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Introduction to Online Marketing
Vaibhav AryaAmit KleinNovember ’09
Who are we?
Vaibhav & Amit
Goals
At the end of today you should be able to: - identify your marketing objectives- determine which methods/tools are best to achieve
them- measure your results / calculate ROI- and optimize your campaigns
Agenda
- Marketing Goals- Pricing & Terminology- Methods of Online Advertising- Measurement & Analytics - Budget Allocation- Insights- Q&A
Introduction
Case Study – iTunes India
You are the marketing manager responsible for launching the iTunes store in India
- What are your objectives?- How can you go about achieving those objectives?
Objectives - Branding
Objectives - Branding
Objectives - Performance
Objectives - Performance
Marketing Funnel
http://adamhcohen.com/wp-content/uploads/New-Marketing-Funnel1-300x294.jpg
Terminology & Pricing
Terminology
• Impression – A single appearance of an advertisement on a web page.
• CTR – Click Through Rate - The number of people who clicked your ad divided by the number of people who viewed it.
• Goal – An action performed on your site (download, checkout, registration, etc…)
• Conversion Rate – The number of people who completed a
goal divided by the total number of visitors to your site
Pricing Models
• Fixed Cost / Fixed Duration
• CPM - Cost per 1000 Impressions
• CPC - Cost per Click
• CPA - Cost per Action - The advertiser pays a fixed amount for each specified action linked to the ad. Action could be a form submission, a sale (CPS) a lead (CPL) etc.
Publisher Friendly
Advertiser Friendly
Methods of Advertising Online
List of Methods & Tools
• Search Ads - Google, Yahoo, MSN• Display Ads – DoubleClick, Right Media Exchange• Social Ads – FB, Orkut, LinkedIn• Email Marketing – Blue Sky Factory, EmailBrain• Affiliate – Amazon, Commission Junction
Search Ads
• Goals: Consideration / Conversion• Control: Keyword, geography, demographic, time, budget• Measure: Impressions, clicks, cost, revenue • Limitations: Placement, competition/expensive, obscured
Search – Google Adwords
• Targeting based on keyword, geography, demographic, time.
• Search vs. Content network• Position of ads depend on location, bid, relevance
(quality score)
Search - Keywords
• Identifying - https://adwords.google.com/select/KeywordToolExternal
• Estimating - https://adwords.google.com/select/TrafficEstimatorSandbox
• Bidding (Auto vs. Manual)• Pricing (US vs. India)
Display Advertising
Might not need to pay for traffic you are getting based on search:
Display Advertising
All Shapes and Sizes
Display Advertising
• What do you think are the goals?• Awareness• Brand Positioning• Can also be used for conversion
Display Advertising
• Brand is Important• Prime Inventory • Remnant Inventory• Ad Networks• Ad Exchanges
Display Advertising
• Networks aggregate Publishers and Advertisers• Exchanges aggregate Networks
Display Advertising
What can you control?• Sources - Where the ad is shown• Demography - Who do you show it to • Behavior / Intent - What are the persons
interests? What else has he seen? What has he been searching for?
Display Advertising
• What can you measure?• Total number of visitors who see the ad• Total number that click through• More importantly, cost per person who sees the
ad• Cost per impression is a proxy • Doesn’t compensate for frequency (one
person may see the ad multiple times)
Some Sample Banner Ad Data
Advertiser Imps Clicks Conversions Click rate (%) Conversion rate by
clicks(%)
Cost Cost eCPM
Advertiser #1 13,594,753 331,888 13,478 2.44 4.06 6,819.95 0.5
Advertiser #2 10,103,536 45,682 939 0.45 2.06 24,167.53 2.39
Advertiser #3 7,225,860 143,455 2,155 1.99 1.5 4,287.46 0.59
Advertiser #4 6,970,203 141,678 1,252 2.03 0.88 476.9 0.07
Advertiser #5 6,139,134 150,030 2,717 2.44 1.81 2,396.03 0.39
Advertiser #6 5,940,754 105,473 1,145 1.78 1.09 2,743.26 0.46
Advertiser #7 5,703,385 163,875 1,664 2.87 1.02 3,890.97 0.68
Some Sample Banner Ad Data
Email Marketing – EmailBrain
• Goals: Conversion / Loyalty• Control: Segmentation, frequency, message / look &
feel• Measure: Opens, clicks, unsubscribe, forwards• Limitations: Reach
Email Marketing – EmailBrain
Social Ads
• Goals: Awareness / Consideration • Control: Demographic, message, budget • Measure: Impressions, clicks, cost, revenue • Limitations: Low click through rate, people don’t go
to social networks to buy
Social Ads - Facebook
Affiliate Marketing
Affiliate: Outsourced Sales Force
• Networks• TradeDoubler• CommisionJunction
Affiliate Marketing
• Goals - Conversion / Sales• Control - Can you think of any?• Measures
• Impressions• Clicks• Conversions
• Limitation• Loss of control over affiliate choice • Brand conflict positioning• Gaming the system• Expensive to setup
Affiliate Marketing
Goal Measurement
Goals - Awareness
Goals - Consideration
Leads received:• Creating an iTunes account• Playing snippits of a song / video• Browsing the iTunes store
Goals - Conversion
Goals - Conversion
Goals - Loyalty
Goals - Loyalty
Destroy Competition:
Budget Allocation
Example #1 – Ad effectiveness
Example #1 – Ad effectiveness
Ad Impressions Clicks Cost
Music 274,747 2,413 $1,042.56
iTunes 21,075 733 $339.28
Movies 34,404 243 $157.13
Example #1 – Ad effectiveness
Ad Impressions Clicks Cost CTR CPC eCPM
Music 274,747 2,413 $1,042.56 0.88% $0.43$3.79
iTunes 21,075 733 $339.28 3.48% $0.46 $16.10
Movies 34,404 243 $157.13 0.71% $0.65 $4.57
Example #1 – Ad effectiveness
Ad Impressions Clicks Cost CTR CPC eCPM Revenue
Music 274,747 2,413 $1,042.56 0.88% $0.43 $3.79 $4,246.88
iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 $2,052.40
Movies 34,404 243 $157.13 0.71% $0.65 $4.57 $21.87
Example #1 – Ad effectiveness
Ad Impressions Clicks Cost CTR CPC eCPM Revenue RPC ROI
Music 274,747 2,413 $1,042.56 0.88% $0.43 $3.79 $4,246.88 $1.76 306.53%
iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 $2,052.40 $2.80 503.85%
Movies 34,404 243 $157.13 0.71% $0.65 $4.57 $21.87 $0.09 -85.38%
Example #2 – Keyword Effectiveness
Keyword Impressions Clicks Cost CTR CPC CPM Revenue RPC ROI
movies 219,274 656 $284.34 0.30% $0.43 $1.30 $32.80 $0.05 -87.70%
music 62,469 391 $384.48 0.63% $0.98 $6.15 $1,102.62 $2.82 186.38%
itunes 30,470 385 $182.11 1.26% $0.47 $5.98 $500.50 $1.30 174.37%
music downloads 15,286 199 $121.42 1.30% $0.61 $7.94 $19.90 $0.10 -83.54%
movie downloads 12,185 222 $77.93 1.82% $0.35 $6.40 $102.12 $0.46 30.84%
kanye west music 4,779 176 $61.17 3.68% $0.35 $12.80 $0.00 $0.00 -100.00%
a. r. rehman download 3,516 218 $65.18 6.20% $0.30 $18.54 $163.50 $0.75 149.89%
twilight dvd 9,446 148 $66.08 1.57% $0.45 $7.00 $828.80 $5.60 1154.12%
Example #3 – Source Effectiveness
Impressions Clicks Cost Revenue Average Order Size Conversion Rate Per Visit Value
Direct N/A 27,244 0 $12,795.81 $8.15 5.76% $.47
Google 2,713,257 11,709$6,019.56
$2,597.26 $6.98 3.33% $.22
Facebook 2,221,666 1,333 $253.27 $150.81 $5.32 0.23% $.01
Email 26,796 1,964 $400.00 $710.65 $7.32 4.94% $.36
Display 106,454 2,342 $95.40 $106.21 $5.15 2.70% $.05
Affiliate 52,324 806 $142.08 $710.65 $10.46 3.85% $.40
Insights
Insight #1
We should be investing more in high performing states like Wyoming, Alaska, DC and Colorado:
Insight #2
Non-paid search traffic provides higher quality of visitors then paid. Invest in SEO.
Insight #3
Might not need to pay for traffic you are getting based on search:
Conclusion
Conclusion
When planning a marketing campaign:- Define criteria and how you will measure success- Get historical data - If not possible: execute small tests- Iterate and optimize constantly- Use analytics data to develop insights
Thank You! Questions?