Introduction To Online Media Planning And Buying
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Increasing Online Confidence
Understanding online media planning and buying
Alastair CartwrightJuly 2009
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A bit about me• 11 years online experience
• Part of senior management team that launched a Guardian Media Group website into the market in 2000 – Workthing.com
• Founded Enhance Media in 2001 - Online recruitment communications agency
• First UK recruitment ad agency to be Google qualified
• Developed range of online courses which were accredited to BTEC level 2 standard
• Clients included PwC, T-Mobile, AXA Sunlife, Cap Gemini
• Sold Enhance Media in 2008, now working as a consultant to a number of technology companies
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Agenda10.00am Introductions and day one objectives
10.15am The online advertising market
10.30am UK Online Adspend Study – IAB/PwC
11.00am Break – coffee
11.15am Different types of online advertising solutions
11.30am Understanding social media and how to develop attraction
strategies
12.15pm Basic Principles of online creative
12.45pm Recap and summary – unanswered questions
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What do we want from today?
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The online advertising market
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Market background
and trends
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Marketing budgets to hit new low in Q4 08
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….And so it came to pass….
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Markets in crisis
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Disappeared from the High Street
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Shoppers find convenience and value online
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In uncertain times……
….when budgets are being slashed
…..Marketing has to be accountable
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This is the first recession
since the internet has become a
mass medium……..
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Accountability is Online’s trump card
AA
AA
AA
KKQQ
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32.3m34.68m
Jul-Dec 2007 Jul-Dec 2008
12.0m
15.3m
Jul-Dec 2007 Jul-Dec 2008
Number of internet users in the UK
Source: NRS UKOM: Jul-Dec 2008; Jul-Dec 2007
66%UK Pop
71%UK Pop
37%Online
Pop
44%Online
Pop
Internet users going online more than once a day
Number of people online
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2 thirds of broadband services are now above 2 MB
34%
14%
12%
38%
32%
26%
54%
62%
28%
0% 20% 40% 60% 80% 100%
Nov '06
Nov '07
Nov-08
< 2MB2 MB>2 MB
Base: All who know speed of broadband connection at home. Q: Do you know the connection speed of your home broadband package? (Nov 06; Nov 07; Nov 08)
Source: BMRB Internet Monitor Nov 2006; Nov 2007; Nov 2008
48% of home broadband users have used wireless broadband at home in the last month (Nov 2008)
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6 5
24
29
36
56
18
25
46TV
Internet
Radio
Newspapers
Magazines
7
24
48
5
16
Weekdays
Saturdays Sundays
Source: BMRB Internet Monitor, November 2008 Base: All Internet users aged 15+
Online second only to TV - % of media time for all internet users
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UK Online Adspend Study Results for the full year of 2008
Prepared by PricewaterhouseCoopers for the IAB
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£3,349.7mmarket in 2008
An increase of £537.1m year-on-year
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
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17.1% increase
2008 vs. 2007
on a like for like basis
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
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Online advertising reaches £846m in Q3
47.442.836.638.936.645.251.163.888.0105.2119.7
152.1171.8
224.1
303.5327.0
350.5
461.2
514.9
583.7
653.8680.6
724.1754.2
847.0822.7
846.1834.0
385.5456.0
174.6
254.6
0
100
200
300
400
500
600
700
800
900
Q101
Q201
Q301
Q401
Q102
Q202
Q302
Q402
Q103
Q203
Q303
Q403
Q104
Q204
Q304
Q404
Q105
Q205
Q305
Q405
Q106
Q206
Q306
Q406
Q107
Q207
Q307
Q407
Q108
Q208
Q308
Q408
£ m
illio
ns
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
‘01 ‘03‘02 ‘04 ‘05 ‘06 ‘07 ‘08
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Online in context…
Breaking market trends in the UK ad industry
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21.9%
19.2%
11.7% 5.1%
3.2%
1.0%5.4%
13.1%
19.5%
TelevisionPress DisplayInternetPress ClassifiedDirect MailOutdoorDirectoriesRadioCinema
% share of revenues for January to December 2008
Total advertisingmarket
£17.5bn
2008 market share 19.2% (15.5% in 2007)
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
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-7.0%-4.4% -3.8%
0.1%
17.1%
-17.3%
-6.0%-6.3%-6.7%
PressClassified
Directories PressDisplay
Radio Direct Mail TV Outdoor Cinema Internet
Source: PricewaterhouseCoopers / Internet Advertising Bureau, The Advertising Association / WARC: WARC estimate for directories.
Online only medium showing growth in 2008
Total advertising market growth = -3.5%
Year on year growth for 2008
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Mar
ket
Sha
re
Online’s share growth accelerates to 20%
Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC
2.5% 3.3% 4.2%5.5%
7.3%8.4%
10.4%12.4%
15.0%
18.6%19.8%
16.1%
H12003
H22003
H12004
H22004
H12005
H22005
H12006
H22006
H12007
H22007
H12008
H22008
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Summary – Full year 2008• Online advertising is the only medium showing growth
in 2008
• Internet advertising reaches £3,349.7m in 2008
• Online achieved a share of 19.2%, up nearly 4 points from 2007 (15.5%)
• The market grew on a like for like basis by 17.1% year-on-year, still maintaining strong growth
• Online now on a level pegging with Press Display
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The digital media mix
The developing mix of ad products
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59.3%
19.0%
0.3%
21.4%
Display
Classifieds
Paid for search
Solus Email
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
Full year total£3,349.7m
% share of revenues for the full year 2008
The digital media mix
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335.9 262.2
768.3
453.7 379.0
1165.6
592.0 585.3
1619.1
637.4 715.2
1986.9
Display Classifieds Paid for search
2005 2006 2007 2008
£ m
illio
ns
+7.7% +22.2%
+22.7%
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
The digital media mix
All online formats are still experiencing growth
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The digital media mix£
mill
ions
IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
16.2
15.1
19.2
44.1
23.4
23.1
298.4
467.1
10.2
11.8
12.7
13.0
15.5
24.5
324.7
390.5
495.8
1986.91619.1
286.8
Solus Email
Interruptive formats
Other display
Tenancies
Display ads on email
Sponsorships
Recruitment classifieds
Further classifieds
Banners / Embedded
Paid-for search listings
2008
2007
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
Year on year comparison
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Classifieds led by key players
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78%
4%2%
2% 2%
2% 8%
2% Banners / Embedded
Sponsorships
Interruptive formats
Display ads on email
Tenancies
Pre-post roll
Display affiliate
Other display
The display digital media mix
Source: PricewaterhouseCoopers / Internet Advertising Bureau / WARC
IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.
Full year display total£637.4m
% share of display revenues for the full year 2008
£495.8m
£11.8m
£15.5m
£13.0m
£11.7m
£52.4m
£12.7m
£24.5m
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44% of gross display spend through networks
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The online agency landscape
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Introduction • The definitions of trading online and engaging key
audiences online are blurring and the leading companies are now looking at digital in totality and implementing numerous fully tracked initiatives to achieve a range of KPI's.
• The following sections touch upon the majority of areas which need to be considered when using the digital medium
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Agency roles
• Generally a brand entering the digital space will require two different agency capabilities; a digital media agency and a creative agency.
• Most digital media agencies will offer creative but many brands prefer to keep them separate. The reason for this can range from pure creative houses being more creative, existing relationships, costs and not putting all eggs in one basket etc.
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KPI's • KPI's for digital direct response marketing should be
ROI but can also include such things such as e-mail addresses collected / registrations.
• KPI's for digital brand marketing should reflect the ambitions of the brand such as dwell time on site, reach of a brand messages, weighted scores for visiting different areas of the site, repeat user acquisition etc.
• Each business generally has different ambitions and with comprehensive tracking all KPI's can be measured against.
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Media agency
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Media agency
• Media agencies are generally responsible for all paid for media excluding affiliate marketing.
• Roles covered will be planning and buying online media and search, full responsibility for tracking and reporting, creative asset coordination, forecasting and updating the client on key digital developments.
• Naturally these responsibilities can be broadened or reduced but the above is generally considered a bare minimum.
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Creative agency
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Creative • Creative agencies must be renowned for their
creativity, but also taking into account the need for a direct response message – results!
• With digital being a medium for both direct response and branding it is key to find a relationship between the two and measure both with different KPI's.
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Direct response creative • Direct response creative tends to be placed on cheaper
high reach less targeted sites on a CPC or CPA basis.
• The creative needs to on the whole be commerce led with a strong brand presence.
• Creative placements tend to be standard without the use of rich media (i.e. overlays etc).
• DR campaigns are generally measured on pure return on investment i.e. the cost of the media (including agencies, tracking etc) versus the direct financial return (could include life time user value when known).
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Brand led creative • Brand led creative is generally a richer creative execution
and may involve the use of rich media and highly targeted media placements.
• The media value of highly targeted placements is traditionally higher in cost and is normally charged on a CPM basis.
• Brand creative on the whole is not about driving sales but changing the consumers views of the brand / products.
• KPI's can range and various digital brand measurement tools such as Dynamic Logic are available to track progress.
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The digital media armoury
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How to buy online media
Digital media is traditionally purchased via the following mechanics:
1. CPM - Cost per mille (1000) - High risk often mechanic for prime inventory
2. CPC - Cost per click - Favourable but still element of risk
3. CPA - Cost per acquisition - Most favourable
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Portals
Definition: Web sites that feature numerous content categories and receive a high volume of web traffic
Social media
Definition: A social structure made of nodes (which are generally individuals or organizations) that are tied by one or more specific types of interdependency
Verticals
Definition: Web media that is focused on a specific area of content or targeted at a specific audience
Networks
Definition: Companies that aggregate ad inventory from hundreds of websites of various content categories
Affiliate Networks
Definition: Companies that provide a third party solution for advertisers to form relationships with thousands of smaller websites
Key display media channels
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Typically the largest potential reach in the market
Availability of inventory creates opportunity for higher volume, but lower conversion rates due to competing advertising and a less qualified audience
Requires constant testing and optimisation
Expensive - requires significant investment to generate results
Traditionally bought on a CPM with a CPC element
Every portal performs differently by market
Your advert
Your advert Portals
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Enormous reach and easy to implement.
Can be bought on CPC or free for Twitter
Engagement to advertising is very low and risks of poor brand exposure are very high
If mastered sales can be grown to unprecedented levels
Sites can be teen focused which can lead to small basket sizes
Your advert
Your advertSocial Media
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Typically very expensive. High CPM rates
Smaller audience, even though more targeted cannot generate volume efficiently
More difficult to work with publishers as they tend to be less sophisticated
Verticals
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Provides enormous reach with only one agreement
Requires a great deal of testing and is difficult to optimize, since you do not know on what sites your media is placed (media is purchased by category)
Inconsistent performance which depends on network, inventory availability and available creative sizes
Upon CPC test CPA agreements can be reached which is mutually rewarding for all parties
Networks
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Very favorable as able to drive cost efficient volume which is paid on CPA
Requires full-time person devoted to managing affiliate relationships
Slight lack of brand control
Provides continual advertising presence at no cost
One of the most effective ways to trade online as brand reaches sites which could not profitably be worked with
Affiliate marketing
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Different display advertising formats
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Skyscraper - http://creativezone.eyeblaster.com/#ItemName=Skoda%20Eat%20My%20Hat%20Skyscraper
Commercial break - http://creativezone.eyeblaster.com/#ItemName=Coke%20Video%20Wall
Wallpaper - http://creativezone.eyeblaster.com/#ItemName=Barclay%20card%20skin
Peel back - http://creativezone.eyeblaster.com/#ItemName=McDonald's
Homepage takeover - http://creativezone.eyeblaster.com/#ItemName=Harry%20Potter%20Skin
Floating expandable – http://creativezone.eyeblaster.com/#ItemName=Holden%20Colorado%20
Widgets - http://creativezone.eyeblaster.com/#ItemName=Will%20Young%20Widget%20Ad
Overlay - http://creativezone.eyeblaster.com/#ItemName=Standard%20Life%20Investments
Shared ads - http://creativezone.eyeblaster.com/#ItemName=Bruno%20Messenger%20Shared%20Ad
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Search
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Click trends
• Users generally click on the top organic listings and the top of the paid listings.
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Search Categories
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Paid search • Search is paid for via a bidding platform, each search
term is bid against and when the terms are clicked these monies are owed to search supplier.
• The brand led search terms should be tracked and measured against the defined KPI's and optimised accordingly.
• The direct response search terms should be measured against return on investment i.e. are the sales paying for the search activity (life time value should be considered).
• Paid search can be launched in a matter of hours and changes can be made in real time.
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May 2009 Account activity
Spend £3,728
Click Thrus 6,442
Cost Per Click £0.58
Applications 1,001
Cost per Application £3.700
Conversion Rate 16.6%
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Organic search • There are a variety of ways to optimise copy
and content to improve listings.
• Natural search optimisation is a lengthy process and should be treated as a separate project.
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Organic search • Seven keys factors:
1. Page submission – submit your pages to search engines2. Design – easy to find, read and navigate3. Title tags – appropriate page title4. Body text – healthy amount with high keyword density5. Anchor text – use text links for navigation6. Fresh content – great for Google, e.g. blogs7. Link building – high quality external links to your
website
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Social networking sites
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• Facebook– 42,000 joined on Saturday January 3rd – Bigger than Google, 9.8 billion page views per
month– More time than AOL + Yahoo! + MSN– “When I Was Your Age, Pluto Was a Planet.”-
1,521,083 members– "If this group reaches 100,000 my girlfriend will
have a threesome.“
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• Create ad• View Neilson Facebook page
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How to set up a Twitter accountStep 1: Go to http://twitter.com.Step 2: Click the Join the conversation! Green BoxStep 3: Create a Username.I’d recommend using your domain name
(ie. http://twitter.com/killercreative ) If it’s just for fun or personal use, use whatever you want as the username.
Step 4: Start connecting!
For more information on this check out –http://www.twitip.com/how-to-set-up-a-twitter-account/
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Businesses using Twitter
1. Dell has created a number of Twitter profiles, (e.g. DellOutlet posts recent refurbished Dell computer offers).
2. Starbucks posts new offers and also participates in threaded discussions of these offers with their Twitter-followers.
3. Whole Foods Market asks what their clients like to read and watch, recommends new food podcasts and invites them to the company upcoming events.
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Businesses uses for Twitter• Marketing tool: Businesses are using Twitter as a marketing
or public relations channel by connecting with customers directly.
• Building reputations: Twitter is being used by workers to improve their personal reputations, thereby enhancing the company's reputation.
• Sharing experience: Staff are sharing information about what they are doing so they can help each other with ideas.
• Information gathering: Twitter is being used to gather information about what customers, competitors and others are saying about a company.
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Basic principles of online creative
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Online display advertisingMisconceptions about display
• Firstly, that online is a restrictive space allowing for little creativity.
• Second, that internet display advertising should be interruptive - consumers will never notice you unless you get in their way.
• Finally, online is all about direct response because it’s the most measureable, accountable medium that can facilitate sales from the initial point of consumer interest.
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Online display advertisingAs well as encouraging “click to buy” online display has a number of other roles:1.Raising awareness2.Entertainment3.Evoking an emotional response4.Integrating and extending the brand5.Driving online PR and embracing the social element of the web
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Raising awareness• http://www.thegrandunion.com/coi_14/beergogglesgirl/insitu.html• http://www.thegrandunion.com/coi_14/beergogglesboy/insitu.html
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Entertainmenthttp://portfolio.london.agency.com/clients/ikea/kitchens/index_01.html
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Evoking an emotional responsehttps://www.armyjobs.mod.uk/StartThinkingSoldier/Pages/Default.aspx#
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Driving online PR and embracing the social element of the web
http://www.aislondon.com/indigo/
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And finally
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The most creative website ever?...
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Thank you – Any questions
Alastair [email protected] 682790
http://www.linkedin.com/in/alastaircartwrighthttp://twitter.com/alcartwright