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Monetization

Online Advertising
Barnaby Dorfman
The Promise for Advertisers
I know that half of my
   advertising dollars
  are wasted … I just
   don’t know which
          half.
     -John Wanamaker


   With Online Advertising the Impact of
       All Dollars Can be Measured
Definitions
–   Impression: The Viewing of an Ad by a person
–   CPM: Cost per Thousand Impressions
–   CPC: Cost per Click
–   eCPM: Effective Cost per Thousand
–   CPA: Cost per Acquisition
–   CRT: Click Through Rate
–   UV: Unique Visitor
–   Visit: A Single Website Session by a User
–   PV: Page View
–   PPV: Pageviews per Visit
–   House Ads: Unsold, Self-Promotion Spot
Advertorial
• Sponsored
  – Blog Posts
  – Email
  – Twitter/Facebook
• Set a base flat rate
     DISCLOSE
     DISCLOSE
     DISCLOSE
Display Advertising


                        Begin
                         with
                        Design
                       Review
                      To Create
                      Inventory
Choose Creative Types



                        •   Banners
                        •   Popups/Popunders
                        •   Takeovers
                        •   Multimedia/Video
Interactive Ad Bureau
                        •   Social Media
http://www.iab.net
Selling: Use a Mix for Max $


              Direct
              Selling
   $
         Targeted Networks
                 &
              Agencies

          Broad Networks
            “Remnant”


            Volume
Broad Networks
• CPMs: $1-3
• Can be Total Autopilot
• Less Control
Targeted Ad Networks & Agencies
•   CPMs: $2-$5
•   More Control (usually)
•   Read the Contract
•   Watch Out for Exclusives
Direct Selling
•   CPMs: $5-$10+
•   A Lot of Work
•   Total Control
•   Leverage Relationships
•   Create a Media Kit
    –   Traffic
    –   Audience Demographics
    –   Editorial Calendar
    –   Creatives Available
    –   Pricing?
Delivering Advertising
Double Click for Small Business
  www.google.com/dfp/sb
Numbers




“It was my understanding that
    there would be no math”
So How Much Can You Make?
                 It Takes a Lot of Traffic
• Assume
   • 100,000 Monthly Unique Visitors
   • 2 Visits per Month
   • Average 2.5 PageViews per Visit
• Equals 500,000 Pageviews/Month
    Ad Type        RPM/eCPM   Monthly Income   Annual
                                               Income
    Adsense            $1          $500         $6,000
Targeted Network       $3         $1,500       $18,000
  Direct Sales         $10         5,000       $60,000

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IFBC 2011 SAMO Monetization

  • 2. The Promise for Advertisers I know that half of my advertising dollars are wasted … I just don’t know which half. -John Wanamaker With Online Advertising the Impact of All Dollars Can be Measured
  • 3. Definitions – Impression: The Viewing of an Ad by a person – CPM: Cost per Thousand Impressions – CPC: Cost per Click – eCPM: Effective Cost per Thousand – CPA: Cost per Acquisition – CRT: Click Through Rate – UV: Unique Visitor – Visit: A Single Website Session by a User – PV: Page View – PPV: Pageviews per Visit – House Ads: Unsold, Self-Promotion Spot
  • 4. Advertorial • Sponsored – Blog Posts – Email – Twitter/Facebook • Set a base flat rate DISCLOSE DISCLOSE DISCLOSE
  • 5. Display Advertising Begin with Design Review To Create Inventory
  • 6. Choose Creative Types • Banners • Popups/Popunders • Takeovers • Multimedia/Video Interactive Ad Bureau • Social Media http://www.iab.net
  • 7. Selling: Use a Mix for Max $ Direct Selling $ Targeted Networks & Agencies Broad Networks “Remnant” Volume
  • 8. Broad Networks • CPMs: $1-3 • Can be Total Autopilot • Less Control
  • 9. Targeted Ad Networks & Agencies • CPMs: $2-$5 • More Control (usually) • Read the Contract • Watch Out for Exclusives
  • 10. Direct Selling • CPMs: $5-$10+ • A Lot of Work • Total Control • Leverage Relationships • Create a Media Kit – Traffic – Audience Demographics – Editorial Calendar – Creatives Available – Pricing?
  • 11. Delivering Advertising Double Click for Small Business www.google.com/dfp/sb
  • 12.
  • 13. Numbers “It was my understanding that there would be no math”
  • 14. So How Much Can You Make? It Takes a Lot of Traffic • Assume • 100,000 Monthly Unique Visitors • 2 Visits per Month • Average 2.5 PageViews per Visit • Equals 500,000 Pageviews/Month Ad Type RPM/eCPM Monthly Income Annual Income Adsense $1 $500 $6,000 Targeted Network $3 $1,500 $18,000 Direct Sales $10 5,000 $60,000