online advertising money: how do we spend it in 2014

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Gummy Industries AD Money How do we spend it in 2014 ACME

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Some notes from a lesson on how do we use advertising online to boost brand awareness or sales

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Page 1: Online advertising money: how do we spend it in 2014

Gummy Industries

AD Money How do we spend it in 2014

ACME

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Alessandro Mininno - @alekone - @gummyindustries

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Il consumatore post moderno

How is the consumer changing?

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It worked until 2001

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CONSUMERS CHANGED

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A CHILD SEES 20.000

ADS EVERY YEAR

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8 MINUTES IS THE AVERAGE ATTENTION SPAN ON TV

���11The attention span of a Goldfish is 9 seconds

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CONSUMERS HAVE NICHE TASTES

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68% OF PEOPLE TRUST

CONSUMER OPINIONS FOUND ONLINE

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http://danielgoodall.com/2009/05/20/owned-bought-and-earned-redux/

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Il consumatore post moderno

HOW DO THE BRAND CONCEPT EVOLVE?

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“BRANDS ARE NOW PUBLIC PROPERTY”

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Ellen Peatry Leanse - Google

Our lawyer assures that’s inaccurate

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Il consumatore post moderno

WHERE DO COMPANIES SPEND

THEIR MONEY?���23

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http://www.assocom.org/media/download/comunicare-domani/new_comunicare-domani-26-giugno-2013.pdf

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http://www.assocom.org/media/download/comunicare-domani/new_comunicare-domani-26-giugno-2013.pdf

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Il consumatore post moderno

WHERE DO INTERNET COMPANIES GET THEIR MONEY?

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GettyImages vs IstockPhoto• Getty Images becomes a giant in the images

market, selling photos at a very high price (1995-2000)

• IstockPhoto get very big crowdsourcing images and selling them for a single dollar (2000-2005)

• Getty Images buys IstockPhoto (2005)

!

• Istockphoto

• Business model: Crowdsourced, Pay (royalty free images)

• Pricing model: credits (the user buys 10$ in credits and downloads what he wants)

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The Economist• The Economist is the most famous

economic magazine

• In 2012, The Economist tripled its revenue from digital sales

• Spending on digital goods will grow of 70% before 2017 (source: Forrester)

!

• Business model: advertising + selling content

• Pricing: subscription, pay per use

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EdilPortale• The Italian, ad-based website makes a

gross of 4,5€ MLN (2010) selling targeted advertising to architects and engineers

• 300.000 subscribers, 1,3 unique monthly

• Edilportale

• Business model: Advertising

• Pricing model: Free for the users, paid advertising

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Gartner• Gartner develops consultancy

reports on the technology markets

• Reports are sold (60€-500€)

• The company profits from consultancy as well

• Gartner

• Business model: Selling content + Consultancy

• Pricing model: Pay per use

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LinkedIn• Linkeding has a mixed revenue model

• 55% of the revenues comes from consultancy, or “Talent solutions” (helping companies hire). 138$ millions.

• 25% comes from Marketing solutions (adv)

• 20% comes from Premium subscriptions

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• Linkedin

• Business model: mixed revenues from freemium, selling data and adv

• Pricing model: Pay per use, mixed���32

20%

25%

55%

Talent solutionsMarketing solutionsPremium subscriptions

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Il consumatore post moderno

SO, WHAT DO YOU WANT TO DO WITH

THE INTERNET?���33

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Il consumatore post moderno

(1) YOU WANT YOUR

BRAND TO BE FAMOUS

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Inserisci qui un occhiello

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Inserisci qui un occhiello

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Contextual targeting Topic targeting

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Average CTR 0,11%

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http://www.smartinsights.com/internet-advertising/internet-advertising-analytics/display-advertising-clickthrough-rates/

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Il consumatore post moderno

(2) YOU WANT TO SELL STUFF

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Inserisci qui un occhiello

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Inserisci qui un occhiello

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Twitter sales campaigns

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Average Twitter Cost per interaction

0,5€���45

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Remarketing

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Average eCommerce Conversion Rate

2%���47

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Il consumatore post moderno

(3) YOU WANT TO TELL A STORY

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Inserisci qui un occhiello

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∑=uewede

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16%https://www.facebook.com/business/fmc/guides/reach

Of our fans see our updates, Facebook says

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Inserisci qui un occhiello

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Inserisci qui un occhiello

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Facebook average Cost per Fan

1€���55

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Inserisci qui un occhiello

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Inserisci qui un occhiello

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https://www.youtube.com/watch?v=btViXvIDsi0

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Inserisci qui un occhiello

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Inserisci qui un occhiello

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Inserisci qui un occhiello

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Inserisci qui un occhiello

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https://www.youtube.com/watch?v=DLUvANbgI-A

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Gummy Industries S.r.l.Via Manzoni 22/c 25126, Brescia

Tel 030 5241468

www.gummyindustries.com

twitter.com/gummyindustries

[email protected]

A presto!