Adsmarket Publisher Newsletter – February 2010

Feb
10

Hey Publishers, this one’s for you. In case you aren’t on our mailing list for our weekly newsletter for Publishers, The Sidekick, you can check out the latest issue now! We’ve got another one in the works as we speak, and we recommend signing up for it here at the blog so it will be delivered directly to you! So convenient…

And now, The Sidekick for February 2010…

Unleash the Beast – Part 3

Nov
27

This is the last in a 3-part series on analyzing online media quality. It’s a doozy,
but an in-depth look. If you missed the other installments, here’s Part 1 and
here’s Part 2.

The Sophisticated Approach
The sophisticated advertiser distinguishes between media sources and offers
a different CPA for each of them. Let’s take a simple example, an advertiser that
sets CPA at 3 levels:

  • $5 for regular traffic
  • $2 rate for incentivized traffic
  • $6 premium rate for SEM traffic.

In this example, all the traffic sources will run this offer, and the ROI will be

positive for all the sources.

Media Type

Quality

Capacity

CPA

Revenue

Total Cost

Profit

SEM

10.00

10,000

6.00

100,000

60,000

40,000

Banners

8.00

20,000

5.00

160,000

100,000

60,000

Email marketing

6.00

30,000

5.00

180,000

150,000

30,000

Pops

5.00

40,000

5.00

200,000

200,000

0

Incentivized

3.00

60,000

2.00

180,000

120,000

60,000

Total

190,000

In this way, 5 different levels can bring the advertiser up to $300,000 profit from
160,000 users.
Let’s summarize the profit for each advertiser:

Profit

Unsophisticated advertiser

$60,000

Semi-sophisticated advertiser

$80,000

3 payout levels

$190,000

5 payout levels

$300,000

This model works not only in theory. In my experience working with advertisers at
Adsmarket, I’ve seen many empiric example of how advertisers dramatically
increased their revenue and their profit by handling and monitoring the traffic
sources better. This brings me to two major conclusions:

  1. There is no “Bad Traffic”. You need to find the right payout for each source
    in order to take advantage of its full capacity and potential, “Unleashing the
    Beast”.
  2. By monitoring and optimizing media sources the advertiser can increase
    profit by hundreds of percents, “Controlling the Beast”.

Feel free to contact me at Yuval.bATadsmarket.com to learn more about these tools
and about traffic source optimization in general.

In the Land of the Blind, the One-Eyed Man is King

Jul
23

[Note: I titled this post from the book “Blindness” by Jose Saramago. The book is completely unrelated to affiliate marketing, so take that in mind if you go out to buy the book later on today ;-)]

Maor Sadra here! The online advertising world is a jungle today (cue monkey sounds). There are so many sites, blogs, affiliates, publishers, media networks, etc. The more you spend online, the more likely your ads are being placed on thousands of sites.   This is generally good news, but can marketers control their spending and optimize the results in this chaos?

If an advertiser is working with a blind network, there isn’t much they can do to track results by site or affiliate.  You can never really predict results as you don’t control which affiliates or sites are running your offers. So what should advertisers do? 

The two remaining options: transparent, or half-transparent (or half-blind, depending on how you look at it), will support an advertiser’s efforts to do better business, but only one of these really comes through for the advertiser.

On completely transparent networks, an advertiser can view a list of publishers running their offers and find out which publishers or sites are bringing them the most impressions & clicks. But it’s very possible that only 1/10 of the sites actually generate the results from beyond the click.  Many networks and publishers prefer that the advertiser will not know this, fearing that the advertiser will optimize the campaign by limiting it to the best performing sites (which creates more work for the network employees to do, and leads to less revenue for the network…).   When networks do this, they are ignoring the simple fact that the advertiser will drop the network entirely if the results are generally not good…

Some advertisers still choose to go with a transparent network without the ability to track results by site.  I ask you: Why? Does it help the advertiser to know that an expert PPC affiliate called: “expertPPCaff1982” is running their campaign, if they won’t know how good the long term results are from this affiliate?
I recommend that an online advertiser today use a sort of modified transparent network, which allows them to independently track a few parameters. While the name of the network can remain static, other parameters should be dynamic.  A good example of this is tracking the performance by site or affiliate in an independent system.

Sounds like a lot of data? It is.

Sounds like a lot of work? It’s not really.

By tracking results per site/affiliate, advertisers can periodically analyze data to optimize and improve the results of the campaign over time.

Using this dynamic method of tracking will allow advertisers to find sites/affiliates within the network where there’s a high potential for quality traffic, and as every advertiser knows, finding quality sources is like finding gold! For these strong performers, advertisers can raise payouts or create customized marketing material or landing pages to increase the level of quality traffic. The opposite is also true; tracking also allows advertisers to spot which sites or affiliates drive lower quality traffic and make one of two calls: drop the site/affiliate from the campaign or optimize the creatives/landing pages to improve the results. 

I always recommend that advertisers use a simple numeric site/affiliate ID, enough to get control over the results of their campaigns, and I encourage advertisers to identify sites or affiliates that drive quality traffic, which leads to a solid, trusting, relationship and mutual success. A true “win-win” situation.

I admit, for the advertiser it’s sometimes a hassle to manage a large advertising budget online on multiple channels with multiple CPA /ROI targets, but it the long run it’s worth it!

So my tip this time is pretty simple: It’s better to have at least one eye to see the true results than being totally blind. You don’t want to miss out on the amazing things you’ll stumble upon!  

King of the Obvious – A Tip for More Conversions

Jun
09

My name is Maor Sadra, Director of Sales at Adsmarket. This is my first (of many) blog posts to the Adsmarket blog. I welcome any comments you have!

I’ve been working in online advertising for the past 7 years, and while I always think that I know enough to get around in this dynamic industry, I always find that sometimes it’s good to listen to the people around me who may come up with the best “King of the Obvious” solution.

“King of the Obvious” is a term set by one of my former managers. This manager had a lot of experience in online advertising, but no technical experience whatsoever and needed some help with certain accounts.
Being young (oh, the hunger of youth!), tech-oriented and motivated to show that my technical skills can bridge any issue, I took on projects with Advertisers which included some programming.

One sunny day I received a spec for a new campaign that we were going to launch. My mind started all the geeky wheels in motion and I brain-stormed with myself the entire day trying to figure out how to setup this campaign.
If you’ve ever banged your head on the table trying to figure out how to solve something, you know exactly how I felt that day. And as you probably know, the banging doesn’t help.

After a long day of misery, I told my manager: “I can’t find any way of doing it…”.
He didn’t react at first, just looked at me strangely and asked: “Why are you thinking of the longest route from A to B when A is only 1 centimeter away from B?”
I was amazed. It was just like in Star Wars: Episode 5: The Empire Strikes Back, when Luke is trying to… okay, whoa, I’m showing my geek colors a little too much. Let’s just say that because I was overthinking it, I had turned a simple solution into a very complex riddle that I was unable to solve.

When I asked my manager, “Why didn’t I see that?!” he explained: “Sometimes you need to take a step back to become King of the Obvious.”

When I think of this case, I always remember a gem of advice for conversion funnels from Jared M. Spool about how a small change in a web form helped an eCommerce company increase their revenues by $300,000,000 in the first year. It’s explained in this famous article that after a few weeks of learning the user flow of the site, a small repositioning of the “proceed to checkout” button made such a huge improvement in the conversion funnel that it completely changed the user experience and led to many many more conversions.
The change itself? Allowing users to proceed to checkout without creating an account with the eCommerce site. We can all agree that allowing users to create an account would be helpful in the long term, allowing them make their purchase faster; however, let’s look at it from the customer’s perspective. When you go to a store and you want to buy a phone, or anything for that matter, do you want to enter a long term relationship with the store clerk, or do you want to select it, pay for it and go on with your life?

My tip for the day is: When you build your landing page, sometime you think of all the information you want from your users when asking them to sign up. Take a step back, become the King and think – what information does the customer want to give me, and do I really NEED all this other information? A clear, short registration form is the key to success with user retention.

King of the Obvious. Think about it.

Cheers,
Maor Sadra (maor.s@adsmarket.com)
Director of Sales