CTR Is Only One Part Of The Value Chain

by Efrat Varga July 1 , 2010 09:18
This article below appeared in Advertising Age last week. In it, Eric Porres, CMO of marketing technology company Lotame, discusses a study they carried out to measure online brand impact based on factors other than only click-through rates.  There were some insightful and quite surprising conclusions but as far as we are concerned, it underlines an important point that we keep making: CTR is only one part of the value chain. 
 
 

The Click-Through That May Be Hurting Your Brand - What If the Click Isn't Just Irrelevant, but Also a Negative Indicator for Success?
We all know the way our industry seized on click-through rates because it's so easy to measure. And we've long heard the arguments that a high CTR doesn't matter. What if that's not quite right, though? What if a high CTR matters -- but inversely? What if a high CTR is actually a negative indicator for your brand? 
Quite often, it is, according to a recent study conducted by Lotame. Not only do click-through rates fail to measure what marketers are really looking for, they're often negatively related to brand lift. 
 
 
In the study that Eric describes above, Lotame found that although there is a strong positive correlation between click-through rates and both interaction rates and brand favorability, there was far less of a positive correlation between CTR and purchase intent. What was more, there was a negative correlation between CTR and important brand metrics such as ad recall. Eric Porres concludes that by focusing a campaign solely on CTR there is a high possibility that there will be a negative impact on valuable brand measures. Campaigns should not only be concerned with driving clicks – there are other things that need to be taken into account.

Our CEO, Peles, also had some thoughts on the Lotame study, and while he was in complete agreement with the conclusions reached, he felt that campaigns considerations had to be taken even further:  “Whatever the desired results of a campaign,” he said, “CTR is only one part of the value chain. When running a campaign one must look at every step of the process from the first spark of a creative idea to the final analysis of conversion data."

Peles then added that the smart advertiser / marketer needs to look not only at the impact on the metrics considered by Lotame, but, and most importantly, they need to be concerned with the results they are getting from the campaign compared with what they are putting in. In other words, they need to ask, “Are the results a good return on investment?”  To be sure that their answer to this question is a positive one, they need to be sure that every link in the value chain is being optimized. This ultimately is the chief concern of DMG and is realized so comprehensively by the optimization platform Traffiliate.  

Peles & Gilad Educate Next Gen

by DMG Team June 24 , 2010 13:55

Peles spoke at Bar Ilan University's Executive MBA program last Thursday, on gaining and upholding the competitive edge in the digital advertising world. Also hosting Gilad Hellerman, our CTO, they learned how they can leverage technology and the unique business strategy of the coopetition model to their benefit.

Part I- Overview

Students were first given an overview of the challenges /advantages presented by online digital advertising. Peles showed how the challenges and advantages are in essence two sides of the same coin, both due primarily to the fact that all elements of a campaign can be tracked and measured. On the one hand, this allows true campaign transparency and accurate optimization goals. On the other hand, advertisers have their work cut out for them where clear data of success and failure require far more refined efforts at every level of the campaign.

In a vivid description of exactly how challenging this refinement process is, Peles detailed the complexities of the campaign value chain.

Part II- Coopetition

Peles then introduced the group to coopetition, which for many students, was a whole new way of looking at business in general, and advertising in particular. He explained how by cooperating with your competitors on select business operations, companies can increase profits and maximize value for their operations. Meaning coopetion is applicable, valuable and positively affects the bottom line results  in the following ways:

·        Advertisers , get higher exposure.

·        Media partners and publishers have better use for their media.

Peles pointed out that DMG itself enjoys bigger budgets than their advertisers and more media sources from partners.

Part III-Technology

In the third and final installment, Gilad Hellerman, CTO, took over and summarized technologies current influence on digital advertising. Some of these advantages include campaign flexibility, responding to clients' technical needs and the ability to work faster and with a larger client base.

Then spoke on how the development of new technologies can serve both as an internal boon for corporations toward operational superiority,as well as to serve as a reusable sales asset in addition to a company's regular product/service offering.

 

All in all, the students were treated to a veteran’s outlook on a dynamic industry, of which they too will one day help serve to shape as Peles has already done.  

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Digital Marketing Events

DMG's Fun In The Sun

by DMG Team June 20 , 2010 04:25

Last week DMG took a company field trip to northern Israel where we took a little breather from the daily grind for some fun in the sun - We would like to share the amazing time we had with you below:

 

We started by heading up north and had breakfast at Ramat Hanadiv Momorial Gardens, named after the Baron Rothschild.

Continuing to travel down the paths of history, we reached Fort Shuni which was built during Roman times.

We then absorbed the unique atmosphere of the Golan,

 

Going for a little dip in the Ein Tina stream.

 

We finished the day with dinner & drinks neer the beautiful waters of the Kinneret.

We hope that you enjoyed reading and seeing the lovely time we had last Sunday, stay tuned for more trips and fun to come!

 If you'd like to see more, visit our Facebook page

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Corporate Life

Online Ad Spend to Increase

by Admin June 16 , 2010 11:16

According to a recent research by eMarketer, US online advertising spending is estimated to reach $25.1 billion in 2010, representing the 10.8% growth over last year. Relatively healthy economic gains, along with the ongoing shift of marketing dollars from traditional to digital media, have contributed to the double-digit increase.

“Still, economic blue skies are not seen everywhere in the ad world,” said David Hallerman, eMarketer senior analyst and author of the new report “US Ad Spending: How Big Is the Bounceback?” “Ironically, spending growth online is partially attributable to economic instability.

“The anxiety attached to the still-healing economy encourages marketers to bet more on ‘sure things’—and the ability to measure Internet ads, especially search, makes them more sure than most traditional ad spending,” he said.

 

Steady gains in online ad spending will mean an additional $11 billion flowing into the space over the next four years, increasing the Internet’s share of total media ad spending from a bit more than 15% in 2010 to over 20% in 2014. In addition, both offline and online ad spending models are being restructured by the shift toward more non-advertising marketing. In the online space, marketers are focusing more on social media and building up their Websites or brand microsites. The new marketplace is a rapidly evolving ecosystem built on top of the social Internet—blogs, Twitter, Facebook, word-of-mouth and viral campaigns.

 

 “As marketers look to engage their audience with relevant, trustworthy messages, that means smaller shares of marketing budgets going to traditional forms of advertising,” said Mr. Hallerman. “For that reason, the spending numbers alone fail to capture the full extent of online marketing’s growth.”

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External

Bringing Metrics to Mobile Advertising

by Inbar June 2 , 2010 03:22

Lack of measurement is a barrier to mobile advertising. The field is still at an early stage of development - relatively limited in its ability to track results, with CPA/CPL methods not yet commonly used. This period is similar to the early days of online advertising - a decade ago - when results and ROI were new and unfamiliar concepts. However, as happened with online advertising, mobile will also become a profitable channel, which will be based on the principles of measurement and accountability.

Result -oriented marketers have only recently begun to expand their Mobile activities – their hesitance due mainly to the current lack of reliable measurement options. Without transparency of the process, metrics, and accountability, they have had no justification for increasing their mobile budgets. The situation is changing, however, as new solutions are being introduced that enable the management of Mobilemetrics in ways similar to those used online.

Our post - click optimization platform Traffilaite - www.traffiliate.com, provides transparency of the campaign process and allows the tracking of conversions on mobile campaigns, providing a single management and optimization source for aggregation of multiple mobile ad platforms - with effective media management and even a unified reporting system.

The visibility and control achieved over the entire mobile campaign allows you (or us) to choose the best media source and creative for each campaign, to make the right choices for maximizing profitability, and to help marketers achieve their ROI and spend higher volumes.

 

Mobile: The Rubik’s Cube of Digital Advertising

by DMG Team June 1 , 2010 08:09

The mobile market has become the digital advertising world’s Rubik’s Cube, presenting new challenges even as the old ones are being solved. Like the Rubik’s Cube though, mobile is proving just too tempting for advertisers to put down.

As the smart-phone race barrels along at blinding speed, daily advancements in mobile technology are greatly expanding mobile’s relevant reach into various peripheral sectors. Coincidently, much of this technology has answered many of the former capability reservations that have, thus far, kept digital advertisers from making a serious play at the mobile market. Let’s take a look at just a few of these advancements and see if we can build the ideal theoretical advertising environment by stacking one set of capabilities upon the other.

Social networking- With the rise of mobile apps for social networking sites such as Facebook, mobile advertisers now have the same incredibly detailed source of profiling information that traditional digital advertisers have been privy to. This crucial information includes both general information such as age and gender, and can drill as deep as personal interests (groups), preferences (likes), and can even theoretically cross-match probable categories of social conformity with the data of a user’s “friends”.

Location- Geo-location tracking software is one of the fastest rising trends in mobile with companies like Foursquare, Gowalla, Brightkite and Loop Star, all joining the fracas. Using geo location to build upon our profiling information, advertisers can determine, with pinpoint accuracy, the optimum time (e.g. lunchtime hours) and place (e.g. specific restaurants within walking distance) in which an ad would become relevant for a given consumer.

Need/Desire- Back to mobile social networking apps; real-time updating applications like Twitter can provide the icing on our advertising cake through actionable data as to the current needs/desires of potential consumers. More than once we’ve heard the stories of Twitter users posting about their desire to try out a product they’re currently admiring from afar, only to be contacted soon after by the product’s parent company and offered a free “test drive”. If advertisers could track real time interest (and they can), ads could be timed to target specific time based needs of their target market.

And there you have it. All the colors of our advertizing puzzle are right there before our eyes. As is always the question with Rubik’s Cube, it all boils down to who is going to have the fastest time in putting it all together?

Being the first to market a landing-page-and-conversion-funnel platform for mobile with pre and post click data analysis, as well as single report aggregation ability, DMG’s Traffiliate is emerging as a clear and colorful favorite.

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Mobile Advertising

The Name of the Game is VALUE

by Peles and Inbar May 26 , 2010 10:50

Bringing true value to customers is ultimately measured by the bottom-line success of result-based campaigns. However, ensuring dependable and continuously increasing ROI is not a simple matter. It requires the astute juggling of vast amounts of data-promotion combinations, creatives, conversion funnels and landing pages. No less important is a real-time grasp of the ever-changing array of tools, platforms, and media sources, as well as the expertise to instantly envision the most effective mix for any given campaign, and to make on-the-fly alterations as the campaign progresses. But, all this know-how is still not sufficient. Successful campaigns require the technology that enables the seamless orchestration of these multifaceted challenges.   

In order to ensure exceptional value for our customers, we utilize our accumulated hard-won experience in running ROI-focused campaigns, and in developing and improving technologies and methodologies that consistently turn clicks into customers. Through a mix of effective optimization, state-of-the-art conversion tracking, media management, pixel service management, and post conversion insights, we assist our customers in meeting and exceeding their business objectives in both online and mobile campaigns.

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CEOs' Corner

Optimize Your Post-Click and Increase Conversion

by Peles May 16 , 2010 08:19

Why do advertisers place a strong emphasis on optimizing pre-click elements such as creative, media, placement and so on, yet tend to ignore post-click optimization, although it is the most crucial stage where the actual conversion is taking place?

At DMG we strongly believe that Post-Click Optimization is a crucial part of any online advertising campaign’s value chain. This is why we developed the unique technology which makes Traffiliate possible – a powerful landing page and conversion funnel optimization platform.
Based on a machine learning optimization engine, Traffialite automatically serves the most conversionable landing page to each user profile, optimizing campaigns’ conversion and results.


Here is a little slide that demonstrates the importance of the value chain, and how Traffiliate can help you, the advertiser, increase online conversation rates by 30% to 200% while enjoying the best value for your money:

Beyond Post Click by DMG - DSNR Media Group

 

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CEOs' Corner

Pictures From Internet World 2010

by DMG Team May 5 , 2010 12:04

 DMG's Team:

 

Girl power!

 

Our booth at the expo:

 

 Moran, Peles and Nir 

See you @ Internet World 2011!

 

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Corporate Life

DSNR Media Group Integrates Quova Into Traffiliate

by DMG Team April 28 , 2010 07:49

DSNR Media Group (DMG) has integrated Quova, the leading provider of IP geolocation intelligence, into its new post-click optimization platform, Traffiliate.

"Customer location is one of the most powerful pieces of information a business can gain visibility into," said Steve Sawyer, VP of Business Development Worldwide, Quova Inc. "DMG understands that consumers have come to expect a high level of personalization, and see the importance of serving relevant content - ultimately, increased conversions make a bigger impact for the client."

DMG has developed the Traffiliate, a unique campaign optimization and management tool providing true competitive advantages, thus partnering with Quova, the marketleader in IP geolocation, was a natural choice. Serving the correct content by location is crucial as it significantly enhances the ability to maximize clients' conversions.

Traffiliate is a unique landing page and conversion funnel optimization platform, that serves up the landing pages with the highest conversion, delivering the optimal combination of user profiles, traffic sources, landing page and conversion funnel,which raises ROI and maximizes conversion rates by 30% - 200%. Targeting high volume, result-oriented advertisers, Traffiliate's patent pending technology leverages pre-click information to maximize post-click performance for both online and mobile campaigns.

Now, Quova's IP geolocation data enables Traffiliate clients to determine the location of an anonymous website visitor, in real-time. Meaning, that the Traffiliate is serving targeted ads with relevant content to users based on their location, which drives more successful click-through rates and increases sales. 

Continental Airlines recently witnessed an increase of 200% in banner advert conversions, after deploying geolocation to their website!

  

About Quova, Inc.

Quova enables businesses to accurately identify where their Website visitors are geographically, by country, state or city. Quova's high-quality, geolocation IP data gives advertising agencies, publishers, and web design firms the tools to develop applications, design and deliver content that is customized for a distinct locale and end-user. Quova is based in Mountain View, California. 

Read full article, here 

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