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.  

DMG Exhibits at TFM&A

by Admin March 2 , 2010 07:46

Introducing our Traffiliate at TFM - a unique post click optimization platfom for landing page & conversion funnel
The booth was packed, Traffiliate demos run all day long  and dinners were awesome!

The show is about to begin! Peles, Nili, Gilad & Tal
 

Tal, Robbie and partners

Robbie, Traffiliate &Tal

Peles Seminar about Beyond post click optimization

Multi/Cross Platform Integration

by Peles and Inbar January 25 , 2010 10:05

The Key to Success in 2010 --- Multi/Cross Platform Integration

Our analysis of the challenges we will face in 2010 has placed a high priority on maintaining our heightened alert, rapid grasp and immediate integration of the multitude of new platform, including mobile, display, contextual, etc. 

Our commitment to improving value and ROI for our clients translates into an ongoing mastery of this increasingly complex maze of online platforms and data – and the provision of enhanced aggregation and optimization capabilities.
 

Throughout the year, we will continue to utilize our proprietary technology and productivity tools that enable full integration of data management with all aspects of campaigns optimization. Our solutions will increasingly ignite the mobile advertising sphere, expanding results-based campaigns by providing clients with a single source for mobile media buying and optimization – for WAP, iPhones, and other web platforms. 

 Running online campaigns across multiple ad serving and exchange platforms will enhance diversified streams of quality traffic - enabling increased ROI, volume, and reach. Our ad network offerings include a new specialized premix ad network - dedicated to brand advertisers - that boosts their exposure and brand awareness across qualified top-tier publishers worldwide in diverse channels, and enables measurability and accountability in their online campaigns.

And, of course, DSNR Media’s robust performance ad network - running advertisements on a large scale using a vast range of publishers as well as optimization and targeting solutions - ensures a significantly increased ROI. Taken together, this full range of online advertising solutions bodes well for a productive and profitable 2010.

How to capitalize on int'l opportunities

by Peles January 24 , 2010 12:02

How to capitalize on international opportunities while minimizing risks?
by co-CEO, Tsafrir Peles

With 15% to 30% of all visits to US websites originating from abroad, Internet use growing exponentially in developing markets, and expat communities fast becoming important niche audiences --- astute advertisers and publishers have an opportunity to exploit this unleashed, global potential - both from the buy-side and the sell-side. But will one catchall strategy for the international market work? 
 

Not really. Localization is the key. And, success in the global marketplace requires an in-depth understanding of localization that goes beyond language and linguistic nuances. It includes cultural differences, local regulations, currencies, and payment methods … and these are only the tip of a very large iceberg that involves myriad subtle distinctions and unfamiliar parameters that can make or break an international advertising campaign. The greatest challenge for advertisers is that almost everything they have learned about their home markets - what works, what doesn’t, and why; how to approach the target audience; what to offer them; how to design the call to action –-- all of this hard-won knowledge is, for the most part, irrelevant in other regions of the world. Moreover, a new layer of optimization is required which will impact on all the existing parameters … and will, therefore, influence the entire course of the campaign. Without properly building and implementing this critical layer, it is all too easy to miss those lucrative opportunities. 

Click ‘Aqui’ or Click ‘Here’
Message translations must utilize relevant jargon and appropriate buzz words - and be fine-tuned to language nuances and cultural preferences - in order to deliver a spot-on message that generates the sought-after response. Similarly, when selecting a prize, advertisers had better be sure that the specific model actually works in the target country! The complexities inherent in targeting an international audience require a lot more than just reaching them with translated messages. Local regulations – as well as creative and technical requirements of local service providers - must be taken into account. It’s not enough to prepare a great landing page that presents savvy marketing content and format; if it doesn’t comply with the technical guidelines of the local infrastructure or service provider, it may not even open when potential customers click on it! 

Additional optimization layer for the value chain
In order to successfully lead local audiences to the desired action - smart, subtle and sophisticated optimization is required across all campaign parameters, guided every step of the way by the mantra, “Different strokes for different folks!” From promotional offer to messaging, placement, creative, and conversion funnels - a perfect blend must be created that will maximize bottom-line results.  For example, an incentivized Lead Generation campaign is running in Germany, France, and the UK. Which prize will work best? This is, in fact, quite a complex issue. Since products have varying value and emotional associations from country to country, correct selection demands extensive knowledge of local attitudes. In the UK, for example, an Audi might be considered the perfect draw; in France, cars can also work well, but almost any car will do; in Germany, however, an iPhone would be a stronger incentive, since winning a car sweepstakes is considered unrealistic - and would therefore not attract the audience. Rule of thumb: the selection of the promotional offer should always be region-based; in some countries, a particular product will generate high ROI, while in others, the same offer may not work at all. The above example is a relatively simple one. Just imagine the complexities involved when dealing with multiple markets that are distant and diverse - geographically, linguistically and demographically. Not less important than the prize is the selection of media and placement, a task that involves much more than locating publishers to run specific campaigns. In some regions, it is crucial to run a campaign only on "safe" websites that are seen as respectable and reliable. And, in certain parts of the world, color plays a significant role, often equal to seemingly more critical issues. Advertisers must also carefully consider their sales approach. Should a hard sell or a more sophisticated tactic be implemented?  

Help is out there
 How can advertisers overcome these multiple and seemingly insurmountable challenges? Don’t despair. Help is available.  One solution is to work with local partners in each targeted region. They know the lay of the land, they understand the subtleties, and are experts at fine-tuning. The problem is that finding the right partners is a complex and time-consuming process that needs to be done separately for each target market. Though this model can work exceptionally well for some advertisers - aggregators and ad networks may be the answer for others. This channel enables you to reach diverse media, links and markets – with just one click.  Like local partners, aggregators are experienced in acquiring local media and can manage the entire value chain and relevant localizations. Familiar with cultural differences, they are adept at targeting specific market segments, e.g., differentiating language and nuance between Mexican Spanish and the Spanish spoken in Spain, or among Spanish dialects across the various regions in Spain.  Whether you decide to build a network of local partners or to work with aggregators – or a combination of the two, these localization experts will maximize your success and minimize your risks - while you capitalize on the vast opportunities awaiting you in the international market.

 

Tech Takes Pre-Click & Post-Click to New Levels

by Peles and Inbar November 26 , 2009 09:06
Beyond Pre-Click and Post-Click:
Technology Takes Online Marketing to a New Level

Online campaign management presents new challenges literally every day. Maybe even every minute!
On the one hand, we face the sheer enormity of the quantity of data that needs to be processed during the course of a campaign, including all the possible combinations of promotional offers, creative items, conversion funnels and diverse landing pages – right up to the bottom line results.

On the other hand, we have to navigate the maze of a diverse array of media sources, tools and platforms to choose from.
This requires a new level of optimization, integration, insight and ingenuity throughout the entire value chain to monitor, analyze and optimize in real-time; so that we can learn and respond on-the-fly with the correct changes and improvements.

For this kind of integrated result-based online marketing, tackling all those elements aren’t enough. The right technology is key to bringing it all together.

As a company that is singly focused on results, developing these technologies and methodologies is at the core of our business. Leveraging years of accumulated experience and knowhow, we offer relevant and effective optimization solutions and tools to meet the challenges of online result-based marketing, and to ensure optimal results that help our customers meet their business objectives.

Sincerely,
Inbar & Peles

 

Online Results in Any Language

by Peles and Inbar October 19 , 2009 02:37
The online world opens the whole world to you. But venturing out beyond your borders is trickier than passing passport control. That’s why it’s so important to leverage the experience of experts in monetizing online international traffic to deliver profitable results and minimize risks. 

With between 15% and 30% of all visits to US websites originating from abroad and Internet use growing exponentially in developing markets, expanding international markets mean expanding international opportunities.  

We are intimately familiar on how best to exploit this potential both from the buy-side and the sell-side.
Success in international markets is a lot more than getting a good translation. Localization involves intricate regulations, cultural norms, currency management, payment methods and much much more.
 

For nearly a decade, we have been juggling these issues – in 52 countries and in 25 languages, generating over 15 billion impressions a month. We help clients expand into new markets, target expats that speak their language, or master dialects in multicultural venues. So ask the experts before you leave home. We will make sure your message reaches your target audience, wherever it may be, and doesn’t get “lost in translation” on the way.

Inbar & Peles

Results that Measure Up

by Peles August 26 , 2009 04:39

Integrated Results-Based Approach to Online Advertising

A version in German:Results that Measure Up DE.DOC (63.50 kb)    

 Don’t you wish someone could put a realistic price tag on finding new leads or customers?

While we are preparing a wish list… Wouldn’t you like to get a better handle on ROI, or knowing how much revenue in certain market segments can be attributed to the campaign? Or even better yet, how would you like to be able to analyze price sensitivity in different market segments based on online information while the campaign is going on?

 

Integrated results-based approach is about squeezing every possible benefit from every dollar spent – quickly and intelligently. In order to optimize advertising campaigns and achieve ambitious ROI goals, advertisers must have access to real-time feedback, measurement and instant analysis of all their online marketing activities.

 

Define the road to meaningful results

This approach is based on the fundamental understanding and definition of the real value that a customer, lead or click represents. That means setting a realistic “price tag” on the desired result, or conversion, whatever it may be – a new lead, customer, sale, click, or registration. At the same time, we must bear in mind that this price tag varies across geographical regions, market segments, media types and even promotional offers.

 

Measure to optimize the process

The focus is on measurement and understanding that everything is, and should be, measured. The optimization process is based completely on the measurable results received from across all the different advertising platforms, on the different processes that make up the conversion value chain – starting with clicks, leads, registrations and even offline upgrades and up sell opportunities. This way, every advertising dollar is optimized intelligently. So before, during and, of course, after the campaign, advertisers have a real handle on the value of every conversion and know how much revenue in specific market segments can be attributed to the campaign. Armed with that, ROI objectives are clearly in sight.

 

Real added- value comes with integration

Results-based online advertising is only as good as the breadth of the online tools available, and how they are leveraged together. Data is combined from all advertising platforms: SEM, Banner ads and emails to shorten the learning curve and build value faster. Knowledge gained from any one platform is immediately made available to ongoing campaigns on other platforms and rapidly optimized to guarantee continuously improved results.

 

The final frontier: integration with CRM

With full integration with existing CRM system, the campaign comes full circle to become a sophisticated marketing tool that enables targeting market segments, such as discounts to first-time buyers, as well as opening a plethora of cross-sell opportunities. The result: total control of the sales cycle – from the very first impression all the way to the desired conversion. Control that is always focused on positive ROI.

 

 

 


A 3D Approach to Online Advertising

by Admin August 23 , 2009 08:48

Attend our New seminar by co-CEO Peles at Ad-Tech London & DMEXCO Cologne:

A 3D Approach to Online Advertising
The Optimal Blend of Cost, Margin and Volume for Substantial Growth

A Veriosn in German

When advertising budgets get slashed, our knee-jerk reaction is to cut costs. But will salvation come from reducing eCPA alone?
Advertisers need to take an efficient, bold “3D” approach to building online advertising and media campaigns that takes into consideration the 3 business pillars: Costs, Margins and Volume.
This session goes beyond the hype and conventional wisdom. Learn how campaigns and media strategies can be built by aggregating and integrating diversified media sources, optimizing margins to reflect true business goals and leveraging technology to allow full control of the value chain. You can then achieve the right balance between cost, margins and volume – for more opportunities, higher profits and improved ROI.


Join Us!

Ad-Tech London: Tuesday 22/9, 14:30 hrs   -at Marketing Integration / Campaign Strategy Seminar

DMEXCO Cologne: Thursday  24/9, 12:00 hrs  - at  Seminar 4


 

Tricky Pricing models

by DMG Team July 27 , 2009 09:40

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:

Indeed, Ad networks and exchanges, represent the result driven segment of online advertising, as higher cpm budgets shrink, better media (namely, better placement, earlier impressions...) shift from premium / guaranteed to result base / unsold / monetized through ad networks. 
We are all fine with it. But if you look at the broader picture (not available for pubmatic and alike), cpm continues to drop combined with fill rates that maintain their low levels.

 

Impression Management In Social Networks

by DMG Team July 23 , 2009 09:15

Rachael Alter, Director of Publisher Dev. 
 
Focusing on the impression that lasts! 

We all know that Online Social Networks are the current trend of internet traffic. If you are not there –your square!

Who have not been through the high of racking our brain over every individual we knew in our past- trying to reestablish long lost ties with our high school sweethearts through Facebook or Myspace or at least spent time spying up on them.

And while the title of this paragraph might be understood as a discussion on how to maintain a good imprint on our peers in the social cyber world, I'd like to take it its meaning to the Performance based advertising arena.

According to various surveys, we are spending the most amount of our monthly Internet time online in top social networks; each individual racking up over 45 page views a time -  from flipping through photo albums to joining a "good cause". 

New social networks are popping up daily covering all walks of life from music to travel to business interests.

Publishers are now having a challenging time keeping up the performance for their banner advertisers with these mass amounts of page views, as  banners swiftly become a blurred backdrop to users after a few pages.

Publishers can keep up their value for their advertisers if they:

Segment their user's interests and profiles

Serve ads contextually to the content on page.

Keep banner advertisement placements to a reasonable amount for each unique user   - Sometime less is more.

All these tactics will increase the CTR and CNV considerably giving higher value to each impression –and that’s the impression that lasts!

 

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