PERFORMANCE ADVERTISING: TIPS FOR PUBLISHERS AND ADVERTISERS

By Glen Maguire. M: 021 400 067 Glen@ClickThrough.co.nz

CEO of ClickThrough Online Marketing

KEY DEFINITIONS

• CPM: Cost per Thousand page impressions of an online advert on a publishers website.

• CPC: Cost per click is the amount an advertiser pays publishers for a single click on its

advertisement that brings one visitor to its website.

• CPA: Cost Per Action is where the advertiser only pays for the ad when a specified action has

occurred e.g. a product being purchased, a form being filled, a user registering, etc.

• CPL: Cost per Lead is when the advertisers pay for an interested lead.

THE ‘MELTDOWN’ ACCELERATES (GOOD) CHANGE

Bottom Line (P+L)!

Short-term Cash Flow

Analytical Decisions

Performance (Behaviour)

Delivery

NPV

Gut Feel

Impressions

FROM TO

MELTDOWN IMPACT ON DIGITAL MEDIA

Q1 Q2 Q3 Q4$0

$10

$20

$30

$40

$50

$60

Total Market Quarterly Comparison Q1, 2009

2007 2008 2009

A highest ever spend $49.26m (+8%) – no major media achieved growth in Q1.

WHY THE SEISMIC SHIFT?

- Bargain CPMs- Flexible Targeting

- Cost Effective

- Difficult to Quantify- Long-term Payback- Bottom Line Impact

TRADITIONAL MEDIA

DIGITAL MEDIA

PERFORMANCE ADVERTISING BOOM

(NZ) Paid search (e.g. CPC) largest with 38% share...delivers cost effective leads.

(US) Performance-based 57% of online ad revenues (39% CPM). 18% gap Vs 6% previous year.

Cost Per Action

Cost Per Click

Cost Per Thousand

CURRENT ADVERTISER AND PUBLISHER MODEL

ADVERTISER RISK

INCREASE

PUBLISHER RISK

INCREASE

PUBLISHER STRATEGIES

STRATEGY

View Through Vs Click Through

Reprioritize

Think ConversionPilot

Ramp-up Analytics

ADVERTISER STRATEGIES

STRATEGY

Review Goals

CPM, CPC, CPA

Conversion AuditSEO

Analytics!

(TOO) MANY GOOD ANALYTICS TOOLS

INFORMATION OR INSIGHT?

“Unless information is available to the right people in a format for decision making, it is a burden, not a benefit.”

“An insight is a penetrating discovery about a consumer motivation applied to unlock growth.”

INSIGHT GENERATION MODEL

ROI

Tools

Expertise

ANALYTICS: AT THE HEART OF PERFORMANCE

Website Blueprint

SUMMARY

The economic downturn is accelerating the growth of performance based

advertising. Accept this, embrace the opportunity!

Don’t just think usability: think conversion, behaviour, eCommerce.

Numbers and analytics are more important than ever. Think insights, not

information. Use experts to turn your data into valuable insights that unlock growth.

Outsource or develop internal talent.

Never be satisfied; restless fine tuning keeps you ahead of the game.

Good Luck!!

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ABOUT CLICKTHROUGH: CORE SERVICES

Contact Glen Maguire for further information:

M: 021 400 067

Glen@ClickThrough.co.nz