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PERFORMANCE ADVERTISING: TIPS FOR PUBLISHERS AND ADVERTISERS. By Glen Maguire. M : 021 400 067 Glen@ClickThrough.co.nz CEO of ClickThrough Online Marketing. KEY DEFINITIONS. CPM : Cost per Thousand page impressions of an online advert on a publishers website.
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PERFORMANCE ADVERTISING: TIPS FOR PUBLISHERS AND ADVERTISERS By Glen Maguire. M: 021 400 067 Glen@ClickThrough.co.nz CEO of ClickThrough Online Marketing
KEY DEFINITIONS • CPM: Cost per Thousand page impressions of an online advert on a publishers website. • CPC: Cost per click is the amount an advertiser pays publishers for a single click on its advertisement that brings one visitor to its website. • CPA: Cost Per Action is where the advertiser only pays for the ad when a specified action has occurred e.g. a product being purchased, a form being filled, a user registering, etc. • CPL: Cost per Lead is when the advertisers pay for an interested lead.
THE ‘MELTDOWN’ ACCELERATES (GOOD) CHANGE FROM TO Delivery Bottom Line (P+L)! NPV Short-term Cash Flow Gut Feel Analytical Decisions Impressions Performance (Behaviour)
MELTDOWN IMPACT ON DIGITAL MEDIA A highest ever spend $49.26m (+8%) – no major media achieved growth in Q1.
WHY THE SEISMIC SHIFT? TRADITIONAL MEDIA DIGITAL MEDIA
PERFORMANCE ADVERTISING BOOM • (NZ) Paid search (e.g. CPC) largest with 38% share...delivers cost effective leads. • (US) Performance-based 57% of online ad revenues (39% CPM). 18% gap Vs 6% previous year.
CURRENT ADVERTISER AND PUBLISHER MODEL ADVERTISER RISK INCREASE Cost Per Thousand PUBLISHER RISK INCREASE Cost Per Click Cost Per Action
INFORMATION OR INSIGHT? “Unless information is available to the right people in a format for decision making, it is a burden, not a benefit.” “An insight is a penetrating discovery about a consumer motivation applied to unlock growth.”
ANALYTICS: AT THE HEART OF PERFORMANCE Website Blueprint
SUMMARY • The economic downturn is accelerating the growth of performance based advertising. Accept this, embrace the opportunity! • Don’t just think usability: think conversion, behaviour, eCommerce. • Numbers and analytics are more important than ever. Think insights, not information. Use experts to turn your data into valuable insights that unlock growth. Outsource or develop internal talent. • Never be satisfied; restless fine tuning keeps you ahead of the game. • Good Luck!!
Contact Glen Maguire for further information: M: 021 400 067 Glen@ClickThrough.co.nz