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Display Advertising 101 [PowerPoint]

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This is the PowerPoint used for our introductory presentation on Display Advertising:

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Display Advertising 101 [PowerPoint]

  1. 1. DisplayAdvertising101Presented by:Mani Iyer, CEO@iyermani#demandgen
  2. 2. AGENDAWebinar ObjectivesEducate Demand Marketers on Display –You may know about marketing through your websiteor email, but are new to display.What this webinar is NOTNot for advanced marketers whoknow all about display.
  3. 3. AGENDA1. Display advertising terminology – CPM, CPC, CPA, CPLand more2. Display advertising ecosystem – Adnetworks, Exchanges, RTB & Ad platforms3. Brand versus Demand – Making Sense of all the Jargon4. Prospecting and Re-targeting - How are they different?5. Putting together a display campaign – What does it take?6. Budget - How to secure budget for display ad campaigns
  4. 4. Display Advertising Terminology• Advertiser = The businessthat placed this ad (e.g. SAP)• Publisher =• Media Agency = works forthe advertiser in designingthe ad (creative), thenbuying ad placements(media buying), anddetermines ad budget(media spend)• Inventory = how manyimpressions of the ad areavailable through a specificpublisher
  5. 5. Buying AdsAds are bought in units of:1. Impressions, in units of 1000 (CPM)Impression = each view or showing of the ade.g. $1 CPM = 1000 impressions for every $1$2 CPM = 500 impressions for every $12. Clicks or Click-throughs, with a cost per click (CPC)e.g. $5 CPC = each click on the ad costs $53. Leads, with a cost per lead (CPL), sometimes cost per (user)acquisition (CPA)Risk shifts from advertiser to publisher as we go from CPM -> CPC ->CPL / CPA“As an advertiser, your lowest risk is buying leads - IF you are confidentof the quality of the lead that you will get”.
  6. 6. Types of Display AdsAd Formats• banner ads / image ads / flat ads - simple images (PNG, JPG)• rich media ads - Flash-based or Dynamic HTML-based. Ads canhave forms for lead capture, polling, social sharing, etc.
  7. 7. Ad SizesThere are many standard sizes defined by the Interactive AdvertisingBureau (IAB):• leaderboard (728x90) = 728 pixels wide, 90 pixels high• medium rectangle (300x250)most available inventory across ad sizes• Other common sizes• 300x600• 160x600• 180x150• mobile ad sizes (iPhones, Androids, iPads)• 468x50• 300x50• 320x50
  8. 8. Ad Sizes
  9. 9. Placing AdsAd Platforms: where you log-in, upload ads, and they serve the adsPlacing Display Ads – Your options:• Direct Media Buy - you would pay for placing 1 or more ad sizes on aspecific publisher website, and a specified # impressions, for a periodof time.• e.g. 200,000 impressions per month on from July toDec 2013.• You can have more rules around your ad buy such as:• Viewable impressions - they must be “Above the Fold”, 60% ofad visible in a viewable area or in-focus page for at least 1 sec• Time of Day - Ads shown during specific hours (e.g. 9 AM to 6PM PST) a.k.a. “Dayparting Display Ads”
  10. 10. Ad Network BuyEach ad network (e.g. GDN) will have an inventory of impressionsavailable by:• Type of Audience - Demographic (B2C), Firmographic (B2B)• Demographic - Male/Female, Income, Location, Interests(News, Fashion, Movies, etc.)• Firmographic - Industry, Job Function, Company Size, CompanyRevenue, LocationAd Exchanges + Buy Side Platforms with Real-time Bidding• Google DoubleClick Bid Manager (DBM)• AppNexus• MediaMath• TheTradeDesk• Set caps on price, define targeting rules (on what sites / places / towhich audiences will the ad be served)List of Kwanzoo-supported Ad Networks and Platforms today: (constantly updated)
  11. 11. Display Placement OpportunitiesGoogleOther NetworksRetargetingExchange NetworksB2B Audiences
  12. 12. Brand vs. DemandBrand Marketers• Brand Recall - how many of the consumers who are surveyed recallyour brand with its key attributes.• e.g. BMW = performance, Toyota = innovation• Brand Lift - did the display ad campaign increase brand recall, and byhow much• Engagement - what % of users clicked on the ads, or engaged withthe brand via the ad• Click-through - visits to the Company’s website as a result of thebrand ads• View-through - users view the ad, and visit your website directlywithout clicking on the ad• E.g. View-through at 9X of click-through the ad.
  13. 13. Demand Generation TermsDemand Marketers• Conversion - turning an unknown user into a known prospect(first name, last name, email, company, etc.)• Landing Pages - where conversions typically happen today• user clicks on a flat ad, then redirected to the landing page in anew browser window
  14. 14. Calculating Cost per Lead for a Display CampaignCalculating Cost Per Lead• 1 month display ad campaign• $5,000 media buy @ $5 CPM• You would serve 1 million impressions (1,000,000)• If your click-through rate on the ads is 0.1%• You would generate (1,000,000 x 0.001) = 1000 clicks• Landing Page Conversion Rate = 5%,1/20 of your clicks result in a form fill on the Landing Page• Each form fill on the Landing Page = A lead capture• # Leads = 1000 clicks x Landing Page conversion rate= 1000 clicks x 5%= 50Your cost per lead = $5000 / 50 = $100Goal = As many high quality leads as possible, for your media spend
  15. 15. A/B TestingA/B Testing - running different versions of the ads (brand or demand) totest which messages and offers resonate the most with theaudience, and drive the highest results (i.e. lead conversions)
  16. 16. In-Banner Lead Forms – New Way to Increase ConversionsBannerAds:Engage & gather insights withrich media ads (ex: polls)Capture lead in the ad within-banner lead formsDisrupt user by redirecting themto branded landing pagePlace ad on 3rd party siteTraditionalNew WayCollect infoin CRM/MAP
  17. 17. New Prospecting vs. RetargetingNew Prospecting• Prospects NOT already in the advertiser’s database. Reach new“watering holes” and place ads to attract new prospects, get them toopt-in into further conversation.Re-targeting• Already a bit familiar with the brand. Visited your site and bounced.• Conversion rates for re-targeting = typically higher than for newprospecting.
  18. 18. How Retargeting WorksYour Website Ad NetworkOrganicSearchEmail Social PPC &DisplayVisitors get trackedfor retargeting (cookie’d)Tracking works beyond yourwebsite across the webRetargeted AdsExample:• 10,000 website visitors• 20 impressions / visitor / month• Total of 200,000 retargetedimpressions per 30 day period
  19. 19. Putting Together a Display Campaign1. Define the goal - brand awareness ? demand creation? both?2. Target audience - Persona(s)? Buyer needs messaged via the ad?3. Budget - finalize number based on goals re: brand – reach, engaged,or demand – leads4. Placement - targeting, media buying. In-house, outsource?5. Creative - copy, design, messaging, content offers, brand guidelines6. Execute & Review - analytics, reporting, key metrics7. Campaign Management –• Targeting - update sites, audience segments, etc. based on what works• Bid Management – set bid prices to meet volume goals (daily/weekly)• Creative updates - changes in mid-flight based on engagement / leadcapture metrics
  20. 20. Securing Your Pilot Display Budget1. Speak the same language - as your brand colleagues / agency2. Understand ultimate business objective = sales, revenues• Be ready to discuss how display will contribute to final objectivee.g. Display will generate 200 new leads / month.• Display will deliver 30 new marketing-qualified-leads (MQLs)per month via follow-on email nurture campaigns• 30 MQLs => 3 new closed-win deals/monthwith $50K Annual Contract Value (ACV)3. Ask for pilot budget, prove success, and seek larger budget• Define a pilot budget of say 100 leads/month, that is then furthermeasured with a lead => MQL conversion goal that is validatedin follow-on months• As soon as you see acceptable CPL / CPA and lead => MQLconversion rates, increase your media spend to scale yourclosed-win deals/month.
  21. 21. Sample Kwanzoo Pilot CampaignMonthly Fixed:• Tech Fee = $999 per monthMonthly Variable:• Impression Fees = $1000 (1 million impressions) per month• Campaign Management Fee = $1050 ($15% of media spend)• Media Spend = $7000 paid to Ad Networks & ExchangesTotal: $10,049 per month (plus one-time creative dev fees)Goals:• Generate 30% higher lead conversions versus typical banner ads(e.g. 100 leads with banner ads => 130 leads with Kwanzoo tech.)• Generate more leads for same media budget• Demonstrate same / better quality of leads via strong lead => MQLconversion rates in follow-on months• Leverage real-time bidding (RTB) to spend on media morewisely, and open up new audiences to your products / services
  22. 22. Questions?For more information, contact:Phone: 408-216-7025Email: info@kwanzoo.comTwitter: @kwanzoo@iyermaniResources: