Interactive Brand Communication Class 10 Media Planning/Buying Issues

Ad Placement Issues  Delivery among Targets (Targeting Capabilities)  Advertising Pricing (& Cost-efficiency)  Reach (by entire buy, if possible)  Frequency (by entire buy, if possible)  Ad Position Effects  BPI Value of a Vehicle  Qualitative Values

Delivery Among Targets  Content Fit  based on analysis of consumer characteristics, interest, values & lifestyle, etc.  Size of Delivery (target impressions, when possible):  % delivery breakdown by consumer groups – demographic, geographic, usage, etc.  Site Reach & Target Reach  site reach: total unique users of the site  target reach: target unique users as % of total unique users

Delivery Among Targets  Site Frequency  frequency control capabilities  Targeting Capabilities  geodemographics, behavioral, any desired option, etc.

Ad Pricing  Sources for Web Advertising Sites & Rates  Who sells ad space on the Net?  How much does it cost?  Ad Pricing Methods & Cost-Efficiency  How is ad priced and its cost-efficiency determined?  Tactics of Buying & Selling Ad Space

Ad Pricing Sources for Web Ad Sites & Rates SRDS Interactive – general source –covers the largest number of sites PSA Banner Ads -- PSA only Ad Networks DoubleClick ( 24/7 Media ( Link Exchange ( Ad Auction (

Ad Pricing Ad Pricing Methods & Cost-Efficiency CPM (Cost-Per-Thousand) Impressions: Cost for 1000 pages or ads displayed or requested (page views or ad views) Most popular method Current Rates at $5 - $100 Rate varies by site (branded sites charge more) and by targeting option (the more specific, the more expensive)

Cost Per Click (Click-Through) Paying only for the number of click-throughs made (those who clicked the given ad and linked to the destination page –mini-page in the current site or advertiser’s site) Demanded by direct response advertisers, though its use or popularity is decreasing Higher rates than CPM Ad Pricing Ad Pricing Methods & Cost-Efficiency

Cost Per Sales Paying only for the completed sales transaction (in terms of so much $ or % of the sale, which varies on the value of the item sold) Cost Per Sales Leads Paying for other desired actions leading to sales (store visits, leaving info for contact, test- drive, etc.) Ad Pricing Ad Pricing Methods & Cost-Efficiency

Flat Fee A set amount charged, regardless of # impressions or clicks Used often for content sponsorships Rate may range from $200 to $200,000 per month Ad Pricing Ad Pricing Methods & Cost-Efficiency

CPVT (Cost per View-Through) Number of those who are exposed to the ad and take action within 30 days of the exposure New approach, getting popular for branding marketers

Ad Pricing Ad Pricing Methods & Cost-Efficiency Auctions Price determined via auction May be much lower Hybrid Pricing Combining two or more methods Popular method

Tactics of Buying and Selling Ad Space  Study Competitive Pricing  Be Open to Negotiation  Flexibility is the Key

Reach Unduplicated audience = Unique users expressed in number or % of total online population Reported by week, month, quarter Tactics of building reach (in general): –Use many content categories; use multiple sites within a category (thru ad networks); use top sites in unique users (costly); and/or buy keywords at search engines

Frequency  Average # of times the target is exposed to ad  Issue: How much is optimal?  Limit ad frequency to avoid burnout? Or the more the better?  How much is too much? -- depends on the goal (direct response vs. branding), and many other factors.  3 exposures in a purchasing cycle?  Tactics of Building Frequency:  Use one or two content categories; use one or two in each category  Develop and rote multiple banners within the same site

Ad Timing  When is the best time to run ads?  Least developed, increasingly important area – how ad timing is related to the desired response  Advertising will be most effective when delivered right before one is about to make a purchase decision or when he searches for the relevant information  Traditional tactics may apply (e.g., double-spots, roadblocks, etc.)

Ad Positions within a Site  Keep the Message Close to Page Content  (Place at the Top and/or Bottom of Page??)  Place a Third Way Down Close to the Scroll Bar

BPI Value Assessment  Most useful for direct response marketers  NetScore by comScore Network Inc. – see Table  BPI overall vs. BPI by Product Category (ROI or cost-efficiency indicator)  100 = average likelihood of purchase; 100 = below average; the larger the BPI, the more ROI (cost efficient) the buy  Example: a site with overall BPI of 120 (site visitors are 20% more likely than an average Internet user to purchase anything); a site with BPI of 120 for Travel (site visitors are 20% more likely than an average Internet user to travel)

BPI Value Assessment  Other Valuable Information (see the table in Experiential Exercises)  Unique User weighed by BPI:  Indicates the relative volume of sales to be generated by site; the larger this number, the larger the sales

Qualitative Values  content match  ad clutter  audience loyalty/site stickiness  ad inventory availability  category exclusivity

Qualitative Values  any added value (special deals & discount)  image and reputation  Read Zeff & Aronson book for others (reporting quality & frequency, performance guarantees, etc.)