Tag Archives: Display Advertising

But What is an Impression Worth?

Seems like coming up with a value for social media has become a cottage industry, for example, $3.60 Facebook Fan Valuation Is Just the Tip of the Iceberg.  These values are often derived from what is paid for online media.  So you have to ask, if someone is basing the value of a Facebook fan on the value of impressions generated, what is the real value of those impressions?  Because unless this is known, the whole framework is faulty.

Just because you pay $5 / CPM for impressions, does not mean they are worth $5 / CPM, does it?  Do people really still have that kind of mentality?  Is the price of the media equivalent to its value?

For example, I’m sure you have heard of multi-million dollar campaigns that generate very little lift in sales.  Happens frequently in fast food, for example.  What is the value of that media?  Is it the millions paid?

What really blows my mind about this approach is it’s so offline, so old school PR. Do the folks who put forth these kinds of models believe nothing has changed in 50 years?  What happened to the whole rap of online being “different”, that you can’t measure it like offline, blah blah.

Except when it’s convenient to do so?

If you want to know the value of a Facebook fan, why not measure the value of a Facebook fan?  Because it’s hard, and would require organizational discipline?  Too bad.   Substituting the kind of models used in the example above for actually measuring the value of a Facebook fan is misleading at the very best.

Continue reading But What is an Impression Worth?

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Net Meaningful Audience

 

Not Meaningful
Not Meaningful

When you’re in the business of measuring the effects of Marketing programs, certain patterns begin expressing themselves over and over.  One of the oldest in the contribution to success of various parts of a Marketing effort, sometimes called the 60-30-10 rule:

60 percent of success is determined by the audience quality
30 percent of success is determined by the offer
10 percent of success is determined by the creative

Where do these stats come from?  Continuous improvement testing.  Over the years, if you run a lot of different tests, you just begin to see this pattern.  And the pattern holds across a very wide variety of business models – online and offline.

The key takeaway here: audience quality is the most important component of success in a results-oriented Marketing campaign.  This is why the CPM’s for niche Magazines, for example, are so high.  These Magazines are tremendously efficient marketing vehicles because they have high audience quality, which drives end behavior – results.

And the primary reason the audience quality is so high?

People pay for these Magazines.  When people pay for something, they value it with more Attention. Why? Simple.

In a magazine like Hot Rod or Concrete Decor or Vogue, the percentage of content that is interesting to the niche audience is very high. In fact, the Advertising is viewed as content.

Smaller audience, very high quality. Ads work like gangbusters.

Clearly, there are other ways to run a media model.  At the opposite end of the media spectrum, there is free.

Continue reading Net Meaningful Audience

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Wrong Model, Dumb Money

I am not a technophobic Marketeer, an old “resistant to change” type.  In fact, I’m just the opposite, and that’s why I can’t understand why Online continues to Repeat Past Marketing Failures.

I was one of those kids that built crystal radio sets and messed around with ham radio.  My favorite place to hang out was Radio Shack, back when they were an electronic parts house.  I built all kinds of circuit board stuff with a soldering iron, mostly bugs and telco hacks.  I was a geek when they were called nerds. 

In 1977 I learned the BASIC language and was writing simple programs for the mainframe at college.  In 1978, I was part of a small group of students who worked on the Synclavier, the first large scale truly digital music synthesizer.  I started working with PC’s in 1987, and had a home computer by 1991.  I was one of those people who dialed up to the CompuServe Forums at 300 baud, primarily talking about computers and music, figuring out how to rewrite .bat and .ini files to get the computer / keyboard interfaces working properly. 

And at the same time, making lots of  “online friends” ;).

Continue reading Wrong Model, Dumb Money

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Push, then Pull

To summarize, there are significant forces in play that require Marketing folks to realize that optimizing Marketing goes far beyond media, message, response, and all the traditional MarCom stuff. 

To take advantage of these changes, there has to be a Strategic admission that Sales, Marketing, and Service are all parts of a customer-centric whole.  Interactivity forces this on you; it’s a Relationship Marketing environment.

CMO’s have an opportunity to step up and take control of this situation.  If they don’t, the job of integrating these disciplines will be handed to a Chief Customer Officer, Chief Experience Officer, or some other needless C-Level fabrication.  And that’s not really going to work, it’s a partial solution.

For those of you with Brand as your current primary focus, it should be easy to make the argument about why this integration matters and why you should be in charge of it.   If you don’t do something about really integrating all the customer facing disciplines, examples abound of the Brand damage that can occur

No amount of “Advertising” can fix Brand rot, you have to get to the Root Cause, which is probably cross-functional in nature.  It really doesn’t make sense to ignore excellence in execution and then react to the problems caused when you can discover, address, and fix these issues before they happen.

Here are some ideas to think about on the Tactical side:

1.  Don’t use Mass Media to try and build / close Relationships; that’s a waste of time.  Use Mass Media for what it’s very efficient at – creating Awareness and Intent.  The first step of the 2-step, it’s the Push part.  If Push sounds like it’s intrusive, remember people expect Push from Mass Media to begin with.  You have the proper context; that’s why Mass Media can be effective for Push.

Use unique taglines and phrases in the execution, knowing a search on the web is a high probability next step.  Google just released a study on what this looks like for newspapers, complete with a neat PDF diagram (see page 2).  Make sure the web team is prepped for the Mass Media, that they have optimized the unique taglines and phrases for Search, both Paid and Organic.

2.  Make sure the copy directly implies you are open for the Brand Promise to be tested in an interactive environment, where Brand Proof will take place.  This will usually be the web, but it could be a call center or other venue.  Invite those with Intent to convert this Intent to Desire through Interaction with you; this is Pull. 

Focus on driving curiosity and peaking Interest rather than selling, e.g. “Want to Know More?  Here’s our web site…”

3.  Pull is self-service, it’s about proper execution – consistency with the Mass message, ease of use, transparent, Relationship building.  Potential customer is now driving, you are awaiting response.  Answer the questions raised by the Brand Promise (on a web site or in the call center), allow them to be tested. 

Don’t simply repeat the Promise – that job has already been done, it’s a waste of time, it’s redundant, not respectful. 

Instead, fully and completely Expose the Brand Promise, let it stand for testimony.  Allow Brand Proof to take place.  This is not the time to be Intrusive; that’s out of context.  Make it easy for the prospect to feed back the experience, and be ready for the dialogue.  Relationship Marketing is an Exchange, a dance, two-way, back and forth.

React and Respond.  Be “Social”, if you want to call it that.

This portion of the program – which might consist of many different campaigns driving traffic into it – is where failure most often occurs, and where you get into this whole “customer is in control” thing. 

Like that’s a negative?  What they are in control of is their own process, and what’s the matter with that?  It’s enabling, empowering for the customer; it builds the Relationship.  Hopefully, what you have done here is given control; as opposed to having it taken from you.  There is a very big difference between the two.

If the customer has to “take control”, you’re doing something wrong.  You have broken processes, you have cross-functional chaos, you’re not enabling a dialog.  Or you’ve inflated promises, created false expectations, at worst, told half-truths.  You’re creating frustration.

That’s when customers feel like they have to take control from you.

That covers the Tactics for Aquisition (AIDA), I’ll tackle Retention (S) in the next post.  As always, Comments on are appreciated.

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