Online Marketing – Version 2.0

Marketing your business across the new landscape of the Web.

Today I’ll Talk About

• Online advertising trends and challenges

• Using the Web to gain exposure– Online advertising 101 (media you buy)– Evaluating three example campaigns– Tools to use– Social media marketing (media you earn)– Examples of social media marketing

• Tracking and measuring

Online Marketing Version 2.0

Then– Banners– 1-2 ad networks– Category/site targeting– “bought” media

Now– Text, display, video, viral– >400 ad networks– Incredible targeting– “earned” media

US Online Ad Market Size

US Online Ad Market ($ Billions)

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2001 2002 2003 2004 20005 2006 2007 2008 2009 2010 2011

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Share of US Online Ad Market

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2001 2002 2003 2004 20005 2006 2007

Display vs. Search Advertising

Display Advertising• Untargeted• 25x volume of search yet half the market share• 83% sold <$1 CPM

Search Advertising• Targeted• $81.65 revenue per 1000 searches

Growth lies in targeting people and behaviors.

Search

Display

Overall Trends

• Focus on performance and ROI

• Continued market growth– 2006 online ad spend per household was $217:

• $980 for newspapers,• $980 for telemarketing, and• $576 for direct mail

– Self-service

• Better targeting

• “Earned” media

The People-Driven Web

• Business-driven people-driven• Authentic and open communications• No one has control!

Earned Media

• Word of mouth• Social media marketing• PR• Media interaction• Email forwarding

Media attention earned the hard way, not bought.

Challenges and Opportunities

• Signal/noise ratio• Capturing and holding attention• “Banner blindness”• Nothing works continually

• More free exposure venues• No limit to what can work; blank slate• Easy and cheap to test different approaches

Paid Media

Online Advertising 101

Online Advertising Eco-System

Advertisers / Agencies

Publishers

Ad Networks

Optimizers

Online Consumers

Advertisers want to reach people.

Web sites are the proxy.

80% of ad inventory flows thru networks.

Rate Structures

• Objectives– Performance– Brand

• Rate structures– CPM (cost per thousand impressions)– CPC (cost per click)– CPA (cost per action)– CPV (cost per view)– Sponsorships (cost per time period)

Targeting Options

Traditional• Geographic location• Demographic• Site• Category/channel• Search keywords• Day part

Newer• Interest/affinity• Context• Commercial intent• Persona• Social graph• Influencers

Where to Buy

• Specific Web site

• Ad network– Format (text ad, video, display, etc.)– Vertical (sports, travel, etc.)– Publisher type (blog, community, owned, etc.)– Targeting (behavioral, contextual, demo, etc.)– Rate type (CPA/affiliate, CPM, CPC, etc.)

Elements of a Campaign

• The advertisement (creative)

• The landing page

• The call to action

• Continual optimization– All of the above

Tracking and Measuring ROI

• Define your “return” in the form of an “action”?– Registration– Purchase– Monetary value

• Measure cost per action against monetary value

• Simple example: selling UW t-shirts

Ca m pa ign A Ca m pa ign B Ca m pa ign CCa m pa ign pa ra m e te rs:

Cos t 54.00$ 60.00$ 300.00$ Type CP C CP C CP M

Ca m pa ign Re sults:Im press ions 100,000 7,500 300,000 Clicks 145 75 600 Click -through rate 0.15% 1.00% 0.20%Cos t per thousand 0.54$ 8.00$ 1.00$ Cos t per c lic k 0.37$ 0.80$ 0.50$

Use r Actions (the funne l)Landing page vis its 145 75 600B rowse catalog 100 65 200S hopping cart 25 30 50Com pleted purchases 5 15 25A verage purchase s ize 22.50$ 34.75$ 26.50$ M argin (25% ) 5.63$ 8.69$ 6.63$

ROI Ana lysisCos t per cus tom er acquis it ion 10.80$ 4.00$ 12.00$ M argin per cus tom er 5.63$ 8.69$ 6.63$

Optimizing Your Campaign

• Measure, compare, change …

• Campaign funnel– Creative (click through rate)– Landing page (click through rate)

• Web site funnel– General usability (eliminating points of friction)– Catalog navigation– Ease of purchasing

Tools to Use

• Google AdSense– Messaging– Keywords– Landing page optimization

• Google Analytics– Compare all your advertising sources– Count impressions, clicks, etc.– Creative optimization– Landing page optimization

• A/B and multivariate testing

“Earned” Media

Earned Media is “Linkbait”

• Funny, useful or controversial content• People online are bored!

• Examples– Videos– Widgets– Games– Blog posts– Pictures

– Facebook status updates– Twitter posts– Emails– Craigslist postings– Contests

Earned Media

• Benefits – Can be enormously effective– Can be extremely easy/cheap– Helps with SEO– Helps attract/keep people’s attention– People remember it

• Challenges– No recipe for success– Can go horribly wrong– Posers get nothing

Example: KogiBBQ

http://twitter.com/kogibbq

24,000 followers

Example: Seattle 2.0

• http://www.seattle20.com• >25K Web site visitors/month

• PR, word-of-mouth, and social media– Facebook group– Seattle Startup Index, top blogger index, etc.– Blog posts, twitter posts, etc.

• First event drew over 300 people @ $50/ticket

Example: Monk-e-mail

The Monk-e-mail Pitch

• 2 spots on the Superbowl– $5MM cost– 10M people exposed for 30-60 seconds (but not

engaged)

• One viral campaign– $250K cost– 30M people interacting for 8 minutes

Earned Media Advice

• Contribute – Write interesting content frequently– Comment on other blogs– Be generous with links– Be authentic!

• Build your audience• Linkbait

– Content that people just naturally link to and share– Funny, useful or controversial

• Spend time on it. Put value into it.

New Forms of Measurement

“Buzz” and Sentiment Measurement

• Monitor chatter about your product/brand – What people are saying– Where people are talking about you – Overall sentiment trends

Friends, Followers, Votes, Retweets

The Power of Passed Links

• 20% of site visits from links shared (earned)• 14-24 year old demo

– 88% of links followed were sent to them by friends

• 2-4x increase in conversion rates

http://meteorsolutions.com/?fbid=TY2Xsky3p5I

Conclusion

• Use search engine marketing to:– Test your messaging– Optimize your creative, landing page conversion, funnel, etc.

• Use social media to reinforce your messaging– SEO “link juice”– Just be authentic and contribute value– Develop a following and keep at it

• Continue with other forms of paid online marketing, optimizing for ROI

Jordan Mitchell

Email: jordan@othersonline.com

Blog: http://kickstand.typepad.com