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Introduction to Paid Online Marketing

Vaibhav Arya
Amit Klein
March ‘10
#isbsm
Who are we?
Vaibhav & Amit




  vaibhav@arya.net.in   ak@amitklein.com
Why is Paid Marketing Important?
Goals
At the end of today you should be able to:
- identify your marketing objectives
- determine which methods/tools are best to achieve
  them
- measure your results / calculate ROI
- and optimize your campaigns
Agenda
-   Marketing Goals
-   Pricing & Terminology
-   Methods of Online Advertising
-   Measurement & Analytics
-   Budget Allocation
-   Q&A
Introduction
Case Study – iTunes India
You are the marketing manager responsible for
  launching the iTunes store in India

- What are your objectives?
- How can you go about achieving those objectives?
Objectives - Branding
Objectives - Branding
Objectives - Performance
Objectives - Performance
Marketing Funnel




http://adamhcohen.com/wp-content/uploads/New-Marketing-Funnel1-300x294.jpg
Pricing Models
                                  Publisher      Low
                   Fixed Cost /    Friendly      Tech
                 Fixed Duration

                     CPM

                      CPC

                      CPA



                                  Advertiser     Tech
                                   Friendly    Intensive
Terminology & Pricing
Terminology
• Impression – A single appearance of an advertisement on
  a web page.

• CTR – Click Through Rate - The number of people who
  clicked your ad divided by the number of people who
  viewed it.

• Goal – An action performed on your site (download,
  checkout, registration, etc…)

• Conversion Rate – The number of people who completed
  a goal divided by the total number of visitors to your site
Pricing Models
• Fixed Cost / Fixed Duration

• CPM - Cost per 1000 Impressions

• CPC - Cost per Click

• CPA - Cost per Action - The advertiser pays a fixed
amount for each specified action linked to the ad. Action
could be a form submission, a sale (CPS) a lead (CPL) etc.
Methods of Advertising Online
List of Methods & Tools
•   Search Ads - Google, Yahoo, MSN
•   Display Ads – DoubleClick, Right Media Exchange
•   Social Ads – FB, Orkut, LinkedIn
•   Email Marketing – Blue Sky Factory, EmailBrain
•   Affiliate – Amazon, Commission Junction
Search Engine Marketing
Search Ads
•   Goals: Consideration / Conversion
•   Control: Keyword, geography, demographic, time, budget
•   Measure: Impressions, clicks, cost, revenue
•   Limitations: Placement, competition/expensive, obscured
How does Google know which ads to
display next to search results?
Google Adwords Demo
• Targeting based on keyword, geography,
  demographic, time.
• Search vs. Content network
• Bidding (Auto vs. Manual)
• Pricing (US vs. India)
Google Adwords Demo
Google Adwords Demo
Search - Keywords
• Identifying - http://www.google.com/sktool/
• Estimating -
  https://adwords.google.com/select/TrafficEstimatorS
  andbox
Impression Share
What should you do with all those
ad clicks?
 Landers meet various goals
 – Capture a lead
 – Simplify the buying process
 – Lead directly to the product
   advertised
 – Ensure trials

 Good for sites where people
 do not need a greater level
 of information before they
 sign up. It’s very important
 to cater to the specific case
 at hand
Display Advertising
Display Advertising
Display Advertising
All Shapes and Sizes
All Shapes and Sizes
Display Advertising
• Goals:
   • Awareness
   • Brand Positioning
   • Can also be used for conversion
Display Advertising
• Branding Oriented

• Positioning is important:
   • Premium Inventory
   • Remnant Inventory
Premium Inventory
Remnant Inventory
Exchanges and Networks
• Networks aggregate Publishers and Advertisers

• Exchanges aggregate Networks
Display Advertising
• Control:
   Where the ad is shown
      -Sources
   Who do you show it to
      -Demography
  What are the persons
  interests? What else has
  he seen? What has he
  been searching for?
      - Behavior / Intent
Display Advertising
• Measures:
  • Total number of visitors who see the ad
  • Total number that click through

   • Cost per Unique Visitor:
      • Cost per impression is a proxy
      • Doesn’t compensate for frequency (one
        person may see the ad multiple times)
Different Objectives Different Metrics

    Advertiser     Imps       Clicks    Conversions Click rate (%) Conversion    Cost        Cost eCPM
                                                                     rate by
                                                                    clicks(%)

Advertiser #1    13,594,753   331,888        13,478          2.44         4.06    6,819.95          0.5

Advertiser #2    10,103,536    45,682           939          0.45         2.06   24,167.53         2.39

Advertiser #3     7,225,860   143,455          2,155         1.99          1.5    4,287.46         0.59

Advertiser #4     6,970,203   141,678          1,252         2.03         0.88      476.9          0.07

Advertiser #5     6,139,134   150,030          2,717         2.44         1.81    2,396.03         0.39

Advertiser #6     5,940,754   105,473          1,145         1.78         1.09    2,743.26         0.46

Advertiser #7     5,703,385   163,875          1,664         2.87         1.02    3,890.97         0.68
Email Marketing
Email Marketing – EmailBrain
• Goals: Conversion / Loyalty
• Control: Segmentation, frequency, message / look &
  feel
• Measure: Opens, clicks, unsubscribe, forwards
• Limitations: Reach
Email Marketing – EmailBrain
Email Marketing – Analytics
Social Ads
Social Ads
•   Goals: Awareness / Consideration
•   Control: Demographic, message, budget
•   Measure: Impressions, clicks, cost, revenue
•   Limitations: Low click through rate, people don’t go
    to social networks to buy
Social Ads - Facebook
Social Ads - Facebook
Social Ads - Facebook
Affiliate Marketing
Affiliate Marketing
Affiliate: Outsourced Sales Force
Affiliate Marketing
• Networks
  • TradeDoubler
  • CommisionJunction
Affiliate Marketing
• Goals
   • Conversion / Sales
• Control
   • Can you think of any?
• Measures
   • Impressions
   • Clicks
   • Conversions
• Limitation
   • Loss of control over affiliate choice
   • Brand conflict positioning
   • Gaming the system
   • Expensive to setup
Goal Measurement
Goals - Awareness
Goals - Consideration
Leads received:
• Creating an iTunes account
• Playing snippits of a song / video
• Browsing the iTunes store
Goals - Conversion
Goals - Conversion
Goals - Loyalty
Goals - Loyalty
Destroy Competition:
Budget Allocation
Example #1 – Ad effectiveness
Example #1 – Ad effectiveness


  Ad       Impressions             Clicks           Cost



  Music                  274,747            2,413          $1,042.56



  iTunes                  21,075             733            $339.28



  Movies                  34,404             243            $157.13
Example #1 – Ad effectiveness


Ad       Impressions       Clicks         Cost             CTR       CPC           eCPM


                                                                                           $3.79
Music            274,747       2,413         $1,042.56       0.88%         $0.43



iTunes            21,075            733          $339.28     3.48%         $0.46          $16.10



Movies            34,404            243          $157.13     0.71%         $0.65           $4.57
Example #1 – Ad effectiveness


Ad       Impressions       Clicks         Cost             CTR       CPC           eCPM            Revenue




Music            274,747       2,413         $1,042.56       0.88%         $0.43           $3.79     $4,246.88




iTunes            21,075            733          $339.28     3.48%         $0.46          $16.10     $2,052.40




Movies            34,404            243          $157.13     0.71%         $0.65           $4.57       $21.87
Example #1 – Ad effectiveness


Ad       Impressions Clicks    Cost        CTR      CPC           eCPM       Revenue     RPC       ROI




Music         274,747   2,413 $1,042.56     0.88%         $0.43      $3.79 $4,246.88       $1.76 306.53%




iTunes         21,075    733     $339.28    3.48%         $0.46     $16.10 $2,052.40       $2.80 503.85%




Movies         34,404    243     $157.13    0.71%         $0.65      $4.57      $21.87     $0.09    -85.38%
Example #2 – Keyword Effectiveness

Keyword        Impressions Clicks         Cost             CTR           CPC           CPM            Revenue       RPC           ROI


movies             219,274          656          $284.34         0.30%         $0.43          $1.30       $32.80          $0.05         -87.70%


music               62,469          391          $384.48         0.63%         $0.98          $6.15     $1,102.62         $2.82         186.38%


itunes              30,470          385          $182.11         1.26%         $0.47          $5.98      $500.50          $1.30         174.37%


music
downloads           15,286          199          $121.42         1.30%         $0.61          $7.94       $19.90          $0.10         -83.54%


movie
downloads           12,185          222           $77.93         1.82%         $0.35          $6.40      $102.12          $0.46         30.84%


kanye west
music                 4,779         176           $61.17         3.68%         $0.35         $12.80        $0.00          $0.00     -100.00%



a. r. rehman
download              3,516         218           $65.18         6.20%         $0.30         $18.54      $163.50          $0.75         149.89%


twilight dvd          9,446         148           $66.08         1.57%         $0.45          $7.00      $828.80          $5.60     1154.12%
Example #3 – Source Effectiveness
             Impressions    Clicks        Cost     Revenue Average Order Size   Conversion Rate Per Visit Value



   Direct           N/A    27,244           0    $12,795.81            $8.15            5.76%             $.47

                                     $6,019.56
  Google      2,713,257    11,709                 $2,597.26            $6.98            3.33%             $.22



Facebook      2,221,666     1,333     $253.27      $150.81             $5.32            0.23%             $.01



   Email         26,796     1,964     $400.00      $710.65             $7.32            4.94%             $.36




 Display        106,454     2,342      $95.40      $106.21             $5.15            2.70%             $.05




 Affiliate       52,324       806     $142.08      $710.65            $10.46            3.85%             $.40
Conclusion
Conclusion
When planning a marketing campaign:
- Define criteria and how you will measure success
- Get historical data
- If not possible: execute small tests
- Iterate and optimize constantly
- Use analytics data to develop insights
Group Project Update
Group Project
Two components
• Social Media campaign
   • proposals due today
• Adwords Campaign
   • Drive traffic to atmamumbai.org
   • Each team will get $320/teams in Adwords
     Credits
   • Not just visitors but quality as well
   • Score = Visitors * (1 – Bounce Rate)
Thank You! Questions?

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ISBSM #3 - Intro to Paid Online Marketing

  • 1. Introduction to Paid Online Marketing Vaibhav Arya Amit Klein March ‘10 #isbsm
  • 3. Vaibhav & Amit vaibhav@arya.net.in ak@amitklein.com
  • 4. Why is Paid Marketing Important?
  • 5.
  • 6. Goals At the end of today you should be able to: - identify your marketing objectives - determine which methods/tools are best to achieve them - measure your results / calculate ROI - and optimize your campaigns
  • 7. Agenda - Marketing Goals - Pricing & Terminology - Methods of Online Advertising - Measurement & Analytics - Budget Allocation - Q&A
  • 9. Case Study – iTunes India You are the marketing manager responsible for launching the iTunes store in India - What are your objectives? - How can you go about achieving those objectives?
  • 15. Pricing Models Publisher Low Fixed Cost / Friendly Tech Fixed Duration CPM CPC CPA Advertiser Tech Friendly Intensive
  • 17. Terminology • Impression – A single appearance of an advertisement on a web page. • CTR – Click Through Rate - The number of people who clicked your ad divided by the number of people who viewed it. • Goal – An action performed on your site (download, checkout, registration, etc…) • Conversion Rate – The number of people who completed a goal divided by the total number of visitors to your site
  • 18. Pricing Models • Fixed Cost / Fixed Duration • CPM - Cost per 1000 Impressions • CPC - Cost per Click • CPA - Cost per Action - The advertiser pays a fixed amount for each specified action linked to the ad. Action could be a form submission, a sale (CPS) a lead (CPL) etc.
  • 20. List of Methods & Tools • Search Ads - Google, Yahoo, MSN • Display Ads – DoubleClick, Right Media Exchange • Social Ads – FB, Orkut, LinkedIn • Email Marketing – Blue Sky Factory, EmailBrain • Affiliate – Amazon, Commission Junction
  • 22. Search Ads • Goals: Consideration / Conversion • Control: Keyword, geography, demographic, time, budget • Measure: Impressions, clicks, cost, revenue • Limitations: Placement, competition/expensive, obscured
  • 23. How does Google know which ads to display next to search results?
  • 24.
  • 25. Google Adwords Demo • Targeting based on keyword, geography, demographic, time. • Search vs. Content network • Bidding (Auto vs. Manual) • Pricing (US vs. India)
  • 26.
  • 29.
  • 30. Search - Keywords • Identifying - http://www.google.com/sktool/ • Estimating - https://adwords.google.com/select/TrafficEstimatorS andbox
  • 32. What should you do with all those ad clicks? Landers meet various goals – Capture a lead – Simplify the buying process – Lead directly to the product advertised – Ensure trials Good for sites where people do not need a greater level of information before they sign up. It’s very important to cater to the specific case at hand
  • 36. All Shapes and Sizes
  • 37. All Shapes and Sizes
  • 38. Display Advertising • Goals: • Awareness • Brand Positioning • Can also be used for conversion
  • 39. Display Advertising • Branding Oriented • Positioning is important: • Premium Inventory • Remnant Inventory
  • 42. Exchanges and Networks • Networks aggregate Publishers and Advertisers • Exchanges aggregate Networks
  • 43.
  • 44. Display Advertising • Control: Where the ad is shown -Sources Who do you show it to -Demography What are the persons interests? What else has he seen? What has he been searching for? - Behavior / Intent
  • 45. Display Advertising • Measures: • Total number of visitors who see the ad • Total number that click through • Cost per Unique Visitor: • Cost per impression is a proxy • Doesn’t compensate for frequency (one person may see the ad multiple times)
  • 46. Different Objectives Different Metrics Advertiser Imps Clicks Conversions Click rate (%) Conversion Cost Cost eCPM rate by clicks(%) Advertiser #1 13,594,753 331,888 13,478 2.44 4.06 6,819.95 0.5 Advertiser #2 10,103,536 45,682 939 0.45 2.06 24,167.53 2.39 Advertiser #3 7,225,860 143,455 2,155 1.99 1.5 4,287.46 0.59 Advertiser #4 6,970,203 141,678 1,252 2.03 0.88 476.9 0.07 Advertiser #5 6,139,134 150,030 2,717 2.44 1.81 2,396.03 0.39 Advertiser #6 5,940,754 105,473 1,145 1.78 1.09 2,743.26 0.46 Advertiser #7 5,703,385 163,875 1,664 2.87 1.02 3,890.97 0.68
  • 48. Email Marketing – EmailBrain • Goals: Conversion / Loyalty • Control: Segmentation, frequency, message / look & feel • Measure: Opens, clicks, unsubscribe, forwards • Limitations: Reach
  • 49. Email Marketing – EmailBrain
  • 50. Email Marketing – Analytics
  • 52. Social Ads • Goals: Awareness / Consideration • Control: Demographic, message, budget • Measure: Impressions, clicks, cost, revenue • Limitations: Low click through rate, people don’t go to social networks to buy
  • 53. Social Ads - Facebook
  • 54. Social Ads - Facebook
  • 55. Social Ads - Facebook
  • 59. Affiliate Marketing • Networks • TradeDoubler • CommisionJunction
  • 60. Affiliate Marketing • Goals • Conversion / Sales • Control • Can you think of any? • Measures • Impressions • Clicks • Conversions • Limitation • Loss of control over affiliate choice • Brand conflict positioning • Gaming the system • Expensive to setup
  • 63. Goals - Consideration Leads received: • Creating an iTunes account • Playing snippits of a song / video • Browsing the iTunes store
  • 67. Goals - Loyalty Destroy Competition:
  • 69. Example #1 – Ad effectiveness
  • 70. Example #1 – Ad effectiveness Ad Impressions Clicks Cost Music 274,747 2,413 $1,042.56 iTunes 21,075 733 $339.28 Movies 34,404 243 $157.13
  • 71. Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM $3.79 Music 274,747 2,413 $1,042.56 0.88% $0.43 iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 Movies 34,404 243 $157.13 0.71% $0.65 $4.57
  • 72. Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM Revenue Music 274,747 2,413 $1,042.56 0.88% $0.43 $3.79 $4,246.88 iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 $2,052.40 Movies 34,404 243 $157.13 0.71% $0.65 $4.57 $21.87
  • 73. Example #1 – Ad effectiveness Ad Impressions Clicks Cost CTR CPC eCPM Revenue RPC ROI Music 274,747 2,413 $1,042.56 0.88% $0.43 $3.79 $4,246.88 $1.76 306.53% iTunes 21,075 733 $339.28 3.48% $0.46 $16.10 $2,052.40 $2.80 503.85% Movies 34,404 243 $157.13 0.71% $0.65 $4.57 $21.87 $0.09 -85.38%
  • 74. Example #2 – Keyword Effectiveness Keyword Impressions Clicks Cost CTR CPC CPM Revenue RPC ROI movies 219,274 656 $284.34 0.30% $0.43 $1.30 $32.80 $0.05 -87.70% music 62,469 391 $384.48 0.63% $0.98 $6.15 $1,102.62 $2.82 186.38% itunes 30,470 385 $182.11 1.26% $0.47 $5.98 $500.50 $1.30 174.37% music downloads 15,286 199 $121.42 1.30% $0.61 $7.94 $19.90 $0.10 -83.54% movie downloads 12,185 222 $77.93 1.82% $0.35 $6.40 $102.12 $0.46 30.84% kanye west music 4,779 176 $61.17 3.68% $0.35 $12.80 $0.00 $0.00 -100.00% a. r. rehman download 3,516 218 $65.18 6.20% $0.30 $18.54 $163.50 $0.75 149.89% twilight dvd 9,446 148 $66.08 1.57% $0.45 $7.00 $828.80 $5.60 1154.12%
  • 75. Example #3 – Source Effectiveness Impressions Clicks Cost Revenue Average Order Size Conversion Rate Per Visit Value Direct N/A 27,244 0 $12,795.81 $8.15 5.76% $.47 $6,019.56 Google 2,713,257 11,709 $2,597.26 $6.98 3.33% $.22 Facebook 2,221,666 1,333 $253.27 $150.81 $5.32 0.23% $.01 Email 26,796 1,964 $400.00 $710.65 $7.32 4.94% $.36 Display 106,454 2,342 $95.40 $106.21 $5.15 2.70% $.05 Affiliate 52,324 806 $142.08 $710.65 $10.46 3.85% $.40
  • 77. Conclusion When planning a marketing campaign: - Define criteria and how you will measure success - Get historical data - If not possible: execute small tests - Iterate and optimize constantly - Use analytics data to develop insights
  • 79. Group Project Two components • Social Media campaign • proposals due today • Adwords Campaign • Drive traffic to atmamumbai.org • Each team will get $320/teams in Adwords Credits • Not just visitors but quality as well • Score = Visitors * (1 – Bounce Rate)
  • 80.

Notas do Editor

  1. Guys is having more fun then everyone else
  2. Overall ad spending will decline but: Online marketing spend will jump from 12 percent to 21 percent by 2014 SMM is fastest growing in spend 34% annually, all others average 17% SEM still dominates and will continue to for the forseeable future in terms of spend Theme: Paid marketing is giving way to earned loyalty… but slowly
  3. Guys is having more fun then everyone else
  4. Online vs. offline Reach Speed / Immediacy Testing Targeting Measuring
  5. Guys is having more fun then everyone else
  6. Guys is having more fun then everyone else
  7. Overarching objectives are branding and performance…. Broken down leads to these
  8. CPM was the norm… now CPC… only recently starting CPA
  9. Conversions = Goals by Clicks (clicks translate to visitors) …. You want to buy an ad on a website what are your options
  10. CPM was the norm… now CPC… only recently starting CPA
  11. Consideration – Music store want to see iTunes Placement – next to negative stuff about your brand Competition – expensive, people could be obfuscating, your competitiors could be targeting your brand directly Obscured – sometimes gets lost
  12. Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  13. Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  14. Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  15. Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  16. Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  17. Historical clickthrough rate (CTR) of the keyword and the matched ad on Google Account history (CTR of all the ads and keywords in account) Historical CTR of the display URLs in the ad group Landing page quality Keyword relevance to the ads and search query Account's performance in the geographical region where the ad will be shown Other relevance factors
  18. Not only Image Banners Also Rich Media (Video) Interactive (flash)
  19. Not only Image Banners Also Rich Media (Video) Interactive (flash)
  20. Should we use this insight for offline as well?
  21. Should we use this insight for offline as well?
  22. Brand is Important Where is my ad being shown What ad is being shown on my page Prime Inventory – Sold by branded publishers Remnant Inventory – Sold by thrid parties (ad-networks). Used to be leftovers that couldn’t be sold as prime No control over placement – advertise an albumn next to a page trashing the lead singer
  23. Brand is Important Where is my ad being shown What ad is being shown on my page Prime Inventory – Sold by branded publishers Remnant Inventory – Sold by thrid parties (ad-networks). Used to be leftovers that couldn’t be sold as prime
  24. How do you improve conversion rates Quality of publishers page - quality of advertisement
  25. If you are not measuring e-mail marketing, there is almost no point in doing it What are the metrics that should be captured, how do you evaluate email campaigns…
  26. If you are not measuring e-mail marketing, there is almost no point in doing it What are the metrics that should be captured, how do you evaluate email campaigns… Goals, control, measure, Limitations - reach
  27. If you are not measuring e-mail marketing, there is almost no point in doing it What are the metrics that should be captured, how do you evaluate email campaigns… Goals, control, measure, Limitations - reach
  28. If you are not measuring e-mail marketing, there is almost no point in doing it What are the metrics that should be captured, how do you evaluate email campaigns… Goals, control, measure, Limitations - reach
  29. Demo When is this good Branding Target based on specific info (b2b target certain companies… recruitment top b schools)
  30. Demo When is this good Branding Target based on specific info (b2b target certain companies… recruitment top b schools)
  31. Demo When is this good Branding Target based on specific info (b2b target certain companies… recruitment top b schools)
  32. Fansite Many Programs Ticket Master
  33. Fansite Many Programs Ticket Master
  34. Should we use this insight for offline as well?
  35. Networks aggregate affiliate sites * Easier to Start * Loss of control?
  36. Strong Policy Enforcement -- fraud
  37. Get new customers
  38. Depends how you define goals
  39. Sell stuff New signup user Subscribing to a newsletter
  40. Tata nano – signingup for more info / test drive as conversion
  41. The number of times people return to your site
  42. Stock volatility vs search volume
  43. Which ad is more effective Mad men – 60’s Advertisements used to be about creatives, now its about performance / numbers
  44. Example… let’s say our goal was just getting new visitors on the site… how do we know what is best for us?
  45. Again if goal wasn’t to generate revenues but generate leads, how do you measure quality?
  46. Again if goal wasn’t to generate revenues but generate leads, how do you measure quality?
  47. Are there reasons when it makes sense to run movie ads? When entering a new market (haven’t sold movies before, generate awareness, other forms of measurement – trials / leads)
  48. Some keywords perform better then others Be careful about where you spend your money Search volumes
  49. Depends how you define goals
  50. Atmamumbai is an ngo that helps ngos They focus mainly on education
  51. Atmamumbai is an ngo that helps ngos They focus mainly on education
  52. Next week Gaurav mishra Brian Burns Radian 6