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Online Advertising This is why you have to be online

Crush packages

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Page 1: Crush packages

Online AdvertisingThis is why you have to be online

Page 2: Crush packages

Online Advertising spend SA (Source:World Wide Worx & OPA of SA 2009)

Worldwide online advertising spend is the fastest growing sector today

Spend rose by 38% to R319 million in 2008

Up 25% to R398 million in 2009

Predicted year-on-year growth 25%

Makes this R1.6 Billion space by 2014

Conclusion – plenty of growth to come(These figures only include digital businesses registered with the Digital Media and Marketing

Association and are audited by Nielsen's online market intelligence)

Key facts

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Online population SA (Source: Online Publishing Association of SA)

SA online population 2009 - 6.9 million users

Prediction 9 million by 2014

DMMA release 1st 2010 quarter figures – 9.1 million registered

users

SA has 5.3 million tax payers

Online consumers has disposable income

Mastercard survey 2009 – 77% of SA users buy online

Key facts

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Internet access in SA 2010 study (World Wide Worx and Cisco)

Broadband connections dramatically higher year-on-year

21 % Growth in fixed line from SME's – add half a million users

Wireless broadband subscriptions up 88% in 2009

Planned cables will increase bandwidth capacity 150-fold over

by 2011

18% increase in number of Internet access and Service

providers

Conclusion – SA on the brink of major internet growth

Key facts

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SA online ad spend growing at massive rate

Summary

SA on brink of major internet growth

SA online population growing at massive rate

Consumer behavior has changed-print publishing no longer serves reader needs

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General

Internet ads debut 1990's

Dramatic change in use of these ads since then; Banner ads declined from 56% (‘98) to 21% (‘03)

Sponsorship declined 33% to 10%

Rich Media gained from 2% - 8%

Greatest rise keyword search from 1 % (‘02) to 35% (‘03)

New formats – 3D visualization and Brand Integration (Internet movies and gaming)

Internet Formats and Advertising

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Banner Ads

Used primarily for direct response = call to action

Click through rates decline from 3% (mid 1990's) to 0.5% (early 2000's) down to average of 0.28% (2003)

Studies show:

oAnimated ads - better recall and faster click through vs static

oBigger banners higher and faster clicks than smaller ads

oClick through rates affected by incentives

Internet Ad Revenues Stats

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Sponsorship

Placement of logo's on web sites used to build good-will

Creates association between brand and an event that target consumer values highly – Brand-building

Online sponsorships benefit from users' visits and their positive disposition towards sponsored websites

(See Crush comments)

Internet Ad Revenues Stats

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Pop-ups

Controversial - perceived as intrusive and forced

Forced exposure ads on decline until publishers find new and innovative ways to execute

(See competition stats)

Internet Ad Revenues Stats

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Rich Media

Premise of RM – message appealing to multiple senses

June 2002 study found 6x higher click rate than with banner ads, average of 2.4% click through rate worldwide

Key learnings:

oUsing graphic ads vs words – +21% oUsing flash ads – + 37%oRich Media - + 44%

Internet Ad Revenues Stats

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Keyword search

Most popular form of internet advertisingEstimated that up to 40% of searches is commercially motivated, keyword search lucrative to websites designed to sell

Internet Ad Revenues

3D Visualization

Consumer interact with simulated productResearch shows improved product knowledge, more positive brand attitude and heightened purchase intention

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What do advertisers want from online ads?

Pre-segmented market – targeting and reaching the correct consumers

Consumers responding directly from the ad

Consumers directed to the correct landing page

Statistics

“Real estate” to create interactive ads facilitating all of the

above

Ultimately defined traffic cost – pay per acquisition

Advertisers Needs

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How are we stacking up ?

Crush Food & Wine Magazine

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Crush Food & Wine Magazine

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Crush Magazine Stats

Issue 1-3

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Crush online only magazine

Launched 25 June 2010

Issue 1 attracted 1600 subscribers and 4000 reads in the first

month. With Issue 2 & 3 the readership of Issue 1 increased to

5800 reads which means the ad attracts views for as long as

the magazine is online.

Current readers 6393,magazine been viewed 8896 times, 114

835 page views

Subscribers 4300. We have a 54% conversion rate from

readers to subscribers.

Demographics 69% Female, 56% R20k personal income per

month, 85 % older than 30 years

Average dwell time per page 20sec – 1min13 sec

Numbers

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Results

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Results

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Results

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Results

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Results

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Going forward

We can see from these statistics that Crush magazine delivers

consistent high click through rates.

We speak to a pre-segmented market (high net worth

individuals) – i.e. you are targeting and reaching the correct

consumers

Consumers respond directly from the advert and it is in your

best interests to create ads with defined call to action

Interactive adverts and competitions deliver very high click

through stats.

Summary

Page 23: Crush packages

Crush PackagesYour digital strategy for the year ahead

Page 24: Crush packages

Crush PackagesYour digital strategy for the year ahead

Page 25: Crush packages

Crush PackagesYour digital strategy for the year ahead

Page 26: Crush packages

Crush PackagesYour digital strategy for the year ahead