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.  

DMG to Speak at TFM&A 2010 in London

 Co-CEO Peles will present seminar: "Beyond post-click- Technology for campaign value chain management and optimization".

"Beyond Post-Click" presents a new optimization approach that combines post-click and post-conversion data with pre-click information to maximize performance in online campaigns. For this type of comprehensive integration, technology is a key to bringing it all together - and to handling vast amounts of data in real time, enabling a meaningful and actionable outcome.

TFM Seminar

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?  

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 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.

We have been very busy with summarizing 2008 that is not done yet, but has been an amazing run for us here in DMG.
Now planing for 2009, great things to come, a lot more of the same but some news as well.
Stay tuned we are going to make 2009 even more exciting than 2008 has already been.

Peles

To be or not to be at IAB...

Yes! Definitely! it was a great opportunity to have a closer look into the Italian digital marketing arena. Apparently it is very alike the Israeli market.

So we had good business, enjoyed the stylish city and even went to a football game...

In the Booth: Co-CEO of DMG Peles and gorgeous Diego!

Outdoors Milan. All DMG team (almost) self-educating...

It's not Milan without some good football: the grass is green, the sky is blue!