Introduction to Online Marketing

Vaibhav AryaAmit KleinNovember ’09

Who are we?

Vaibhav & Amit

vaibhav@arya.net.in ak@amitklein.com

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?