MKT30120 Digital Marketing Session 6 Notes

• This document contains study notes for MKT30120 Digital Marketing, Session 6, instructed by Dr. Katie Nguyen

Mid-Term Quiz

• The mid-term quiz is scheduled for March 4th
• It will be held in the Blackrock exam center from 6:30 pm to 7:30 pm
• Students requiring support can refer to Quinn: Q010 – Q011
• The quiz will consist of multiple-choice questions only
• All materials from Week 1 to Week 6 inclusive are applicable to the quiz

Administrative Class

• Class participation in discussions is the main component in this section
• Include your name and the questions answered in the follow-up email

Session 6: Agenda

• Continued discussion on Paid Search
• Achieving High Ad Rank
• Bidding Method
• Topics on Display Ads include:
• Display Network
• Paying for Ads
• Display Ad Campaigns
• Targeting
• Ad Copy
• Measurements

Review Questions

• A shoe store ad campaign targeting customers looking for branded products (like Nike shoes), general searches ("running shoes"), and niche queries ("best running shoes for flat feet") should use the search term "All of the Above."
• Search engines bold any word in a description that matches a word an individual uses in their search phrase; Answer = True

Achieving High Ad Rank

• It is advantageous for advertisers to pay less for equivalent ad exposure
• Understanding how ads can achieve a high-quality score is important
• Ad Rank is determined by Bid Amount and Quality Score
• Quality Score depends on Expected CTR, Ad Relevance, and Landing Page Experience

Quality Score

• Quality score is a Google metric assessing the quality of an ad
• A higher quality score improves ad position potential
• Ad relevance, expected click-through rate (CTR), and landing page experience are the three components to calculate Quality Score

Expected CTR

• Google values a high CTR for improved ad placement and earnings
• CTR can be improved by:
• Creating compelling ad copy
• Conducting A/B tests

"Bid Popping" Technique

• Start with higher bids initially to boost CTR, this lead to higher ad rank and expected CTR, but it will cost more initially

Ad Relevance

• Ad relevance is primarily determined by the keywords in the ad
• To improve ad relevance:
• Incorporate relevant keywords in the ad copy
• Organize ad groups around 5-10 keywords that are very similar to each other to maintain a higher relevance

Landing Page Experience

• Good web design improves landing page experience and reduces bounces
• Incorporating keywords onto the landing page will assist with ad placement
• Unique landing pages for each ad group should be made, this ensures alignment with searchers intent

Bidding Methods

• CPC (Cost Per Click)
• CPA (Cost Per Acquisition)
• Automated bidding

Impression

• Occurs whenever an ad is displayed, whether or not there is interaction from the user
• Each time an ad is loaded or shown on a webpage or app is counted

CPM (Cost Per Thousand Impressions)

• Advertisers pay for every 1,000 ad impressions
• Used primarily for brand awareness and ad visibility over direct conversions

CPA (Cost Per Acquisition)

• Advertisers pay when a user completes a desired action, such as a purchase, sign-up, or download
• Focuses on conversions and the cost of obtaining a customer or lead

CPC (Cost Per Click)

• Advertisers pay each time a user clicks their ad
• It focuses on driving traffic to a website, with costs tied to the number of clicks

Bidding

• Default bids are CPC for search ads, but advertisers can also bid CPA
• CPA bids can convert to CPC based on previous conversion rates
• Google's optimization automatically adjusts bids using machine learning
• Automated bidding is the default for search ads

Automated Bidding

• Algorithms from Google manage keyword bids to maximize conversions within budget
• These algorithms require data, so it might take time to outperform manual bidding

Other Automated Bidding Options

• Optimizing for conversion value maximizes revenue within budget, this is best for varying transaction values and proper tracking
• Maximizing clicks drives traffic, though can be low-quality and not convert
• Maximizing impression share increases visibility yet doesn't guarantee more conversions

Manual Bidding

• Advertisers can manually bid with "Enhanced CPC" for bid optimization
• Recommended for those with limited data, automated bidding and manual bidding may take too long

What is Display Advertising?

• Display advertising is a type of online advertising that uses visuals and text to promote a product or service on websites, apps, and other digital platforms

Display Ads

• Display Ads are typically managed through an ad network
• Made up of advertisers and publishers

Display Network

• A display network is a collective of publishers who adhere to established ad standards.
• It sets the size of ads for publishers websites
• Manages ad placement and timing
• It collects payments from advertisers then shares revenue with the publishers
• It reports ad performance numbers to advertisers

Publisher

• Publishers create an account with the ad network to participate.
• The website has to meet the specifications of the network, which includes the correct size of ad space
• Publishers then add provided computer code by the network to load the ads themselves
• The revenue for advertising is earned as a percentage by Publishers

Advertiser

• Advertisers create and upload ads based on network specs
• Budgets for accounts are managed through the network platform
• Setting goals is achieved by setting targeting parameters for users and websites
• Advertisers receive reports on the progress of their ad placements
• Display Ads have the ability to bring traffic for the advertiser who uses them

Why Use Display Ads?

• Advertisers earn revenue from traffic that crosses sites when they coordinate with just one network
• The ad network charges advertisers, and this where a bulk of income is generated
• Publishers receive a share of advertising revenue, and work in conjunction with the network rather than with advertisers

Paying for Ads

• As advertisers, there is likely to be multiple instances where they would like to advertise in the same space
• A dual problem is presented, with, "which advertiser gets to advertise in that space?" and,"how much should they be paying in order to do so?"
• Paying depends upon an ad's level of performance

Bidding Formats

• CPC (Cost-per-click): pays only when the display ad is clicked
• CPM (Cost-per-mile or cost-per-thousand impressions)
• CPA (Cost-per-action or Cost-per-acquisition)

Types of Display Ad Campaigns

• Awareness
• Direct Response prospecting
• Retargeting

Awareness Ad Campaign

• Awareness Increases brand recognition through creating immersive experiences
• Focused on awareness building , not direct sales
• Rich media advertising and videos are common advertising formats
• Suited for dealerships & manufacture representatives
• Also suited to businesses that function in extremely competitive sales business

Direct Response Prospecting Campaign

• The campaign targets various users to advertise specific products/services in order to help drive sales, within the campaign goals
• It thrives on flexible ads placed on relevant areas of the web for creating this, direct, response
• Typically often uses banner ads with a cost-per-acquisition (CPA) goal
• It supports and creates awareness by showing ads to new users
• Crucial key component to success to business's that are focused on improving sales in reaching customers at the right time

Retargeting Campaign

• Functions exactly like marketing lists for search ads (RLSA) in search
• Shows ads to those non-converting customers across the internet (via use of first-party info)
• Increases conversions by reminding visitors of products/prices
• Optimizes sales conversions even after customers leave drop in the funnel
• Well suited for e-commerce, retail and travel business's that have dynamic ads

Dynamic Retargeting

• Considers the fact the web user has previously visited, advertisements can show that particular shoe and not just a random selection of shoes

Planning and targeting

• Effective display is used for getting the appropriate ads placed in front of audience's on which they apply
• The balance of the ads will vary by objectives, so be weary to keep that in mind
• Targeting may be categorized in numerous formats

Audiences

• In display audiences, targeting focuses on who the user is and not simply the content they consume
• Audience data is derived from demographics along with behavior

Behavioral Targeting

• It observes content consumption and browsing habits
• It reveals a customer's interest and potential purchase intentions

Contextual Advertising

• Ads are next to relevant content to make campaign relevant
• It does not rely on personal data
• The message or audience target is aligned by the ads in the content they put out
• Works well for specialist sites but generalists have more traffic

Question: Display Targeting Types

• An online magazine featuring home improvement has ads for high-end kitchen appliances when reading an article about kitchen renovations
• This scenario uses contextual advertising

Other targeting techniques

• Location targeting can specifically target specific regions through the use of geographic-based Ads
• Geo-based Ads can measure one's location up to a one-meter radius for mobile devices
• Source data can affect accuracy, so consider your target area / source data to confirm accuracy
• Consumers and their time-based advertising may target them depending on sales, locations and specific products

Effective Display Ads

• In order to get the appropriate ads, an intended consumer must:
• See the ad itself
• Process the ad
• Decide an action to investigate (ie. click)
• Convert

Ad Copy Guidelines

• Attention may attract many different consumers through use of tactic's
• A call to action may or may not be needed in order to attract consumers
• The reason why all consumers should use all types of advertised content will change and grow overtime, so make sure to stay with the data in order to get the most accurate advertising needs

Ad Copy Guidelines: Analysis Activity

• AdChoices provides guidelines over the ad-campaigns in order to assist in maintaining and creating new clients

Display Campaign Measurements

• Display ads have key standards of performance that allow those metrics to have measured cross-channel interaction and campaign performance
• Metrics may or may not align campaign goals depending on customer involvement
• Different campaign goals may require the campaigns to provide different advertising measurement, from awareness level to conversion percentage

Some Important Metrics

• Post-Impression Actions: Track conversions after someone has already seen advertising exposure
• Post-Click Actions: Measure conversions after someone chooses and action on the site
• Source uplift indicates traffic increasing after increased use of exposure through advertising