Retargeting With Demand-Side Platforms in Display Performance Media

A key driver for growth in display advertising is the rise of technology that seeks to bring efficiency to ad impression buying — i.e., demand-side platforms (DSPs). Approximately 10 percent of today’s online spending flows through DSPs, with forecasts calling for that figure to increase to as much as 50 percent over the next few years.

A key driver for growth in display advertising is the rise of technology that seeks to bring efficiency to ad impression buying — i.e., demand-side platforms (DSPs). Approximately 10 percent of today’s online spending flows through DSPs, with forecasts calling for that figure to increase to as much as 50 percent over the next few years.

Large brands will fuel much of this growth as they shift large ad network budgets to DSPs for better pricing, increased transparency/brand safety, centralized ownership, protection of visitor data, among other benefits. Even marketers who failed with display in the past can achieve success with the ad vehicle in the present via DSPs, thanks to the inherent advantages some DSPs bring to the table.

Many direct and performance-based marketers who were unable to measure traditional display buys to a reasonable return on investment in the past are starting to explore DSPs as a new source of incremental sales and leads. Since a retargeting buy is publisher agnostic (i.e., the advertiser is buying impressions served to specific cookies, not impressions served on specific websites or content channels), DSPs offer the most scale and efficiency, reaching 98 percent of internet users through one-bid management platform using global frequency controls.

Thanks to these advantages and the relevance they offer, retargeting campaigns often convert two times to 10 times more than traditional display ads, and can, at times, show an ROI equal to or better than generic search or content targeting campaigns.

Display advertising continues to evolve, and certain key strategies are starting to take shape that can help advertisers control risk while gaining valuable insights for future channel maximization. Depending on website traffic and ROI flexibility, performance-based advertisers typically have the most success kicking off testing with site-based retargeting.

This strategy enables advertisers to retarget consumers who visited their site, browsed and left without ever converting into a lead or sale. By placing a retargeting tag in the footer of these pages (e.g., the home or shopping cart pages), advertisers can build and bid on multiple retargeting segments using segment-specific messaging or offers across the web through an ad buy on either a DSP or ad network.

So why not just limit testing to retargeting? Although advertisers may be able to achieve ROI close to search or affiliate campaigns with retargeting, impression volume will eventually limit growth. Similar to the role of generic terms in driving brand term volume in a paid search campaign, it’s important to test and explore a broader set of display performance media strategies that may work at higher, more flexible RS/CPA levels in conjunction with retargeting to help drive site traffic that feeds a retargeting cookie pool.

DSPs can help advertisers implement these strategies. Run of network buys (testing different DSPs/networks with and without filters), contextual targeting and site targeting, when bought in a biddable marketplace, are all viable in driving cost-effective traffic to an advertiser’s site. If an advertiser has the right tools and processes in place, DSPs can even be profitable in and of themselves.

For advertisers that are willing to be more flexible and effectively leverage it, display performance media can quickly become the next big untapped channel. These emerging strategies will continue to evolve and pave the way for targeted display advertising for years to come.

Special thanks to contributing author Kirstin Peters of Performics.

Affiliates: Redefining the Original Performance Marketing Channel

As the original performance marketing channel, affiliate marketing has been effectively driving performance-based sales since the mid-90s. But the characteristics of an effective affiliate program have changed dramatically over the years. Whether marketers choose a closed or open affiliate program, or optimize their program monthly or annually, they should view affiliates differently today than they have in the past.

As the original performance marketing channel, affiliate marketing has been effectively driving performance-based sales since the mid-90s. But the characteristics of an effective affiliate program have changed dramatically over the years. Whether marketers choose a closed or open affiliate program, or optimize their program monthly or annually, they should view affiliates differently today than they have in the past.

When evaluating the worth of any affiliate in any given program, ask yourself questions that consider the increasingly mobile, social and local reality of today’s online world. A few starting point questions include the following:

  • Do your affiliates actively work for you?
  • Do your affiliates develop content around your products/categories to improve natural search exposure?
  • Do they generate new traffic/users to your site, both online and offline?
  • Do they use social networks like Facebook or Twitter to encourage brand interaction?

In some cases, the onus falls on marketers to do more to empower affiliates — i.e., arming them with vital brand information to help them drive high-quality sales and more volume. That includes the following:

  • insights on what the best-selling products are;
  • seasonal issues to be aware of, including holidays;
  • dates of catalog drops;
  • seasonal product lines;
  • anything unique about the marketer’s products;
  • proven tactics that have worked with customers; and
  • the type of conversion rates typically experienced.

Marketers should proactively provide affiliates with this critical merchandising information to help them work effectively for their brands.

Give affiliates relevant and timely content, such as how-to articles, important/relevant trends and customer reviews. Provide affiliates with compelling creative assets, including valuable promotions and special offers. Offering great resources for content can help affiliates perform better on natural search and/or increase the clickthrough rate of an advertiser’s promotions by establishing credibility with prospects.

Likely the most substantial change affiliates have had to deal with in recent years is the emergence of social media. Social media has opened up many new opportunities for affiliates. Marketers should seek out affiliate partners that add value by actively embracing this new medium.

Social media offers affiliates an additional distribution channel to interact with consumers. Similar to brands, affiliates use social media to gain followers, generate traffic, distribute offers and promotions, and drive conversions for retailers. Social media enables affiliates to engage more with consumers than ever before, creating deeper relationships with consumers who opt in as brand advocates by becoming fans on Facebook or followers on Twitter. Seek out affiliate partners with loyal user bases; social media prowess often provides a good indication of this loyalty.

Careful consideration to these crucial questions will help marketers better understand which affiliates are their best channel partners and which might have the most untapped potential. After all, the original performance marketing channel is here to stay. Updating one’s view of the channel will help you remain strong and keep a competitive edge.

* Special thanks to contributing authors Leo Dalakos and Megan Halscheid of Performics.

Craig Greenfield’s Redefining Performance Marketing: Holding Performance Marketing Campaigns Accountable

Facebook recently passed Google to become the most visited website in the U.S., according to Hitwise. This achievement from the social networking giant reminds marketers not only of the growing importance of social media, and Facebook in particular, but of choosing the right approach and success measurement plan.

Facebook recently passed Google as the most visited website in the U.S., according to Hitwise. This achievement from the social networking giant reminds marketers not only of the growing importance of social media, and Facebook in particular, but of choosing the right approach and success measurement plan.

Performance media offers marketers several solid choices to connect with target audiences, but marketers should clearly define campaign goals up front to ensure they choose the right campaign tactics and success measurement scheme. With concrete goals in place, marketers can consider incorporating fan pages, ads and applications into their campaigns and create plans to observe and measure engagement, conversions, connections and opinions (ECCO) to quantify success.

Facebook pages
Facebook pages offer free, simple ways to update people about promotions, events, new products and more. Marketers should select a memorable Facebook vanity URL for their pages, and promote them on their brands’ native sites, blogs and other promotional materials since consumers need to opt in or click the “Like” button on the page to engage with the brand.

Search engines rank social site pages high for branded searches, and marketers can use them to own more of the search engine results page since search engines only display two results from marketers’ native sites.

Applications
Applications foster viral sharing, encourage brand interaction and generate leads through “tell your friends” and “add to profile” buttons. Papa John’s, for example, uses sweepstakes apps to capture names and email addresses while staying top of mind with consumers. Tools exist to track user interaction with applications.

Social ads
Performance media ads are text- and image-based ads that appear in the right sidebars of Facebook users’ profile pages. Marketers trigger these cost-per-click or cost-per-impression ads based on user attributes like gender, geography, age and interests. These powerful microtargeting capabilities enable marketers to effectively target only the most suitable of Facebook’s more than 400 million users.

ECCO success tracking

A performance marketing campaign’s success hinges on whether, and to what extent, it achieved its goals. ECCO offers a concrete approach to measuring and quantifying success. It can be adapted to a specific campaign’s goals and tactics to establish clearly defined success metrics and milestones, but the approach always incorporates some combination of engagement, conversion, connection and opinion measurement. These terms are explained in more detail in the following list:

  • Engagement. What immediate reaction or interaction was created? Often measures clickthroughs, rollovers, interaction rates, video streams, time spent with ads, games played, etc.
  • Conversions. Following engagement, what actions did the campaign spur? Commonly consists of sales/orders, leads/emails, downloads, sweeps entries and other post-click activity.
  • Connections. How well did the campaign reach its target? What impressions were left? Measures reach, frequency, cross-site duplication, impressions delivered, site visits and more.
  • Opinions. How was the campaign perceived? What reactions were elicited? Can include brand studies, polls/surveys, ad recall, brand awareness, purchase intent, among other things.

Marketers and their partners must assign the right values and indicators to each ECCO element, but the framework provides an adaptable approach that can support a wide range of performance media campaigns and other social media programs. Whether just getting started or devising the next in a long line of effective performance marketing campaigns, marketers can lean on ECCO to hold Facebook campaigns accountable.

Easy Fixes for Your Website Mistakes, Part 2

Last week in this space, I discussed the first five web design mistakes highlighted in an Oct. 13 Target Marketing-sponsored presentation titled 10 Mistakes Your Website Is Making (And How to Fix Them). Speakers included Amy Schade, a director at the Nielsen Norman Group, and Matt Poepsel, vice president of performance strategies at Gomez, which was also the event’s sponsor. I moderated.

Last week in this space, I discussed the first five web design mistakes highlighted in an Oct. 13 Target Marketing-sponsored presentation titled 10 Mistakes Your Website Is Making (And How to Fix Them). Speakers included Amy Schade, a director at the Nielsen Norman Group, and Matt Poepsel, vice president of performance strategies at Gomez, which was also the event’s sponsor. I moderated.

(To tune in to a replay of the presentation, register here.)

This week, I’ll discuss the last five mistakes, which were presented by both Amy and Matt.

6. Blocking your users’ progress. Don’t make people go through extra steps to get the information they need from your site, Schade said. Instead, make your users feel like they’re flowing through your site and making progress toward reaching their end goals.

7. Saying way too much or way too little. Before offering any details about a product, offer a synopsis of the product you’re selling, Schade said. Users will not scroll through pages and pages of information about a product unless they know exactly what the product is. Also, be specific when categorizing your products.

A good way to do both of these things, according to Schade, is to use a concept called layering, where you offer different layers of product information on your site.

At the top of a page, for instance, you could show a picture of an item, along with some identifying characteristics. If users are interested, they can scroll down the page and see a highlights tab that summarizes more detailed information about it. Then if they’re still interested, they can click through and read more detailed information. This is a nice balance of presenting the right amount of information in a very usable way, Schade said.

8. Not taking a walk in your users shoes. This applies to users web usability and technical perspectives, Poepsel said. Make sure the experiences they have in terms of website availability, performance and load time are excellent. If not, users will be frustrated, your brand will be at risk and you’ll incur higher operational costs, among other potential problems.

9. Not checking your work twice. Validate how your website looks, displays and performs not just in the most popular browsers — such as Internet Explorer 7.0 — but in all the possible browsers consumers may use when visiting your site, Poepsel said.

10. Not preparing for success. Make sure your website can perform well in both your lowest traffic times and your highest, Poepsel said. You don’t want to have the performance of your website flounder after sending out an email blast about a special promotion. Despite the influx of people going to your website at the same time, it should perform just as well as it normally does.

SES N.Y. Buzz: The New Google AdWords Interface

Google has done it again. The biggest buzz at the much smaller and saner Search Engine Strategies Conference & Expo 2009, held this week in New York, was the new Google AdWords interface.

The demonstration of the beta version of the interface for Google’s flagship pay-per-click program brought a crowd to the cavernous second floor of the New York Hilton and Towers on March 25, where Google was exhibiting. And most attendees seemed thrilled with it.

Google has done it again. The biggest buzz at the much smaller and saner Search Engine Strategies Conference & Expo 2009, held this week in New York, was the new Google AdWords interface.

The demonstration of the beta version of the interface for Google’s flagship pay-per-click program brought a crowd to the cavernous second floor of the New York Hilton and Towers on March 25, where Google was exhibiting. And most attendees seemed thrilled with it.

Here’s the skinny. The new interface allows users to do the following:

  • navigate their accounts more easily via an account tree;
  • make changes with fewer clicks and pages to load thanks to easy in-line editing of keywords, bids, ads and placements;
  • have easier access to their data, including integrated reports that are available on campaign management pages;
  • have access to custom, roll-up views of all of their keyword ads, placements and campaigns in an effort to see their performances at a glance; and
  • have access to performance summary graphs for quick trend-spotting.

Current Google AdWords’ users need not worry, according to Google. Quality score, bidding, budgeting and other aspects of ad serving don’t change with the new interface. Users can sign up for the new interface by entering their AdWords customer IDs here.

Before launching the new interface, Google said it took a close look at how advertisers manage their campaigns with Google AdWords and then looked at where it could make improvements. The new interface is a result of the research.

According to the enthusiastic crowd gathered at SES, Google seems to have done something right.

Does Your Web Site Have Performance Issues?

According to just-released data from JupiterResearch (www.jupiterresearch.com), your Web site may not be performing as well as you think it is. And, these performance issues may be causing lost sales.

According to just-released data from JupiterResearch (www.jupiterresearch.com), your Web site may not be performing as well as you think it is. And, these performance issues may be causing lost sales.

According to statistics released by John Lovett, a senior analyst at New York City-based JupiterResearch‑at a panel given at the Internet Retailer Web Design08 conference last week in Miami‑ 48 percent of 121 executive at business-to-consumer companies surveyed by the search firm last October said that their peak traffic and/or unexpected load caused performance problems on their Web sites in the prior 12 months.

In addition, 40 percent experienced an unplanned outage of their primary Web site, and 38 percent said content or images failed to render.

But that’s not all.

According to the research, 29 percent of responders said transactional application experienced problems or downright failed; 25 percent said certain areas around the country did not have access to the Web; and 22 percent said their customer relationship management systems were down during business hours.

Finally, only 14 percent of business-to-consumer decision-makers claimed no performance issues.

Are you having performance problems? Do you know? Its probably a good idea to find out.

To do this, JupiterResearch’s Lovett recommended using performance monitoring options such as Web site and application monitoring tools (from companies such as AlertSite (www.alertsite.com), Gomez (www.gomez.com), or Keynote Systems (www.keynote.com); content delivery networks (from companies such as Akamai (www.akami.com), CDNetworks (www.cdnetworks.com) and EdgeCast (www.edgecast.com); or customer experience management tools (from companies such as Coradiant (www.coradiant.com) and Tealeaf (www.tealeaf.com).

There is a lot to choose from out there, so tread carefully. Do your research, find out which tools are best for your company, and then take the plunge

You’ll never know how much business you may lose from performance issues without them.