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Performance Marketing
Search vs Display
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History
The Display Advertising ecosystem is changing dramatically
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History
Google transformed the ad market into an automated stock market : Text Link in 2002
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History
Google transformed the ad market into an automated stock market : Display in 2008
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What is Performance ? Definition
Performance marketing is defined by getting measurable return on
investment. Unlike traditional marketing platforms such as TV,
print or radio, Performance Marketing implies pay-for-
performance. This means that one pays only a fixed amount per
action or share of revenue per sale rather than paying for
advertising and then hoping for the best.
Advertisers pay a set price for a defined action such as a download, a
visit, a lead, a click, a registration, an information request, a
purchase, etc.
Pricing is appealing to advertisers as the majority of risk is
passed on to Sales-House.
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How does it work ? Search : text link
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How does it work ? Social : text link
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How does it work ? Display : graphical
Leaderboard
IMU
Skyscraper
Textlink
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How does it work ? Conversion TAG
We absolutely need to place pixels to be able to measure the
performance of your campaign.
A pixel is a single line of HTML coding that is placed on the “Thank
You” page of a website, or the page directly following the
conversion. When the “Thank You” page appears, we receive a
request from the browser for this 1x1 pixel which alerts us that a
conversion has occurred.
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Performance Marketing
Search Engine Marketing
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Search Engines
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Campaign strategy
CAMPAIGNORGANISATION
Network selection
Format
Geo-targeting & language
Focus on brands,
products & strategies
Timing & daily
budget
Keywords & adtext
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Keywords selection
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Successful Ads
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Ad rank
Advertiser MaxCPC Quality Score
Rank Number
Position Actual CPC
A 0,40€ 1,80,40 x 1,8 =
0,72 10,37€
(0,65/1,8 + 0,01)
B 0,65€ 1,00,65 x 1,0 =
0,65 20,39€
(0,38/1,0 + 0,01)
C 0,25€ 1,50,25 x 1,5 =
0,38 30,08€
(= min bid)
More than Pay Per Click :
Rank = MaxCPC x Quality Score
Bidding System that requires active and ……frequent management for improving Quality.
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Ad rank
Advertiser MaxCPC Quality Score
Rank Number
Position Actual CPC
A 0,40€ 1,80,40 x 1,8 =
0,72 10,37€
(0,65/1,8 + 0,01)
B 0,65€ 1,00,65 x 1,0 =
0,65 20,39€
(0,38/1,0 + 0,01)
C 0,25€ 1,50,25 x 1,5 =
0,38 30,08€
(= min bid)
More than Pay Per Click :
MaxCPC :
You only pay when someone clicks on your ad
The cost per click depends on the competition
The max CPC is the maximum you’re ready to pay …..for a click
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Ad rank
More than Pay Per Click :
Quality Score :
Keyword’s relevance to search query
Keyword’s historical CTR on Google
Account’s historical performance on Google
Other relevant factors
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Ad rank
Advertiser MaxCPCQuality Score
Rank Number
PositionActual CPC
A 0,40€ 1,80,40 x 1,8 =
0,72 10,37€
(0,65/1,8 + 0,01)
B 0,65€ 1,00,65 x 1,0 =
0,65 20,39€
(0,38/1,0 + 0,01)
C 0,25€ 1,50,25 x 1,5 =
0,38 30,08€
(= min bid)
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Conversion process
User searches through Google
User visits site, resulting in conversion (purchase,
registration, etc.)
User reaches “Thank you” page and
sees Google image
Advertiser accountis updated with conversion
data
User clicks on ad and cookie is placed
1
2 3
Convertion pageLanding page
4
« Thank you » Google
5
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Performance Marketing
Display Marketing
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How does it work ?
2. Click
3.
Conversion
1.
Impression
Every impression / click / action generated is recorded within the ad server with date and
time (via cookies).
Landing Page
Fill in
TAG
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Post-impression vs. Post-click
The Click Through Rate is an
inadequate indicator undervaluing
the ads efficiency.
- 20% of conversions originate from
clicks.
- Whereas 79.6% of conversions
originate from the contact with
the advert without clicking. Distribution of the standard banner conversions in the world,Post-Impression vs Post-Click,
Q3 2009-Q2 2010 (% of total)
Post-Impression Conversions
79,6%
Post-ClicConversions
20,4%
Source: MediaMind, « Standard Banners-Non-Standard Results »
Beyond the click
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Retargeting
Retargeting pixels simply drop a cookie on a users machine when a page
on the clients website is visited, this identifies the user as being part
of a population
for re-targeting should that user re-enter our network.
When setting up retargeting for an advertiser or a publisher, there are
three steps:
- Setting up ad servers to read and write specific data to the cookie.
- Building the population.
- Targeting a media or campaign back to the population.
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Basic-Retargeting
Thanks to retargeting, we find your users back on the sites of our network and show them your specific
ads with a personalized message in priority
Only 2% of users buy on the site during their first visit
Banner 1 Banner 2 or
nothing
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Dynamic-Retargeting
25
Hitech.com
500€
The user has seen a 46cm TV on the Hitech.com site
We personalize the banners by showing the products previously consulted by the user.
We personalize the banners by highlighting the products from the same category in the banners (TV size, price, brand, etc…)
We personalize the banners by highlighting additional products In this case, it could be a DVD player or home cinema sound system.
Product recall Recommendations Cross selling
The user has placed the TV in the basket page but has not bought the product.
The user has bought a 46cm TV
Hitech.com
300€
Hitech.com
100€
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Duplication
Duplication occurs when two or more online properties take the
credit for the same sale.
The industry uses the last click/impression/search as the means for
determining which property generated the sale/action.
This is fundamentally flawed because several number of exposures
and touch points are required to result in a sale. Also, this method
does not factor in the impact of any offline activity.
Short of asking a user it is impossible to determine what creative
messages influenced the user to buy/engage.
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DuplicationThe overlapped areas are the ‘risk of duplication’ for each network.
The network with the largest spend will have the highest chance of being the last exposure.
The network with the lowest spend will be ‘handicapped’.
The conversion is firstly assigned to the last click or to the last impression.
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AdExchange
Display Network
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AdExchange
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A changing ecosystem
Agencies-
Trading desks
DSPDemand side
platforms
Sales House
-Adnetwor
ks
DEMAND SUPPLYAUTOMATISATION TECHNOLOGY
SSPSupply side platforms EditeursAdvertisers
PublishersAdExchange
Ad Exchange are now in the middle of transactions between advertisers, sales houses, and publishers…
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AdExchange
A sell side platform, also known as a publisher yield optimizer, works with publishers to increase their advertising revenue and help manage ad inventory , pricing, yield management, and the multiplicity of publisher sales channels.
SELL SIDE PLATFORM
Demand side platforms (DSPs) enable buyers to connect directly to multiple sources of inventory supply ( SSP, Publisher, adnetwork ) and provide such benefits as workflow simplification, integrated reporting, algorithmic buying optimization, and the ability to make impression-level bids (RTB)..
DEMAND SIDE PLATFORM
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AdExchange
Agency trading desks can be thought of as a specialized arm of larger media buying agencies that focus on media trading and RTB. Each desk represents a specific agency. Agency buying desks generally serve as the liaison between the advertiser or parent agency and the platforms they use to facilitate real-time bidding. For example, an agency buying desk may work with a DSP to facilitate an RTB campaign.
TRADING DESK
Ad networks aggregate supply (inventory) and demand (ads) and add their own and 3rd party data as well as targeting and optimization technology. Ad networks are slowly adding RTB capabilities in order to facilitate RTB transactions on behalf of agencies, advertisers, and agency buying desks.
ADNETWORKS
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AdExchange
Ad exchanges are powered marketplaces where numerous ad networks, publishers, advertisers and other sources of supply and demand meet to buy and sell media in continuous real-time bidding auctions. Exchanges provide workflow and reporting services and tools for buyers and sellers, as well as access to data suppliers and targeting, optimization and analytic technology andservices.
ADEXCHANGE
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Real Time Bidding
Real Time Bidding is a particular way of selling. It is like a stock exchange price that is determined by the balance of supply and demand. In the network marketers compete with each other to win the bidding. All the users can be ‘’bought’’ in real time, so the banner is seen by the right target at the right moment at the right price.
RTB
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Campaign priority
Adv. Imp. Clics CTR CONV CPM CPC CPA Budget eCPM Position
A1.500.00
0 5.000 0,3% 2,00 € 3.000,00 € 2,00 € 4
B1.250.00
0 5.000 0,4% 0,80 € 4.000,00 € 3,20 € 1C
1.500.000 7.500 0,5% 0,50 € 3.750,00 € 2,50 € 3
D1.000.00
0 5.000 0,5% 100 30 € 3.000,00 € 3,00 € 2
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Search Engine Marketing
Natural Search
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SEO
SEO involves making the pages of a site more easily accessible to search engines spiders and emphasising the key topics relating to a specific site.
SEO
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Keywords Analysis
By basing ourselves on requests actually made on the main international search tools, we give the current trend of the market.
To do this, we use a database which is updated daily and which contains the requests made on several of the main international search engines and directories : Bing, Google and Yahoo.
To customize a search engine optimization work, it is necessary to focus the efforts on keywords and associations really used by internet users.
By basing ourselves on the keywords which define the activity of the site, we undertake an analysis which allows us to determine the best keywords for search engine optimization.
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SEO
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Content optimizationPage Titles
Content title
URL
Content
Navigation
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SEO in 3 steps
SEO FACTORS
Contributing to optimal rankings
URL FACTORS- Search Engine Friendly URL’s- Site Structure- Domain Life Spam
ON-PAGE FACTORS- Content Relevance- Meta Tags- Keyword Density
OFF-PAGE FACTORS- Inbound Links from Directories- Online Press Releases- Blogs, RSS Feeds & More
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Case Study
AOL
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Site Audience
• Customer: AOL
• Sector: travel
• Activity: renting of family holiday resorts
• Problematic: less and less sales via travel agencies
decrease of the website audience
• Target: Increase sales rapidly
• Proposition: Search Engine Marketing & Display
Advertising
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Site Audience
03/2011 04/2011 05/2011 06/2011 07/2011 08/2011 09/2011 10/2011 11/2011 12/2011 01/2012 02/20120
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Trafic Direct Search Brand Search Generique Display Affiliation AdExhange RTG
897 V.U.
77.457 V.U.
18.492 V.U.
22.987 V.U.27.057 V.U.
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Conversion
03/2011 04/2011 05/2011 06/2011 07/2011 08/2011 09/2011 10/2011 11/2011 12/2011 01/2012 02/20120
50
100
150
200
250
300
350
400
450
Trafic Direct Search Brand Search Generique Display Affiliation AdExhange RTG
1.400 Conv. – 1,8%
888 Conv. – 4,8%
283 Conv. – 1,23%504 Conv. – 1,8%
101 Conv. – 11,26%
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CPA
Search Brand Search Generique Affiliation RTG
1,171504 504 101
5,188
14,73815,345
957
ConvBudget
4,43 € 29,24 € 30,45 € 9,48 €