Bus100: Building Software ProductsBus100: Building Software ProductsFrom Strategy to SalesFrom Strategy to Sales

Web Marketing and Advertising

Jon Kaiser – Digital Marketing Strategy, Analysis and Training 2008 Co-President, Bay Area Interactive Group (SFBIG)

Tony Pribyl – VP Sales, Technorati.com

Agenda

Introductions Your goals and the communications landscape Identifying appropriate audience and media targets What you can expect from media providers Campaign measurement and optimization CRM Case Studies For Further Study

First: Establish Clear Goals

Business Goals> Increase revenue to $xxMM, or by Y%

> Increase usage and success of products through subscription and online content products

Campaign Goals> Decrease customer churn rate by ZZ%, Acquire AA new customers

> Establish performance benchmarks and gain better understanding of audience to positively impact the success of future campaigns

The development of a campaign strategy is driven by specific business, campaign and learning goals as detailed below

Learning Goals

> Target: What segmentation data points enable better targeting, response and conversion? (e.g. demography, income, geography, etc.)?

> Channel: Which channel is most efficient and effective at generating revenue? How can the channels work more effectively together?

> Product: What product types or features appeal to which segments?

> Purchase: What is the preferred purchase enviornment by which segment (online vs in-store vs bundled w/other products)?

> Creative/messaging: Which creative message/offer drives the highest response/most qualified responders?

> How do current fulfillment channels impact acquisition through external channels?

> Determine thresholds for success in each channel over time

The driving principles

Spend Smart (money, time and

energy)

Drive Profitable Results

Replicate and Scale Success

Every communication vehicle has a focused role

Clearly define success for each vehicle and measure

against it

Generate insights that enable you to adapt and

improve results

5

Your Customer

The marketing comm’s landscapeThe marketing comm’s landscape

Traditional Media Venues: Print, TV, Direct Mail

Digital Media Venues:Search engines, contextual targeting, audience targeting (demographic, geographic, professional, behavioral)

Internal/customer lists

Channel/OEM/Partners

YOU

Research: 3rd party, internal dataA

d Agencies

Ad S

ales

Identifying Appropriate Audience and Media Targets

Define, Size and Prioritize

Who is your best customer?Demography, Behaviors/Interests, Geography

How large is the opportunity?Target universe size

Where do you have access to them?What do they consume

Can you effectively reach them and get them to do what you want them to do at an efficient cost?

Within all possible channels, which give you the greatest access with greatest opportunity for success?

A45-54 Retired or in peak career Seek advice from others Most brand loyal 23% upload photos online 11% download software online 37% purchase software at retail

M35-44 HHI $50k+ Have children at home Active in digital photography,

music Willing to try new brands Preferred channel: Online

W25-44 Mean age of 31 Impulsive online buyers Value driven Concerned about security Preferred channel: ISP/OEM

M25-34 Highly educated (80% college

grads) HHI $100k+ Online primary source of news Key influencers 69% download software online

Mature and Frisky

Small Biz Owner Wired Moms

Earliest Adopters

22%32%

31%11%

Customer Segmentation Who are you key target audience segments? What are their key

characteristics and behaviors? What makes you relevant to them?

Channel Selection Criteria

Targetability/ Target

Composition

Media Usage

Cost Efficiency/ROI

> Higher response will be driven by using channels whose audience best aligns with the TechNet audience

> Channels which are able to reach the TechNet target without wasting media on less desirable/responsive audiences will generate higher ROI

> Reaching the target audience requires focusing on channels that the audience uses frequently

> The prospecting campaign’s objectives are to drive a maximum volume of subscriptions at minimum cost

Criteria Rationale

Roll-out Potential> In order for benchmarks and learning to contribute to long-term TechNet

business goals, channels which exhibit scalable roll-out potential will be utilized

The following details rationale behind the choices for channel selection criteria

Speed to Market> In order to achieve the short term TechNet goals, channels which allow for a

fast campaign implementation will be prioritized

Overall Media Approach

Evaluate all considered channels against specific criteria

Web E-mail Wireless DM OTM Magazine NewsP Radio

Channel

TV EventsSelectionCriteria

= 0%= 25%= 50%= 75%= 100%Potential

Key

Cost Efficiency/ ROI

Targetability/ Composition

Scalable for Rollout

Media Usage

Time To Market

Other factors in media selection

OutputsInputs

Primary Strategic Considerations

Media Research

Buy Type/Model

Success Measures

Media Placement Type

Creative Delivery

Objectives

Budget/Timing

Target Audience

Media Category/Site Consideration

Allocation Strategy

Research Tools

Research & Tools

• Robust campaign management tools• Leading syndicated research studies

• Best in class planning tools• Cutting edge industry reports

Syndicated Research Plays a Critical Role“Identify & Justify”

Define and refine target audience(s)Demography, geography, psychographic, behavior

Understand how various media (categories/sites) connect with the targetReach, composition, time spent, audience duplication

Track competitionSpend, sites, creative

These tools enable you to filter this down to a categorical strategy:

Ad Agency Environment

Ad Agency Structure/Functions

Customer Insight

Ever-increasing Role In Driving

Insights

Media

Technology

Analytics

AccountPlanning

Brand Expression Functional Insight

AccountMgmt

Creative

Channel Insight

What to expect from Media Providers

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Types of partners (I)What is a Portal?• Online platform that offers an array of

resources and services under one brand

Pro’s of buying from a Portal:• High reach• Premium content• Depth of services, integrated ad buys• High SOV against key aud segments

Con’s of buying from a Portal:• Cost• Customization difficult--inflexible• Inventory shortages or long lead times

Portals

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Types of partners (II)Search

Pro’s of buying search:• Higher reach• Great return on investment—self funding• User mindset to take action• Targeting is the name of the game

Con’s of buying search:• Popular categories are priced relatively high• High level of management/maintenance• Not the ideal platform for product

introduction/association

How do I buy search?• Major players have regional representation;

but large buys require assistance• Highly specialized compared to display

buying; requires knowledge of many data-related and technical aspects

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Types of partners (III)Ad Networks

What is an ad network?• A collection of online advertising inventory• Comes in many difference forms, inventory can

be found on: vertical sites, instant messaging, adware, emails, mobile, intl, etc.

Pro’s of buying from an ad network:• Highly efficient – one buy can deliver

substantial reach with targeting layer• Same consumers as on premium sites• Attractive pricing• Targeted channels and sites

Con’s of buying from an ad network:• Non-transparency of site list• Quality of network sites can be low or UGC• Limitations to targeted channels• Few premium sites and integrated placements

How do I buy from an ad network?• Many have regional support

21

Types of partners (IV)Publisher sites

What is a Publisher Site?• Began as content-focused but has

expanded to include any published site that is ad-supported

Pro’s of buying from a publisher site:• Higher Quality Content• Brand/Marquee Names• Integrated Sponsorships• Contextually relevant placements and

extended networks

Con’s of buying from a publisher site:• Higher cost• Lack of reach• Lack of technology, targeting layer and

campaign optimization

How do I buy from a publisher site?• Large publishers have regional sales

contracts; for medium to small sites, you should expect phone sales and support

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Types of partners (V)Affiliates/Lead-Gen/Co-Reg

What are they?• Affiliates: networks of smaller sites• LeadGen: specialists in acquiring real-time

leads through own creative and landing pages• Co-Reg: piggy-back on another’s sign-up

process

Pro’s of buying from these companies:• Quick way to generate a lead db• Often vertically-focused (mortgage, auto,

education, travel)• Turn-key solutions

Con’s of buying from them:• May not know where ad will run (Quality?)• Bombarding users can damage brand• Click fraud (higher than industry average)

How do I buy from them?• Most work online from central organizations –

use websites for contact

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Types of Partners (VI)Email

Pro’s of buying from these companies:• High volume• User experience – catches people when they

are engaged in email• “Push” vehicle• Turnkey solutions (lists, distribution)

Con’s of buying email:• User experience – may be too invasive?• List quality – not sure where your message

will go• Blocking and low conversion rates

How do I buy from them?• Most work online from central organizations –

use websites for contact