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Tag : display advertising

Avoid CPM Run of Site Ads

Not all impressions are created equal.

We don’t think about run of site (ROS) ads frequently as we don’t often use them. We try to be very intentional with our targeting. However, we recently had an engagement where we were asked to design ads for a display campaign on a popular industry website. The goal of the campaign was brand awareness (also something to avoid, but that’s for another post). The client was engaging with the publisher directly. We recommended the placement, designed the ads, and provided them to the client, figuring that was a done job. The client later returned to us to ask for more ad sizes because the publisher came back to them suggesting run of site ads because the desired placement was not available.

Some background for those less familiar with display advertising

If you are familiar with placement-based display advertising, you can skip this whole section. For the relative advertising novices, I’ll explain a little about various ad placements, their nomenclature, and how ads are priced.

An ad which is much wider than it is tall is generally referred to as a billboard, leaderboard, or banner ad. These are referred to as such because their placement on webpages is often near the top, although that is far from universally true, and even where it is true they often appear lower on the page as well. In our example on the right, which is a zoomed-out screenshot of the Lab Manager website, we see a large billboard banner at the top of the website (outlined in yellow), multiple interstitial banners of various sizes (in orange) and a small footer banner (green) which was snapped to the bottom of the page while I viewed it.

An ad which is much taller than it is wide is known as a skyscraper, although ones which are particularly large and a bit thicker may be called portraits, and large ads with 1:2 aspect ratios (most commonly 300 x 600 pixels) are referred to as half page ads. Lab Manager didn’t have those when I looked.

The last category of ad sizes is the square or rectangle ads. These are ads which do not have a high aspect ratio; generally less than 2:1. We can see one of those highlighted in purple. There is also some confusing nomenclature here: a very common ad of size 300 x 250 pixels is called a medium rectangle but you’ll also sometimes see it referred to as an MPU, and no one actually knows the original meaning of that acronym. You can think of it as mid-page unit or multi-purpose unit.

As you see, there are many different placements and ad sizes and it stands to reason that all of these will perform differently! If we were paying for these on a performance basis, say with cost-per-click, the variability in performance between the different placements would be self-correcting. If I am interested in a website’s audience and I’m paying per click, then I [generally] don’t care where on the page the click is coming from. However, publishers don’t like to charge on a per-click basis! If you are a publisher, this makes a lot of sense. You think of yourself as being in the business of attracting eyeballs. Even though to some extent they are, publishers do not want to be in the business of getting people to click on ads. They simply want to publish content which attracts their target market. Furthermore, they definitely don’t want their revenues to be at the whims of the quality of ads which their advertisers post, nor do they want to have to obtain and operate complex advertising technology to optimize for cost per view (generally expressed as cost per 1000 views, or CPM) when their advertisers are bidding based on cost per click (CPC).

What are Run Of Site Ads and why should you be cautious of them?

You may have noticed that the above discussion of ad sizes didn’t mention run of site ads. That is because run of site ads are not a particular placement nor a particular size. What “run of site” means is essentially that your ad can appear anywhere on the publisher’s website. You don’t get to pick.

Think about that. If your ads can appear anywhere, then where are they appearing in reality? They are appearing in the ad inventory which no one else wanted to buy. Your ads can’t appear in the placements which were sold. They can only appear in the placements which were not sold. If your insertion order specifies run of site ads, you are getting the other advertisers’ leftovers.

That’s not to say that ROS ads are bad in all circumstances, nor that publisher-side ad salespeople who try to sell them are trying to trick you in any way. There is nothing malicious going on. In order to get value from ROS ads, you need to do your homework and negotiate accordingly.

How to get good value from ROS ads

Any worthwhile publisher will be able to provide averaged metrics for their various ad placements. If you look at their pricing and stats you may find something like this:

Ad FormatCTRCPM
Multi-unit ROS0.05%$40
Billboard Banner0.35%$95
Medium Rectangle0.15%$50
Half Page0.10%$50
Leaderboard0.10%$45
These are made-up numbers from nowhere in particular, but they are fairly close to numbers you might find in the real world at popular industry websites. Your mileage may vary.

One good assumption is that if people aren’t clicking the ad, it means they’re not paying attention to it. There is no other reason why people would click one ad at a much higher rate than others. Averaged out over time, we cannot assume that the ads in those positions were simply better. Likewise, there would be no logical reason why the position of an ad alone would cause a person to be less likely to click on it aside from it not getting the person’s attention in the first place. This is why billboard banners have very high clickthrough rates (CTR): it’s the first thing you see at the top of the page. Publishers like to price large ads higher than smaller ads, but it’s not always the case that the larger ads have a higher CTR.

With that assumption, take the inventory offered and convert the CPM to CPC using the CTR. The math is simple: CPC = CPM / (1000 * CTR).

Ad FormatCTRCPMEffective CPC
Multi-unit ROS0.05%$40$80
Billboard Banner0.35%$95$27
Medium Rectangle0.15%$50$33
Half Page0.10%$50$50
Leaderboard0.10%$45$45
By converting to CPC, you have a much more realistic and practical perspective on the value of an ad position.

Here, we see those really “cheap” run of site ads are actually the most expensive on a per click basis, and the billboard banner is the cheapest! Again, even for more nebulous goals like brand awareness, we can only assume that CTR is a proxy for audience attentiveness. Without eye tracking or mouse pointer tracking data, which publishers are highly unlikely to provide, CTR is the best attentiveness proxy we have.

With this information, you can make the case to the publisher to drop the price of their ROS ads. They might do it. They might not. Most likely, they’ll meet you somewhere in the middle. By making a metrics-driven case to them, however, you’ll be more likely to get the best deal they are willing to offer. (ProTip: If you’re not picky when your ads run, go to a few publishers with a low-ball offer a week or so until end of the month. Most publishers sell ads on a monthly basis, and if they haven’t sold all their inventory, you’ll likely be able to pick it up at a cut rate. They get $0 for any inventory they don’t sell. Just be ready to move quickly.)

The other situation in which ROS ads are useful and can be a good value are when you want to buy up all the ad inventory. Perhaps a highly relevant publisher has a highly relevant feature and that all ads up to an audience you want to saturate. You can pitch a huge buy of ROS ads which will soak up the remaining inventory for the period of time when that feature is running, and potentially get good placements at the ROS price. Just make sure you know what you’re buying and the publisher isn’t trying to sell their best placements on the side.

Lessons

  • Run of site ads aren’t all bad, but novice advertisers can end up blowing a bunch of money if they’re not careful.
  • Regardless of placement, always be mindful of the metrics of the ads you’re buying.
  • Even if your campaign goals are more attention-oriented than action-oriented, CPC is a good proxy for attentiveness.
"Want better ROI from your advertising campaigns? Contact BioBM. We’ll ensure your life science company is using the right strategies to get the most from your advertising dollars."

Remarketing by the Numbers

We recently cited some newly released findings from the Boston Consulting Group (BCG) stating that “display retargeting from paid search ads can deliver a 40 percent reduction in CPA.” It was met with some hesitation from Mariano GuzmĂĄn of Laboratorios Conda, who stated:

“[…] when I have clicked on a [life science website] what I have experienced is a tremendous amount of retargeting for 1 month that I have not liked at all as an internet user, and I do not feel my clients would as well”

Being me, I like to answer questions with facts as much as possible, so I dug some up. This one’s for you, Mariano!

To directly address Mariano’s concern, I found some studies on people’s opinions on retargeting. A 2012 Pew Research Study found that 68% of people are “not okay with it” due to behavior tracking while 28% are “okay with it” because of more relevant ads and information (4% had no opinion). I’m a little skeptical of the Pew study because they were priming the audience with reasons to “be okay” or “not be okay” with remarketing. In a sense, these people are choosing between behavior tracking + more relevant ads vs. no behavior tracking + less relevant ads. However, when users actually see the ads the ads don’t say to the viewer “by the way, we’re tracking your behavior.” Are some users aware of this? Certainly. Might some think it consciously? On occasion, sure, but nowhere near 100% of the time. However, 100% of the Pew study respondents were aware of it.

A slightly more recent 2013 study commissioned by Androit Digital and performed by Toluna asked the qusestion in a much more neutral manner (see page three of the linked-to study). They found that 30% have a positive impression about a brand for which they see retargeting ads, only 11% have a negative impression, and 59% have a neutral impression.

The Pew study and the Androit Digital study did agree on one thing – remarketing ads get noticed. In both, almost 60% of respondents noticed ads that were related to previous sites visited or products viewed.

Now to the undeniably positive side… The gains a company stands to make from remarketing.

In addition to the 40% reduction in cost per action cited in the aforementioned BCG study, a 2014 report from BCG entitled “Adding Data, Boosting Impact: Improving Engagement and Performance in Digital Advertising” found that retargeting improves overall CPC by 10%.

A 2010 comScore study evaluated the change in branded search queries for different types of digital advertising and found retargeting had provided the largest increase: 1046%.

In a 2011 Wall Street Journal article, Sucharita Mulpuru, an analyst at Forrester Research, stated that retail conversion rates are 3% on PCs and 4% to 5% on tablets. According to the National Retail Federation, 8% of customers will return to make a purchase on their own. Retargeting increases that number more than three-fold, to 26%.

There are many more studies that sing the praises of remarketing, however I wanted to stay away from case studies that investigate only single companies as well as data collected and presented by advertising service providers.

Here are my thoughts on the matter: Do some customers view retargeting unfavorably? Certainly, but that’s the nature of advertising. No matter what form it takes, some people will object to it. Considering that there is nothing ethically wrong with retargeting, we can’t give up on something that is proven to be a highly effective tactic because some people have an objection to it. In the end, it’s our job as marketers to help create success for the organizations we serve.

Marketing of Life Science Tools & Services

The New Permission-Based Marketing

Start Building an AudienceI want to take you on a trip into the future of life science marketing, not because I’m some kind of prophet (I didn’t come up with these ideas, nor did anyone in our industry) but because if the predictions of many marketing futurists come true, and if trends continue, the future will catch you by surprise and it won’t be a pleasant experience. It just could threaten your entire ability to be successful as a marketer.

Before we go into the future, to give us some perspective, let’s take a very quick look at where we are today and how we got here.

How we got here…

Once upon a time there was no internet and everything was print. (Last time I checked, CROs and manufacturers of lab equipment weren’t advertising on TV or the radio, so we can ignore those.) Then there was the internet, and marketers saw that it was good. They could easily reach large audiences at very low incremental costs. There was email marketing and banner advertising, and those were very successful tools for a long time. We could put ourselves directly in front of our target audiences, seemingly at will. Marketers got fat and happy, feeding off the plenty that the internet provided for them.

But customers got tired of interruptions. They responded with spam filters and ad blockers. They became numb to the constant barrage of ads and learned, consciously or not, to tune out the ads that marketers were throwing at them.

Marketers sought to save their valuable channels, and came up with new ways of increasing ROI. The rich media ad was born, as was the native ad. Clickthrough improved, and marketers breathed a collective sigh of relief.

Email was never the same. Marketers couldn’t keep up. Where unsolicited email was once extremely popular, now most marketers use double opt-in lists. List sizes shrunk precipitously.

…and where we’re going

We’re in the midst of the death of unsolicited email marketing and opt-in email marketing is by no means future-proof. Display advertising is threatened as well. What comes after native? Maybe there are more evolutions of display (and / or text) advertising to come, but we can’t just keep filling webpages with junk. The audience – especially our well-educated and knowledgeable audience of scientists, will find a way to take back and protect their valuable attention. So what happens when they do so to an extent that the traditional marketing-by-interruption approaches are no longer effective?

Email and display advertising goes away. You can’t go back to print: we already know that’s not effective, and who actually reads things on pieces of paper anymore? Content marketing is valuable, but that doesn’t solve the problem either – it may help keep the audience’s attention but you still need to get their attention in the first place. Conference attendance is steadily declining and an opportunity that only comes once a year isn’t enough to prop up a marketing program. So what’s left?

Barring new channels being invented between now and then, it leaves search and social media.

The value of search is abundantly clear to most marketers, and while its value increases as it becomes more difficult to reach people through other channels, search won’t necessarily enter a new paradigm because of it.

Social media marketing, on the other hand, changes immensely. Social media essentially becomes your new permission-based marketing. It’s a group of people who you can actively reach out to with your marketing messages. You expand your list disseminating valuable, share-worthy content. The rules and best practices of social media won’t change so much, but its role without your marketing program will transform. That’s why it’s so important to start building your audience now, while you can still pull people to you with advertising.

Growing an audience organically takes a lot of time and effort. Right now you can “cheat” with social advertising, but how long will it be until that becomes ineffective as well? Start growing your audience now and you’ll be prepared for the future of permission-based marketing.

"For social and content strategies that go beyond the norm to create lasting, meaningful value from your audience while positioning your brand to dominate its space, look to BioBM. Best practices aren’t enough for us. We create innovative marketing programs that will change the way your customers perceive and interact with you. Contact us."