Advertisingpricing models Risk Bearing Publisher Advertiser CPM - PowerPoint PPT Presentation

Advertisingpricing models Risk Bearing Publisher Advertiser 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

Advertisingpricing models Total Impressio Click Click Cost per Conversion Conversio Cost per Budget CPM ns rate s click rate ns Conversion CP 0.170 M $5,000 18 277,778 % 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

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: News Digital Media – www.moshtix/com.au PlacementRun of Site targeted to 17-24 year Site: Ad2One Performance olds Network Format 300x250 Island PlacementSocial Networking Sites (Excluding MySpace) Age 17-24 CPA $6.50 Format 120x600, 300x250, 728x90 Site: Facebook CPM $1.50 PlacementFacebook Sponsored Story - Targeted to Uni Students Site: ninemsn – Format 110x80 Image + 160 www.hotmail.com Characters Copy PlacementRun of Site Targeted to 17-24 year CPA $9.00 olds Format 300x250 Island Site: Commission Monster CPC $6.50 PlacementTargeted to Uni Students Format All formats and assets as Site: Yahoo!7 available, including text links PlacementMusic Section targeted to 17-24 CPA $12.50 year olds Format 728x90 Leaderboard CPM $42.00

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

Howadserving /behavioural targeting works My Computer My Computer Cookie site 3 Cookie Site 2 Cookie Site 1 Host Site Host Site Campaign Campaign AdSales AdSales Report Report Report Report SITE 3 SITE 3 AdServer AdServer Host Site Host Site SITE 2 SITE 2 (DoubleCli (DoubleCli Adserver Adserver ck) ck) SITE 1 SITE 1 Host Site Host Site (Fairfax) (Fairfax)

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

Standarddisplay onlarge sites 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

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 outcomes • 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 own newsletters

Otherpaid mediachannels • Coveredoff in their own sessions – SMS / Mobile marketing – Natural Search (SEO) (Not directly paid) – Paid Search (SEM/ PPC) – Social Media