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How to optimize your advertising pixels in the short term and long run.
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Advertising optimization
How to op'mize your adver'sing pixels in the short term and long run
Amsterdam 2012
2
Print adver+sing [US, $b]
Online adver+sing [US, $b]
Buckle-up: online is overtaking print and is expected to continue its growth in the upcoming years
Source: PWC: Global entertainment and media outlook: 2011-‐2015
24.8
22.3
2009 … 2014
CAGR -‐2%
24.2
34.4
2009 … 2014
CAGR +7%
3
Online adver+sing market NL (2010/2011) [€ m]
In NL the online advertising market grew with 10% YoY, despite the tough economic climate in 2010/2011
Source: IAB Adspend report H1 2011
221.3
86.1
57.2
70.0
22.3
5.7
Search Classifieds Affiliate marke'ng
Display Others Unclassified
2010 H1
€ 462.6m 255.0
78.4
54.9
82.9
29.5
6.7
Search Classifieds Affiliate marke'ng Display Others Unclassified
2011 H1
€ 507.4m +10%
4
Formats
Revenue and adver+sing models
However, tapping into this growth potential is not easy, online advertising formats and models are omnious and developing fast
Source: Harvest analysis
It has become very complex to determine the op+mal way of adver+sing for your site
Roadblock Full roadblock
Mobile
Home page take over
Corner ad Video Billboard
Medium rectangle
Skyscraper
Header
Text links
Response based Data buying and
selling Profile crea'on
Year deals ….
CPO CPC CPM
Retarge'ng Automated
5
This complexity is also seen in the number of businesses trying to get their fair share of the advertising market…
Source: Improve Digital
6
The chewing gum issue: over 'me you started many new ini'a'ves that individually seem to add value yet: -‐ cannibalize on the total revenue -‐ add complexity to your organiza'on and processes -‐ create scaVered management data: hard to steer the total adver'sing business due to lack of analy'cal insights
Destroying value by combining the wrong models and/or formats
Missing out on new formats and/or business models
Risks
Becer insights on performance of adver'sing driven by professionaliza'on of repor+ng tools
Improving CPMs of automated adver'sing networks Professionaliza+on of niche markets like mobile, video,
retarge'ng and profile trading There is more than Google ShiZ towards online from huge (trade marke'ng)
budgets of FMCG and CE companies
Opportuni+es
This hyperdynamic landscape impacts your advertising revenue: Are you ready to tackle the risks and grasp the opportunities?
Source: Harvest analyses
7
Detailed data analyses reveals underperforming adver'sing networks, formats and/or posi'ons
Detailed front-‐end comb-‐through combined with Harvest experience reveals opportuni'es for new/improved formats, posi'ons and/or targe'ng
Priori'ze, test and support implementa'on of improvement projects
Direct top line growth by tac'cal improvements based on solid analyses and Harvest experienced support implementa'on of improvement projects
Short term tac+cal adver+sing op+miza+ons
Long term solid adver+sing ac+on strategy
3-‐6 months
1
Harvest identified a parallel 2-step approach to optimize your advertising pixel for the short term and in the long run
A tailored adver+sing strategy and ac+on plan that grasps the adver'sing opportunity in the smartest way
2
Analyses of premium vs regular inventory: What strategy to follow for your pixels
Work out strategy in a pragma'c ac'on plan
Test and iterate on the ac'on plan to gain insights and preliminary results
Future-‐proof your business through a solid hand-‐over
8
We audit your: Targe'ng Placements Paging Look & feel Individual ad
performance Expected result: List of poten'al
improvements
Time: 2 weeks
We define and priori+ze: Relevancy drivers New placements Becer and new pages Improvements to ad
appearance Improvements to ad
func'oning The size of the prize
Expected result: Ac'on plan with
priori'zed concrete projects ready to take-‐off
Time: 2 weeks
We work with you to: Implement op'mal
targe'ng Test and measure new
placements and pages Test and tweak op'mal
ad appearance Design and effectuate
op'mal ad func'oning Expected result: Tested projects with
clear results from pilot
Time: 4-‐8 weeks
In a short term tactical advertising audit we have proven to be able to boost your revenues with double digits
Analysis Ac+on plan Test and iterate 1 2 3
You will benefit from: Higher relevancy; CTR
up More and becer
placements; views up Becer paging; views up Becer insight in key
metrics through a (temp) dashboard
Priori'zed next steps Expected result: Increased revenue and
pragma'c ac'on plan Time: 2 weeks
Outcome 4
2 1
9
These errors causes that ad space is empty and do not generate clicks
Moreover, this ‘pollutes’ the website making the overall feel less premium, leading erosion of rate card
Solu+on: technology deepdive revealed error in ad
serving
Example: Code error on major Dutch publisher Insights
Short term improvement example 1: Bugs and errors 2 1
Source: Harvest analyses
10
Price differen'a'on between countries was big, while formats were iden'cal
In depth analyses showed great differences in nego'ated prices with networks
Compe''on benchmark showed low and high price for rate card compared to compe''on in some countries
Solu+on: Renego'ated contracts with networks,
adjusted rate card price
Example: Per country pricing analysis of pre-‐roll formats Insights
Short term improvement example 2: Pricing optimization
€4.47
€2.67 €1.98 €2.09
€3.52
€-‐
€2.00
€4.00
€6.00
€8.00
€10.00
€12.00
€14.00
0
10
20
30
40
50
60
NL USA France UK Germany
Volume Price High Price Low Average eCPM
2 1
Source: Harvest analyses
Volume
Price
11
Example: Low quality ads on premium pre-‐roll of Spelletjes.nl
Low quality text ad on premium pre-‐roll posi'on
Example of the importance of keeping premium posi'ons premium
In order to jus'fy the rate card it is good to only show ads that are premium on these posi'ons
Solu+on: Replace back-‐fill of Google text ads from
this posi'on with house-‐ads
Short term improvement example 3: protect your premium inventory
2 1
Insights
Source: Harvest analyses
12
2 1 Central model for a long term advertising strategy is a clear split between premium and non-premium advertising pixels
Source: Harvest analyses
NON-PREMIUM
PREMIUM NON-‐PREMIUM
Premium posi'ons are for high value branding. A customizable look and feel is oqen offered which adds to the high pricing associated
Non-‐premium inventory can be used to increase mone'zed real estate, this is successfully done when op+mized for clicks
13
In just a few moments we were able to start a Google Display campaign targeted at ‘news’ websites with a leaderboard for our start up Offer'.nl
Because there are not many Dutch news sites that are able to show Google leaderboards on premium posi'ons we were almost sure to buy space at Telegraaf.nl at 3% of the ratecard price
Et voila! More than 100k impressions on premium posi'ons for a bargain
Insights
The big risk of no split between premium and non-premium advertising pixels is the dilution of your premium pixels
Source: Harvest analyses
Adver+ser reac+on: “Why should I pay an ultra premium price for this inventory?”
2 1
14
Homepage
Premium Categories
It is desirable to have a clear distinction where to use premium advertising and where to use non-premium advertising
Other Categories
Source: Harvest analyses
Fold
2 1
premium posi+ons -‐> Filled with direct sales and inventory
non-‐premium posi+ons -‐> Filled with automated and house ads
15
Hardly any premium category is in the sweetspot
Goal is to move promising categories to sweetspot
Homepage of diverse publishers currently undermone'zed by rela'vely low ratecard
Average % direct sales on premium and non-‐premium Dutch publishers’ categories Insights
Focus must be on getting premium categories (pixels) in the sweetspot…
NB: Defini'on sweetspot: category is premium according to rate card and more than 50% of actual impressions filled with premium inventory Source: Average adver'sing data Dutch publishers, Harvest analyses
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% Direct sales impressions of total sales impressions Monthly visits
Prem
ium
categorie
s Non
-‐premium
categorie
s
Sweetspot Promising categories
Homepage
2 1
16
Dir 5-‐15%
Automated 85%
Direct, 5-‐15%
Automated 85-‐95%
Direct 80%
Empty 20%
Direct, 0-‐5%
Automated 95-‐100%
premium
non premium
Impressions ideal Impressions today
2 1 …yet most publishers do not make a distinction between premium and non-premium pixels, thereby wasting opportunity
Stop dilu'ng value of premium pixels by automated adver'sing
Run premium formats only on premium pixels to increase revenue per pixel
Focus your direct sales team on premium pixels only, leave non-‐premium to lean and mean automated
Create premium long term rela'ons with adver'sing partners
Opportuni+es
Source: Average adver'sing data Dutch publishers, Harvest analyses
17
6 'mes more banners served for 15% more revenue
Homepage take-‐overs good for 20% of business
Delta of CPM direct sales vs. networks > 3000%
Detailed split of average impressions and revenue from premium pixels Insights
A focus on increasing direct sales on premium pixels is clear, the average CPM delta vs. networks is ±1000% on these pixels
Source: Average adver'sing data Dutch publishers, Harvest analyses
15%
85%
35%
85%
15%
20%
30%
15%
Impressions Revenue Revenue detail
Networks
Other Specials
Homepage take-‐overs
2 1
18
Example from the field: good premium advertising is rather a cooperation with related companies than old school advertising
Source: Harvest analyses
18
2 1
19
Companion ads integrated into one big, though discrete ad
Complete control on look and feel because these ads are custom made
While the ads are sold for a premium price, they are not intrusive or distrac'ng, yet give good ‘value per pixel’ for adver'ser
Integrated companion ads Insights
Example from the field: good special ad integration without being ‘intrusive’ on premium inventory
Source: Harvest analyses
2 1
20
2 1
Example What Benefit
Make your leaderboard part of the header by let it overlap
Leaderboard literally stands out of header which increases visibility and CTR and limits ad space above header
Posi'on your leaderboard between the naviga'on and first ar'cle
Leaderboard draws more acen'on and s'll looks premium by playfully melding it in your page
Customize the premium posi'on by ‘embracing’ the header
Using the both the spaces at the outside for a single adver'ser improves visibility and recogni'on
Limit the header ad space by making an unfolding header ad
Ad space is limited but ad s'll draws acen'on and making it unfoldable will increase visibility and interac'on
Example from the field: make your premium inventory more premium, while still using regular formats with a twist
Source: Harvest analyses
21
1. State of the art tagging 2. Always up to date dashboard 3. One touch own drilling Harvest builds this for you
2 1
Measure must have: Tools
1. Clear KPIs 2. Understanding of drivers 3. Analysis templates
Harvest does this and trains your people
Analyse must have: Smarts
1. Clear requirements 2. Minimized TTM
Harvest specialists supports your webmaster on tweaks and builds a glossary
Implement must have: Skill
“Nothing great was ever achieved without enthusiasm” You bring this to the table
Learn must have: Eagerness
On top of the initial premium / non-premium strategic analyses, ongoing optimization of your advertising pixel is key to excel
Source: Harvest analyses
22
Dashboard example: Conceptual
2 1 A clear overview of all KPIs is crucial for ongoing professional optimizations
Source: Harvest proprietary HTML 5.0 dashboard
Mon
itor
Deep
dive
23
2 1 To tackle your long term advertising strategy, Harvest suggests a four step approach
Ac+ons: Ac'on plan for premium
inventory with a.o.: -‐ Overview of poten'al
dream-‐customers -‐ Ac'onable clusters of
premium inventory relevant for clear target adver'sers
-‐ High level direct sales proposi'on per cluster
-‐ Product adjustments needed
Ac'on plan for non-‐premium inventory with a.o.: -‐ Improved analy'cs plan -‐ 80/20 plan on effort/
output
Expected result: Ac'on plans with priori'zed
concrete projects ready to take-‐off
Time: 4 weeks
Ac+ons: Ac'on plan for premium
inventory with a.o.: -‐ Overview of poten'al
dream-‐customers -‐ Ac'onable clusters of
premium inventory relevant for clear target adver'sers
-‐ High level direct sales proposi'on per cluster
-‐ Product adjustments needed
Ac'on plan for non-‐premium inventory with a.o.: -‐ Improved analy'cs plan -‐ 80/20 plan on effort/
output
Expected result: Ac'on plans with priori'zed
concrete projects ready to take-‐off
Time: 4 weeks
Ac+ons: Implement product changes
needed Define HR implica'ons and fill
gaps in skills through training/ support in hiring
Create new sales kit for premium adver'sing, do first roadshow
Set-‐up new client mee'ngs in co-‐crea'on vs sales sexng
Develop high level dashboards for tracking
Renew/change/break contracts
Expected result: First changes implemented,
organiza'on on track for new strategy
Time: 4-‐8 weeks
Analyse and divide inventory
Make a premium and non-‐premium ac+on plan
Implement technical and opera+onal changes
1 2 3
Ac+ons: Priori'zed next steps in hand-‐
over plan Clear ac'on plan to perform
ongoing op'miza'ons Detailed dashboard for KPIs of
all adver'sing revenue, with deep dive opportunity
Solid hand-‐over to client team Custom trainings to fill final
gaps in knowledge and skills Expected result: Internal team ready to take
over the op'mized adver'sing pixels
Time: 2-‐4 weeks
Futureproof your business
4
24
Client Casual Games Company Challenge Adver'sing revenue and performance
was low compared to benchmarks, while investments in 'me and effort were high
Objec+ve Op'mize adver'sing in terms of
performance and revenue, while decreasing the investments in 'me and focus
Dura+on 6 months
Situa+on
How Harvest helped Perform a quick scan to iden'fy quick
wins and biggest improvement areas
Ran quick win op'miza'on projects (new and improved adver'sing)
Strategic assessment of adver'sing proposi'on leading to high level adver'sing strategy
Redefined the premium and regular adver'sing inventory on the playorm
Zoom in on improvement areas to iden'fy subop'mal processes and front-‐end and back-‐end implementa'ons
Ran mid-‐long term improvement projects to improve adver'sement relevance
Ac+ons
Case example: Optimizing the advertising revenue for a global leading casual games platform
Over EUR 500k addi'onal revenue from quick wins iden'fied and realized during this project
Annual adver'sing revenue grew double digit numbers
Adver'sing performance (eCPM) improved significantly
Adver'sing team involvement shiqed from mostly tac'cal to more strategic, moving our clients adver'sing business up the value chain
Results achieved
25
"Harvest is without any doubt one of the very best e-‐consultancy companies in the world. Excellent knowledge and experAse strategically, tacAcally, and operaAonally, always with clear focus on top line results” Francine van Dierendonck, Sr. Director and Head Global Philips Flagship Store
Harvest serves an international portfolio of pure online players and click-and-brick companies
"The moneAzaAon quick scan that Harvest carried out for Compare Group highlighted tacAcal improvements with direct upside and a strategic opportunity. The Harvest team is very professional and has great knowledge of e-‐retail and online in general.”
Ben Kerkhof, CEO Compare Group
"Harvest supported Experteer in their go-‐to-‐market in the Netherlands. The professionalism, drive and in-‐depth knowledge of the Dutch online were key to the success of the project and the launch of experteer.nl”
Nina Zimmerman, Head of Europe Experteer
"Harvest combines a strategic view on creaAng online success with the power to execute. Passion for the online business, dedicated to deliver results. And above all, a pleasure to work with.”
Marc de Vries, CEO Hyves
26
Feel free to reach out to us for more information
Harvest – Online Business Development Herengracht 262-‐266 1016 BV AMSTERDAM The Netherlands E: info@harvestamsterdam.com T: +31 (0) 20 4277796 I: www.harvestamsterdam.com
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