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Online Media Planning and Buying
7 Tips for Buying Online Display Advertising at Publisher Sites and Ad Networks
Many small-to-medium size businesses that are using pay-per-click (PPC) paid advertising and have implemented search engine optimization (SEO) successfully, are now looking to expand into other ways of generating online sales and leads. There are various advertising options to consider, but for many businesses, an expansion into online display advertising will be an obvious choice.
As effective as PPC paid search advertising is, the addition of display graphics, rich media and video provides an experience that supports their direct response marketing initiatives in a way that text can’t. In addition, these more visual and interactive forms of advertising are excellent for branding and generating online buzz.
Online Media Planning and Buying
Many agency media buyers or online marketers at companies that execute their online media campaigns in-house, still buy media on a site-by-site basis, effectively handpicking the web publishers that meet their requirements and fit their budgets. The ad agency media buyer or in-house marketer works directly with the publishers' media representative to launch their campaigns. An increasing number of ad agencies and in-house marketers may also use a self-serve ad placement system at one of the large ad networks or at an ad exchange network to launch an online display ad campaign.
Ad Networks
Buying advertising media on other sites through an ad network often will offer much higher efficiency than the practice of going around and buying ads from a lot of different sites individually. Ad networks are increasingly included in the media plans of advertisers and media buyers, because of the reach and efficiency they provide and their targeting capabilities. Another reason for using ad networks is the rising cost of advertising on high-reach portals and mega-sites.
Detailed knowledge of the characteristics of the various types of ad networks is important in selecting an ad network for the media plan. There are three types of ad networks: general ad networks, ad exchange networks and CPA (cost-per-action) ad networks.
General Ad Networks. Ad networks typically sell space for display ads on publisher web sites through a combination of a sales person and a computerized ad placement system that automatically places ads in a spot on the publishers’ web site. Ad networks are using proprietary technology to efficiently serve, track and report on the distribution and delivery of online display ads, using ad management systems.
Ad networks usually work directly with an advertiser or ad agency, acting as an aggregator of premium advertising inventory for primarily high profile web sites. In a market where access to quality media is limited, ad networks offer advertisers and agencies increased reach into quality media environments and to a certain extent, to target markets through behavioral, demographic and contextual targeting. Ad networks now also increasingly offer performance-based pricing, usually for leftover inventory, as an alternative to CPM pricing.
DoubleClick’s DART for Publishers/Advertisers is still the largest ad network. Other players in this space are DrivePM (aQuantive), ValueClick, 24/7 RealMedia, and Specific Media.
Ad Exchange Networks. An ad exchange network is essentially a hub for web publishers to connect with agencies and online advertisers to sell or buy remnant ad inventory at optimum prices through an auction-type system. They typically serve small niche web sites, blogs, gaming sites and online forums that do not have a sales force to sell ad inventory and rely primarily on ad exchange networks to fill their ad space. Ad exchange networks all sell text ads, display ads and now increasingly, video ads.
Using an auction-based system, publishers set a minimum or reserve price for their inventory. Agency media buyers and online marketers bid on inventory that meets their specific criteria. Advertisers who use the ad exchange networks typically can set rules that automatically alter bid prices, according to how well the ad inventory is performing. Some ad exchange networks take a cut from each transaction. Others charge a flat fee to publishers and other affiliated ad networks that are part of the exchange.
The main differentiation between ad networks and ad exchange networks is that ad exchange networks offer transparent pricing and an open neutral marketplace, where buying and selling is an efficient and cost-effective process for the publisher, media buyers and advertisers. Some ad exchange networks, such as Google AdWords, allow advertisers and ad agencies to target specific web sites, pages or categories, but in these cases, a premium CMP price is charged.
The main players in the ad network exchange world are: DoubleClick Advertising Exchange, ADSDAQ, AdECN, RightMedia, AdBrite, Google AdWords - Content Network (with site targeting).
CPA Ad Networks. CPA ad networks act as brokers between web publishers or affiliates and media buyers or advertisers. They are a low-end, low-cost alternative to direct-buy banner ad campaigns, and ad networks for campaign execution and management. CPA ad networks typically work directly with advertisers and provide instant access to a large number of web sites, which are effectively affiliates of the CPA ad network, capable of generating millions of impressions in a matter of days.
CPA ad networks primarily work according to the cost-per-action (CPA) model in which affiliates get paid when someone clicks on an ad or performs a pre-determined action. The CPA ad network makes money taking a cut from the commission. They take responsibility for the daily routine of record keeping, communicating with the affiliates and also pay the affiliate commission.
In the CPA model, the advertiser does not have a relationship with the web publishers or affiliates. The advertiser does not know who is promoting the business online and where the ads are placed, which is a negative when branding is the objective. Please note that there is a general perception that CPA ad networks cater to a lower level advertiser, although they increasingly have access to higher quality ad inventory.
Major players in the CPA ad network world are DirectLeads, Azoogle Ads, Affiliate Fuel, CPA Empire, and Primary Ads.
Ad Network Characteristics
| Ad Networks |
Ad Exchange Networks |
CPA Ad Networks |
| Prices are negotiated with sales representatives. |
Auction-type bidding for ad inventory. |
Sales representative works directly with the advertiser and not with agencies. |
| Ads are guaranteed to run. |
No guarantee that ads will run (highest bidder wins). |
No guarantee that ad will run |
| Usually premium ad inventory. |
Inventory is often remnant or unsold inventory |
Low cost inventory |
| Limited or conditional transparency. |
Full disclosure where the ad will run.
Pricing transparency, sometimes shows competitor's bids. |
Don't know where the ad will run |
| Selective about publishers they include in the network |
Low barrier of entry for publishers. |
Low barrier of entry for publishers. |
Selecting an Ad Network
To make a decision about what type of ad network to include in a media buying plan, media buyers and online advertisers need to know the in’s and out’s of the ad networks on which they are considering making a buy. Here are some of the most important selection criteria to consider when selecting an ad network:
Ad Network Type - Make sure you understand what type of network you are dealing with. Select an ad network that meets your criteria. Is it a true high-end ad network selling exclusive premium advertising, or a CPA ad network selling remnant inventory?
Network Reach - This is the total number of unique users that can see the ad through the network's publisher sites. Make sure that the ad network reach is sufficient to you’re your criteria. Network reach is often expressed as a percent of the universe for the demographic category.
Advertising Charges - Verify whether the ad network supports the advertising payment model that fits with the requirements of your media buying plan. All general ad networks and ad exchange networks support CPM (cost-per-thousand), CPC (cost-per-click) and CPA (cost-per-action), others specialize in CPA only.
Transparency - One major factor to include in the selection criteria of an ad network is the level of transparency the network provides. Transparency ranges from full disclosure on where in the network the ad will run to disclosure on request or no disclosure at all (blind buy). Some ad exchange networks go so far as showing advertisers their competitor’s bids. Transparency also refers to having an insight in the network’s publisher list and the ability to opt-in or opt-out of certain sites/placements.
Targeting - Depending on the specific audiences you want to reach across a network, evaluate the suite of targeting capabilities the ad network offers. Most high-end ad networks offer demographic, behavioral, contextual and geographic targeting.
Ad Formats - Another important consideration for selecting an ad network is whether they support the ad formats that are required in the media plan. Most ad networks offer IAB in-page display ads and media-rich formats, but not all support video ads.
Optimization - It is important to check up front the type of campaign optimization controls the ad network has in place. For example, is there a site exclusion feature, to exclude those sites the client’s ad cannot be served on? Is there an opportunity to change the mix of publisher sites to improve campaign performance, and does the network provide assistance with optimization and performance enhancements?
Tips for Buying Display Advertising
Businesses which are already advertising online with SEO and PPC paid search should seriously consider expanding their online efforts into online display advertising. As with any advertising campaign, planning is the first important step. In planning, they have various options - they can buy online ad media directly from publishers’ media representatives, or by using one or more ad networks or ad exchange networks.
For the best results, we strongly suggest ad exchange networks. Ad exchange networks must be part of a media plan that includes specific site buys and network buys for display advertising. You want premium real estate at fixed costs? Buy direct. You want low-cost CPM’s, pricing flexibility, and control? Place an ad through an ad exchange network.
Ad networks should be part of the media plan when access to premium ad inventory is required. They give access to the premium ad inventory at large and high quality web sites. They continually advance and refine their technology, offering the best view for web users. They also offer diversified ad formats, including media-rich and video format.
Ad networks and ad exchange networks improve efficiency productivity because they automate the media buying and campaign management process, provide instant access to ad inventory at a large number of web sites and allow precision targeting by demographic, behavior, geography and content. |
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Thursday, December 6, 2007
Pubcon Las Vegas 2007
Louise Rijk presents:
Integrating WOMM in the Online Marketing Mix
Recent Presentations
128 Business Expo 2007
"Blogging and Podcasting For Business"
Click here to play the video.
495/Metrowest Business Expo,
Pre-Expo Keynote
"The Rise of the Internet as a Mass Advertising Medium"
Click here to play the video.
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| AMPTalk, our monthly audio podcast show on Internet Marketing is jam-packed with interviews and commentary on a wide-range of topics ranging from paid search advertising, ecommerce web site building, social media marketing and online media buying. |
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Copyright © 1996-2007. Advanced Media Productions, Inc.
Advanced Media Productions, Inc.
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