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FLOPOWER MEASURING VALUE OF CONTENT

Anke Audenaert Intro to Online Marketing

How can an ad supported publisher understand the value of its traffic and optimize the traffic flow?

Business decisions are a value exchange


Ad Supported publishers do not have a clear view on the value of traffic

Not knowing values makes it impossible to optimize decisions


Conventional metrics (PVs, CTR,) are poor proxies

March 2012

Calculating Value for Ad Supported Publishers

Immediate Value Alone does not Reflect the Real $ Value

Economic Theory
Incoming traffic

In a network: Content is valuable for the value it


generates and also for the referrals it generates
$ made from incoming traffic

(pages in a simple network)


Immediate $ value of landing page Future $ value of referring (landing) page

Value content assets In a networked environment, content has two roles:


1.
2.

Generate immediate value (e.g. eCPM) Drive users deeper into experience generate future value

$ made from incoming traffic


March 2012 3

Traffic Flow of Websites is Un-optimized Leaving Money on the Table


Problem: Across the board sites traffic is not aligned with value

Generate more traffic in high value pages

Opportunity: If you already have the content, traffic and sales, knowing content valuation in real time presents untapped potential pool of revenue

Data shows redirects as small as 2% can increase revenues by 20%.

Increase the value of popular pages

The Chart This Scatterplot plots every page/URL observed a large content portal on a map where the x-axis (log scale) represents the number of Page Views (hits) in that page and the Y-axis represents the JumpTime calculated FloPower

March 2012

About JumpTime

What theyre saying:

You Are What You Measure, so Choose Your KPIs Wisely,


- Avinash Kaushik (Digital Marketing Evangelist, Google )
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"Most content sites...have 500 links on their homepage. Would they not buy a solution like JumpTime to, in real time (!), look at the FloPower of every link and economic value it is delivering (still in real time!) to go from 500 to just 200 links? I believe the answer to every single one of those questions is yes. Yes, they would.
Avinash Kaushik
http://www.kaushik.net/avinash/measure-choose-smarter-kpis-incentives/

May 2012

Our Science and IP

Implementing FloPower

Bridging the gap between ad ops data and usage data

Inputs: Our calculation takes two inputs:

1. Value (ads served, goods sold, brand objectives) 2. Traffic path data (jumps)

Innovation:

Economic Theory: A dynamic network requires specialized equation Patent on the calculation IP: Big data application

Outcome:

Only correct way to calculate economic value of digital assets

March 2012 6

Engagement and Monetization

A Single Content Action, Results in Dual Lift

Revenue
123% gain 87% gain

Engagement

Small gains on CPM alone!

No gain on CPM alone!

March 2012 7

Case Studies

Understanding Value of Traffic allows for optimizing ROI on marketing action: e.g. Buying Keywords
Imagine marketers knowing the true ROI every time they purchase keywords

Having definitive ROI metrics provide clear justification for advertising spending

Including downstream value can increase the amount that can be spent

Value of a Visit
Landing Page Landing Page 1 Landing Page 2 Landing Page 3 eCPM $11 $31 $5 FloPower $308 $234 $230

Cost of Visit
Keyword Keyword 1 Keyword 2 Keyword 3 CPC (000) $260 $100 $100

True ROI
Potential ROI per 1000 referrals

$48 $134 $130

Data from large news site, for one day in January 2012. Keyword price estimates are from Adwords.

March 2012

Case Studies

Understanding Value of Traffic allows for optimizing ROI on marketing action: e.g. Understanding Value of Referral Traffic
When publishers understand the ROI on their referral sources, they can better manage their search and social spending. Example: Google has scale, Facebook has greater economic value

Focus on increasing FloPower of Google referrals and the number of Facebook referrals.