isbsm #3 - intro to paid online marketing
DESCRIPTION
Third part of #isbsm course at ISB Term 8 2010.TRANSCRIPT
Introduction to Paid Online Marketing
Vaibhav AryaAmit KleinMarch ‘10#isbsm
Who are we?
Vaibhav & Amit
Why is Paid Marketing Important?
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
Agenda
- Marketing Goals- Pricing & Terminology- Methods of Online Advertising- Measurement & Analytics - Budget Allocation- Q&A
Introduction
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?
Objectives - Branding
Objectives - Branding
Objectives - Performance
Objectives - Performance
Marketing Funnel
http://adamhcohen.com/wp-content/uploads/New-Marketing-Funnel1-300x294.jpg
Pricing Models
Fixed Cost / Fixed Duration
CPM
CPC
CPA
Publisher Friendly
Advertiser Friendly
Low Tech
TechIntensive
Terminology & Pricing
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
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.
Methods of Advertising Online
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
Search Engine Marketing
Search Ads
• Goals: Consideration / Conversion• Control: Keyword, geography, demographic, time, budget• Measure: Impressions, clicks, cost, revenue • Limitations: Placement, competition/expensive, obscured
How does Google know which ads to display next to search results?
Google Adwords Demo
• Targeting based on keyword, geography, demographic, time.
• Search vs. Content network• Bidding (Auto vs. Manual)• Pricing (US vs. India)
Google Adwords Demo
Google Adwords Demo
Search - Keywords
• Identifying - http://www.google.com/sktool/• Estimating -
https://adwords.google.com/select/TrafficEstimatorSandbox
Impression Share
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
Display Advertising
Display Advertising
Display Advertising
All Shapes and Sizes
All Shapes and Sizes
Display Advertising
• Goals:• Awareness• Brand Positioning• Can also be used for conversion
Display Advertising
• Branding Oriented
• Positioning is important:• Premium Inventory • Remnant Inventory
Premium Inventory
Remnant Inventory
Exchanges and Networks
• Networks aggregate Publishers and Advertisers
• Exchanges aggregate Networks
Display Advertising
• Control:Where the ad is shown
-SourcesWho do you show it to
-DemographyWhat are the persons interests? What else has he seen? What has he been searching for?
- Behavior / Intent
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)
Different Objectives Different Metrics
Advertiser Imps Clicks Conversions Click rate (%) Conversion rate by
clicks(%)
Cost Cost eCPM
Advertiser #1 13,594,753 331,888 13,478 2.44 4.064.06 6,819.95 0.5
Advertiser #2 10,103,536 45,682 939 0.450.45 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 0.880.88 476.9 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
Email Marketing
Email Marketing – EmailBrain
• Goals: Conversion / Loyalty• Control: Segmentation, frequency, message / look &
feel• Measure: Opens, clicks, unsubscribe, forwards• Limitations: Reach
Email Marketing – EmailBrain
Email Marketing – Analytics
Social Ads
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
Social Ads - Facebook
Social Ads - Facebook
Social Ads - Facebook
Affiliate Marketing
Affiliate Marketing
Affiliate: Outsourced Sales Force
• Networks• TradeDoubler• CommisionJunction
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
Affiliate Marketing
Goal Measurement
Goals - Awareness
Goals - Consideration
Leads received:• Creating an iTunes account• Playing snippits of a song / video• Browsing the iTunes store
Goals - Conversion
Goals - Conversion
Goals - Loyalty
Goals - Loyalty
Destroy Competition:
Budget Allocation
Example #1 – Ad effectiveness
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
Example #1 – Ad effectiveness
Ad Impressions Clicks Cost CTR CPC eCPM
Music 274,747 2,413 $1,042.56 0.88% $0.43$3.79
iTunes 21,075 733 $339.28 3.48% $0.46 $16.10
Movies 34,404 243 $157.13 0.71% $0.65 $4.57
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
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%
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%
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
Google 2,713,257 11,709$6,019.56
$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
Conclusion
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
Group Project Update
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)
Thank You! Questions?