1. Advertising optimization
How to optimize your advertising pixels in the short term and long run
Amsterdam 2012

2. Buckle-up: online is overtaking print and is expected to continue its
growth in the upcoming years
Print advertising [US, $b] Online advertising [US, $b]
CAGR
24.8
-2% CAGR 34.4
+7%
22.3
24.2
2009 … 2014 2009 … 2014
Source: PWC: Global entertainment and media outlook: 2011-2015
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3. In NL the online advertising market grew with 10% YoY,
despite the tough economic climate in 2010/2011
Online advertising market NL (2010/2011) [€ m]
2010 H1 2011 H1
6.7
5.7
29.5
22.3
70.0 82.9
€ 462.6m 221.3 +10%
€ 507.4m 255.0
57.2
54.9
86.1
78.4
Search Classifieds Affiliate marketing Search Classifieds Affiliate marketing
Display Others Unclassified Display Others Unclassified
Source: IAB Adspend report H1 2011
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4. However, tapping into this growth potential is not easy, online
advertising formats and models are omnious and developing fast
Formats Revenue and advertising models
Medium rectangle
Roadblock Full roadblock CPO Response based
CPC Data buying and
Text links Skyscraper Billboard CPM selling
Mobile Video Corner ad Retargeting Profile creation
Header Automated Year deals
Home page take over ….
It has become very complex to determine
the optimal way of advertising for your site
Source: Harvest analysis
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5. This complexity is also seen in the number of businesses trying to get
their fair share of the advertising market…
Source: Improve Digital
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6. This hyperdynamic landscape impacts your advertising revenue:
Are you ready to tackle the risks and grasp the opportunities?
Risks Opportunities
 The chewing gum issue: over time you started many new  Better insights on performance of advertising driven by
initiatives that individually seem to add value yet: professionalization of reporting tools
- cannibalize on the total revenue  Improving CPMs of automated advertising networks
- add complexity to your organization and processes  Professionalization of niche markets like
- create scattered management data: hard to steer the mobile, video, retargeting and profile trading
total advertising business due to lack of analytical  There is more than Google 
insights  Shift towards online from huge (trade marketing)
 Destroying value by combining the wrong models budgets of FMCG and CE companies
and/or formats
 Missing out on new formats and/or business models
Source: Harvest analyses
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7. Harvest identified a parallel 2-step approach to optimize your
advertising pixel for the short term and in the long run
1 2
Short term tactical advertising Long term solid advertising
optimizations action strategy
3-6 months
Direct top line growth by tactical A tailored advertising strategy and
improvements based on solid analyses and action plan that grasps the advertising
Harvest experienced support implementation opportunity in the smartest way
of improvement projects
 Detailed data analyses reveals  Analyses of premium vs regular inventory:
underperforming advertising What strategy to follow for your pixels
networks, formats and/or positions  Work out strategy in a pragmatic action
 Detailed front-end comb-through plan
combined with Harvest experience reveals  Test and iterate on the action plan to gain
opportunities for new/improved insights and preliminary results
formats, positions and/or targeting  Future-proof your business through a solid
 Prioritize, test and support implementation hand-over
of improvement projects
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8. 1 2
In a short term tactical advertising audit we have proven
to be able to boost your revenues with double digits
Analysis 1 Action plan 2 Test and iterate 3 Outcome 4
We audit your: We define and prioritize: We work with you to: You will benefit from:
 Targeting  Relevancy drivers  Implement optimal  Higher relevancy; CTR
 Placements  New placements targeting up
 Paging  Better and new pages  Test and measure new  More and better
 Look & feel  Improvements to ad placements and pages placements; views up
 Individual ad appearance  Test and tweak optimal  Better paging; views up
performance  Improvements to ad ad appearance  Better insight in key
functioning  Design and effectuate metrics through a
 The size of the prize optimal ad functioning (temp) dashboard
 Prioritized next steps
Expected result: Expected result: Expected result: Expected result:
 List of potential  Action plan with  Tested projects with  Increased revenue and
improvements prioritized concrete clear results from pilot pragmatic action plan
projects ready to
take-off
Time: Time: Time: Time:
 2 weeks  2 weeks  4-8 weeks  2 weeks
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9. 1 2
Short term improvement example 1: Bugs and errors
Example: Code error on major Dutch publisher Insights
 These errors causes that ad space is empty
and do not generate clicks
 Moreover, this ‘pollutes’ the website
making the overall feel less
premium, leading erosion of rate card
Solution:
 technology deepdive revealed error in ad
serving
Source: Harvest analyses
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10. 1 2
Short term improvement example 2: Pricing optimization
Example: Per country pricing analysis of pre-roll formats Insights
 Price differentiation between countries
was big, while formats were identical
60 €14.00
Price
Volume
€12.00
 In depth analyses showed great differences
50 in negotiated prices with networks
€10.00
40
 Competition benchmark showed low and
€8.00 high price for rate card compared to
30 competition in some countries
€4.47 €6.00
€3.52
20 €2.67
€4.00 Solution:
€1.98 €2.09
 Renegotiated contracts with
10 €2.00 networks, adjusted rate card price
0 €-
NL USA France UK Germany
Volume Price High Price Low Average eCPM
Source: Harvest analyses
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11. 1 2
Short term improvement example 3: protect your
premium inventory
Example: Low quality ads on premium pre-roll of Spelletjes.nl Insights
 Low quality text ad on premium pre-roll
position
 Example of the importance of keeping
premium positions premium
 In order to justify the rate card it is good to
only show ads that are premium on these
positions
Solution:
 Replace back-fill of Google text ads from
this position with house-ads
Source: Harvest analyses
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12. 1 2
Central model for a long term advertising strategy is a clear
split between premium and non-premium advertising pixels
PREMIUM NON-PREMIUM
Premium positions are for high value
branding. A customizable look and feel
NON-PREMIUM
Non-premium inventory can be used
to increase monetized real
is often offered which adds to the high estate, this is successfully done
pricing associated when optimized for clicks
Source: Harvest analyses
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13. 1 2
The big risk of no split between premium and non-premium
advertising pixels is the dilution of your premium pixels
Insights
 In just a few moments we were able to
start a Google Display campaign targeted
at ‘news’ websites with a leaderboard for
our start up Offerti.nl
 Because there are not many Dutch news
sites that are able to show Google
leaderboards on premium positions we
were almost sure to buy space at
Telegraaf.nl at 3% of the ratecard price
 Et voila! More than 100k impressions on
premium positions for a bargain
Advertiser reaction:
“Why should I pay an ultra premium price for this inventory?”
Source: Harvest analyses
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14. 1 2
It is desirable to have a clear distinction where to use premium
advertising and where to use non-premium advertising
Homepage Premium Categories Other Categories
Fold
premium positions
-> Filled with direct sales
and inventory
non-premium positions
-> Filled with automated
and house ads
Source: Harvest analyses
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15. 1 2
Focus must be on getting premium categories (pixels) in the
sweetspot…
Average % direct sales on premium and non-premium Dutch publishers’ categories Insights
 Hardly any premium
category is in the
Promising categories Sweetspot sweetspot
categories
Premium
 Goal is to move
promising categories to
sweetspot
 Homepage of diverse
Homepage
publishers currently
Non-premium
undermonetized by
categories
relatively low ratecard
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Monthly visits % Direct sales impressions of total sales impressions
NB: Definition sweetspot: category is premium according to rate card and more than 50% of actual impressions filled with premium inventory
Source: Average advertising data Dutch publishers, Harvest analyses
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16. 1 2
…yet most publishers do not make a distinction between
premium and non-premium pixels, thereby wasting opportunity
Opportunities
Impressions today Impressions ideal
 Stop diluting value of
Dir Direct Empty premium pixels by
Automated
5-15% premium 80% 20% automated advertising
85%
 Run premium formats
only on premium pixels
to increase revenue per
pixel
Direct, 5-15%
Direct, 0-5%
 Focus your direct sales
Automated non Automated team on premium pixels
85-95% premium 95-100%
only, leave non-
premium to lean and
mean automated
 Create premium long
term relations with
advertising partners
Source: Average advertising data Dutch publishers, Harvest analyses
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17. 1 2
A focus on increasing direct sales on premium pixels is clear,
the average CPM delta vs. networks is ±1000% on these pixels
Detailed split of average impressions and revenue from premium pixels Insights
 6 times more banners served for 15%
more revenue
15% 15%
 Homepage take-overs good for 20% of
business
30% Networks
 Delta of CPM direct sales vs. networks >
85% 3000%
Other Specials
85% 20%
Homepage take-overs
35%
15%
Impressions Revenue Revenue detail
Source: Average advertising data Dutch publishers, Harvest analyses
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18. 1 2
Example from the field: good premium advertising is rather a
cooperation with related companies than old school advertising
Source: Harvest analyses
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19. 1 2
Example from the field: good special ad integration
without being ‘intrusive’ on premium inventory
Integrated companion ads Insights
 Companion ads integrated into one
big, though discrete ad
 Complete control on look and feel because
these ads are custom made
 While the ads are sold for a premium
price, they are not intrusive or
distracting, yet give good ‘value per pixel’
for advertiser
Source: Harvest analyses
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20. 1 2
Example from the field: make your premium inventory more
premium, while still using regular formats with a twist
Example What Benefit
 Make your leaderboard part of the  Leaderboard literally stands out of
header by let it overlap header which increases visibility and
CTR and limits ad space above
header
 Position your leaderboard between  Leaderboard draws more attention
the navigation and first article and still looks premium by playfully
melding it in your page
 Customize the premium position by  Using the both the spaces at the
‘embracing’ the header outside for a single advertiser
improves visibility and recognition
 Limit the header ad space by making  Ad space is limited but ad still draws
an unfolding header ad attention and making it unfoldable
will increase visibility and
interaction
Source: Harvest analyses
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21. On top of the initial premium / non-premium strategic 1 2
analyses, ongoing optimization of your advertising pixel is key to
excel
Measure Implement
must have: Tools must have: Skill
1. State of the art tagging 1. Clear requirements
2. Always up to date dashboard 2. Minimized TTM
3. One touch own drilling
Harvest specialists supports your webmaster
Harvest builds this for you on tweaks and builds a glossary
Analyse Learn
must have: Smarts must have: Eagerness
1. Clear KPIs
“Nothing great was ever achieved without
2. Understanding of drivers
enthusiasm”
3. Analysis templates
You bring this to the table
Harvest does this and trains your people
Source: Harvest analyses
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22. 1 2
A clear overview of all KPIs is crucial for ongoing professional
optimizations
Dashboard example: Conceptual
Monitor
Deep dive
Source: Harvest proprietary HTML 5.0 dashboard
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23. 1 2
To tackle your long term advertising strategy,
Harvest suggests a four step approach
Analyse and divide 1 Make a premium and 2 Implement technical 3 Futureproof your 4
inventory non-premium action plan and operational changes business
Actions: Actions: Actions: Actions:
 Action plan for premium  Action plan for premium  Implement product changes  Prioritized next steps in hand-
inventory with a.o.: inventory with a.o.: needed over plan
- Overview of potential - Overview of potential  Define HR implications and fill  Clear action plan to perform
dream-customers dream-customers gaps in skills through training/ ongoing optimizations
- Actionable clusters of - Actionable clusters of support in hiring  Detailed dashboard for KPIs of
premium inventory premium inventory  Create new sales kit for all advertising revenue, with
relevant for clear target relevant for clear target premium advertising, do first deep dive opportunity
advertisers advertisers roadshow  Solid hand-over to client team
- High level direct sales - High level direct sales  Set-up new client meetings in  Custom trainings to fill final
proposition per cluster proposition per cluster co-creation vs sales setting gaps in knowledge and skills
- Product adjustments - Product adjustments  Develop high level
needed needed dashboards for tracking
 Action plan for non-premium  Action plan for non-premium  Renew/change/break
inventory with a.o.: inventory with a.o.: contracts
- Improved analytics plan - Improved analytics plan
- 80/20 plan on - 80/20 plan on
effort/output effort/output
Expected result: Expected result: Expected result: Expected result:
 Action plans with prioritized  Action plans with prioritized  First changes  Internal team ready to take
concrete projects ready to concrete projects ready to implemented, organization on over the optimized
take-off take-off track for new strategy advertising pixels
Time: Time: Time: Time:
 4 weeks  4 weeks  4-8 weeks  2-4 weeks
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24. Case example: Optimizing the advertising revenue for a
global leading casual games platform
Situation Actions Results achieved
Client How Harvest helped  Over EUR 500k additional revenue
 Casual Games Company  Perform a quick scan to identify quick from quick wins identified and
wins and biggest improvement areas realized during this project
Challenge
 Advertising revenue and performance  Ran quick win optimization projects  Annual advertising revenue grew
was low compared to (new and improved advertising) double digit numbers
benchmarks, while investments in
time and effort were high  Strategic assessment of advertising  Advertising performance (eCPM)
proposition leading to high level improved significantly
Objective advertising strategy
 Optimize advertising in terms of  Advertising team involvement shifted
performance and revenue, while  Redefined the premium and regular from mostly tactical to more
decreasing the investments in time advertising inventory on the platform strategic, moving our clients
and focus advertising business up the value
 Zoom in on improvement areas to chain
Duration identify suboptimal processes and
 6 months front-end and back-end
implementations
 Ran mid-long term improvement
projects to improve advertisement
relevance
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25. Harvest serves an international portfolio of pure online players
and click-and-brick companies
"Harvest is without any doubt one of the very best e-consultancy companies in
the world. Excellent knowledge and expertise strategically, tactically, and
operationally, always with clear focus on top line results”
Francine van Dierendonck, Sr. Director and Head Global Philips Flagship Store
"The monetization quick scan that Harvest carried out for Compare Group
highlighted tactical improvements with direct upside and a strategic
opportunity. The Harvest team is very professional and has great knowledge of
e-retail and online in general.”
Ben Kerkhof, CEO Compare Group
"Harvest supported Experteer in their go-to-market in the Netherlands. The
professionalism, drive and in-depth knowledge of the Dutch online were key to
the success of the project and the launch of experteer.nl”
Nina Zimmerman, Head of Europe Experteer
"Harvest combines a strategic view on creating online success with the power
to execute. Passion for the online business, dedicated to deliver results. And
above all, a pleasure to work with.”
Marc de Vries, CEO Hyves
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26. Feel free to reach out to us for more information
Harvest – Online Business Development
Herengracht 262-266
1016 BV AMSTERDAM
The Netherlands
E: info@harvestamsterdam.com
T: +31 (0) 20 4277796
I: www.harvestamsterdam.com
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