Interactive Brand Interactive Brand CommunicationCommunication

Class 10Class 10

Media Planning/Buying IssuesMedia Planning/Buying Issues

Ad Placement IssuesAd Placement Issues

Delivery among Targets (Targeting Capabilities)Delivery among Targets (Targeting Capabilities)

Advertising Pricing (& Cost-efficiency) Advertising Pricing (& Cost-efficiency)

Reach (by entire buy, if possible)Reach (by entire buy, if possible)

Frequency (by entire buy, if possible)Frequency (by entire buy, if possible)

Ad Position EffectsAd Position Effects

BPI Value of a VehicleBPI Value of a Vehicle

Qualitative Values Qualitative Values

Delivery Among Targets Content FitContent Fit

based on analysis of consumer characteristics, based on analysis of consumer characteristics, interest, values & lifestyle, etc.interest, values & lifestyle, etc.

Size of Delivery (target impressions, when Size of Delivery (target impressions, when possible):possible):

% delivery breakdown by consumer groups – % delivery breakdown by consumer groups – demographic, geographic, usage, etc.demographic, geographic, usage, etc.

Site Reach & Target Reach Site Reach & Target Reach

site reach: total unique users of the sitesite reach: total unique users of the site

target reach: target unique users as % of total target reach: target unique users as % of total unique usersunique users

Delivery Among Targets

Site Frequency Site Frequency

frequency control capabilitiesfrequency control capabilities

Targeting Capabilities Targeting Capabilities

geodemographics, behavioral, any desired geodemographics, behavioral, any desired option, etc.option, etc.

Ad Pricing

Sources for Web Advertising Sites & Rates Who sells ad space on the Net? How much does it cost?

Ad Pricing Methods & Cost-Efficiency How is ad priced and its cost-efficiency

determined?

Tactics of Buying & Selling Ad Space

Ad Pricing Sources for Web Ad Sites & Rates

• SRDS Interactive – general source– covers the largest number of sites

• PSA Banner Ads -- PSA only

• Ad NetworksDoubleClick (www.doubleclick.net)24/7 Media (www.247media.com)Link Exchange (www.bcentral.com)

• Ad Auction (www.adauction.com)

Ad Pricing Ad Pricing Methods & Cost-Efficiency

CPM (Cost-Per-Thousand) Impressions: • Cost for 1000 pages or ads displayed or

requested (page views or ad views)• Most popular method• Current Rates at $5 - $100• Rate varies by site (branded sites charge

more) and by targeting option (the more specific, the more expensive)

Cost Per Click (Click-Through)• Paying only for the number of click-throughs

made (those who clicked the given ad and linked to the destination page –mini-page in the current site or advertiser’s site)

• Demanded by direct response advertisers, though its use or popularity is decreasing

• Higher rates than CPM

Ad Pricing Ad Pricing Methods & Cost-Efficiency

Cost Per Sales • Paying only for the completed sales

transaction (in terms of so much $ or % of the sale, which varies on the value of the item sold)

Cost Per Sales Leads • Paying for other desired actions leading to

sales (store visits, leaving info for contact, test-drive, etc.)

Ad Pricing Ad Pricing Methods & Cost-Efficiency

Flat Fee• A set amount charged, regardless of #

impressions or clicks • Used often for content sponsorships• Rate may range from $200 to $200,000 per

month

Ad Pricing Ad Pricing Methods & Cost-Efficiency

Ad Pricing Ad Pricing Methods & Cost-Efficiency

CPVT (Cost per View-Through)

• Number of those who are exposed to the ad and take action within 30 days of the exposure

• New approach, getting popular for branding marketers

Ad Pricing Ad Pricing Methods & Cost-Efficiency

Auctions• Price determined via auction• May be much lower

Hybrid Pricing• Combining two or more methods• Popular method

Tactics of Buying and Selling Ad Space

Study Competitive Pricing Be Open to Negotiation Flexibility is the Key

Reach

• Unduplicated audience = Unique usersexpressed in number or % of total online population

• Reported by week, month, quarter

• Tactics of building reach (in general): – Use many content categories; use multiple sites

within a category (thru ad networks); use top sites in unique users (costly); and/or buy keywords at search engines

Frequency

Average # of times the target is exposed to ad Issue: How much is optimal?

Limit ad frequency to avoid burnout? Or the more the better?

How much is too much? -- depends on the goal (direct response vs. branding), and many other factors.

3 exposures in a purchasing cycle? Tactics of Building Frequency:

Use one or two content categories; use one or two in each category

Develop and rote multiple banners within the same site

Ad Timing

When is the best time to run ads? Least developed, increasingly important area –

how ad timing is related to the desired response Advertising will be most effective when delivered

right before one is about to make a purchase decision or when he searches for the relevant information

Traditional tactics may apply (e.g., double-spots, roadblocks, etc.)

Ad Positions within a Site

Keep the Message Close to Page Content (Place at the Top and/or Bottom of

Page??) Place a Third Way Down Close to the

Scroll Bar

BPI Value Assessment Most useful for direct response marketers

NetScore by comScore Network Inc. – see Table

BPI overall vs. BPI by Product Category (ROI or cost-efficiency indicator)

100 = average likelihood of purchase; <100 = above average; >100 = below average; the larger the BPI, the more ROI (cost efficient) the buy

Example: a site with overall BPI of 120 (site visitors are 20% more likely than an average Internet user to purchase anything); a site with BPI of 120 for Travel (site visitors are 20% more likely than an average Internet user to travel)

BPI Value Assessment

Other Valuable Information (see the table in Experiential Exercises)

Unique User weighed by BPI:

Indicates the relative volume of sales to be generated by site; the larger this number, the larger the sales

Qualitative Values

content match

ad clutter

audience loyalty/site stickiness

ad inventory availability

category exclusivity

Qualitative ValuesQualitative Values

any added value (special deals & any added value (special deals & discount)discount)

image and reputationimage and reputation

Read Zeff & Aronson book for others Read Zeff & Aronson book for others (reporting quality & frequency, (reporting quality & frequency, performance guarantees, etc.)performance guarantees, etc.)