Advertisingpricing models Risk Bearing Publisher Advertiser CPM - - PowerPoint PPT Presentation

CPM – cost per thousand CPC – cost per click CPA – cost per action Revenue Share Current industry norms Portals – CPM Search – CPC Affiliates – CPA / Rev Share Risk Bearing Publisher Advertiser

Advertisingpricing models

Budget CPM Impressio ns Click rate Click s Cost per click Conversion rate Total Conversio ns Cost per Conversion CP M $5,000 18 277,778 0.170 % 472 $10.59 7.00% 33 $151 CP C $5,000 500 $10.00 6.50% 33 $154 CP A $5,000 33 $150

• This is the fixed rate
• The are the changeable

variables

Advertisingpricing models

Choosingthe rightoptions

• Class discussion: for each example

below, discuss what paid media options would be suitable

– A bank trying to acquire new credit card customers at the cheapest “Cost per Acquisition” (link) – A beer brand launching it’s latest beer (link) (link) (link) – Men’s personal hygiene products trying to create awareness of new variant (link) (link)

Exercise

• Media Exercise
• Based on this media brief and the below 6 proposals

from publishers along with Google Ad Planner, put together a media plan which generates the greatest number of iPad sales.

• Campaign Objectives
• To build awareness of the iPad product amongst

university students during the Jan-Feb back to school period.

• To drive traffic to the Online Store education section
• To drive purchases within the Apple store from the

student community

• Budget $100,000, Australia only

Media Proposals Site: Ad2One Performance Network PlacementSocial Networking Sites (Excluding MySpace) Age 17-24 Format 120x600, 300x250, 728x90 CPM $1.50 Site: ninemsn – www.hotmail.com PlacementRun of Site Targeted to 17-24 year

• lds

Format 300x250 Island CPC $6.50 Site: Yahoo!7 PlacementMusic Section targeted to 17-24 year olds Format 728x90 Leaderboard CPM $42.00 Site: News Digital Media – www.moshtix/com.au PlacementRun of Site targeted to 17-24 year

• lds

Format 300x250 Island CPA $6.50 Site: Facebook PlacementFacebook Sponsored Story - Targeted to Uni Students Format 110x80 Image + 160 Characters Copy CPA $9.00 Site: Commission Monster PlacementTargeted to Uni Students Format All formats and assets as available, including text links CPA $12.50

StudentSurgery

ResourceCentre

• Credit Card 4 U - http://www.creditcard4u.com.au
• The Big Beer Ad - http://www.youtube.com/watch?v=eH3GH7Pn_eA
• Flash Beer Ad - http://www.youtube.com/watch?v=BMX-pmV2yiM
• 6 Beers of Separation - http://6beers.awards.hollersydney.com.au/
• Party Across the Internet - http://ralph.ninemsn.com.au/partyacrosstheinternet
• Axe Clean Your Balls -

http://www.youtube.com/verify_age?next_url=http%3A//www.youtube.com/watch%3Fv%3DbevJr3Ra84Q

• Rexona Greatest Athlete - http://rexonamen.com.au/awardentry/
• Johnson&Johnson No More Tears - http://www.split5ways.com.au/NMT50/
• Reed Publications (Industry) - www.reedbusiness.com.au/
• Ferret (Industrial/ Manufacturing) - www.ferret.com.au
• 6Minutes (Medical) - www.6minutes.com.au/
• Industry Body - Internet Advertising Sales Houses - http://www.iash.org.au
• DGM - www.dgmmarketing.com.au/
• TradeDoubler - www.tradedoubler.com/
• Commission Monster - www.commissionmonster.com.au/
• ClixGalore - www.clixgalore.com.au/
• Empowered Communications – www.empoweredcomms.com.au/
• GAS/GKS - Great Aussie Surveys, Great Kiwi Surveys - www.aussiesurveys.com.au/
• Email Cash - www.emailcash.com.au/
• Ticketek - www.VedaAdvantage.com
• Pure Profile - www.pureprofile.com/

Mediaterms /concepts

• Page / Ad impression
• Unique Browser / Visitor / Audience
• Click throughrate (CTR)
• Click throughvs View through
• IP Address and IP targeting
• Cookies
• Rich Media/ Over The Page (OTP) ads

SITE 3 SITE 3 SITE 2 SITE 2

Howadserving /behavioural targeting works

Host Site (Fairfax) Host Site (Fairfax) Host Site Adserver Host Site Adserver AdServer (DoubleCli ck) AdServer (DoubleCli ck) SITE 1 SITE 1 Host Site AdSales Report Host Site AdSales Report Campaign Report Campaign Report My Computer My Computer

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Paidmedia options

Display – Portals – “bannersand buttons” Display - Ad Networks Display – Social Media sites Affiliates Viral Email lists

Advantages Rich media, display or text advertising Cross-media integration Broad reach Ad-servable (known customer targeting, frequency cap, etc) Disadvantages CPM pricing model (high risk) Not personalised / targeted Low click through rates

Standarddisplay onlarge sites

Displayoptions

• The Big 5 :- News Digital Media, Fairfax,

NineMSN, Yahoo7;Google

• B2B examples : Industrypublications (eg

Reed Publications),Ferret (Industrial/ Manufacturing),6Minutes (Medical)

• Thousandsof others – lots and lots of

niche sites with worthwhilec onsolidated audiences

• Industry Body – IAB Australia (Internet

Advertising Bureau - http://www.iabaustralia.com.au/

AdNetworks /Sales Houses

• Made up of large portfolio of websites managed

by a single publisher / sales house

• Offer is Run of Site inventory across the network
• “Blind Network” – Sites unknown
• “Open Network” – Known sites
• Advantages

– Broad reach at low cost – Optimisation opportunities – Cost effective CPM buys

• Disadvantages

– Not knowing where your ads are being placed – High volume impressions usually drive down CTR

AdNetworkOptions

• Ad2One
• Adconion
• MaX Interactive
• Multi Channel Network (MCN)
• Response Directive
• 3D Interactive (3Di)
• Tribal Fusion
• Plus others…
• Industry body – IASH Australia – (Internet

Advertising Sales Houses) - http://www.iash.org.au/

AffiliateMarketing

• Pay for results from other sites – only pay for
• utcomes
• Programme and payments are managed by

Affiliate Network

• Small amounts of traffic from lots of different

places

• Highly scalable and can be highly effective
• Need to create the right suite of creative
• Potential risk of click-fraud

AffiliateMarketing Options

• DGM
• TradeDoubler
• Commission Monster
• Clix Galore

ViralMarketing

• Trading guaranteed exposure of brand message for

price

• People pass stuff on based on what it says about

them, not what it says about you.

• Advantages

– No / low media cost – Highly engaging for consumer – Can convey emotional elements of a brand – Is seen as more independent due to third party introduction

• Disadvantages

– Real risk of little or no pass on rate – No control of audience that will be exposed – Can be manipulated

ViralMarketing Options

• Creative generally done by creative

agencies (digital or mainstream)

• Virals are oftenprofessionally “seeded” to

give them the best chance of success eg Lava Communications

Emailmarketing lists

• Buy the right to have you messagein

someoneelse ’s email – either part of “newsletter” or a “solus” send.

• Advantages

– Can be highly targeted – Good for specialised and hard-to-reach audiences eg. B2B campaigns where you target by Job Title

• Disadvantages

– Not Scalable – Lists are often incentivised

Emailmarketing options

Sample Providers

• Empowered Communications –
• Primarily SMS Pup & WDYT databases
• GAS/GKS - Great Aussie Surveys, Great Kiwi

Surveys

• Email Cash
• Ticketek
• Pure Profile
• Lots of others… most sites sell space in their
• wn newsletters

Otherpaid mediachannels

• Coveredoff in their own sessions

– SMS / Mobile marketing – Natural Search (SEO) (Not directly paid) – Paid Search (SEM/ PPC) – Social Media