This document discusses online marketing trends and strategies. It notes that online marketing has evolved from banner ads and few ad networks to highly targeted advertising across many networks using various media types. It discusses evaluating campaign performance using metrics like cost per click and conversion rates. It also covers using social media and "earned" media to promote brands through engaging content and building an audience. Measurement has expanded from impressions and clicks to include social sharing and sentiment analysis. The presentation provides examples and advice for implementing paid, organic, and social media strategies online.

1. Online Marketing – Version 2.0
Marketing your small business across
the new landscape of the Web.
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2. o Serial entrepreneur – 4 startups so far
o >6 years experience in online advertising market
o About the Rubicon Project (current employer)
o Advertising Infrastructure Company
o Mission: To automate the buying & selling of online advertising
o 150 passionate employees
LA (HQ) - New York – San Francisco – London – Sydney – Hong Kong
o $42MM funding
o Pioneered Ad Network Optimization 10.07
A little about me ….

3. Today I’ll Talk About
• High-level market discussion
– Online advertising history
– Trends and challenges
• More practical and hands-on …
– Using the Web to gain exposure
• Online advertising 101 (media you buy)
• Evaluating three example campaigns
• Social media marketing (media you earn)
• Examples of social media marketing
– New forms of measurement

4. The People-Driven Web
• Business-driven  people-driven
• Authentic and open communications
• No one has control!
1999 2007

5. Online Marketing Version 2.0
• Banners
• 1-2 ad networks
• Category/site targeting
• “bought” media
• Text, video, rich media, etc.
• >400 ad networks
• Incredible targeting
• “earned” media

6. US Online Ad Market Size
US Online Ad Market ($ Billions)
$-
$5
$10
$15
$20
$25
$30
$35
2001 2002 2003 2004 20005 2006 2007 2008 2009 2010 2011
Actual
Estimated

7. Share of US Online Ad Market
0%
10%
20%
30%
40%
50%
60%
70%
2001 2002 2003 2004 20005 2006 2007
Display vs. Search Advertising
Display Advertising
• Untargeted
• 25x volume of search
yet half the market share
• 83% sold <$1 CPM
Search Advertising
• Targeted
• $81.65 revenue per
1000 searches
Growth lies in targeting people and behaviors.
Search
Display

8. Overall Trends
• Focus on performance and ROI
• Continued market growth
– 2006 online ad spend per household was $217:
• $980 for newspapers,
• $980 for telemarketing, and
• $576 for direct mail
– Self-service
• Audience-level targeting and optimization
• “Earned” media

9. Earned Media
• Word of mouth
• Social media marketing
• PR
• Media interaction
• Email forwarding
Media attention earned the hard way, not bought.

10. Challenges and Opportunities
• Challenges
– Signal/noise ratio
– Capturing and holding attention
– “Banner blindness”
– Nothing works continually
• Opportunities
– More free exposure venues
– No limit to what can work; blank slate
– Easy and cheap to test different approaches

11. Paid Media
Online Advertising 101

12. Online Advertising Eco-System
Advertisers / Agencies
Publishers
Ad Networks
Optimizers
Online Consumers
Advertisers want to
reach people.
Web sites are the
proxy.
80% of ad inventory
flows thru networks.

13. Rate Structures
• Objectives
– Performance (ROI)
– Brand (audience reach)
• Rate structures
– CPM (cost per thousand impressions)
– CPC (cost per click)
– CPA (cost per action)
– CPV (cost per view)
– Sponsorships (cost per time period)

14. Targeting Options
Traditional
• Geographic location
• Demographic
• Site
• Category/channel
• Search keywords
• Day part
Newer
• Interest / affinity
• Context
• Purchase intent
• Persona
• Social graph
• Influencers

15. Where to Buy
• Specific Web site(s)
• Specialty ad networks
– By format (text ad, video, display, etc.)
– By vertical (sports, travel, etc.)
– By publisher type (blog, community, owned, etc.)
– By targeting capabilities (behavioral, contextual, etc.)
– By rate type (CPA/affiliate, CPM, CPC, etc.)
• Ad marketplaces

16. Elements of a Campaign
1. The advertisement (creative)
2. Where the ad displays, and to whom, when
3. The landing page
4. The call to action, or purchase funnel
All are variables to performance, so
all must be optimized.

17. Tracking and Measuring ROI
• Define your “return” in the form of an “action”?
– Registration
– Purchase
– Monetary value
• Measure cost per action against monetary value
• Simple example: selling UW t-shirts

18. Campaign A Campaign B Campaign C
Campaign parameters:
Cost 54.00$ 60.00$ 300.00$
Type CPC CPC CPM
Campaign Results:
Impressions 100,000 7,500 300,000
Clicks 145 75 600
Click-through rate 0.15% 1.00% 0.20%
Cost per thousand 0.54$ 8.00$ 1.00$
Cost per click 0.37$ 0.80$ 0.50$
User Actions (the funnel)
Landing page visits 145 75 600
Browse catalog 100 65 200
Shopping cart 25 30 50
Completed purchases 5 15 25
Average purchase size 22.50$ 34.75$ 26.50$
Margin (25%) 5.63$ 8.69$ 6.63$
ROI Analysis
Cost per customer acquisition 10.80$ 4.00$ 12.00$
Margin per customer 5.63$ 8.69$ 6.63$
Example ROI Analysis

19. Campaign A Campaign B Campaign C
Campaign parameters:
Cost 54.00$ 60.00$ 300.00$
Type CPC CPC CPM
Campaign Results:
Impressions 100,000 7,500 300,000
Clicks 145 75 600
Click-through rate 0.15% 1.00% 0.20%
Cost per thousand 0.54$ 8.00$ 1.00$
Cost per click 0.37$ 0.80$ 0.50$
User Actions (the funnel)
Landing page visits 145 75 600
Browse catalog 100 65 200
Shopping cart 25 30 50
Completed purchases 5 15 25
Average purchase size 22.50$ 34.75$ 26.50$
Margin (25%) 5.63$ 8.69$ 6.63$
ROI Analysis
Cost per customer acquisition 10.80$ 4.00$ 12.00$
Margin per customer 5.63$ 8.69$ 6.63$
Example ROI Analysis

20. Campaign A Campaign B Campaign C
Campaign parameters:
Cost 54.00$ 60.00$ 300.00$
Type CPC CPC CPM
Campaign Results:
Impressions 100,000 7,500 300,000
Clicks 145 75 600
Click-through rate 0.15% 1.00% 0.20%
Cost per thousand 0.54$ 8.00$ 1.00$
Cost per click 0.37$ 0.80$ 0.50$
User Actions (the funnel)
Landing page visits 145 75 600
Browse catalog 100 65 200
Shopping cart 25 30 50
Completed purchases 5 15 25
Average purchase size 22.50$ 34.75$ 26.50$
Margin (25%) 5.63$ 8.69$ 6.63$
ROI Analysis
Cost per customer acquisition 10.80$ 4.00$ 12.00$
Margin per customer 5.63$ 8.69$ 6.63$
Example ROI Analysis

21. Optimizing Your Campaign
• Measure, compare, change …
• Campaign funnel
– Display location
– Creative (click through rate)
– Landing page (click through rate)
• Web site funnel
– General usability (eliminating points of friction)
– Catalog navigation
– Ease of purchasing

22. Tools to Use
• Google AdSense
– Messaging optimization
– Keyword optimization
– Landing page optimization
• Google Analytics
– Compare all your advertising sources
– Count impressions, clicks, etc.
– Creative optimization
– Landing page optimization
• A/B and multivariate testing

23. “Earned” Media

24. Earned Media is “Linkbait”
• Funny, useful or controversial content
• People online are bored!
– If you've got the next "shiny object" to feed the ADHD
of the Web, then you too can be a success!
• Examples
– Videos
– Widgets
– Games
– Blog posts
– Pictures
– Facebook status updates
– Twitter posts
– Emails
– Craigslist postings
– Contests

25. Earned Media
• Benefits
– Can be enormously effective
– Can be extremely easy/cheap
– Helps with SEO
– Helps attract/keep people’s attention
– People remember it
• Challenges
– No recipe for success
– Can go horribly wrong
– Posers usually get called out. Don’t be one.

26. Example: KogiBBQ
http://twitter.com/kogibbq
50,000 followers

27. Example: Seattle 2.0
• http://www.seattle20.com
• >25K Web site visitors/month
• PR, word-of-mouth, and social media
– Facebook group
– Seattle Startup Index, top blogger index, etc.
– Blog posts, twitter posts, etc.
• First event drew over 300 people @
$50/ticket

28. Example: Monk-e-mail

29. The Monk-e-mail Result
• 2 spots on the Superbowl
– $5MM cost
– 10M people exposed for 30-60 seconds
• (but not engaged!)
• One viral campaign
– $250K cost
– 30M people interacting for 8 minutes

30. Earned Media Advice
• Contribute
– Write interesting stuff frequently
– Comment on other’s blog posts, tweets, etc.
– Be generous with links
– Be authentic!
• Build your audience
• Linkbait
– Content that people just naturally link to and share
– Funny, useful or controversial!
• Spend time on it. Put value into it.

31. New Forms of Measurement
(because of Earned Media)

32. “Buzz” and Sentiment Measurement
• Monitor chatter about your product/brand
– What people are saying
– Where people are talking about you
– Overall sentiment trends

33. Friends, Followers, Votes, Retweets

34. The Power of Passed Links
• 20% of site visits from links shared (earned)
• 14-24 year old demo
– 88% of links followed were sent to them by friends
• 2-4x increase in conversion rates
• http://meteorsolutions.com/?fbid=TY2Xsky3p5I
• Measures how much of your traffic was
from “socially shared links”

35. Conclusion
• Use search engine marketing to:
– Optimize your messaging
– Optimize your creative, landing page conversion,
funnel, etc.
• Use social media to reinforce your messaging
– SEO “link juice”
– Just be authentic and contribute value
– Develop a following and keep at it
• Continue with other forms of paid online
marketing, optimizing for ROI

36. Jordan Mitchell
Thank you!
Jordan Mitchell
VP of Data Intelligence, the Rubicon Project
Email: jordan@rubiconproject.com
Blog: http://kickstand.typepad.com
Twitter: http://twitter.com/kickstand