Display Advertising Budget Allocation

Dr. Augustine Fouhttp://www.linkedin.com/in/augustinefouJuly 18, 2012.

Optimizing Display Ad Budgets

Display Advertising

July 18, 2012 2

Big Portals Ad Networks Facebook

10’s of dollars 1’s of dollars 10’s of cents

Shift allocation to get more impressions or lower cost

Large audience

Publisher/portal has more power

Lots of long-tail small websites

Advertiser has more power

Massive number of impressions

“Junk” quality and super-low prices

CPM

0.1% 0.01% 0.001%CTR

Budgets Shifting to Social

July 18, 2012 3

As more budget shifts to lower CPM social networks, it has the effect of depressing industry-wide CPMs for display ads.

Display Ad Ecosystem

July 18, 2012 4

Source: http://www.iabuk.net/video/the-evolution-of-online-display-advertising

Bad Guys Rob Display Advertisers

July 18, 2012 5

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23

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8910

• Pages are auto generated by script to optimize for high value search keywords and content

• 10 – 15 display ads per page plus text ads and videos ads, in rotation

• Advertisers should minimize ad dollars spent on impression (CPM) basis and focus on paying only when they get the click (CPC)

• They also auto-refresh pages to load another 10 – 15 ads

• Many other examples of display ads shown next to unsavory content

Source: http://www.satelliteguys.us/archive/t-232266.html

Dr. Augustine Fou – Agency Czar

July 18, 2012 6

“I advise clients on optimizing their digital spend and integrating across channels.”

FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)

MCKINSEY CONSULTANT

CLIENT SIDE / AGENCY SIDE EXPERIENCE

PROFESSOR AND COLUMNIST

ENTREPRENEUR / SMALL BUSINESS OWNER

PHD MATERIALS SCIENCE (MIT '95) AT AGE 23

[email protected]

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