Personalizing Mobile Ads

by Efrat Varga October 21 , 2010 10:11
Following an insightful article, "Using Personas For Better Mobile Campaigns", recently published on Mobile Marketer, we wanted to share our thoughts on this growing market. The article emphasizes that with mobile phones making access to information on the Web easier, consumers' attention spans are shortening. It has become imperative that advertising campaigns on mobile devices grasp the attention of each consumer. Hence, a catchall strategy would not bring about the results that an advertiser is looking for.
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Do you go on the Internet from your mobile device? Even if the answer is "no," the odds are that you will be soon. According to Gartner research, mobile phones will be the most common web access device worldwide by 2013. Therefore, it's only natural that advertising companies will step into the mobile ring. As with any advertising campaign, personalizing the content to users is crucial; the ability to differentiate between different types of users will determine the results of the campaign. 

While websites can be opened by both phones and PCs, the user experience is completely different. Thus, advertisers must align their campaign with the platform they wish to use: mobile or PCs. But, that is only the first step. To successfully lead diverse consumers to the desired action, advertisers must take into account the various user profiles and demographics, such as nationality, ethnicity, age group and so on. 

Rinat Mesertiz, the mobile director at DMG, echoes this idea: "One has to personalize to be relevant. It is important to understand that we are a long way from 1923, when Henry Ford said, 'Any customer can have a car painted any color that he wants as long as it is black.' Now, we cannot offer just black (take it or leave it) – and not 'any color'. We must provide the specific color that our user wants to achieve a better ROI." Personalization is key.

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Mobile Advertising

Landing Clients With Landing Pages

by Efrat Varga August 23 , 2010 09:58

Of all the elements that raise the cost of an advertising campaign, landing pages are often the toughest things for clients to rap their heads around. There are a few reasons for this trend. First off, the client often sees landing pages as superfluous, especially when they were always taught in sales to keep the layers between contact-to-close to a minimum. Landing pages just feel like an extra layer, not to mention an expensive one at that. The client has already went through a similar headache with a designer when trying to frame their message exactly the way they wanted to see it , and now that message“feel” is about to be changed again.

 

Aside from the obvious answers that landing pages are a more targeted creative for specific campaigns than are websites, and therefore more likely to produce conversions; and the fact that a landing page is not redefining a clients brand but rather defining a specific initiative of the brand – There are some additional bonus features of landing pages that are sure to enlighten a client’s perspective on what a powerful tool they can be.

 

Just as a client recognizes the value of banner placement to attract specific consumer demographics, with a new landing page optimization technologies, they should see the value in even further refined, post click targeting. Optimization technologies allows for targeted landing pages to match various user profiles. DMG took this approach one step further with their Traffiliate, by creating a technology that intelligently alternates between multiple landing pages for even further optimized results. For those of you unfamiliar with what I’m talking about, post click optimization technology, allows for the millisecond profiling of a click through consumer, followed by smart decisionsto serve a specific landing page that has been statistically proven to bestmatch that consumer’s profile group. After the client is presented with the landing page, their conversion behavior is monitored to further the statistical refinement of profiles, which increases the likelihood of future conversions down the road. This requires a premade set of landing pages meant to match aset of profiles, but the extra initial setup effort is well worth the results.

 

Once a client realizes the conversion numbers that lie behind an optimized landing page program (they can range from anywhere between 30 – 200% increases), closing them on the deal should be a no-brainer, and there’s no need to optimize specific pitches for specific clients. All clients think alike in this respect; as we said earlier, numbers bring smiles to clients’ faces.         

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a/b testing | Integrated Result-based approach | Value Chain

Social Profile Advertising: The Uncharted Frontier

by Efrat Varga August 12 , 2010 11:27
It’s certainly an exciting time these days for advertising. With new technologies being rolled out like fast food, advertising might be in line for a new golden age, where demand and venue options actually exceed supply. This skewed balance of supply and demand is not due to a lack of ad agencies, believe me, there are plenty – but rather because new technologies and ad mediums are popping up ever so quickly. This creates two major challenges for the ad industry:

First- Technologies are diversifying in so many different directions, and so quickly, one advertiser might specialize in post click optimization for mobile, while another might specialize in social gamming. Both industries are too new and are growing too fast for one company to have been able to specialize in both at this early stage.   

Second- There are no industry standards yet as to best practices for many of these mediums. It’s like the Wild West out there, with new methods and approaches being attempted all the time, and in many cases, advertisers are still learning as they go.

One such example of advertising’s many new mediums is social media. Social media is only a few years old but has exploded in popularity with hundreds of millions of users world-wide, and that number is growing exponentially. What throws most advertisers off is that there are really two sides to social media advertising. One side deals with the classic form of advertising, i.e. banners, visuals and copy. The thumbnail sized ad pictures on Facebook and the 140 character limit on Twitter are nothing new for advertisers. Creative minds have always been plagued with the challenge of reigning in their imaginations to fit the dimensions of paid for real-estate, chromatic boilerplates and character limitations. But then there’s the other side of social media advertising which many brands are still not aware that they are even involved in.  

Social media users of today are not the old media sponges that sat passively by as they absorbed a carefully crafted message built from weeks of collaborative efforts from creative professionals. These media targets are interactive, participating in a dialogue not only with the brand itself, but also with their own network about the brand, playing an active role, if not the main role, in painting a brand’s image in the eyes of the market. Many brands have made the mistake of ignoring the buzz that reverberates across the walls of the socialscape, not realizing how much it affects them until it is too late. 

Last year’s infamous incident of United Airlines ignoring the complaints of a disgruntled passenger who had his guitar broken by luggage handlers, made headlines and caused a whole lot of headache for the airlines corporate arm. It wasn’t the headlines though that caused all the trouble, but rather the passenger’s use of social media. The passenger, Dave Carroll, also happened to be a country singer, and he informed the intransigent customer service rep that he was going to make a YouTube music video highlighting his customer service, and that’s exactly what he did. What even Carroll didn’t expect was for the video to go viral overnight and actually cause United’s stock to drop dramatically costing United shareholders upwards of $180 million dollars. The company backtracked fairly quickly after that, offering to pay for all the damage, although the damage to United’s reputation and dollar value had already been done. Pretty powerful for one man with nothing but a video camera and a social profile at his disposal.   

And it’s not just the unknown power of social media that brands and advertisers have to be aware of, but the still forming social language and etiquette that can make the difference between a diehard fan base and a vengeful one. For example, advertisers and brands have to get used to the unwritten rule that brands should not be promoting themselves directly through their social profiles. If every other tweet by a given brand is about how great they are, not only do people not listen, they begin to resent the brand and label it as a spammer (one of the gravest insults one can be given in social media land). Instead, brands have to accustom themselves to providing their network with worthwhile media, either as information or entertainment, which does not necessarily have to have anything to do with the actual brand itself. In fact, it often shouldn’t. By not self promoting, brands come off as more genuine and can manage to convince their network that they are a viable social network friend. The thing about friends is that they trust each other, and help each other out. So the next time a prospective customer is looking for accurate news, why not choose the network they feel personally friendly with.

We can see from here that social media advertising is somewhat counter intuitive and its rules are still being ironed out. This post was not meant to offer solutions as much as it was to highlight the dynamic times and challenges that modern day advertising is facing, and to get advertisers to begin to think differently about how they plan on reaching their target market. The important thing for advertisers r to do right now, is to keep their finger on the pulse of the industry, and try to anticipate a trend shift where they can be a first mover in specializing in that area. The shifts should be plenty and not hard to find. Catching them before they happen as opposed to after, now that’s the hard part. Welcome to the frontier.        

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Integrated Result-based approach

The Comeback Kid of Digital Advertising

by Efrat Varga August 4 , 2010 11:23
In the early days of the internet, it was thought that a revolution had taken place in the advertising world, and banner ads and click through campaigns were all the hype of the day. There is no question that a revolution had taken place however, with the popping of the internet bubble in the mid 2000’s, all things internet related took a major hit, and investors became rigorously analytical with every penny invested in digital business ventures. In hindsight, the microscopic scrutiny of the post bubble era may have been taken too far given that anyone using the internet at the time could have told you digital display ads, like banners and pop-ups, were uninteresting, often intrusive and rarely relevant to consumer habits. Reacting to the negative feedback of the first banner wave, media buyers gave display ads a back seat while they fell back on traditional advertising models and searched for new methods of exploiting the potential that online held for the next generation of advertising campaigns. Their search efforts eventually paid off in the form of… well, Search. Today, search based advertising comprises the majority of dollars earmarked for ad budgets with an estimated 11 billion dollars having been invested in 2009 alone.

Although we are singling out banner ads as an online industry whose initial primitive business structure caused it to absorb punishment from the backlash of the bubble burst, the truth is, every element of the internet was experiencing growing pains at the time as they learned that a web address was simply no replacement for sound business strategy. Remember how for months after the bubble burst, internet pundits claimed that online businesses were not viable entities on their own, and had to be paired with brick & mortar elements if they wished to have a chance at making their business model work. Well, when was the last time you heard the term “Brick & Mortar”, and today, everyone agrees that strictly online businesses have found their market and worked out the kinks of online business strategy.

The same can be said for banner ads. Lately, digital advertisers have been turning to technology to find solutions for turning display advertising into a targeted and statistically based science, increasing returns at a decreased cost, i.e. the original vision of the display ad industry. It seems that technology has finally caught up with vision, and advertisers are beginning to relinquish their outdated hesitation toward display ads as the efficiency and cost effectiveness of their results become increasingly more difficult to ignore. According to recent research estimates, display advertising can now be expected to grow by 17% per year!

Does this mean that display advertising will replace search? Probably not, as search has proven to be an effective advertising tool as well. What is does mean is that digital advertising campaigns will begin to become more multi pronged, in a similar fashion to their old media predecessors. Where old media would use television, radio and print to disseminate a consistent message across multiple channels, digital media will begin to follow a similar path, using search, display ads and things like digital email brochures, each vertical offering a separate advantage over the other. 

Search will always have the advantage that a prospective customer is currently searching for a solution, be it product, service or information oriented, and if an ad can be positioned to meet that solution, in part or in whole- that is a strong attractive advantage to offer advertisers. Display advertising has a separate advantage by way of creativity. First impressions given off by search ads are textual based and highly limited in their word count. Display ads are rich in the copy and in the visual department, allowing them far more creative freedom with which to capture the attention of a prospective client, while providing the potential means with which to take a campaign viral. 

Given the creative advantage that display ads offer, and combining it with the latest technology which allows for as targeted a campaign as search can offer, if not more so; display advertising is not only making a comeback as a viable ad venue choice next to search, we soon might be seeing display advertising overtaking search as the core element of multifaceted digital campaigns.           

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Display Ad

Hidden Opportunities In 2010’s Advertising Stats

by Efrat Varga July 28 , 2010 09:11

According to new advertising statistics available here, the steady extraction of the global economy from its worldwide recession is showing clearly in the advertising sector. In all areas of advertising the world over, growth rates are expected to rise, and in some areas more than others - Yet these figures can be somewhat misleading.

 

For example, in developed countries, the growth rate is expected to increase by 2.4% in 2011 AND 2.9% in 2012, as compared to developing countries where growth rates are expected to reach 9.1% and 9.8% respectively. The obvious conclusion to be drawn, at least at first glance, is that developing sectors offer more opportunity by way of advertising as docurrently developed regions. However, these numbers need to be taken incontext. The discrepancy in the level of quality and overall influencing power of media from developed countries like the US, as compared to developing countries like India, is massive. Therefore, to conclude that there is less opportunity for advertisers in developed countries due to a mere 2.4% increase expectancy, may not only be a misrepresentation of that numbers true power, but the exact opposite might be the real truth. It’s the equivalent of saying a national football team with a mediocre record would be the underdog next to your local neighborhood champions. You can’t compare, they’re simply in different leagues.

 

The misleading nature of these numbers in sector specific statistics also pops up again in media venue stats. According to the same article, TV is capturing the majority of advertising focus with a lion’s share of 40.8%, up from 39.2 in 2009. Internet on the other hand is up from 12.7% to 17.1%. One might be tempted to make the same argument of older developed market numbers being worth more than developing sectors like internet, but that would not fit within the contextual reality. TV is a highly segmented market with local and regional divides demarcating clear cut segmentation between the sectors. When a commercial airs in a local township, that commercial will not reach anywhere far beyond its original local, and certainly it garner any global, or even regional coverage. Therefore the large 40.8% number is not nearly as powerful as it sounds from an advertiser’s perspective looking to branch out globally. The internet on the other hand, is a whole different kind of animal where advertising’s reach is far more readily made global, be grudging that 17.1% figure far more significance than one might otherwise like to give it.

 

Look at it this way: As the article notes, it is the spread of mobile and social media that is effectively fuelling the large leap forward in the internet advertising sector. If comparing the meteoric rise of global mobile carriers and social media giants, like Facebook and Twitter, can beviewed as indicators for the true power of internet advertising statistics, then such numbers can be compared to a body builder in really baggy clothing, i.e. first impressions can be deceiving.

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Advertising Stats

Optimization: The Cost of Benefit

by Efrat Varga July 12 , 2010 03:01

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.

DMG presents at IMA Mobile Advertising Technology

by Efrat Varga July 8 , 2010 09:49

 

The Israel Mobile & Communication Association (IMA) held its 3rd Mobile Marketing Conferencein Tel Aviv on Monday 5 July. Bringing together some of the leading figures and commentators in the Mobile Marketing industry, the conference provided aplat form for the presentation and discussion of where the industry is atand where it is going. Amongst others, speakers included Russell Buckley (VP Global Alliances, AdMob, Global Chairman of MMA), Jeff Pulver (Founder #140 conf), Harald Neidhardt (CMO and co-founder of SMAATO) and Lucy Lombardi (TelecomItalia). A variety of topics were covered ranging from Social Media Marketing and the FIFA World Cup as a recent case study to technological developments and the latest trends in mobile advertising.

 

DMG’s CEO Peles was amongst the speakers and in a talkentitled Brining Results to Mobile Advertising he outlined how mobile advertising is following in the steps of internet advertising. Where measurement & ROI are considered standard when applied to the internet, he emphasized how these will soon play the same role when it comes to the mobile. He went on to elaborate on how Traffiliate, DMG’s unique optimization technology for mobile generates our result based concept and ultimately increases the conversation rate for mobile ad campaigns.

 

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.  

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