Digital Display Advertising

AGENDA

1.Display advertising terminology – CPM, CPC, CPA, CPL

and more

2.Display advertising ecosystem – Ad networks, Exchanges,

RTB & Ad platforms

3.Brand versus Demand – Making Sense of all the Jargon

4.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

Display Advertising Terminology

• Advertiser = The business

that placed this ad (e.g. SAP)

• Publisher = Forbes.com

• Media Agency = works for

the advertiser in designing
the ad (creative), then
buying ad placements
(media buying), and
determines ad budget
(media spend)

• Inventory = how many

impressions of the ad are
available through a specific
publisher
 Buying Ads

Ads are bought in units of:

1. Impressions, in units of 1000 (CPM) Impression = each view or
showing of the ad
e.g. $1 CPM = 1000 impressions for every $1
$2 CPM =500 impressions for every $1
$5 CPM = 250 impressions for every $1

2. Clicks or Click-throughs, with a cost per click (CPC)

e.g. $5 CPC = each click on the ad costs $5

3. 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 confident
of the quality of the lead that you will get”.
Types of Display Ads

Ad Formats
• banner ads / image ads / flat ads - simple images (PNG, JPG)

• rich media ads - Flash-based or Dynamic HTML-based. Ads can

have forms for lead capture, polling, social sharing, etc.
Ad Sizes

There are many standard sizes defined by the Interactive Advertising

Bureau (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
Ad Sizes
 Placing Ads

Ad Platforms: where you log-in, upload ads, and they serve the ads

Placing Display Ads – Your options:

•Direct Media Buy - you would pay for placing 1 or more ad sizes on a
specific publisher website, and a specified # impressions, for a period of
time.

• e.g. 200,000 impressions per month on Forbes.com from July to

Dec 2013.

•You can have more rules around your ad buy such as:

• Viewable impressions - they must be “Above the Fold”, 60% of ad

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 6

PM PST) a.k.a. “Dayparting Display Ads”
Ad Network Buy

Each ad network (e.g. GDN) will have an inventory of impressions

available by:
•Type of Audience - Demographic (B2C), Firmographic (B2B)
•Demographic - Male/Female, Income, Location, Interests (News,
Fashion, Movies, etc.)
•Firmographic - Industry, Job Function, Company Size, Company
Revenue, Location

•Set caps on price, define targeting rules (on what sites / places / to
which audiences will the ad be served)
 Display Placement
Opportunities
Googl Exchange
e Networks

Other Networks

B2B Audiences

Retargetin
g
Brand vs. Demand

Brand Marketers

•Brand Recall - how many of the consumers who are surveyed recall
your brand with its key attributes.
• e.g. BMW = performance, Toyota = innovation

•Brand Lift - did the display ad campaign increase brand recall, and by
how much

•Engagement - what % of users clicked on the ads, or engaged with the

brand via the ad

•Click-through - visits to the Company’s website as a result of the

brand ads

•View-through - users view the ad, and visit your website directly without
clicking on the ad
• E.g. View-through at 9X of click-through the ad.
 Demand Generation Terms
Demand 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 a
new browser window
Calculating Cost per Lead for a Display Campaign

Calculating Cost Per Lead

• 1 month display ad campaign

•$5,000 media buy

•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%
= 50
Your cost per lead = $5000 / 50 = $100

Goal = As many high quality leads as possible, for your media

spend
 A/B Testing
A/B Testing - running different versions of the ads (brand or demand) to
test which messages and offers resonate the most with the
audience, and drive the highest results (i.e. lead conversions)
In-Banner Lead Forms – New Way to Increase
Conversions
Banner
Ads:
Traditiona
l
Disrupt user by redirecting them to
Place ad on 3 party site
rd
branded landing page
New
Way

Collect info
in CRM/MAP

Engage & gather insights with Capture lead in the ad with in-
rich media ads (ex: polls) banner lead forms
New Prospecting vs. Retargeting

New Prospecting
•Prospects NOT already in the advertiser’s database. Reach new
“watering holes” and place ads to attract new prospects, get them to opt-
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 new
prospecting.
 How Retargeting Works
Your Ad Network
Organi Website
Emai Social PPC &
c l Displa Retargeted
Search y
Ads

Example
:
• 10,000 website visitors
• 20 impressions / visitor /
month
Visitors get tracked •
for retargeting (cookie’d) Total of 200,000 retargeted
Tracking works beyond impressions per 30 day period
your website across the
web
Putting Together a Display Campaign

1. 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 – leads

4. Placement - targeting, media buying. In-house, outsource?

5. Creative - copy, design, messaging, content offers, brand guidelines

6. Execute & Review - analytics, reporting, key metrics

7. 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 / lead
capture metrics
Securing Your Pilot Display Budget

1. Speak the same language - as your brand colleagues / agency

2. Understand ultimate business objective = sales, revenues

• Be ready to discuss how display will contribute to final objective
e.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/month with $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 further
measured with a lead => MQL conversion goal that is validated in
follow-on months
• As soon as you see acceptable CPL / CPA and lead => MQL
conversion rates, increase your media spend to scale your
closed-win deals/month.
Sample Pilot Campaign

Monthly Fixed:
•Tech Fee = $999 per month

Monthly Variable:
•Impression Fees = $1000 (1 million impressions) per month
•Campaign Management Fee = $1050 ($15% of media spend)
•Media Spend = $7000 paid to Ad Networks & Exchanges

Total: $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)
•Generate more leads for same media budget
•Demonstrate same / better quality of leads via strong lead => MQL
conversion rates in follow-on months
•Leverage real-time bidding (RTB) to spend on media more wisely,
and open up new audiences to your products / services
• http://www.bizrate.com/handbags-luggage/index__sort--7.html