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How to check which part of the marketing budget is wasted in online campaigns? Marta Klepka, PR & Communications Director from Gemius, proves that it is possible by measuring the effectiveness plus optimizing the campaign. Be visible, but not to visible and reach your target group!
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How to calculate what portion of money spent on internet marketing is wasted?
MARTA KLEPKA
Sofia, 14.06.2012
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,, Everything is marketing and marketing is everything
Peter Druckner
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Half the money I spend on advertising is wasted; the trouble is I don't know which half
John Wanamaker ,,
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,, John Wanamaker
What would Wanamaker say if he knew about the internet marketing?
?
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John Wanamaker
ROI is one of the biggest problems of marketing executives.
Online results mean more qualified leads.
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CALL TO ACTION!
REGISTER
BUY
ROI
FILL IN
CLICK
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COST PER CLICK
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CLICK = SALES
Image source: http://www.ydeveloper.com/blog/ecommerce/php-ecommerce-shopping-cart-features
?
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?
BRAND AWARENESS
LOYALTY
OFFLINE SALES
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BE VISIBLE
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0%
10%
20%
30%
40%
50%
60%
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80%
placement1x300x250
placement2x300x250
placement3x300x250
placement4x300x251
placement5x300x252
placement6x300x253
Impressions in users’ AREA OF VIEW in (in %)
The share of impressions visible for the users in the total number of impressions
the share of visible impressions reach in the total reach
Source: gemiusDirectEffect , 2012; international FMCG brand campaign
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WHY THOSE THINGS HAPPEN?
TOO SLOW DISPLAY OF THE CREATIVE
SCREEN RESOLUTIONS
DIFFERENT BROWSERS
SCREEN SMALLER THAN SITE
SCREEN SIZE
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IN SCREEN VISIBILITY & DWELL REPORT
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DON’T BE TOO VISIBLE
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WHAT IS OPTIMAL NUMBER OF CONTACTS?
EVERY PENNY SPENT OVER OTS IS A LOSS
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Number of contacts with campaing (per user) - frequency
New users Impressions Costs
1,00 4 768 577 4 768 577 47 686 PLN
2,00 2 497 837 4 995 674 49 957 PLN
3,00 1 071 054 3 213 162 32 132 PLN
SUMMARY 8 337 468 12 977 413 129 774 PLN 4,00 503 647 2 014 588 20 146 PLN
5,50 490 963 2 700 297 27 003 PLN
8,00 294 353 2 354 824 23 548 PLN
12,00 119 017 1 428 204 14 282 PLN
17,00 17 111 290 887 2 909 PLN
27,00 6 917 186 759 1 868 PLN
42,00 1 758 73 836 738 PLN
62,00 1 001 62 062 621 PLN
87,00 393 34 191 342 PLN
100,00 645 64 500 645 PLN
SUMMARY 1 435 805 9 210 148 92 101 PLN
ALL 9 773 273 22 187 561 221 876 PLN
Source: gemiusDirectEffect , 2012; international FMCG brand campaign
OPTIMAL PART OF THE CAMPAIGN
„EMPTY PART OF THE GLASS”
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• Spending of €21k was the „empty part of the glass”
• It was 42% of all budget • It brought only 15% of new users • The cost of acquiring 1 user was 3-times higher
This means that for this campaign optimal setting of frequency limits was 3/user. Beyond that number the effectiveness declined significantly, bringing profit only to the publisher.
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PAY ONLY FOR REACHING YOUR TARGET GROUP
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Brand A Brand B
Impressions 12 983 743 4 300 668
Impressions in Target Group 3 936 906 1 778 859
Impressions in TG as part of all impressions in % 30% 41%
Reach in cookies - (UU) 6 082 041 1 095 176
Reach in Real Users (RU) 2 604 385 552 671
Reach in RU in % in whole internet population – base is number of RU from gA data. 13,79% 2,93%
Number of RU in TG that have contact with campaign (from gPE) 885 711 241 973
Reach in TG (base of gPE & gA data) 17,01% 4,49%
Target Index* (my own indicator – this is in % number of impressions that generate 1% of TG
group) 5,88% 22,28%
Source: gemiusDirectEffect , 2012; international FMCG brand s campaign
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THREE GOLDEN RULES
REACH YOUR TARGET GROUP
DON’T BE TOO VISIBLE
BE VISIBLE
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,, Albert Einstein
Insanity: doing the same thing over and over and expecting different results
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What works in display advertising?
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In-stream ad formats also prove to be one of the
most effective in terms of CTR
For pre-roll CTR vary from ~1.9% -3.4%
Still rich-media and video ads constitute not more than a few % of internet
advertising budgets in CEE
0.00
0.10
0.20
0.30
0.40
0.50
0.60
Average CTR per country
Source: gemiusAdMonitor, H2 2011
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95%
11%
2% 2% 2% 1% 0% 0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CTR
/ U
CTR
Cam
pai
gn s
har
e
Campaign share Average CTR
Regular banners are still the most
frequent used online
advertising format
The highest CTR value is
characteristic for Preroll
Source: gemiusAdMonitor, H2 2011
Popularity vs. effectiveness of online advertising formats - Bulgaria
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95%
5% 5% 4% 2% 2% 1% 1% 0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CTR
Cam
pai
gn s
har
e
Campaign share Average CTR
Popularity vs. effectiveness of online advertising formats - Romania
Source: gemiusAdMonitor, H2 2011
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86%
18%
12% 11% 10% 10% 8% 7% 5% 4%
1% 1% 1% 0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CTR
Cam
pai
gn s
har
e
Campaign share Average CTR
Source: gemiusAdMonitor, H2 2011 Analysed ads: Regular banners + rich media (Toplayer, Preroll, Expand, etc.)
Popularity vs. effectiveness of online advertising formats - Poland
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Which industries invest in online ads?
Source: gemiusAdMonitor, H2 2011
0%
5%
10%
15%
20%
25%
30%
35%
40%
Leis
ure
Tim
e
Fin
ance
, In
sura
nce
, Bro
kera
ge
Foo
d
Fin
ance
, In
sura
nce
, Bro
kera
ge
Tele
com
mu
nic
ati
on
s
Au
tom
oti
ve
Fin
ance
, In
sura
nce
, Bro
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Tele
com
mu
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on
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Au
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oti
ve
Tele
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mu
nic
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Trad
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Fin
ance
, In
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Trad
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Fin
ance
, In
sura
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Leis
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Leis
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Bulgaria Czech Republic Hungary Poland Romania Slovakia
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18,3%
15,2%
9,8%
9,6% 9,3%
8,9%
4,2%
4,1%
3,9%
3,2%
2,6%
1,7% 1,2% 0,9% 0,4% 0,2% 6,7%
Leisure Time
Finance, Insurance, Brokerage
Food
Telecommunications
Automotive
Trade
Computers and Audio Video
Household Equipment, Furniture And Decorations
Media, Books, CD & DVD
Travel, Tourism, Hotels & Restaurants
Clothing & Accessories
Beverages and Alcohol
Pharmaceuticals
Personal Care and Hygiene
Real Estate
Household Products
Other
Share of ad impressions per sector - Bulgaria
Source: gemiusAdMonitor, H2 2011
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Pharmaceuticals
Trade
Beverages and Alcohol
Automotive
Household Equipment, Furniture And Decorations
Household Products
Real Estate
Personal Care and Hygiene
Finance, Insurance, Brokerage
Computers and Audio Video
Food
Travel, Tourism, Hotels & Restaurants
Telecommunications
Leisure Time
Media, Books, CD & DVD
Clothing & Accessories
Source: gemiusAdMonitor, H2 2011
Ranking of the sectors with highest average CTR – Bulgaria
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Let’s spend the money on internet advertising
consciously and measure the effects-
it pays off
Authors:
Join us @: Facebook.com/GemiusGroup Twitter.com/Gemius Slideshare.net/Gemius_com YouTube.com/WwwGemiusCom
Marta Klepka
PR & Communications Director
THANK YOU! Questions?
Ács Tamás
Agency Segment Manager
