Diversification of Digital, by LeapFrog Interactive
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Transcript of Diversification of Digital, by LeapFrog Interactive
Diversification of Digital
Christy Belden, Vice President, Media + Marketing
May 26, 2011
2Diversification of Digital
Agenda
+ Introductions
+ Basics
+ Statistics
+ Key Terminology, Common Acronyms + Resources
+ Types of Digital Ads
+ How Digital Advertising Works
+ Pricing + Strategy
+ Ad Performance + Measurement
+ Trends + Current Event
+ Best Practices
3LeapFrog Interactive
Diversification of Digital
Twitter: @LFI#display#LFI#digitalmedia
Facebook: www.facebook.com/LeapFrogInteractiveAgency
Blog: www.leapfroginteractive.com/blog
4Christy Belden
Vice President of Media + Marketing, LeapFrog Interactive
Experience: 11 yearsThe Courier-JournalUniversity of Louisville
SEMPO CertifiedGoogle AdWords Professionals (GAP) Certified
Christy knows marketing. Display, PPC, SEO, social media, email, mobile, traditional—she’s been there and done that. She continues to build a deep well of experience and is always in touch with the trends and strategies that provide a solid return on clients’ investments.
Examples
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Basics
10Definition of Digital Advertising
What is a display ad?
+ A graphical web advertising unit
+ A graphical image on the a website used to promote products or services
+ Otherwise called:
+ Web Ad
+ Web Banner
+ Banner Advertising
+Banners
11Definition of Digital Advertising
12Definition of Digital Advertising
13Definition of Digital Advertising
14History of Digital Advertising
Recap
+ The first digital ad appeared on HotWired.com in 1994
+ The first ad was called a ‘graphical ad unit’
+ MCI, Volvo, Club Med, 1-800-Collect, AT&T and Zima were the first advertisers on HotWired.com
Source: http://adage.com/article/digitalnext/happy-birthday-digital-advertising/139964/
Statistics
16Diversification of Digital
Did You Know?
Source: Huffington Post via TechCrunch/Comscore; eMarketer.com
Ads served to US Internet users in Q1 2011: 1.1 trillion
Of those ads, number served via Facebook: 346 billion
Total % ads served to US Internet users that were on Facebook in Q1
2011: 31
Banner Ads Spending Was Up 23% YOY in 2010
17Diversification of Digital
Did You Know?
Source: eMarketer US Ad Spending: Online Outshines Other Media, Dec 2010
*Eric Schmidt, chairman-CEO of Google, predicts online advertising will increase from $62 billion a year to $200 billion in the next 5-10 years.
(Ad Age, “Ad Networks Raise Profile with Targeting” May 2011)
18Diversification of Digital
Did You Know?
Source: comScore 2010 US Digital Year in Review
19Diversification of Digital
Did You Know?
Source: comScore 2010 US Digital Year in Review
20Diversification of Digital
Did You Know?
Source: comScore 2010 US Digital Year in Review
21Diversification of Digital
Did You Know?
Source: Ad Age, “Facesbook Scores Again With Most Ads on the Web” May 9, 2011
22Diversification of Digital
Did You Know?
Source: Ad Age, “Facesbook Scores Again With Most Ads on the Web” May 9, 2011
23Diversification of Digital
Did You Know?
Source: comScore 2010 US Digital Year in Review
Key Terminology + Common Acronyms + Resources
25Key Terminology
Glossary of Terms
+ Cookies: code placed in a browser so the browser’s activity is recorded, i.e. visiting a page and it is “remembered” when the browser returns to the site or another ad is served
+ Beacon: 1x1 pixel tag used to track unique user activities over time, i.e. tracking a user who clicked through on an ad and purchased several days later
+ Unique visitors (UVs): measure for readership or net audience
+ Page Views (PVs): measure of requests to load a single page of an Internet site
+ Ad Impressions: each time an advertisement loads on a user’s screen
+ Sessions: aka “visits,” is the number of times each unique visitor goes to a website
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
26Key Terminology
Glossary of Terms
+ Ad Exchange: Marketplace-like network of excess inventory on publisher sites which media buyers can access and purchase
+ Ad Network: Aggregates audiences based on demography or intent to purchase
+ Mobile Network: sells ad on wireless devices (i.e. phones & tablets) + Video Network: aggregates video inventory to run ads or syndicate
video content
+ DSP: “Demand Side Platform,” platform used by agencies & advertisers to automate media buying across multiple sources with unified targeting, data, optimization, and reports
+ Ad Server: Technology that disseminates online ads and then, tracks and reports back on performance
Source: AdAge, “Special Report: Audience Buying Guide” April 2011
27Key Terminology
Glossary of Terms
+ Data Aggregator: Pulls together ad-serving data, conversion data, and third-party data in an effort to attach preference attributes to a user or set of users
+ Ad Verification: Software enabling advertisers to determine if impressions are display in the proper place and whether ads are privacy compliant
+ Frequency Capping: Using cookies to manage the number of times a user sees specific ad creative, typically utilized to conserve impressions and improve campaign performance
+ OBA: Online Behavioral Advertising, also a compliance program led by IAB
Source: AdAge, “Special Report: Audience Buying Guide” April 2011
28Common Acronyms
Glossary of Acronyms
+ Key Performance Indicator (KPI): measureable points of interaction between consumer and brand
+ CPC: cost-per-click
+ CPM: cost-per-thousand [impressions]
+ CPA: cost-per-action+ Cost-per-download+ Cost-per-call
+ Click-Through Rate (CTR): the number of clicks divided by the number of impressions
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
29Resources
Industry Leaders: Associations
Digital Advertising Alliance
30Resources
Industry Leaders: Networks
31Resources
Industry Leaders: 3rd Party Ad Servers
32Resources
Industry Leaders: Data Suppliers
Types of Digital Ads
34Types of Digital Ads
Standard Ad Unit Sizes
Source: IAB, www.iab.com
Medium Rectangle300x250
Skyscraper160x600
Leaderboard728x90
Small Rectangle180x150
Half Page300x600
These are the five most common ad sizes, according to the Interactive Advertising Bureau (IAB).
35Types of Digital Ads
Ad Formats + Specs
+ .GIF/.JPG/.PNG “Static banner”
+ .SWF “Flash banner”
+ .EXP “Rich Media/Expandable banner”
*Source: IAB, www.iab.com
36Types of Digital Ads
Ad Format: GIF/JPEG/PNG
+ .GIF/.JPG/.PNG aka “Static banner”
+ Simple, single-frame image
+ Typically 30K file size*
+ May include “animated .GIF”
*Source: IAB, www.iab.com
37Types of Digital Ads
Why Brands Use Static Banners?
+ Ease of Creation: Organizations with limited creative resources can easily develop
static assets
+ Affordability: With appropriate sized buys, publishers may offer creative services for
free
+ Flexibility of Creative: Self-serve advertising solutions often don’t allow complex
display formats like Flash or Rich Media
38Types of Digital Ads
Static Banner Examples
39Types of Digital Ads
Ad Format: Flash
+ .SWF “Flash banner”
+ More dynamic, flexible coding language allows basic interaction and more complex imagery
+ Typically 40K file size*
*Source: IAB, www.iab.com
40Types of Digital Ads
Why Brands Use Flash Banners?
+ Cost savings: it takes less resources to develop Flash banners and typically there is no 3rd party ad serving required
+ Available inventory: more publishers will accept Flash banners on their websites than will accept Rich Media
+ Consumer visibility: slightly more consumers are able to view Flash on their computers than can view Rich Media
41Types of Digital Ads
Flash Banner Examples
+ Animation occurs in 7-10 seconds
+ CTA that appears on relevant frame and remains visible throughout the ad
+ Logo visible during entire ad
+ Realistic action/movement
+ Highlights consumer needs and answers with product recommendation
+ Highlights customizability
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42Types of Digital Ads
Flash Banner Examples
+ Simple , quick messaging
+ Consistent font and text size
+ Realistic action/movement
+ Highlights consumer needs and answers with product recommendation
+ Focuses on a single objective, straightforward CTA
+ Color scheme appropriate and eye-catching
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43Types of Digital Ads
Ad Formats + Specs
+ .EXP “Rich Media/Expandable banner”
+ Highly interactive, super complex creative which can include multi-functional features
+ Typically 40K with up to 100K polite load, upon click*
*Source: IAB, www.iab.com
44Types of Digital Ads
Why Brands Use Rich Media Banners?
+ Sophisticated functionality: the ability to incorporate games, polls, data collection, file downloads, product showcases, store locators and other interactive features makes Rich Media highly desirable
+ Outperformance of Flash: due to its nature, Rich Media frequently outperforms Flash
on interactivity rates, brand engagement and consumer ad recall
+ Enhanced reporting/tracking capabilities: almost any metric that relates to
functionality of each feature can be measured and reported on, allowing quicker
optimizations
+ Alternative to landing page: depending on a campaign’s goal, Rich Media can serve
as the only environment needed to achieve a conversion
45Types of Digital Ads
Rich Media Examples+ “Rollover” to act is used rather than “Click”
+ Tabs in upper right allow user to control their experience inside the ad
+ Users have the ability to download a brochure that meets their specific needs
+ “Close” button is clear, visible in bottom right
FYI:(1) Carestream® is able to see how many of
each brochure was downloaded.(2) Carestream® is able to tie each download
to a specific user’s name/email address
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46Types of Digital Ads
Rich Media Examples
+ Specific CTA
+ Creative use of product showcase feature by highlighting various treats you can make using the product
+ Allows consumers the option to print the recipe or e-mail it to yourself
+ Encourages users to use their “in-banner” search function – this is an example of how a brand may use Rich Media to replace a landing page
FYI:(1) Kellogg’s® is able to see which recipe was emailed or downloaded the most often
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47Types of Digital Ads
Rich Media Examples
+ Engaging question to capture attention
+ Specific CTA
+ Interactive creative with multiple videos for users to watch
+ Email/data collection feature always visible
FYI: (1) Carnival® would be able to feed email addresses directly into their database with an API. (2) Metrics would be able to tell Carnival® how many consumers watched each video 25%, 50%, 75% or 100%.
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48Types of Digital Ads
Takeover Example
49Types of Digital Ads
Overlay Example
50Types of Digital Ads
Newest OPA Standards Examples - Pushdown
Pushdown AdStarts as thin ad that expands to take up most “above the fold” space
upon click or rollover
51Types of Digital Ads
Newest OPA Standards Examples
Fixed Placement AdAd stays with you as you scroll up/down through content
52Types of Digital Ads
Newest OPA Standards Examples
XXL AdExtra-large ad for high impact/visibility
53Types of Digital Ads
Types of Video Ads
Video Ads+ In-stream video
- Pre-roll, mid-roll, post-roll
+ Overlay- Transparent overlays
+ In-banner- Video converted to Flash, plays within ad unit- Click to play or auto play
+ In-Text Video- User initiated, triggered by highlighted words within
content
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
54Types of Digital Ads
Considerations
+ On average, an advertisement has approximately 2-5 second to capture the attention of a user before their attention is elsewhere on a webpage
+ As of January 2009, Flash banners saw .07% - .14% CTR across all industries
+ Rich Media banners average .12% - .36% CTR; the goal of a rich media may not be a “click” through to landing page, but instead application completion, file download or coupon print-up
+ Average brand interaction time for expandable rich media ads is between 11-12 seconds, upon expansion
Resources: DoubleClick, PointRoll Industry Data (2009), Atlas 2007-2010
Pricing + Strategy
56Pricing + Strategy
Pricing Models
CPM+ Impressions sold in “packages” or levels+ Impressions sold ROS or targeted
CPC+ Costs accrued every time a click occurs
Flat Rates+ Associated with sponsorships+ Directory listings, supplier guides (B2B)+ Classifieds+ Sites with limited ad inventory+ Site with low tech ad serving
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
57Pricing + Strategy
Strategy of Different Structures
CPM CPC CPA
How Digital Buying Works
59How Digital Buying Works
Types of Buys
Ad Network+ Sold by categorization of sites (vertical, horizontal, video)
+ Niche verticals available
Direct Buy or Direct-to-Publisher+ One-on-one with a website, or small group of related websites
+ By nature of the buy, selection of individual relevant/niche sites is possible
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
60How Digital Buying Works
Ad Network
Pros+ Audience reach
+ Scalability
+ Hyper-targeting
+ Testing performance business models
+ Typically lower CPMs
+ Typically robust reporting
Cons+ Duplication across sites
+ Limited transparency+ No
“cherry picking”
+ Targeting content within sites
+ Generally no sponsorship programs
+ Occasional limitations with ad units and placements
61How Digital Buying Works
Direct Publishers
Pros+ Sponsorship opportunities
+ Specialized/niche content
+ More opportunities for “value adds”
+ General flexibility of ad formats
Cons+ Typically higher CPMs
+ Generally not sold on CPC or CPA
+ Basic reporting capabilities
+ Scalability can be limited
62How Digital Buying Works
Targeting Solutions
+ Geographic
+ Demographic
+ Local
+ Contextual
+ Day-Parting
+ Behavioral
63How Digital Buying Works
Targeting Solutions
Geographic
+ Zip code data provided by user+ Accurate, updated+ More granular
+ IP address identified via ad server- Less granular- Based on IP database
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
64How Digital Buying Works
Targeting Solutions
Behavioral Targeting
+ Ads targeted using behavior not content/page
+ Tracks user’s web usage behavior (via cookies)- Where user goes- Registration data- Survey data
- Recency- Keywords
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
65How Digital Buying Works
Targeting Solutions
Local Targeting
+ Local content
+ Portals and ad networks
+ Geo-based content
+ User provided demographics
+ Directories and Internet Yellow Pages
+ Search options
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
66How Digital Buying Works
Targeting Solutions
Contextual Targeting
+ Ads align with content featured on page, via keywords
+ Attempts to target based on users’ intent- Recency
- Keywords
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
67How Digital Buying Works
Targeting Solutions
Behavioral Targeting
+ Behaviors tracked via cookies data predict which ads are relevant to a user
+ Vertical-based
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
68How Digital Buying Works
Ad Delivery Process
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
69How Digital Buying Works
Ad Delivery Model
+ Scheduling- Start – Stop dates not pre-defined by media schedule- Day-parting
+ Smooth- Equal number of of impressions every day of campaign
+ Weighting- Deliver higher share of voice (% of total impressions)
Source: Intelligent Selling of Internet Advertising & Intelligent Planning & Buying of Internet Media – Level 1, Laredo Group, Q2 2009
70How Digital Buying Works
How “Cookies” Work in Targeting
http://online.wsj.com/video/how-advertisers-use-internet-cookies-to-track-you/92E525EB-9E4A-4399-817D-8C4E6EF68F93.html
Source: Wall Street Journal, “How Advertisers Use Internet Cookies to Track You”
71How Digital Buying Works
Self-Serve Solutions
Use self-serve vendors like:
When…+ Network/Publisher minimums don’t fit your budget
+ Creative flexibility is not an absolutely must-have
+ Programs need to be launch quickly
Ad Performance + Measurement
73Ad Performance + Measurement
Metrics for Rich Media
Static Banners:+ Impressions+ Clicks+ Click-Through Rates
Flash Banners: + Click-Through Rates+ Basic Interactions
Rich Media Banners:+ Interaction Rates+ Panel Views/Interactions+ Full plays (Video)+ Average Brand Interaction
Times+ Close Rates+ (Depending on goal) CTRs
74Ad Performance + Measurement
Campaign Performance + Effectiveness
Influential Factors+ Creative
+ Highlighted Call-to-Action Messaging
+ Targeting
+ Relevant Messaging
+ Ad Placement
+ Ad Size
+ Reach & Frequency
+ Optimizations
75Ad Performance + Measurement
Campaign Performance + Effectiveness
Engaging Creative (Rich Media)
+ Higher interactions with rich media
+ Multiple creative executions
+ High frequency delivery – avoid banner burn-out by running multiple creatives and ad sizes
76Ad Performance + Measurement
Campaign Performance + Effectiveness
Highlight Call-to-Action (CTA)
+ Use active verbs
+ Recognizable, each to read
77Ad Performance + Measurement
Campaign Performance + Effectiveness
Targeting
+ Higher CTRs with targeted messages vs. run-of-site (ROS)
+ Different creative for different targeted segments
+ Add geo-location to message
78Ad Performance + Measurement
Campaign Performance + Effectiveness
Relevant Messaging
+ Broader offers = higher CTRs
+ Narrow offers = lower CTRs
79Ad Performance + Measurement
Campaign Performance + Effectiveness
Ad Placement
+ Ads above-the-fold – higher CTRs
+ Ads on home pages – lower CTRs
+ Ads in targeted, opt-in newsletters – higher CTRs
Ad Size
+ Larger ads – more visibility, typically higher CTRs
80Ad Performance + Measurement
Campaign Performance + Effectiveness
Ad Frequency
+ Too much frequency – lower click rates
+ Too little frequency – hurt branding metrics
+ Direct response campaigns – evaluate the correct frequency cap to optimize ROI
81Ad Performance + Measurement
Campaign Performance + Effectiveness
Optimizations
+ If budget allows, test (A/B or multivariate)
+ Vendors should be proactive about recommendations for improvement
+ Develop a comfortable optimization frequency
+ Track toward improving your action – calls, downloads, video views, data collection
+ Experiment with placements, verticals – within reason
+ Ask vendor for screenshots but monitor when you can
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Mobile Display
83Mobile Display
Did You Know?
* Source 2008 Mobile Marketers Guide mobilemarketer.com
Percent of US Population (303.6MM) with a mobile phone: 80
Percent of mobile users with text messaging capabilities: 82
Percent with phones capable of browsing the Internet: 72
Percent of users who say they’ve been exposed to mobile ads in last
30 days : 23
Percent of those users who say they responded: 50
84Mobile Display
What is mobile display?
+ Display messaging in the mobile device environment
+ Can link to:+ make calls+ download apps+ share content+ submit
data/sign-up+ enter contests+ visit mobile
websites
85Mobile Display
How to Make an Effective Mobile Display Campaign
+ Be attentive to environments – ask where your ads may be and explore the environment for yourself
+ Practice concise messaging – mobile ads don’t leave much room for gregariousness
+ Be mindful of users’ time - consider where a user may come from and where you’re taking them
* Source: Pervez Skiora, “What makes mobile display ads effective?” 2011 mobilemarketer.com
86Mobile Display
Popular Networks
87Mobile Display
Benefits
+ Small screen, big audience, powerful targeting capabilities
+ Performance-based models (Cost-per-call, cost-per-download, cost-per-interaction)
+ Branding for those who don’t click+ Click rates at upwards of 3-6%*+ Downloads from clicks at upwards of 16-20%*
+ Flexibility in program type (sweepstakes, database collection, branding/awareness)
+ Typically lower minimums
+ Ease of integration with other marketing tactics
* Source: Greystripe & ATT Mobile Ad Solutions, 2011
88
Trends + Current Events
89Trends + Current Events
What’s Happening Now?
+ Digital Advertising Alliance+ Congress pushing “do-not-track” legislation+ FTC responds to consumer privacy concerns+ IAB introduced Code of Conduct+ DAA building on Self-Regulatory Principles of Online Behavioral
Advertising
+ Facebook tests real-time ad targeting, via data mining conversations
+ DMPs (Data Management Platforms)
+ AMPs (Audience Management Platforms)
+ Topic Targeting
+ ConditionalTargeting & Re-Targeting+ Search, Site, Creative
Best Practices
91Best Practices
Take-aways
+ Identify the ONE main objective of the creative
+ Execute a clear, concise call-to-action
+ Use consistent messaging (and imagery, where possible) across online & offline channels
+ Choose colors appropriate for audience and website where ad will be placed
+ Utilize A/B split testing or other methods of creative testing, create optimization schedule – LEARN!
+ Align creative with your landing page
92Best Practices
What Should You Expect from a Vendor/Agency?
+ Established goals before campaign launches
+ Resisted urges to revamp tracking structure or goal (unless absolutely necessary)
+ Optimization recommendations and analysis of performance
+ Tracking codes in place on front end
+ Analytics setup on back end
+ Regularly schedule reporting
93Best Practices
Landing Pages: “DONTs”
Banner Ad
Landing Page
94Best Practices
Landing Pages: “Almost but not quite”
Banner Ad
Landing Page
95Best Practices
Landing Pages: DOs
Banner Ad
Landing Page
96Best Practices
Landing Pages: DOs
Banner Ad
Landing Page
Questions?
98LeapFrog Interactive
Contact Us
Christy Belden, Vice President of Media + [email protected]
Twitter: @LFI
Facebook: www.Facebook.com/LeapFrogInteractiveAgency
Thank You