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Display Advertising Budget Allocation

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If you must do display ads, then shift dollars from large media buys on portals to ad networks and even to Facebook, where CPMs are orders of magnitude lower.

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Display Advertising Budget Allocation

  1. 1. Optimizing DisplayAd Budgets Dr. Augustine Fou July 18, 2012.
  2. 2. Display Advertising Big Portals Ad Networks Facebook Large audience Lots of long-tail Massive number of small websites impressions Publisher/portal has more power Advertiser has “Junk” quality and more power super-low prices CPM 10’s of dollars 1’s of dollars 10’s of cents CTR 0.1% 0.01% 0.001% Shift allocation to get more impressions or lower costJuly 18, 2012 2
  3. 3. Budgets Shifting to Social As more budget shifts to lower CPM social networks, it has the effect of depressing industry-wide CPMs for display ads.July 18, 2012 3
  4. 4. Display Ad Ecosystem Source: 18, 2012 4
  5. 5. Bad Guys Rob Display Advertisers 1 • Pages are auto generated by script to optimize for high value search 2 keywords and content 3 • 10 – 15 display ads per page plus text ads and videos ads, in rotation 4 6 • Advertisers should minimize ad dollars spent on impression (CPM) basis and 5 7 focus on paying only when they get the click (CPC) • They also auto-refresh pages to load another 10 – 15 ads 8 9 • Many other examples of display ads 10 shown next to unsavory content Source: 18, 2012 5
  6. 6. Dr. Augustine Fou – Agency Czar “I advise clients on optimizing their digital spend and integrating across channels.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23 ClickZ Articles: Slideshares: LinkedIn: 18, 2012 6