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.

For advertisers as well, In response to an article by Abbey Klaassen published on Ad age digital February 23.

http://adage.com/digital/article?article_id=134787 

Click is wrong metric for advertiser optimization as well, as CTR is the easiest metric to manipulate. As a media buyer I’ve always stayed away from cpc metric when buying display.

When eCPA is what matters from the advertiser perspective and eCPM is what the publisher is after, manipulating CTR is, in many cases, the way to bridge the gap. When locked in a fixed CPC this tool is taken away and hence at least one will lose (advertiser, or publisher).

An article in the wsj from the 5th of february.

http://online.wsj.com/article/SB123379182761749823.html#articleTabs%3Darticle

The ‘performance-driven advertising’ is yet another, a bit nicer (maybe), name for what internet advertising is and should be all about:

Measurability and accountability – which are the core merits.

Eventually, sometimes you need to go through tough times in order to inherit concepts that should have been inherited already -  like this one.

Treating internet advertising, as TV or news paper advertising is just missing on one of the net's biggest advantages measurability and accountability.

I am sure we will all get out of these times stronger and smarter about our businesses - especially if these businesses are online.

In response to "Global Budgets to Boost Online Advertising" 

An article posted in November on mediapost:

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=93914 

I commented on this article when it was published, and now approaching the half of Q1 2009 - i find it, not only still relevant, but also actually happening.

International growth in general, is what companies need to be looking for now days. In our industry, CPM 's are falling and opportunities are rising...

Here is the original comment: 

This article demonstrates one of the good things that come 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

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

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)