The optimization of an organization’s varied processes enhances its lifespan and ability to survive - especially during harsh times such as the recession we are still recovering from. In fact, it's hard to think of any organizational process that would not benefit from optimization: from saving money on office supplies to maximizing the efficiency of internal systems. 

In the digital advertising world, optimization is being used to improve processes, to enhance the effectiveness of online-advertising campaigns and to increase the margin between the benefit of the campaign and its cost. In most cases the goal is finding a balance between this margin and the quantity (volume) achieved. More often than not the cost is calculated as the price of (effectively) obtaining a client, whereas the benefit is calculated as the income obtained from the same client (net, after selling costs).   

For the most part the goal is maximizing results. This means finding a balance between the desired margin and the volume achieved. It is usually the case, at least in online advertising, that we are willing to give up on some of the return in exchange for a greater volume. As an advertiser, we are willing to pay more to obtain a client if it results in us ultimately converting more customers. A volume discount does not usually work in our industry.

When managing a digital campaign, in order to get results, you must manage the process. Here, as mentioned before, in order to achieve a balance between a satisfactory margin and the desired volume, one has to manage the value chain of the campaign, with the understanding that each component in the chain not only influences the final outcome but also has an effect on every other link in the chain. For example, a creative concept with a high click-through rate will usually lead to a lower conversion rate.  The value chain is combined of and has effect as follows:

·         Promotional offer - directly affects the ability to convert customers while inversely impacting on their value.

·         Creative concept - directly affects the click-through rate while inversely impacting on the conversion rate. 

·         Media - directly affects the click-through rate while inversely impacting on the conversion rate. 

·         Landing - directly influences the conversion rate while inversely impacting on the value of the customers. 

Optimizing the whole value chain requires finding the correct combination of the different components so as to bring about the desired results.

The idea is to try different ingredients and different combinations (multivariate testing). This means trying different marketing proposals, supported by an alternative creative concept, diverse media, appropriate landing pages and varied conversion funnels. 

The optimization process never ends, there are countless possibilities and always a better path to take, and its goals can and should change relative to the goals of the  business and the desire to achieve the initial objectives of the campaign.

Such optimization cannot be done without appropriate technology but technology alone is not enough. Skilled teams are required by both the advertiser and the media company. Both must be willing to work hard together to achieve the campaign goals - work which includes amongst other factors both parties sharing information in a transparent manner.

Optimization has been a popular word in business since the hi-tech age hit in the early 90’s. However, as technology became more complex, so did the practical meaning of that word. It just became something that people would use in marketing copy or during a presentation to impress some big wigs in suits.

Optimize, optimize, optimize.

What exactly do you mean by optimize?

Because if by optimization you mean taking a business process that has already been digitized, and breaking it down even further with more specialized technology, what you’re really getting is an un-optimized complex jumble of highly specialized processes.

Knowing this, when businesses pitch optimization, what they usually mean these days is simplification, i.e. which of the complex business process offering will a) cost me the least for b) the greatest return on investment.

Sounds pretty simple doesn’t it?

The problem is that simplification by itself is not optimization, and neither is ignoring the potential benefits of complexity simply because it’s, well…complex.

True optimization means finding a way to aggregate every element of complexity through a simplification filter that still allows for the exploitation of each and every element of the business process in a case specific adjustable fashion.

In the short run this will most probably require more initial investment, time (initial setup), money (initial investment), or otherwise – But in the long run, if you did your homework, your job will become far easier and the return, far greater.

Now let’s apply what we just said to digital advertising:

Generally speaking the average digital advertiser tries to spend the least amount of money per customer conversion, in an amount to “optimize” his specific conversion revenue. However, based on what we said, there has got to be a better way to go about this.

If we can only find a way to take all major aspects of a digital advertising campaign, each one affecting a different element of the conversion process:

·         Bid marketing- directly affects conversion percentage, indirectly affects customer value.

·         Creative concept- directly affects click through rate, indirectly affects conversion percentage.

·          Media- directly affects conversion, indirectly affects click through rate.

·         Landing page- directly affects conversion percentage, indirectly affects customer value.

And find a way to balance their weighted use properly throughout a campaign to affect the greatest overall conversion rate…Well now we’d be optimizing.

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.

The Hamsa Hand Joy: Robbie and Ohad (in suites) with2 great partners

Moshik and Noam - As promised you're our blog stars... 

Winning team at DMEXCO (L -R): Ohad, Tom, Moshik. Robbie, Rachael, iDa,Peles  

Peles Speaking: 3D Apporach to online advertising 

In today's online advertising market, online marketing needs of every client are unique.
Here at DMG we provide solutions that are specifically designed to meet clients' diverse requirements and optimize their ROI goals. We offer both advertisers and publishers technology-driven solutions to increase brand reach, generate leads, target consumers and measure results.
Our philosophy lies in a simple statement: "results or your money back - guaranteed".
This claim can be made only thanks to the following:

Technology –utilizing proprietary technologies and field-proven methodologies
Full solution - delivering heightened performance throughout the value chain.
Human Capital – employing a proficient team of well-established professionals with years of experience running highly successful campaigns across the globe.
Long-Term Client Retention – holding our customers' satisfaction as our key drive and maintaining a high retention rate and close partnerships that enable us to successfully achieve our clients' backend goals.

We are continually striving to generate value to our clients and promise to maintain our daily commitment as your source for unparalleled service into the future.

 Sincerely,

Inbar and Peles

Die optimale Mischung aus Kosten, Margen und Volumen für deutliches Wachstum

Englisg Version 

Sessions-Zusammenfassung:

Wenn Werbebudgets gekürzt werden, ist unsere spontane Reaktion Kosten zu senken. Aber kommt die Rettung durch die Reduktion von eCPA allein? Die Werbetreibenden müssen eine effektive, mutige “3D”-Herangehensweise annehmen, um Online-Werbung und Medienkampagnen aufzubauen, die die drei Geschäftssäulen Kosten, Margen und Volumen berücksichtigen. Diese Session geht über den Hype und die konventionelle Weisheit hinaus. Lernen Sie, wie Kampagnen und Medienstrategien aufgebaut werden können, durch die Aggregierung und Integrierung von abwechslungsreichen Medienquellen, durch die Optimierung von Margen, um echte Geschäftsziele widerzuspiegeln, und durch den Einsatz von Technologie, um die volle Kontrolle der Wertschöpfungskette zu ermöglichen. Dann können Sie das richtige Gleichgewicht zwischen Kosten, Margen und Volumen erreichen – für mehr Chancen, höhere Gewinne und verbesserten ROI.

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.

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

As the most critical stage of the campaign, the LP generates the actual results, thus should ensure the higher possible Conversion rates.
Hereby are several recommended principals for Landing Page creation:

1.     Optimize the loading speed
This is a crucial step in the process: the faster the LP loads - the lower your bounce rate will go!
An outstanding design that takes time to open up will probably won’t be able to keep the potential buyer to see your design (or at least complete the conversion process). 

2.     Define the Objectives for the Landing Page
the content of the page should be determined by the desired results:
generating leads, product acquisition, brand/product awareness, etc.

e.g. A: for online acquisition results, the page should comprise of the minimum necessary details for the actual purchase – to make it quickly and effectively without any hassles to the buyer.

e.g. B: If you want to direct the leads to a calling center, in order to improve their scoring, you can add more qualifying questions, which may have a direct effect on the lead's Value for both the calling center and cost.
On another case, when a higher volume of leads needs to be generated for a huge calling center, it is recommended to “untie” the qualification fields.

3.    Ensure the best possible design of text and structure
The major info should be positioned on the "heating" areas of the page, to increase visibility and attention of the users for maximum responsiveness.

e.g.: when the text orientation is from left to right, the "heat (and hitting) area" is at the upper left side of the page. All major messages should be located there.
An additional info will be located at other areas. Again – make sure to keep it on the heat area. The attached Heat Map demonstrates this concept:
"Hot"/ High hit areas – in red color 
"Cold"/Low hit areas- in blue color

By Inbar Chap, co-CEO

Don't Judge a Banner by its Cover!
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=107890