W5 L1 Flashcards
CPV-CPM
: Cost Per View or Mille you pay for each or / every 1,000 views
CPT
Cost Per Time you pay per time unit, e.g. day
CPC
Cost Per Click you pay if someone clicks the ad
CPA
: Cost Per Acquisition/Conversion you pay if one clicks the ad & buys your product
RTB
: Real Time Bidding real time auction: mostly based on CPC (can apply to all above)
Cost per Impression (View or Mille)often measured by
CPM (cost per thousand impressions)
for who is CPM de best choice and why
- From the publisher’s perspective, CPM is the best choice because of the predictable revenue and measurable results.
where do you use cpm/cpv usually for?
CPV/CPM are useful for getting more people are aware of the new brand or a specific product. They do not guarantee/monitor ad performance.
which pricing model is often lowest cost?
cost per impression
advantage of cost per action compared with cpm/cpv
proof user takes the action
why is cpc populair?
CPC is popular because mostly found as nicely balanced between cost and the trackability (by clicks)
formule cost per sale
CPM/1000 * 1/CTR * 1/CR
quality score and cpc
Websites with a higher/ above-average Quality Score gets a discount on their CPC – the opposite applies for those with a below-average QS
CPM is agreeable if the only (and mere) objective is to
o create awareness for new products or campaigns (i.e. Branding)
CPC is often used when the objective is to create/measure
creation of an “interest” by the ad – and not necessarily selling the product.
- CPA is agreeable for a
a heavily conversion oriented ad with relatively (very) high “click/ conversion”” ratio
what ) is the industry standard in online ad pricing.
y Real Time Bidding (RTB)
Each ad-space or SEA # position is valued/priced according to
its actual through and demand-supply equilibrium (via bidding)
Google uses variants of so-called “second-price auction”
The buyer does not have to pay highest bid but only that of the next highest bidder
Why would’t Google simply want to get the meximum bid offered by the highest bidder?
Collaborative Game Theory The answer is to prevent over/underbidding and to find the real value of each ad space (Game-Theoretic Proof)
Firms make decisions on whether: they target all customer base with same message (mass – which is no longer common nowadays) or:
2
1 Segments: targeting to certain segments (with multiple messages) – less cost than individualization
2 One-to-one: individualized (personalized) targeting for each customer: possible through big-data & analytics
Personalization Levels: Segmentation Not fully indivudualized personalization
different offers, limited in number, are tailored to certain number of segments
Personalization Levels: Full Indivudualization Users get individualized (tailored) offers, ads and communication messages based on their:
Purchase, Search, Browse history
* Their likes, hobbies, interests and lifestyles
* Location, demographic and life-cycle characteristics
E cart targeting backfire
Customers who received an early ECR ad within 30 minutes to one hour after cart abandonment are less likely to make a purchase.In other words: too-early ECR ads can engender worse purchase rates than without delivering them, thus wasting online advertising budgets
Personalized Targeting: Types of Individualization 4
contextual, retargeting, behavioral, geographical
Contextual
KLM ad after you visit a travel website/ or travel blog: Content of your landing page is the basis)
2 Retargeting:
Zalando ad after visiting Zalando website: you get the ad at some point after you visit brand’s webpage
Behavioral :
Car insurance ad after searching to buy a new car: Your search-keyword/queries are the basis for personalization
4 Geographical
Ajax ad only for Amsterdam area (or push notification of a mall in the proximity of that mall)
Dynamic (Multidimensional) Targeting
Combines and real-time uses: search + previous visit/search on different website (factors given above)
difference between Contextual and Behavioral targeting:
Behavioral: mainly based on recent search & click behavior. Search queries and clicks (visits) is the base of targeting.
Contextual: based on the context of the websites visited. The content (thema, tags, keywords) on the visited website is the basis of targeting.
what is the most effective targeting type for same day ad exposure
CONTEXTUAL personalized targeting is the most effective at same-day ad exposure.
Retargeting is found to be less effective. C
CONTEXTUAL personalized targeting is the most effective at same-day ad exposure.
Retargeting is found to be less effective. Can you tell why?
In Retargeting those people are targeted who visited the same website before – but doesn’t that also mean they did not find what they were looking fo
static retargeting
a small group of fixed ads are created and serverd to groups of people depending on the page they vistied on your site
dynamic retargeting
personalized ads are dynamically generated fore each individual, based on shopper behaviour
what works better and when in cj dynamic or static retargeting
The research finds overall dynamic retargeted ads are, on average, less effective than their generic equivalents.
However, when consumers have more evolved (further stage/detailed) browsing behavior (e.g., visiting review websites), dynamic ads no longer underperform and even may outperform in comparison to generic ads.
to best reach customers marketing managers should
managers should be aware of the multistage nature of consumers’ decision processes and vary advertising along these stages.
pro and con ads shown often
n increase brand-ad recognition but might annoy users– and effect Click Through rates.
Higher ad frequency and higher ad recency relate to a LOWER CTRs,
