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jdressler

Ad Ops Becomes Revenue Operations: The How and Why Ad Operations Has Evolved to Revenue Operations- IAB Ad Operations Summit

November 16th, 2009

For everyone in this room to be successful, we absolutely need to be thinkers.  The days of only being doers must come to an end- radical change comes from radical ideas.   Maybe change our name from Ad Ops to Revenue Ops

Questions:

1. How do you look to scale your business?  Automation is a great first start.  Be committed to what is going on at the industry level.  Think about the profession of ad operations and if you have already scaled on the back-end, now think about revenue consulting. 

2. Will there really be fewer monetized websites in the future?  Right now more and more sites are entering the market, but as we move forward, making money will be critical to staying around and surviving.  Protect your revenue and stop giving money back.

Author: jdressler Categories: Uncategorized
managedservices

Don’t Dig Your Own Grave

October 2nd, 2009

gravediggerjSuccessful campaign management is essential to generating current and future revenue for all publishers, large and small. Fulfilling the terms of your contract(s) with the advertiser will ensure you have a shot at the total media buy and develop good standing for future IO’s. In addition to full delivery, reaching or exceeding the advertiser’s expected performance metrics will improve the chances of winning recurring revenue with the advertiser. Unfortunately, there are many misconceptions and poor habits in online advertising that lead publishers to ruin their campaigns — sometimes before they even begin. Through many years of experience, the Operative Managed Services team has developed numerous time-tested pre and post-sale campaign management strategies which, if used correctly, can guarantee the successful delivery of all online campaigns.

Many times a campaign is destined to fail even before it begins. There are a few main causes for this situation. One reason is that a website can be improperly tagged and whoever is responsible for determining available inventory simply is not aware of this. Many times it is the sales team’s responsibility to determine available inventory and it is very likely that the sales team has no idea how to validate the tags in a particular section of the site. For example, it’s possible that the section listed in a RFP is Entertainment, but in actuality the Entertainment section on the site includes tags for the homepage. In this case availability may be extremely understated and the campaign will not even deliver to the intended sections, which could lead the advertiser to cancel the IO. Another more common pre-sale problem is overselling the site. Overselling often is the result of numerous sales people selling the same product at the same time. If there is no real-time central record of what has been booked, it is very likely that two different sales people could book a large campaign for the same product for the same run dates. Many times this isn’t recognized until it is too late and when it’s impossible to recover from the mistake. In order to prevent overselling Operative has developed an Advertising Revenue Management (ARM) software solution called Dashboard, which acts as a real-time central record of total and booked inventory enabling all sales people to have accurate inventory avails along with other invaluable information about their campaigns at their fingertips.

Once a website has been overbooked it is the job of the campaign manager to try and resolve the predicament. Campaign managers often believe that adjusting the priorities of the campaigns will resolve the issue, but making these adjustments can begin an endless cycle of priority modifications which ultimately do not solve anything. To explain further, imagine an overbooked website with one campaign that has a higher CPM than the rest. A campaign manager will typically set this campaign to ‘priority one.’ After this increase in priority is made the priority one campaign may begin to perform well and ultimately deliver in full, but the other lower CPM campaigns will continue to under deliver simply because there is not enough inventory. Many times the campaign manager will begin to increase the priority of the lower CPM campaigns thinking they will experience the same improvement, but this is the beginning of the cycle which could eventually result in all campaigns being prioritized at the same level. Making these so-called “optimizations” can effectively undermine the usefulness of the ad server’s pacing algorithm and result in multiple under delivered campaigns.

A successful campaign begins with accurate inventory availability forecasting. In order to accurately assess inventory it is essential that the website is tagged properly and that there is a real-time central record of total and booked inventory. If inventory is assessed properly then overbooking should be avoided; however, this is often not the case and the following post sale campaign management solutions should be considered if the advertiser will permit the change.

• If there is inventory available for another ad size, then reallocate impressions to this ad size
• If the campaign is targeted to a specific portion of the site, then open the targeting to additional similar content or even ROS
• If the campaign is geo-targeted, then open the campaign to more geographical regions
• Extend the end date of the campaign
• Increase traffic using house ads, which redirect to the targeted areas of the site
• Increase marketing spend to drive more traffic to the site

Prioritization should typically be avoided if you are not an expert in deciphering the complicated algorithms used by various ad servers (virtually all of them are proprietary and shrouded in a veil of ambiguity and secrecy), but can be used if done correctly. This approach should only be used if there is one ad under-delivering for a particular ad size per target. Again this approach will not work if a section of the site has been oversold. Instead try using the suggested solutions above and let the ad server do its job, which is to pace the campaigns according to On-Schedule Indicator’s (OSI) and end dates. Another option, which should only be used if necessary, is to change the ad types to “Sponsorship” or set the ads to deliver “As Fast As Possible” (DFP). These solutions must be monitored very carefully because they could easily cause over delivery and eat away at precious inventory that could be allocated to other campaigns.

Likewise, there are other campaign performance techniques that can be executed during the life of a campaign. The following methods can be used to improve click through rates (CTR’s) as well as other performance metrics.

• Generate reports to determine the best performing sections of the site and direct more traffic to these sections of the site. Tools like DART Adapt and others can be a good technological aid.
• Target banner positions above the fold, which are seen by the user more frequently than the banners below the fold. This can reduce wasted impressions and improve CTR’s.
• Implement frequency caps – large numbers of the same ad displayed to the same user do not necessarily correlate to higher CTR’s. Reducing overall impressions potentially results in lower cost and higher CTR (Clicks/Impressions).

If used properly together, these pre and post sale campaign management techniques can greatly reduce the likelihood that campaigns will under deliver. It almost goes without saying that successful delivery of all campaigns is critical to gaining and keeping the goodwill of advertisers. Techniques that depend upon endless cycles of reprioritization are rarely effective. On the contrary, they are usually counterproductive, resulting in digging the grave of poor performance across the entire site even deeper.

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Blogged by Matthew Collins


Matthew Collins is an Operations Manager in Operative’s Managed Services group. Matthew manages one of our crack teams of enthusiastic online pros responsible for providing trafficking, campaign management and best practice recommendations to a wide variety of publisher clients.

Author: managedservices Categories: Uncategorized
lbrown

Q4 Ad Revenues will be up: Did you cut back too much?

August 28th, 2009

ad revenuesIt seems like the digital ad market & ad revenues are starting to pick back up.  If you’ve read my previous blog on the 212 Boat Cruise or are in the interactive ad industry, you know things have been on an uptick over the last month or 2.

Typically July and August are slow, but from Operative’s vantage point, it’s been the opposite because agencies are racing to spend ad dollars for the 4th quarter media buys, ensuring their own revenues for 2009 are maximized. 

This made me think of how important the role of Ad Ops will be in the 4th quarter of this year.  After Labor Day, both publishers and agencies will be selling and buying media as if it was thier last opportunity to do so.  As most companies have cut resources earlier in the year, their resources are not in line with these types of volumes and most companies will be significantly understaffed in ad operations.

Not only that, in some cases junior and less experienced resources will be used to execute complicated media types, which is almost worse than having no one to traffic ads at all because that leads to errors…you don’t want to make errors at a time when your customers are figuring out who to spend with in 2010 because there are unlimited options.

This made me think of an article I read back in April about the influx of complex media types, which I think is more relevant than ever before.  It was called Don’t be Left High and Dry, written by Erica Crossen from Brightcove, who spoke of the importance of having your ad ops resouces in on product and ad revenue strategy as early in the process as possible to ensure client satisfaction at the point of transaction.  Cool article, thanks Erica.

As you take off for Labor Day and drive out to the Cape or your house in the Hamptons, you may want to ask yourself a couple of questions, keeping your Q4 ad revenues in mind. 

1. Do you have the right amount of resources in place to handle your Q4 ad trafficking volumes? 

2. Furthermore, do you have resources that have the right technical experience in more complex media types? 

If you answered no to either question, you may want to get ahead of the curve sooner than later.

Have a good weekend.

Lorne

—-Thanks for all the comments everyone’s been giving.  Makes for a more interesting post.  If you have something to say, say it.

managedservices

I want it THIS BIG ………Impact of Non-Standard Ad units!

August 7th, 2009

Everyone  has seen those little online popup windows that show a surveillance camera or a TV monitor with some sexy women on it.  Let’s be honest – it tempts us to check out the name, address and  …….. while some us find it annoying as hell.Bright Idea

Back in the days…well to be specific in April 2009, the Online Publishers Association announced that a broad set of its members would be adopting new larger ad units. Even though it is OPA’s intent to increase innovation and efficacy in the online space, is this particular move one that could easily backfire in the long term?

Let’s take a look at some points put forward by experts in the industry and classify them as ‘Pros’ or ‘Cons’.  You be the judge on whether these non-standard ad units should be used or not.

The top 5 YEAH…

  • On a limited basis non-standard banners and pop-ups resulted in a lift in CTR, engagement, and possibly even conversions or transactions.
  • They also create new revenue stream for publishers, while creating extremely high impact placements for advertisers.
  • Create scarcity – Limiting the number of these “non-standard” units you sell in a month will help mitigate user burnout or creative fatigue.
  • Pop-ups can help establish a brand while offering transactional services and opt-in or contact opportunities.
  • The interstitial ad creative uses “dead time” to show an ad message, at a time when the site visitor is on hold and attentive to the message that appears.

The top 5 NAH !..

  • These ads might be testing well initially, but at some point the novelty will wear off for users, and the innovation that seemed to flow so freely at the beginning may reduce to nothing.
  • These new-size banners aren’t cheap and the same goes for pop-ups.
  • There is a relatively small but vocal minority of users who have a low tolerance for pop-ups.
  • Pop-ups tend to physically blot out the content that the consumer is actually seeking.
  • Another drawback to consider for interstitials is that these ads can attract a lot of attention, but do not always generate a large number of clicks.

What do others think?

A Doubleclick study found that banner ads increased brand measures 56%, large rectangles 86% and interstitial ads increased brand measures 194%.

The IAB’s own study, conducted by Dynamic Logic, found that the new larger ad units are 25% more effective in lifting key brand metrics such as brand awareness and message association. The research also shows that additional exposures significantly increase persuasion metrics such as purchase intent. The research was based on 8750 respondents, four advertisers and 12 creative units.

As for ad shape, so-called skyscraper ads — long, skinny upright banners, proved most effective. Ad placement made a difference as well, with ads displayed during a transition from one Web page to the next outperforming those placed within or on top of a page.

Final thoughts …

“When used with enriched ad technology, the new units are two to three times more effective in increasing message association than standard banners.” said Jed Savage, Director of National Sales for MSN at Microsoft Corp.

Media buyers claim that pop-ups deliver a click-through rate of anywhere from 2.5 percent to 19 percent.  That’s many times the click-through rate of the banner ad, which hovers around a negligible 0.3 percent.

Three suggestions for sidestepping the annoyance factor:

  1. Target pop-ups as carefully as possible, because pop-ups don’t work for every type of web surfer.
  2. Avoid repeated pop-ups in the same visit.
  3. Be sure the pop-up is either very informative or very entertaining, since either of these attributes will help the ad seem less annoying.

As a whole, you need to be conscious of your brands integrity. Just because an advertiser has budget doesn’t mean they should be allowed to spend it. Make sure they are relevant to the users and the content. Any online media campaign should have a healthy mix, a variety of different sizes and types of messages.

lbrown

212 Annual Boat Cruise Sold Out…wait, what?!

July 17th, 2009

sold outI was sitting in my living room last night, eating some very yummy cheese, apple and crackers when I got a text message.  It was from Greg Carr, one my Account Executives saying, “The annual 212 boat cruise was sold out…they turned away half the paid guests”.

This made me think…wait a second, I thought we were in a recession…how did a boat cruise get sold out by double.  Not only was it sold out, but there we actual quality folks that attended.  When I say quality, I mean it the way an ad sales person would mean it…lots of media buyers from interactive ad agencies.

This brings me to only 1 theory – the recession can bring some good with the bad.  Sure, digital ad dollars have flattened out and sure companies are going out of business…and yes, CPMs have plummeted.  But when I see the 212 boat cruise sold out with quality people, this tells a story of new born collaboration in digital media.

Reason 1: With so much uncertainty in the market place, it’s human nature to find out one thing: what is going on?  What are people saying?   What are they seeing?  When will they see it?  How do I protect myself?  Folks who typically sat in their ivory tower and had their underlings do their dirty work are feeling pressure to go back to their roots, get out and ask questions.  Because of  this, people that you may not have had access to before, are now accessible.  Major brand managers and marketers, Media Directors at top Ad Agencies…all accessible and approachable.

Reason 2: Everyone is being forced to do more with less.  If you are an ad agency and have less employees, that’s less people to come up with the big idea.  This has led and will lead to more brainstorming between publishers and agencies.  Agencies can no longer afford to do things the way they used to…think tanks are smaller and ideas can no longer be created in a vacuum.

Reason 3: Lastly, relationships are now more important than ever.  Ad Agencies are under pressure to perform.  They want to meet the people they are buying media from, they want to know them personally and can now afford to, because every morsel of business is so important to them.  People are getting closer to their competition, more so than ever before.

Now, maybe it was just a nice summer eve on Thursday evening in NYC and the sound of a few drinks on the Hudson sounded divine…but I think there’s much more to it than that.

As an industry, we’ve been running so fast and trying to automate so much, you start to lose sight of what got us here.  Collaborating with each other.  This theme, in my opinion, will continue for a while since it’s the very behavior that got us here in the first place…getting out and meeting people in order to be successful.

-Lorne

mquillinan

Who’s here??

June 4th, 2009

I’m at the Operative Dashboard Client Summit (our 3rd in the past 12 months), and can’t type fast enough to keep up with the dialogue! 

So, you want to know what movers and shakers are here to help us collaborate on future product direction?  Check out this list of digital media mavens :)

AARP

BET

Dow Jones

Fox Interactive Media

NBC Universal

National Public Media

Reuters

Scholastic

Smart Money

Top 10 Reviews

United Online

Author: mquillinan Categories: Events, Uncategorized