Paid Media Process & Strategy

AGENDA
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Media Planning Process / Workﬂow
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Deliverables for Client
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Media Buying Types
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Digital Targeting Types
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Digital Ad Types
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Digital Creative Speciﬁcations
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Staying Current / Industry Shifts
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MEDIA PLANNING
PROCESS / WORKFLOW
Paid Media
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MEDIA PLANNING PROCESS / WORKFLOW
Briefing
Meet with client to gather information regarding planning parameters such as budget, media mix, timing, product/
brand detail, target audience objectives

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Discovery
Using research tools we learn everything we can about the client, competitive landscape and potential target
audience(s) including size and their demographics, psychographics, media consumption, social interests and
behaviors

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Strategy
Based on audience insights gathered, we recommend a media strategy including communication goals, volume of
media required to achieve media objectives such as reach frequency or number of impressions, and we highlight
some tactics we could pursue to ensure these objectives are met

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The Work
Using more research tools we identify publishers and placements to move forward with and that best meet our set
campaign goals

- we issue requests for proposals which detail our objectives and targets, timing and budgets, and require that
media vendors submit information that is relative to their capabilities in reaching our audience and
influencing an action related to the overall objective

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Implementation / Activation
Involves negotiating rates and added value, creating insertion orders and contracts, and trafficking creative

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Analysis and Refinement
Ongoing reporting and optimization of the campaigns where applicable
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MARKETING MEDIA OBJECTIVES FROM BRIEFING
Answer the question “Why Advertise?”
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Build Awareness
- recognize and remember brands

• expensive, as it is not intended to give you a direct response to the ad

• harder to measure effectiveness

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Drive Sales / Direct Response
- drive and maximize sales across devices and channels

- produce a clear response - calls, clicks and sales

• easier to measure effectiveness

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Grow Loyalty Retention
- encourage and grow repeat business from existing customers

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Influence Consideration
- lead and influence consumers

- from consideration to conviction

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Media Objectives:
- derived from the marketing objectives

- measurable and actionable

- backed by research

- focused on the goal - what is to be accomplished? 5

DISCOVERY
New Audience Target Deﬁnitions
- Emphasis on psychographics, social interests and behavior

- Buying on insights, not pure data

- Predictive modeling

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Traditional Audience Target Deﬁnitions
- Your standard women? men? or adults? Ages 25-54? 65+? 18-34? etc.

- Used to be the only way to buy traditional media such as broadcast tv, cable, radio, print and out-of-home

‣ for these mediums it also makes sense to buy what is contextually relevant such as station format, print
category or geographical relevance

- There is an opportunity to layer in some qualitative information but hard if not impossible to get down to
psychographics of the target audience

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MEDIA TOOLS FOR DISCOVERY _ PAID
Scarborough
Provides local market research, shopping patterns, media behaviors, lifestyle and demographic information of
American consumers

- 77 Top-Tier Markets

- Multi-market overlay to get data that can be projected nationally

- Categories measured includes automotive, banking ﬁnancial, beverage, demographics, digital internet,
drug grocery, healthcare pharma, home improvement, household, shopping, lifestyle, media, restaurant,
retail, sports, telecom, mobile, transportation, travel and voting

- Also includes GfK MRI Attitudinal data where respondents answer on a scale of “completely agree” to
“completely disagree” on subjects such as general attitudes, buying styles, interest in advertising, ideal car,
cellular mobile, fashion style, ﬁnance, food, health, internet mobile, social networking, technology and
vacation travel

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MEDIA TOOLS FOR DISCOVERY _ PAID
Kantar Stradegy
Kantar’s tracking technologies collect advertising expenditure and occurrence data, as well as select creative
executions, for more than 3 million brands across 20 media outlets. Historical data can include:

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- local spot radio

- local magazines

- B-to-B magazines

- TV - network (national), cable spot (local)

- syndication

- Hispanic network TV (national)

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- network radio

- national spot radio

- local spot radio

- national consumer magazines

- national newspaper

- national Sunday magazines

- internet expenditures

- local newspapers and outdoor

MEDIA TOOLS FOR DISCOVERY _ FREE
Moat Ad Search
- Search engine for online display ads

- Using to search competitive ad creative and prospective client past creative

- Works for large brands, not so much with small local businesses

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comScore (rely on reps)
- Measures what people do as they navigate the digital world

- comScore estimates that two million users are part of the monitoring program

- Data is used to generate reports on topics ranging from web traffic to video streaming activity and consumer
buying power

- Turns the information into insights and actions to maximize the value of digital investments

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Nielsen Audio - formerly Arbitron Nielsen Ratings (rely on reps)
- Nielsen Audio collects listener data on radio audiences Nielsen Ratings data determines the audience size
and composition of television programming
- If the agency does not have a buying platform such as Strata to analysis the broadcast data the station reps
can provide rankers on a defined target audience

- The ranker details top stations in the market based on CUME (total number of unique consumers over a
specified period) or AQH (average number of persons listening to a particular station for at least five minutes
during a 15-minute period)

‣ you can also see deep dives into daypart ratings to determine which stations are best in AMD vs PMD vs
Midday listening

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THE STRATEGY: MEDIA
The Basics:
- where to advertise (geography)

- when to advertise (timing)

- consider budget constraints

- what media categories to use (media mix)

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Media Mix Strategies:
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Media Concentration Approach
This approach uses fewer media categories and greater spending per category. This allows for a media plan that
has higher frequency and repetition within one (or few) media categories. This approach is often used when there is
a concern that a brand's ads will share space with competing brands or if the objective is to reach a niche target
audience that is highly likely to consume the one media category recommended over other media categories
where there would likely be more waste.

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Media Dispersion Approach
This is the approach when multiple media categories, such as a combination of digital, television, radio and
newspapers are used. It is often employed when no single media outlet will reach a suﬃcient percentage of the
target audience. This approach is also valuable for the reinforcement that it brings -- consumers who see multiple
ads in multiple media for a given brand may be more likely to buy or react.
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REQUEST FOR PROPOSAL FOR “THE WORK”
It is the Media Dept’s responsibility to send quality RFPs to vendors
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Avoid
- Sending more RFPs out than you can review and respond to

- Outsourced Innovation

‣ the equivalent of saying “our idea is to use this platform, but we have no idea what to do with it”

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Best Practices
- Switch from an RFP to an more selectively issued RFC - Request for Conversation

‣ an opportunity to sit around a table and create

‣ push boundaries for brands

‣ come up with new ways to use the media platforms

‣ inject new technologies

‣ inspire customer content

‣ reskin, rework, reinvent

- Data and tools allow planners to select the most relevant platforms and partners to go deeper instantaneously

‣ combine that with experience and gut and we can come up with a very compelling shortlist of the media
apertures to get creative with

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REQUEST FOR PROPOSAL FOR “THE WORK”
Basic components of an RFP
- Campaign Objectives

- Media Objectives

- Target Audience

- Geography

- Flighting

- Budget

- What we are looking for

‣ media kit, discounted rates, minimums, targeting, placements/tactics, reach, added value, rationale behind
why we should consider this media vendor for our client recommendation

- Success Metrics

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Evaluating an RFP
- How does the submission met the various objections in comparison to competitive submissions?

- Is it cost eﬃcient?

- Does it present an opportunity to do something for the client/brand that hasn’t been done before?

- How does it ﬁt into the media mix?

- How does it contribute to the overall strategy and goals?

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MEDIA DOCUMENTS FOR IMPLEMENTATION (INTERNAL)
Flowcharts / Media Plans
Details final media recommendations -or- scheduled placements by vendor, media type, placement description, ad
sizes, impressions, and total client cost.

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Media Authorization Form (MAF)
This form matches the media flowchart and requires the client’s signature before any media is placed. Every time
the flowchart is revised with either an additional placement or cancellation the MAF is revised as well and requires
a signature for each change. This is to protect the agency in the event that there is a discrepancy between what
the client thinks is placed vs what the agency has approval to place and ensures there will not be any billing issues.

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Due Date Schedule (DDS)
This rather extensive excel document is created once all placements are approved/placed and outlines creative
due dates, specs and other notes related to creative. There is a DDS tab with every flowchart and it is organized in
order of due date plus each placement typically has a tab associated with it where the creatives can go and find
more detailed mechanical requirements. This document keeps everyone on the same page and is meant to avoid
any miscommunicated information and reduce the number of questions about what is needed and when. When
the media dept. receives the creative we mark it off the DDS by graying it out.
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MEDIA DOCUMENTS FOR IMPLEMENTATION (EXTERNAL)
Insertion Orders
IOs are created and issued for any and all media we place and are sent to reps to sign off on, securing the
placement dates, details (including targeting, ad sizes and number of impressions) and negotiated/approved rates.

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Client’s are not typically involved in the IO process and IOs reflect the net cost of the media only. They do not
reflect the agency commission fees or ad serving fees.

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The IO also includes a section for basic contract terms and notes about how the agency needs to receive invoices
for the media in order to process payment.

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MEDIA TOOL FOR IMPLEMENTATION OPTIMIZATION
THIRD PARTY AD SERVING:
Ad serving describes the technology and service that places advertisements on web sites. The
account stores, maintains and serves (uploads) advertising banners for one or more websites. The
program also tracks and reports campaign statistics which are used by the media team to make
adjustments, where needed to improve ad performance.
- hard cost is passed through to the client

- Standard Ad Serving Rate is negotiated per 1,000 impressions

- Files sizes over 40k may incur an additional fee

- Rich Media incurs larger ad serving fees and varies by type (some types include ads containing video,
ﬂoating, expanding, pop/overlay, in-page, in-stream, etc.)
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POINT OF VIEW
What is a POV?
Media develops Point of View reports, to help clients evaluate advertising options. A POV report focuses on
selecting the best media vehicles for a business or organization to use in promoting its products, services or
causes.

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Basically, these reports analyze a media outlet, such as a website or magazine, to see if the client's target market
will be served by advertising in that vehicle.

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A POV typically begins by examining the overall advertising environment and the advertising option the client
wants to examine and potentially add to the their marketing strategies. It should start with discussing advertising
trends within the industry and which ones are most viable for the client. Speciﬁcally discussing how the current
advertising option ﬁts into current advertising trends in the industry.
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DELIVERABLES
FOR CLIENTS
Paid Media
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MEDIA BRIEF
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This should really be the first step before launching into a full blown media recommendation, media
strategy, competitive analysis or any other planning deliverable the media department has been
scoped for
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This document outlines all the parameters needed to further develop the recommendations and ensures
that we have both internal and client sign off on next steps
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STEP ONE - Meet with the client to ask questions about past, present and future:
- budgets

- media mix

- timing/seasonality

- product/brand detail

- target audiences

- geography

- needs/goals/objectives

- competitors

- creative/messaging

- success metrics

If they do not have the answers to these questions, we need to know that too.
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STEP TWO - Use research tools to do initial pulls and find out how much information is available to us and
how much insight into the landscape we can derive
- fill in any missing pieces that the client could not provide and outline a plan of action for helping them figure
that part out

BUDGET SETTING
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There are many ways to go about setting a media budget for each client depending on business
initiatives and goals but here are a few to start with:
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Fixed percentage of sales
- start with last year’s total gross sales or average sales for the past fews years, then allocate a specific
percentage to that figure for advertising

- it is standard practice to set aside between 2% and 5% of annual revenues for advertising

- pros: it’s easy to understand and safe - this strategy keeps your budget in relation to sales volume

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Comparable to the competition
- the media team can pull past years’ media spending by category and by specific competitors to gauge what
is standard within the industry

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Set budget based on historical client media spending
- can be client provided or pulled along with the same research

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These methods can also be combined to determine a low to high budget range
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Budget setting also leads to larger conversations about success metrics
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SUCCESS METRICS
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Success Metrics are derived from communication goals that understand how the communications
will drive business goals
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To deﬁne success and prioritize potential goals we need to know where the client stands on their
existing measures
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Business Goals (examples):
- Increase sales

- Increase market share growth

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What we need to know:
- Where will most of the business growth come from?

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What we do:
- Identify how and where media can help

- Explain in simple terms how the communications is going to directly translate to the marketing or business
goal
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Measurement can include:
- Consumer tracking or customer attitude and usage studies to measure for awareness, brand equity or active
consideration

- Digital data such as search inquiries, website traﬃc or social media tracking

MEDIA RECOMMENDATION
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A media recommendation deliverable is for the client that is looking to commit to a long-term media
planning buying services agreement inclusive of managing the big picture media strategy plus the
day-to-day execution with timelines, schedules, negotiation, setup, tracking and post analysis
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Can Include:
- Project Overview

‣ about brand/product/service and scope of work

- Media Brief

‣ marketing media objectives

- Media Strategy

‣ based on audience insights this is the foundation from which the media recommendations are built around
and illustrate the plan of action to meet marketing and media objectives

‣ includes storytelling around target audience personas and media consumption habits

- Planning Parameters

‣ target audience, timing, budget, media mix, measurement and success metrics/analytic goals

- Media Recommendations

‣ can be broken out by a particular business segment or campaign objective with an overview followed by
slides detailing each media partner recommended, the budget allocated, reach (circ, imps, etc.),
placement details inc. units sizes and visuals of each

- Media Flowcharts

‣ often incorporated into the deck for a visual of campaign timing throughout the year

- Next Steps

‣ feedback, timeline buildout, plan approval, media execution

- Appendix

‣ additional research, media opportunities reviewed but not recommended and why

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MEDIA RECOMMENDATION: AGENCY AGREEMENT
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AGENCY will provide media planning and buying services to CLIENT for an approximate media budget of $______ .
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Scope of Work Includes:
- Acting as a strategic partner and consultant.

- Managing the big picture and day-to-day execution with timelines and schedules.

- Attending in-person or conference call meetings as needed.

- Maintaining regular correspondence via phone and email including meeting notes and organizing next steps and actions via
status reporting.

- Compiling media and market intelligence and competitive analysis information.

- Managing, and updating billing and budgets.

- Coordination and management of internal processes and procedures with larger teams ensuring plan execution on strategy,
managing the execution of key deliverables, and timelines for development.

- Overall media strategy and rationale for YEAR.

- Media plan cost, frequency, placements, and schedule.

- Supporting document that describes the publications, traﬃc and demographics.

- Creative recommendations that tie into the selected placements.

- Planning, negotiating, and media buying.

- Setting up campaign management and tracking.

- Traﬃcking ads and communicating with publishers.

- Ongoing optimization of campaigns based on performance.

- Reporting on a monthly basis that provides performance statistics, analysis, insights and recommendations.

- Post analysis with overall campaign results.

The parties agree to a _______ Percent ( ___%) commission for the account services, media strategy, media
planning, and media placement services listed above.
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The parties agree to a planning fee of $____ for the upfront planning and media strategy development phase. In the
event that CLIENT chooses to activate AGENCY’s Media Planning Buying Services this planning fee will be
dissolved into a _______ Percent ( ___%) commission on the net media spend of at least $____ for the account
services, media strategy, media planning, and media placement services outlined in the Media Planning Buying
Services Agreement to be signed.

MEDIA RECOMMENDATION: AGENCY COMPENSATION
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With the Commission Based Compensation Model:
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- The projected Media Budget is all inclusive of net media costs + agency commission + adserving

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- The formula for the net media spend is total budget x 0.85 = $_____
‣ example) $60,000 total media budget x 0.85 = $51,000 to spend on media

- the remaining $9k is agency compensation

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- If you start with a net budget and you need to “gross it up” the formula is net budget x 1.1765 = $_____

‣ example) $51,000 net media budget x 1.1765 = $60,000 total budget

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- The Media Department incorporates the 15% fee into the formulas on the worksheet tab of the flowchart
insuring that each placement is grossed up and that all hardcosts/adserving fees are accounted for

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Upfront Planning Fee:
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- The amount will vary per client and budget but an upfront fee for the planning and media strategy
development phase should be included in the agreement to cover ourselves in the event that the client
chooses not to activate the media plan through the agency

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- More often than not the client will sign off on the finalized media plan, activating the planning and buying
services, in which case the upfront fee goes away and we only charge commission on the media that runs

‣ one caveat to this is a minimum media spend to be sure we get a commission amount that is at least
equal to our initial upfront fee

‣ example) upfront fee of $1,500 means the net media spend has to be at least $10,000

- $10,000 x 15% = $1,500

EXAMPLE UPFRONT PLANNING FEE TIERS
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$0-50,000 Total Estimated Media Budget: planning fee of $1,500 that gets dissolved into 15% commission on
a plan of $10,000 or more

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$50,001 - $100,000 Total Estimated Media Budget: planning fee of $3,000 that gets dissolved into 15%
commission on a plan of $20,000 or more

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$450,001+ Total Estimated Media Budget: planning fee of $15,000 that gets dissolved into 15% commission on
a plan of $100,000 or more

MEDIA STRATEGY
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A media strategy deliverable is for the client that is looking for a strategic partner and consultant
and requires the flexibility to work on a project basis with a defined upfront fee rather than
committing to a long-term media planning and buying services agreement
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Can Include:
- Project Overview

‣ about brand/product/service and scope of work

- Media Brief

‣ marketing media objectives

‣ planning parameters (target audience, budget, messaging, geography, timing)

- Competitive

‣ initial findings on spend, seasonality and creative for select brand competitors

- Media Planning

‣ research to determine/define current heavy users and other potential audience segments to reach

‣ detail around demographics (gender, age, HHI, education, etc)

‣ research to determine target audience media consumption and attitudinal insights

- Recommended Communication Channels

‣ a high-level review of mediums we feel will be effective and why (could be digital, print, ooh, tv, etc.)

- Measurement

‣ ties back to marketing and media objectives and outlines how we will define success

- Media Strategy Recommendations

‣ budget level recommendations (strategy may shift as budget increases or strategy may remain constant
with only volume of media changing as the budget increases)

- Next Steps

‣ proposed dates for feedback, revisions and possible tactical media plan development

MEDIA STRATEGY: AGENCY AGREEMENT
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AGENCY will provide media strategy development services to CLIENT in accordance with a media
budget of between $_____ and $______
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- Acting as a strategic partner and consultant.

- Compiling media and market intelligence and competitive analysis information.

- Overall media strategy and rationale for YEAR plans.

- Media strategy cost, frequency and potential placements.

- Supporting document that describes the communication channels, traﬃc and demographics.

- Creative recommendations that tie into the selected communication channels.

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The parties agree to a planning fee of $_____ for the upfront planning and media strategy
development phase.
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In the event that CLIENT chooses to activate AGENCY’s Media Planning Buying Services this
planning fee will be dissolved into a Fifteen Percent (15%) commission on the net media spend of at
least $______ for the account services, media strategy, media planning, and media placement
services outlined in the Media Planning Buying Services Agreement to be signed. Travel is not
included and will be estimated separately.
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COMPETITIVE REVIEW
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- Discovery of the industry and competitors through available research databases

- Audit of a select number of competitors including media spend and paid media creative

‣ what is new? what has changed? who are the target audiences? key media vehicles? objectives?

‣ review of messaging and promotions

‣ branding audit of tagline, positioning statement, imagery

- Key Takeaways including:

‣ overall category insights

‣ media mix

‣ media placement highlights

‣ seasonality

‣ spend

- Time frame of the competitive review will vary by client

‣ can be 3 months, 6 months, a year, etc.

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Agency Compensation:
- Retainer to-be-determined based on amount of available research within the client’s industry and extent to
which the client wants to delve into

- Need to scope hours per project
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REPORTING
At the most basic level, reporting is used to determine overall campaign performance
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- An advertiser will want to know how many impressions and clicks a campaign received, and
how it performed on specific parts of a site

- Reporting is commonly used for more advanced information, such as the financial performance of a campaign

‣ understanding the return on investment

- Reporting enables us to make better decisions, faster

- Reports are customized per the client campaign goals and are composed of graphs, charts and lists regarding:

‣ click-through vs view-through conversions and revenue

‣ total conversions and revenue

‣ attribution - see which channels, campaigns, or sites are creating leads and are the first interactions in a
path to a conversion

‣ creative performance

- Delivery of reporting varies by client as well

‣ can be weekly, bi-weekly, monthly, campaign to date and/or a post campaign report

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YEAR IN REVIEW
A time to take a step back and conduct an end-of-year audit of all things related to the media
campaigns that ran over the past 12 months including an analysis of where we began versus where
we ended the year and the changes along the way
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Can Include:
- Recap of the past year’s planning parameters

‣ background info, target audience, budget, timing

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- Recap of the past year’s marketing campaigns

‣ dates, messages ad materials, media results, cost

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- Recap of the media properties utilized in the past year

‣ percentage of budget for each medium, media types, positioning, sizes, reach (circ, imps, etc.), frequency,
seasonality

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- Learnings Implications + Recommendations moving forward

‣ what worked and what didn’t work - which mediums/media outlets to continue to invest in, which to move
away from

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MEDIA BUYING TYPES
Paid Media
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BUYING METRICS: DIGITAL MEDIA
CPM
- (total cost / total impressions) x 1000

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CPC
- Cost per Click

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CPA/CPSA
- Cost per Action -or- Cost per Social Action

- Paid every time a consumer takes action (eg: providing information or making a purchase)

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Cost Per View
- Paid every time the ad window appears on a user’s browser

- Usually used with pop-ups, pop-unders, and interstitial advertisements

- Allows for a more high impact advertising campaign

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On the Rise: Viewability Ratings

- Advertisers are placing greater value on viewability, such as whether a user has to scroll down or change
tabs to see an ad, but metrics can vary greatly from vendor to vendor and the industry is in a state of
transition towards a viewable standard

- Media Vendors caution against placing too much emphasis on viewable impressions until eﬀorts by the
Interactive Advertising Bureau, Media Ratings Council and others to coordinate the industry are completed

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BUYING METRICS: TRADITIONAL MEDIA
Circulation
- the total number of print copies distributed

- reputable publications are audited

‣ ABC Statement - Audit Bureau of Circulations

‣ BPA - Business Publications Audit

- publications also provide “readership” ﬁgures which will always be higher than the circulation ﬁgures as it
takes pass-along readership in to consideration

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Reach Frequency
- broadcast television, cable and radio schedules are pieced together by combining station mixes that reach
your target audience and increase your reach and frequency among your target audience

- there are programs such as TapScan and Strata to help aggregate the Nielsen Audio/formerly Arbitron (radio)
and Nielsen Ratings (tv) data to project reach and frequency over extended periods of time

- Nielsen Audio and Nielsen Ratings are independent consumer research companies that collect listener
viewer data

‣ methods include diaries in small markets and personal/portable people meters in large markets

‣ each are the industry standard by which all broadcast media buys are measured against

- The standard traditional frequency goal is 3.0 within a one month time frame

- the only targeting capabilities are traditional demographics such as Women 25-54

‣ psychographics are not taken into consideration on a granular level - only as far as station format such as
news/info, hot adult contemporary or spanish language, etc.

CPP
- total cost / total GRPs (gross rating points)

- used in broadcast media

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DIGITAL TARGETING TYPES
Paid Media
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More than Media Planning!
Media planning is about reaching the right people at the right places

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A move toward Communications Planning!
Communications planning is about inﬂuencing people and an important
part of inﬂuencing is to understand how the group you are trying to
connect with thinks, behaves and lives their lives. And yes, of course,
how they consume media and respond to communications

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Brand Media Strategy:
Integrated communications planning in the digital era
by Antony Young

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DEMO TARGETING
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Enables you to target based on household characteristics
- Income, age, gender, ethnicity, interests, etc

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GEOTARGETING
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Enables you to connect with your audience online based on where they use their computers
whether at home, work, or on vacation
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BEHAVIORAL TARGETING
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Refers to a range of technologies and techniques used by online website publishers and
advertisers which allows increased effectiveness of ad campaigns by capturing data generated by
website and landing page visitors
- When a consumer visits a web site, the pages they visit, the amount of time they view each page, the links
they click on, the searches they make and the things that they interact with, allow sites to collect that data,
and other factors, create a 'profile' that links to that visitor's web browser

- Site publishers can use this data to create defined audience segments based upon visitors that have
similar profiles which in turn allows advertisers to position their online ads in front of those visitor profiles

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LOOK ALIKE MODELING
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Targeting prospects who have similar characteristics to current customers
- Used to build larger audiences from smaller audience segments to create reach

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PURCHASE BASED TARGETING
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Leverages a combination of online and offline purchase data to deliver your message to
consumers who are most likely to buy your products
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- Uses multiple offline and online data points from media vendors and third-party data partners to reach
relevant households with digital media impressions

- Clients can purchase “off-the-shelf” targets such as “Heavy Buyers of x” or Commission a Custom Target
defined by specific campaign objectives

- Possible Partners include Yahoo! Consumer Direct, Datalogix, RetailConnect from SpecificMedia (using
Nielsen Catalina Solutions)

‣ can also work with Ad Networks, such as Undertone, to utilize their existing relationships with major
data providers
Match offline data to
online cookies or mobile
device ID while protecting
the consumer privacy
Define target audience for
campaign
Leverage shopper and
brand insights from the
start to identify desired
audiences
Display, video and mobile
advertising are served up
to your buyer audience in
real time wherever they are

RETARGETING/REMARKETING
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Tailored web ads based on consumers’ online behaviors
- Generally 2% of shoppers convert on the ﬁrst visit to an online store - retargeting brings back the other 98%

- Works by keeping track of the people who visit your site and displaying your retargeting ads to them

- Retargeting ads may appear just about anywhere they might go online

- Maintains brand traction and recognition

- Brings “window shoppers” back when they’re ready to buy

- Able to segment visitors and and tailor the retargeting ads to each group

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CONTEXTUAL TARGETING
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Contextually
Relevant Ad
Ad Not

Contextually
Relevant
Targeted advertising in which the content of an ad is in direct correlation to the content of the web
page the user is viewing
- A contextual advertising system scans the text of a website for keywords and returns advertisements to the
webpage based on those keywords

BIG DATA
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Refers to the ever-increasing volume, velocity, variety, variability and complexity of information. For
marketing organizations, big data is the fundamental consequence of the new marketing
landscape, born from the digital world we now live in
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- Think of big data as your secret ingredient, your raw material, your essential element

- It’s not the data itself that’s so important, rather, it’s the insights derived from big data

- The decisions you make and the actions you take that make all the diﬀerence

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DATA DRIVEN TV AD BUY
43
!
A tech company called PrecisionDemand helps marketers use demographic data to refine their
placement of commercials across different TV networks
!
- Taps TV-viewership data from set-top boxes along with demographic and purchase data from such parties
as Experian and marketers' own sales data to devise a better schedule for TV commercials

- They start with the question of 'who is your customer,' and then really fine-tune instead of starting at the
program level to see how many people it delivers

- In one brand campaign comparison for a music subscription service, PrecisionDemand's number crunching
led to more than 4,000 more subscribers than a previous campaign using a traditional media planning
approach -- and it cost less than a third of the original campaign's price tag

!
!
!
!
!
!
!
!
!
- Some programs deemed inappropriate according to traditional standards were ranked highly by the
PrecisionDemand system. For instance, shows including The Nanny, Inside Edition and The Fresh
Prince of Bel-Air got low scores from humans, but high scores from the machine.

AD NETWORK VS SITE DIRECT BUYS
44
Ad Network
- Purchasing ad space indirectly through a real-time bidding (RTB) system

- An example of an Ad Network is Google AdSense or Advertising.com

- An Ad Network is a company that connects advertisers to web sites that want to host advertisements

- The key function of an ad network is aggregation of ad space supply from publishers and matching it with
advertiser demand

!
Direct Buys
- Purchasing ad space directly from a website publisher

- An example of an website publisher is FoodNetwork.com or WashingtonPost.com

- Often with Direct Buys there is the unique opportunity to purchase premium placements such as skins or
takeovers, which where previously not available through Ad Networks but as High Impact Ad Units gain
popularity the lines are becoming more blurred

!
Same Inventory, Diﬀerent Purchase Methods

- Direct ad sales remain popular but most publishers simply have too much inventory to sell all of it directly,
and therefore turn over portions of it to ad networks

- This means that advertisers wanting to get their ads onto those sites can often get the same placements, but
for much less cost

DIGITAL AD TYPES
Paid Media
45

“In today's marketing and media
environment only the naïve and foolish
confuse presence with impact.”!
- Stephen Heyer, former Chief Operating Oﬃcer Coca-Cola Company
46

DIGITAL AD TYPES
Cross-Media
- Multi-screen, multimedia, multifaceted

!
Display
- Reach the right customer, at the right moment, all across the web

!
Native
- Match the visual design of the experience they live within

!
Mobile
- Always at your ﬁngertips

- Brands are leveraging mobile to create a seamless user experience for all

!
Video
- Engage, inspire, activate

- Online videos have transformed the way Brands they tell their narratives

!
Search
- Provide audiences with what they want, when they want it 
Paid Social
- Digital to drive the conversation

47

CROSS-MEDIA
!
What is it?
- Consumer behavior has changed drastically

- More electronic: Average of 3+ electronic
devices per person

!
Why is it important?
- Advertisers can expand reach by reaching the
same user across multiple digital devices and
optimize performance of their budget

!
!
!
!
!
!
48

DISPLAY
!
Display advertising appears on web pages in many forms, including web banners
- Banner ad standards continue to evolve

!
DISPLAY ADVERTISING TECHNOLOGY LANDSCAPE
!
49

NATIVE ADVERTISING
50
Native ads match the visual design of
the experience they live within
- A form of paid media where the ad
experience follows the natural form
and function of the user experience in
which it is placed

- Looks and behaves like natural
content

!
!
!

MOBILE
Mobile advertising provides a unique opportunity to connect with consumers on a personal level,
with ads that reﬂect their on-the-go need states and moments of decision
!
- Ability to target by demographics, location, device and behavior with ads appearing in search results, on
content websites, in apps and video

- There is a wide range of opportunities for rich media and video, post-click solutions such as click-to-text,
click-to-call, data capture, and store locators

- Reach millions of users worldwide across mobile devices including the iPhone, Android, BlackBerry and
Windows Phone

!
!
!
51

VIDEO
Users are increasingly going online to access content previously only available to them through
cable or broadcast television, leading advertisers to chase those eyeballs on the web
!
- Online advertising revenues are going up because more people are watching online video, and the people
who provide that video are increasingly packaging it with forced view commercials

- In the forced view model, commercials are placed before the video runs (preroll), in the middle (midroll), or
at the end (postroll)

- As it turns out, forced view online video advertising works

‣ According to comScore, Inc.'s Video Metrix service, in October 2012 alone, 183 million U.S. internet
users watched more than 37 billion online content videos, while video ad views reached nearly 11
billion.

!
!
!
52

VIDEO BUYING
While interest in programmatic video ad buying is growing, the number of agencies and brands
who have participated in it remains low and publisher/network buys still win out
!
YouTube

- 800 million people visit YouTube worldwide every month - DoubleClick AdPlanner

- With YouTube TrueView you only pay when viewers choose to watch your ad

- Viewers see your TrueView video ads while they’re watching or searching for videos or browsing related
web content or suggested videos on YouTube and the Google Display Network

‣ Everyone wins: viewers choose ads that are relevant to them, and you reach people who are ready to
hear what you’ve got to say

!
!
!
53

PAID SEARCH
“Google and it’s competitors have created the first application to leverage the database of
intentions in a commercial manner: paid search”
- John Battelle in The Search: How Google and it’s Rivals Rewrote the Rules of Business and Transformed Our Culture

!
- A method of placing online advertisements on Web pages that show results from search engine queries

- Search advertisements are targeted to match key search terms (called keywords) entered on search engines

- The opportunity to present consumers with advertisements tailored to their immediate buying interests

- Consumers will often use a search engine to identify and compare purchasing options immediately before
making a purchasing decision

- Advertisers can see whether a coupon or a free recipe is more effective and can adjust their plans
instantaneously without significant additional costs as you would find with traditional media

!
!
!
54

PAID SEARCH: NEW PLACEMENTS
Advertisers can use AdWords to show Google Ads on sites that are part of the Google Display
Network
!
- You may come across such ads when you’re viewing a website, video, or app on Google’s Display Network
or other partner sites

- In addition to seeing ads based on the types of sites you visit, you may also see ads based on your interests
and more

!
!
!
55

PAID SOCIAL
Each social network has it’s own unique form of paid advertising
‣ Facebook: Suggested Post, Sponsored Stories and Right Rail Ads

‣ Twitter: Promoted Tweets and Promoted Accounts

‣ Instagram: Sponsored Photos Videos

‣ Pinterest: Promoted Pins

‣ Flickr: Various (through Yahoo!)

‣ Tumblr: Sponsored Post, Sponsored Radar

‣ Flipboard: Full page based on CPM against unique readers

‣ Foursquare: Pay per Action, tapping to see business details or
checking in at business

- New social networks are constantly cropping up and ﬁnding

new audiences

‣ Vine

‣ Snapchat

!
!
!
!
!
56

DIGITAL CREATIVE SPECIFICATIONS
Paid Media
57

CREATIVE CHALLENGES
Too many options to choose from
!
The digital ad industry is a fragmented, diverse market that leaves advertisers facing many decisions:

!
Which devices will best reach my intended audience?

!
What platform should I use?

!
What tools and resources can I rely on to develop these formats?

!
In the absence of an industry standard, ad professionals are making decisions on a case-by-case basis, and
there’s a strong incentive to stick with the legacy standards they know. Flash is still the dominant developing
platform for advertising professionals. About half of the rich media ads created for the desktop are still in Flash.

!
Even so, respondents of the survey surprisingly said HTML5 now represents 40% of their rich media ads
developed for the desktop market.
58

CREATIVE COMPLACENCY
Desktop’s continued prevalence leads to complacency
!
Desktop PCs are still the top platform for digital advertising, with more than half of digital ad
campaigns being designed specifically for them, compared to one in four that are developed for
smartphones and one in five for tablets.

!
According to a recent Internet traffic study conducted by Monetate, 79% of website traffic in the
first quarter of 2013 came from desktops.

!
This dominance of the desktop in digital ads has kept some advertisers complacent; two out of
five advertising professionals surveyed are simply re-using the ads they developed for the
desktop on smartphones and tablets.

!
!
!
59

STANDARD BANNERS
!
GIF Requirements
- Standard Ad Sizes: 300x250, 160x600 728x90

- Max File Size: 40k

!
!
ANIMATED GIFS Requirements
- Standard Ad Sizes: 300x250, 160x600 728x90

- Max File Size: 40k

- Max Animation Length: 15-sec

- Max Video Animation Frame Rate: 24 fps (frames per second)

!
60

FLASH BANNERS
The number of browsers and devices that do not support Flash is increasing
!
Requirements
- Flash versions 6,7,8,9, 10 (AS2 AS3)

- File must not exceed 40K

- Onload play audio is not permitted

- Sounds played on click are allowed

- For best results, have the button encompass the entire ad area throughout the entire timeline

- Buttons must have the clickTAG expression (see below) in place of embedded URLs

- Do not embed any URLs in the Flash file - include linking URLs in an email or other document

- Frame rate may not exceed 24 frames per second due to performance considerations

‣ 12 frames per second is preferred

- All Flash ads must be accompanied by the SWF file as well as an alternate image (GIF or JPG) of the same
dimensions

‣ Images must meet the file size specs for that ad size

- Looping must be set to False

61

RICH MEDIA AD UNITS
A Rich Media ad contains images or video and involves some kind of user interaction
- We’re seeing the move from standard banners to rich media ads on desktop as interactive ads provide
more compelling user experiences

- Ads that include interactive elements such as expandable content, videos, and other activities that require
user input are expected to increase in usage

- Two-thirds of advertising professionals surveyed say they expect the amount of rich media ads they create
to increase during the next 12 months

!
!
62

MOBILE RICH MEDIA CASE STUDY
In October 2013 McDonald’s launched its ﬁrst mobile advertising
campaign to serve up a rich media experience as part of a
multichannel marketing push to promote a new line of chicken wings
- Ad placements are within the Facebook and Twitter mobile applications
and the NFL mobile site

- It’s an engaging experience with the video and the ability to share content

- A TV spot ends with a black out and prompts consumers to hashtag
#MightyWings

- If users choose to learn more about the products, a store locator pulls in
a consumer’s location and plots a restaurant on a map

- The other option within the mobile ad lets consumers learn about the
seven suspects, which include a team mascot, a cheerleader, a fan, a
reporter and a groundskeeper in addition to the two quarterbacks

- Consumers can then vote for which character they believe is the culprit.
The ad then tallies the votes to show the total percentage of votes for
each character

- There is also a desktop version of the campaign running within the
Facebook, Twitter and NFL Web sites

- Similar to other McDonald’s mobile ad campaigns, the goal behind the
campaign is to increase new product awareness by driving consumers to
a store

- McDonald’s is also using an iAd and location-based ads to promote
Mighty Wings
63

HTML5/RESPONSIVE DESIGN
HTML5 is emerging as the new standard for web content and digital advertising because it’s more
flexible than Flash, which isn’t supported on every browser and device
- May also be referred to as Responsive Design

- One ad unit that works across desktop, laptop and mobile devices

- Development requires a distinct skill set and therefore specialized guidance

- 88% of Advertising professionals believe HTML5 will have a positive impact on the advertising industry

- 79% of clients are asking for creative that works across smartphones and tablets

- HTML5 not only provides the benefit of device-agnostic creative; it also offers a platform for designing
beautiful and interactive creative that can run on all screens

- HTML5 allows for the shift to interactive ads on for smartphones and tablets providing more compelling user
experiences

- HTML5 is viewed as the key to developing more appealing (46%) and interactive (44%) creative.

!
!
!
!
!
!
!
64

STAYING CURRENT

INDUSTRY SHIFTS
Paid Media
65

Industry Publications Daily eNewsletters
- Advertising Age

- Ad Age Digital

- IAB SmartBrief

- MMA SmartBrief

- 4As SmartBrief

- eMarketer

- paidContent

For Search

- SEMRush

For Social

- SocialCode

- SmartBrief on Social Media

Webinars Training
- doubleclick / Google

- Advertising Age

- eMarketer

Events
- DC Ad Club

- 4As Conference

Media Rep Meetings
- In-person and over the phone

Books
- Brand Media Strategy: Integrated communications planning in the digital era by Antony Young
STAYING CURRENT
66

INDUSTRY SHIFTS
!
Dropping Cookies to Embrace Cross-Device Tracking Tools
!
- Google and now Microsoft are moving towards an ad strategy that leaves third party cookies behind

- The plan will be to rely instead on device-based permission systems, which would let it identify when the
same user is present on a variety of platforms — for instance, the company could follow a person on
Internet Explorer, X-Box and Windows Phone in order to serve them the same ad on each

- The move is likely to bring a shift in power in the ad industry of who gets to collect and keep customer
data

- The companies have been tight-lipped about how exactly cross-device tracking works, but it appears to
rely on a combination of user-granted permissions and external signals — such as WiFi or web browsing
patterns — that predict when the same user is on different devices (the New York Times has a good
explanation of those signals)

- The move is likely to bring a shift in power in the ad industry of who gets to collect and keep customer
data

- The decision to drop cookies is significant because it reflects a shift of power in which companies will
have access to data about how users roam the internet

- Until now, a wide array of marketing and data companies have relied on third-party cookies to track and
target customers but, in the future, that power will largely reside with a handful of major portals —
including Facebook, Google, Apple and Twitter — which will be the guardians of customer data

!
!
67

PROGRAMMATIC BUYING
Programmatic Buying describes online display advertising that is aggregated, booked, flighted,
analyzed and optimized via demand side software interfaces and algorithms
!
- While it includes RTB it also includes non RTB methods and buy types such as Facebook Ads API and
the Google Display Network

- Programmatic also implies the use of multi sourced data signals to inform targeting and optimization
decisions

- An increasing share of online display advertising is moving towards programmatic due to its inherent
efficiency (both workflow and performance)

- The majority of inventory available via programmatic is non-guaranteed, auction traded during the ad call
although we expect to see more guaranteed reserved 'premium' inventory available in the future

- Although 'Programmatic' suggests little or no human intervention, algorithmic optimization can only do so
much

- Smart macro optimization by analytical 'traders' can amplify programmatic performance significantly

!
Within programmatic buying there is :

- Human Programmatic Buying (HPB)

‣ example) bid a fixed amount of $6.00 on any visitor that's been on an advertiser's website in the last
30 days

- Artificial Intelligence Buying (AIB)

‣ example) autonomously score each impression using predictive analytics and bid a dynamic amount
based on a complex formula involving thousands of factors, including whether the visitor had been on
the advertiser's website in the last 30 days, the weather, geography, time of day, etc.

‣ derived by algorithmic processes, versus being specified by human input 68

Paid Media Process & Strategy

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