  • Found that adding display to your paid search campaign lifts response by 22%. Engagement tracking tries to attribute the contribution each touch point makes to sale. (Path to conversion is what Double click call their system) They do this by using modelling – frequency, daypart, recency, type of ad (size, rich), time of interactions.
  • Well what you want to be doing is getting involved! Learning how these interfaces work and indeed what opportunities they offer and whether they can work for you What are the correct segments. How can you refine your segments What works? What doesn’t
  • Well what you want to be doing is getting involved! Learning how these interfaces work and indeed what opportunities they offer and whether they can work for you What are the correct segments. How can you refine your segments What works? What doesn’t
  • Traffic Driving Using Search & Networks & Exchanges 7.9.09

    1. 1. Traffic driving
    2. 2. . What am I going to do? How technology is changing and improving the way we plan, buy, target and track online advertising and what the opportunities are
    3. 3. 'Traffic driving' It is not a strategic objective!
    4. 4. Objectives = interactions registrations sales Video views Game plays Widget downloads Send to a friend pdf downloads Over 3 pages viewed Over 2 minutes spent donations
    5. 5. With digital media you interact You need to think about the value
    6. 6. Direct Response Awareness Est 75% of spend Est 25% spend Who worked out the value of an interaction?
    7. 7. Sizing the digital market Source: IAB & Circus Street estimates IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures. Digital market = £3.2bn Display market = £672m Display DR 75% Display Brand 25% Brand display market = £168m Search market = £1.8bn
    8. 8. . What am I not going to do? Tell you how Google Adwords works
    9. 9. Market Dynamics 91,732,000,000 monthly page views Ninety-one billion, seven hundred and thirty-two million (US) Source: Comscore June 2009 (Top 100 ad sites) Over-supply
    10. 10. Dump the unsold inventory networks
    11. 11. 41% of display spend through networks Source: IAB
    12. 12. Display performance CPM £ CTR %
    13. 13. Search performance CPC £ CTR %
    14. 14. Search performance Increasing CPC’s Decreasing CTR’s The long tail BMW prices BMW Luxury cars BMW 3 series Black M3 BMW for sale in Angel
    15. 15. So what? <ul><li>Increase price (yield) </li></ul><ul><li>Improve performance (CTR) </li></ul><ul><li>Increase efficiency </li></ul><ul><li>Simplify process </li></ul>
    16. 16. The Four T’s Trading Targeting Tracking Technology
    17. 17. Automated web interfaces Dynamic pricing Targeting technology Tracking technology (source Comscore 2009 ) 51.5 billion imps per month 36 million users
    18. 18. Imps CPM/C Format 1 Set campaign parameters 2 Define targeting and review sites A A 3 Create or upload ads 4 Track, review and optimise performance
    19. 19. Let’s see some examples
    20. 20. Trading
    21. 21. CPM CPA CPC - + Risk
    22. 22. The CPM auction process – dynamic pricing Bid becomes £0.45 Publisher (P) has an impression it cannot sell at a premium Win! Buys impression at a price aligned to ROI Sells ad imp for max value automatically Does not bid – incorrect targeting criteria £0.60 deal in place Bids £0.75 Bids £0.65 Network is outside the exchange but has trading relationship with publisher The Exchange Platform Publisher Advertiser Network Advertiser Advertiser Network
    23. 23. eCPM model – based on performance CPC %CTR eCPM Position/Win £0.50 1% £5 1 £0.60 1% £6 1 £0.35 2% £7 1 2 2 3 Sold on a CPC but valued on a eCPM
    24. 24. What does this mean? <ul><li>You need to take responsibility for performance </li></ul><ul><li>High performing media / keywords inflate in price </li></ul><ul><li>Bid strategies become very important </li></ul>
    25. 25. Targeting
    26. 26. Behavioural
    27. 27. Re-targeting Place tracking pixel on your site to drop cookies Users leave your site Users visit network sites Personalised ad is served 1 2 3 4 In Reigate Looking for a puppy?
    28. 28. Registered users
    29. 29. Contextual
    30. 30. It’s set to grow…
    31. 31. Tracking
    32. 32. Duplication Single source tracking
    33. 33. Who?
    34. 34. flashtalking examples ROI
    35. 35. Building an attribution model with ‘engagement tracking’ Credited conversions to ads
    36. 36. How do we take advantage?
    37. 37. Testing Learning Identifying rich audience segments Driving ROI Looking for efficiency
    38. 38. Bespoke creative Implementation Tracking set up Data / targeting management Optimisation Bid management
    39. 39. Summary <ul><li>Online advertising is changing </li></ul><ul><li>Smaller companies get a place at the table </li></ul><ul><li>Pricing depends on performance </li></ul><ul><li>Unique niche audiences can be targeted </li></ul><ul><li>Success comes with testing </li></ul>
    40. 40. Questions?