2012_06_14_Which_part_of_your_online_marketing_budget_is_money_well_spent?_Marta_Klepka_Gemius_WebitBulgaria_conference

How to calculate
what portion of money
spent on internet marketing
is wasted?
MARTA KLEPKA
Sofia, 14.06.2012

3
,,
Everything is
marketing
and marketing is
everything
Peter Druckner

4
Half the money
I spend on advertising
is wasted;
the trouble is
I don't know which half
John Wanamaker ,,

5
,,John Wanamaker
What would
Wanamaker say if he
knew about the
internet marketing?
?

6
John Wanamaker
ROI is one of the biggest
problems of marketing
executives.
Online results mean more
qualified leads.

7
CALL TO ACTION!
REGISTER
BUY
ROI
FILL INCLICK

9
CLICK = SALES
Image source: http://www.ydeveloper.com/blog/ecommerce/php-ecommerce-shopping-cart-features
?

10
?
BRAND
AWARENESS LOYALTY
OFFLINE SALES

12
0%
10%
20%
30%
40%
50%
60%
70%
80%
placement
1x300x250
placement
2x300x250
placement
3x300x250
placement
4x300x251
placement
5x300x252
placement
6x300x253
Impressions in users’ AREA OF VIEW in (in %)
The share of impressions visible for the users in the total number of impressions
the share of visible impressions reach in the total reach
Source: gemiusDirectEffect , 2012; international FMCG brand campaign

13
WHY THOSE THINGS
HAPPEN?
TOO SLOW DISPLAY
OF THE CREATIVE
SCREEN
RESOLUTIONSDIFFERENT
BROWSERS
SCREEN
SMALLER
THAN SITE
SCREEN
SIZE

14
IN SCREEN VISIBILITY
&
DWELL REPORT

16
WHAT IS OPTIMAL NUMBER
OF CONTACTS?
EVERY PENNY SPENT
OVER OTS IS A LOSS

17
Number of contacts with
campaing (per user) - frequency
New users Impressions Costs
1,00 4 768 577 4 768 577 47 686 PLN
2,00 2 497 837 4 995 674 49 957 PLN
3,00 1 071 054 3 213 162 32 132 PLN
SUMMARY 8 337 468 12 977 413 129 774 PLN
4,00 503 647 2 014 588 20 146 PLN
5,50 490 963 2 700 297 27 003 PLN
8,00 294 353 2 354 824 23 548 PLN
12,00 119 017 1 428 204 14 282 PLN
17,00 17 111 290 887 2 909 PLN
27,00 6 917 186 759 1 868 PLN
42,00 1 758 73 836 738 PLN
62,00 1 001 62 062 621 PLN
87,00 393 34 191 342 PLN
100,00 645 64 500 645 PLN
SUMMARY 1 435 805 9 210 148 92 101 PLN
ALL 9 773 273 22 187 561 221 876 PLN
Source: gemiusDirectEffect , 2012; international FMCG brand campaign
OPTIMAL PART OF THE
CAMPAIGN
„EMPTY PART OF THE
GLASS”

18
• Spending of €21k was the „empty part of the
glass”
• It was 42% of all budget
• It brought only 15% of new users
• The cost of acquiring 1 user was 3-times higher
This means that for this campaign optimal setting of
frequency limits was 3/user. Beyond that number
the effectiveness declined significantly, bringing
profit only to the publisher.

19
PAY ONLY FOR
REACHING YOUR
TARGET GROUP

20
Brand A Brand B
Impressions 12 983 743 4 300 668
Impressions in Target Group 3 936 906 1 778 859
Impressions in TG as part of all impressions in % 30% 41%
Reach in cookies - (UU) 6 082 041 1 095 176
Reach in Real Users (RU) 2 604 385 552 671
Reach in RU in % in whole internet population –
base is number of RU from gA data. 13,79% 2,93%
Number of RU in TG that have contact with
campaign (from gPE) 885 711 241 973
Reach in TG (base of gPE & gA data) 17,01% 4,49%
Target Index* (my own indicator – this is in %
number of impressions that generate 1% of TG
group)
5,88% 22,28%
Source: gemiusDirectEffect , 2012; international FMCG brand s campaign

21
THREE GOLDEN RULES
REACH YOUR
TARGET
GROUP
DON’T BE
TOO VISIBLE
BE VISIBLE

22
,,Albert Einstein
Insanity:
doing the same thing
over and over and
expecting different
results

23
What works in display advertising?

24
In-stream ad formats also
prove to be one of the
most effective in terms
of CTR
For pre-roll CTR vary from
~1.9% -3.4%
Still rich-media and video
ads constitute not more
than a few % of internet
advertising budgets in
CEE0.00
0.10
0.20
0.30
0.40
0.50
0.60
Average CTR per country
Source: gemiusAdMonitor, H2 2011

25
95%
11%
2% 2% 2% 1% 0%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
3,5%
4,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CTR/UCTR
Campaignshare
Campaign share Average CTR
Regular banners
are still the most
frequent used
online
advertising
format
The highest CTR
value is
characteristic for
Preroll
Popularity vs. effectiveness of online advertising
formats - Bulgaria

26
95%
5% 5% 4% 2% 2% 1% 1%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CTR
Campaignshare
formats - Romania

27
86%
18%
12% 11% 10% 10%
8% 7% 5% 4%
1% 1% 1%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
3,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CTR
Campaignshare
Analysed ads: Regular banners + rich media (Toplayer, Preroll, Expand, etc.)
formats - Poland

28
Which industries invest in online ads?
0%
5%
10%
15%
20%
25%
30%
35%
40%
LeisureTime
Finance,Insurance,Brokerage
Food
Telecommunications
Automotive
Telecommunications
Automotive
Telecommunications
Trade
Trade
LeisureTime
LeisureTime
Food
Bulgaria Czech Republic Hungary Poland Romania Slovakia

29
18,3%
15,2%
9,8%
9,6%
9,3%
8,9%
4,2%
4,1%
3,9%
3,2%
2,6%
1,7%
1,2%
0,9%
0,4%
0,2% 6,7%
Leisure Time
Finance, Insurance, Brokerage
Food
Telecommunications
Automotive
Trade
Computers and Audio Video
Household Equipment, Furniture And Decorations
Media, Books, CD & DVD
Travel, Tourism, Hotels & Restaurants
Clothing & Accessories
Beverages and Alcohol
Pharmaceuticals
Personal Care and Hygiene
Real Estate
Household Products
Other
Share of ad impressions per sector - Bulgaria

30
Pharmaceuticals
Trade
Beverages and Alcohol
Automotive
Household Equipment, Furniture And Decorations
Household Products
Real Estate
Personal Care and Hygiene
Finance, Insurance, Brokerage
Computers and Audio Video
Food
Travel, Tourism, Hotels & Restaurants
Telecommunications
Leisure Time
Media, Books, CD & DVD
Clothing & Accessories
Ranking of the sectors with highest average CTR –
Bulgaria

31
Let’s spend the money on
internet advertising
consciously and measure the
effects-
it pays off

Authors:
Join us @:
Facebook.com/GemiusGroup
Twitter.com/Gemius
Slideshare.net/Gemius_com
YouTube.com/WwwGemiusCom
Marta Klepka
PR & Communications
Director
marta.klepka@gemius.com
THANK YOU!
Questions?
Ács Tamás
Agency Segment Manager
tamas.acs@gemius.com

2012_06_14_Which_part_of_your_online_marketing_budget_is_money_well_spent?_Marta_Klepka_Gemius_WebitBulgaria_conference

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2012_06_14_Which_part_of_your_online_marketing_budget_is_money_well_spent?_Marta_Klepka_Gemius_WebitBulgaria_conference