Digital Marketing - Bing Notes from Training August/2013 Pedro A. Romero

│ 2 Digital Marketing - Bing Agenda Bing Ads – Platform and Tools – Paid Search Advertising Advantages – Algorithmic / Organic Search – Display Advertising How is Digital Marketing Used? – Branding – Performance Industry Trends in Digital Marketing Bing Ads API and Platform Integration Online Advertising Market

│ 3 Bing Ads Bing Ads Platform: Where the Paid Search Advertising Campaigns are created. Bing Ads Platform Tools: Bing Ads User Interface (Bing Ads UI) Bing Ads Desktop Tool Bing Ads API The search paid campaign appears throughout the Yahoo Bing Network.

│ 4 Bing Ads Paid Search Advertising Advantages: It’s affordable (for Customer and Partner): – With Paid Per Click advertising, the amount you spend is based on the monthly search campaign budget and the established maximum bid – The base bid is predefined, which is the maximum amount that will be paid when someone click in the ads. It builds brand awareness: – Search adverting puts the ads in front of a qualified audience of proven buyers – Access to millions of potential customers. It’s measurable: – Bings ads offers a variety of tools to help manage the search campaign success. – Research keywords and effectively plan keyword strategy to optimize the campaign and reach the right audience.

│ 5 Bing Ads Algorithmic / Organic Search: Digital Marketing includes the world of optimizing Algorithmic/Organic Search Results, commonly referred to as SEO (Search Engine Optimization). Bing is focusing to ensure the user/searcher is able to complete the task they needed to accomplish when using Bing.

│ 6 Bing Ads Display Advertising: Basics: Engaging the audience across the network: Also referred as “Banner Advertising”, display advertising refers to the type of advertising that appears on non-Search Engine sites. Trusted network of sites: This are trusted network sites to deliver the brand story to high- quality audiences.

│ 7 Bing Ads Display Advertising: Supply: Inventory: Is the web spaces or websites where a display ad serves. The “owners” of these sites are referred as “publishers”. Impression: An impression is the act of display the creative (an ad) on a particular page, one time within the publisher’s site.

│ 8 Bing Ads Display Advertising: There are two primary models that form the basis for how Display Advertising is sold & purchased: Cost Per Thousand (CPM): The buyer of the advertising pays a rate based on demand, for 1000 impressions to potential customers/businesses. These impressions can be delivered either across a network of sites or in specific positions on specific sites of the advertiser’s choosing. The network of sites will typically cost less than the specific site/position combination. Real Time Bidding – Microsoft Advertising Exchange: Via a software platform the buyer is presented with an impression that has certain attributes (ex. Geography, recent site visited, etc.) and the buyer can bid on that impression to win it. If the buyer wins the impression, they are charged the amount of the bid.

│ 9 Bing Ads Microsoft Advertising Exchange: Is a real time bid market place where you can reach audiences through high quality, brand safe inventory more efficiently. Features: Premium Scale: Microsoft Advertising Exchange is a premium exchange with high quality inventory to help reach audiences across Microsoft properties. Choice: Create infinite target segments with your own data or third party data. Choose your partner and ad formats with PC display and mobile options. Efficiency: Increase efficiency by buying across multiple inventory sources through one marketplace. Cut down manual processes and save effort with automated real-time bidding.

│ 10 How is Digital Marketing Used? Branding: The name of the game is your name. Branding is about getting your name out to your prospective customers. Products as Bing Ads and the Microsoft Advertising Exchange offer globally scalable solutions. Do it yourself or let us help through partners.

│ 11 How is Digital Marketing Used? Performance Cost per Lead (CPL) vs. Cost Per Acquisition (CPA) CPL Campaigns: The goal of CPL campaign is to drive interaction with a brand or business, on a high volume light-weight basis. Typically, CPL campaigns will require the visitor/user to provide only an address as the lead. These are designed to marketers looking to engage consumers or business at multiple touch points using vehicles such as newsletters or rewards programs. Search Advertising on the Bing Ads platform can be an effective CPL medium because of its relative lower cost and distinct audience. CPA Campaigns: There is a more complex or deeper engagement required to achieve the goal of an acquisition, there is a transaction (something is bought or sold) that is measured as a direct result of the campaign. Search advertising and Advertising Exchange offer an attractive mix of audience and price point to achieve your CPA campaign needs.

│ 12 Industry Trends in Digital Marketing There are several key trends in Digital Marketing that are influencing products, customers and partner behaviours. For 2012: – Mobility / Connectedness – Content and advertising continue to blur – Social continues to grow, but not at the same pace – Programmatic Buying of Display Advertising – Outsourcing of Search Advertising efforts – Privacy compliance

│ 13 Industry Trends in Digital Marketing Mobility / Connectedness: – People are adopting mobile and personal technology faster than ever. – Connectedness is increasingly “always on” with consumers /users.

│ 14 Industry Trends in Digital Marketing Content and advertising continue to blur: – Where the content ends and the brand promotion or the advertisement begins is blurring more and more thanks to Digital Marketing advancement. – The Branded APP is a great example of influencing a customer decision (what to buy/where) within a brand environment. It is digital marketing, but this advertising provides a customer a service or content.

│ 15 Industry Trends in Digital Marketing Social continues to grow, but not at the same pace – Social as a percentage of overall internet users is definitely still growing in the US, but it is starting to flatten. – Social Ads revenue is growing, but also slowing from CAGR (Compound Annual Growth Rate - The year-over-year growth rate) 45% rate to 24% rate over

│ 16 Industry Trends in Digital Marketing Programmatic Buying of Display Advertising: Programmatic Buying in Display driving the business margins. Higher sell-through and ability to tap bigger budgets key for Real- Time Bidding/Ad Exchanges

│ 17 Industry Trends in Digital Marketing Outsourcing of Search Advertising efforts: Programmatic Buying/Management in Search Advertising is driving the need for partners to help (Source: State of Search Marketing Report – 2012 SEMPO) – 48% of companies use a partner to do Paid Search Marketing on their behalf: Technically very challenging to do profitably without automation at-scale; hence the highest area for partner involvement – 44% of companies use a partner to manage Search Engine Optimization (SEO) for organic listings – 37% of companies use a partner to manage Social Media efforts.

│ 18 Industry Trends in Digital Marketing Privacy compliance: Privacy concerns among customers/users is growing – Consumers are conflicted about privacy: Tired of seeing irrelevant ads and suspicious of ads to be tailored to them – Most want to know what’s collected and some control

│ 19 Bing Ads API and Platform Integration Platform Integration: Via API: Is a web service that enables partners to use their own applications to communicate and exchange data directly with Bing Ads without going through the Bing Ads user interface. It’s the “back door” that partners and applications can use to interact with Bing Ads at scale, processing thousands of campaign changes in real time. Via UI: Is the “front door” that partners and customers to maintain their campaigns via the Bing Ads website.

│ 20 Online Advertising Market Partner Opportunities The market opportunity is huge and growing. Global online advertising spend > $100 B in 2013 Annual Growth Rate by Region (2012 – 2015) US: 16 % Europe: 16 % Asia Pacific Region: 20 % Latin America 26 %

│ 21 Online Advertising Market Industry Trends – Business: Outsourcing Digital Marketing to Partners Digital Marketing partners like Agencies, Tool Providers, reduce the complexity of digital marketing. From 2010 through 2012, companies outsourced a significant amount of their work in three key areas: – 50% of search optimization (SEO) – 53% of Paid Search optimization (SEM) – 40% of Social Media optimization

│ 22 Online Advertising Market Partner Value to a Digital Media Customer: Serve as a trusted advisor, who maximize customers use of digital media to grow, retain and manage customers. As expert and outsourcing partner in building digital media solutions that are best suited to customer’s needs (based on Customers business, target market, etc). Specially in SMB segment Providing Cost-efficient support to customers, allowing them to maximize their advertising spend and giving them time to run their business efficiently. Specially in SMB segment.