Inbar & Peles

This week, Ad technology firm PubMatic relased a survey which reports that: average eCPMs for inventory sold through ad networks and exchanges have risen sequentially-  each of the last five months, and have climbed 35 percent since their low point in January.

http://www.clickz.com/3634511#jsid-1248596819-10 

Peles, is comenting:

 As Affilicon Israel draws near, we approached Peles to discuss the interaction between the two marketing channels - Results-based online advertising & Affiliate marketing:

§         Q: How do affiliate marketing and results- based marketing co exist with the more traditional ways?
Peles:  Affiliate marketing is one segment within the broader scope of result based advertising. They in many cases compete for budget, although, in our opinion they shouldn't. More traditional ways should deal with what is called branding, and result base should deal with direct acquisitions. More sophisticated advertisers, transforming both their budgets to results - they just define the goals differently, but measure both and optimize both budgets.

§         Q: What is more effective affiliate or SEM?
Peles: It is like asking what is more important, eating or drinking, for successful online advertising programs both should be effective, it is a matter of volume, competition and market.

• Website marketability
• Offer
• post click conversion

 On the side of the Service provider or, in our case, the "network" - we complete the picture with our expertise in providing the playing field and the optimization tactics. As a representative of the media side of the business, my responsibility is with the playing field or accurately; the rich Blend of traffic that provides the opportunity for the conversions to happen. This is fundamentally made up by a 2 level media pool: 
1. The base – the mass amounts of various traffic that provide multiple types of traffic from channels and placements that have some  slight relevance to the advertising offer.
 2.  Highly targeted, highly convertible traffic. Together these traffics create a blend that provides the advertiser with enough momentum to take its first baby steps in making the beginning conversions happen.

Once those occur it has to be provided with enough fuel to be able to learn and grow and be optimized using our technology, expertise and tactics into a significant volume campaign. One may ask why a campaign isn’t run on the second level traffic only where the highest likeliness of a conversion would occur.

The answer lies partially in the fact that this traffic is limited in its quantity and furthermore we have seen that to grow an advertiser to limitless expansion it is important to provide it with both types giving it the necessary bulk it needs to be a strong long lasting campaign. 

If the issue of the perfect blend of traffic isn’t enough; in order to keep going a long lasting successful campaign the traffic pool must remain forever fed by a continuous flux of new traffic in both of the levels. This compliments the continuous changes and optimization tactics made on the back end side of the campaign that creates each moment with a rich starting point for the new seed conversions. 

By Gilad Hellerman - CTO   

One of the major characteristics of the online-result-based-advertising industry is the huge numbers involved (no, I am not talking about the money, even though that is quite impressive as well, I am talking about impressions, clicks and conversions).  

 These numbers require special attention both in terms of technology (which I will address in my next post), and in terms of information gathering and analysis, which I will address in this post.What is our goal in all of this information gathering and analysis?Our ultimate goal is decision making, mainly towards campaign optimization, even though there are other decisions we need to make in order to maximize our profits. 

 In order to empower the user to make better decisions, we need to provide the user with knowledge on which the user can make his decisions. The emphasis is on knowledge as opposed to information since knowledge is actually the result of the procedure of processing the information we are presented with, during its storage in our brain. We make our decisions based on the knowledge rather then based on the information. Our goal therefore should be to process the information for our user so that it will save him some of the processing he will need to do by himself, and add bits of processing he might not have thought about, thus enlarging his knowledge.

 How do we turn information into knowledge?
We do that in four major stages:
1.       Data gathering
2.       Data analysis
3.       Deciding what, of the vast number of analyzed data to present.
4.       Presenting the data in a way that will make it easiest to use and consume by the user.  

Establishing the decisions on knowledge rather then information is the only way to effectively manage this vast amount of data in the online advertising world.

Gilad

Commentary by Peles on :

Global Budgets To Boost Online Advertising (OMD, 11/3)

”This article demonstrates one of the good things that comes out from these bad times: looking for extra monetization.

When big U.S. advertisers are cutting budgets and are looking to get their campaigns better targeted, publishers will increase their efforts to better serve their American clients, and on the other hand, better monetize the leftovers.

In the last 4-5 years, we have also been pursuing this slice of the pie, and built a successful business on the 30%-40% non-U.S. visitors on U.S. properties.

Most of the time we find it very difficult to convince Americans that there is a world out there, that, among other things, visits U.S. Web sites such as yahoo.com and alike”.

Media Post letters-to-the-editor 14.11.08.pdf (330.46 kb)