Digital 101

2010
 Buy Type Terminology
o CPM (Cost Per Thousand)
• Typically refers to the cost of one thousand impressions. This is an ideal method of payment
for advertisers who only want to guarantee the number of banner views ( Branding ).

o CPA (Cost Per Action or Acquisition)

• An online advertising payment model in which the publisher is only paid when a user takes a
desired action (such as filling out a form or making a purchase). This is an ideal method for
advertisers who only want to pay for Acquisitions. CPA is in its early stages in NZ due to CPA
requiring a high volume of traffic, a long test period and a minimum spend of $20K

o CPC (Cost Per Click)

• An online advertising payment model in which the publisher is only paid when a user clicks on
an online ad. It involves risk from the advertiser's side which therefore forces them to make
sure that the ad placement is highly relevant to what is being offered so that the ad has a good
chance of receiving a click. No clicks, no revenue for the publisher.

o CPM-A ( Cost Per Thousand – Optimised to Acquisition )

• An online advertising payment model in which advertising space is bought on a CPM basis and
optimised via adserving technology to show in the best performing spaces to generate an
acquisition.
 Performance Terminology
o Acquisition or Action
• Is when a piece of online advertising leads to a specific goal (completed sale, registration,
download, etc )

o Post Impression /Post Click Activities

• Post-click activities are those which are the actions taken by consumers after they clicked on the
Ad. Often times, consumers just view the ad and do not click on the ad but later on go to the
website and take the action – this has been termed as Post-Impression activities.

o SOV ( Share of Voice )

• Relates to the percentage of impressions your advertisement will be receiving across the booked
channel or section.

o ROS ( Run of Site )

• Run of site means your advertisement will be shown across the publishers entire website as
opposed to a specific channel.
 Targeting Terminology
o Geo-targeting
• Is the method of determining the physical location of a website visitor and
delivering different content to that visitor based on his or her location, such as
country or city.

o Demographic Targeting
• Specifically targeting an audience defined through their gender and age.

o Contextual Targeting
• This works similarly to Google content network where we will put together a
positive and negative keyword list to determine what pages your ad will appear.
This therefore works to target people already looking at related articles within the
site. For example an ad for tennis shoes would appear on pages about tennis
events, while an ad for golf clubs would appear on a page about golf events.
 Targeting Terminology
o Behavioural Targeting
• A form of online marketing that uses advertising technology to target web users based on
their previous behaviour. Advertising creative and content can be tailored to be of more
relevance to a particular user by capturing their previous decision making behaviour (e.g.
filling out preferences or visiting certain areas of a site frequently) and looking for patterns.

o Search Targeting
• Allows you to connect with visitors based on their explicit search inquiries from search
engines on which you are already running search engine marketing campaigns.

o Site Retargeting
• This method retargets users who have visited the advertiser’s website but did not convert
within an agreed time frame.

o Creative Retargeting
• Creative Retargeting / Reach Extension » Display a revised offer or ad creative that
increases conversion probability.
Typical Display Creative Sizes

s Rectangl
k e or
y Island
s
300x250
c
r
a banner
p 468x60
e
r
leaderboard
728x90
160x600
120x600
Search 101
2010
Search is about ROI

» With Search Engine Marketing (SEM) we only pay when a user clicks on the ad, so
there is minimal wastage with this activity
» It is a high reach medium that we can track all the way, right through to an online
purchase
» Search can be tailored to multiple ROI objectives, to reach people at the right
time:
» E-commerce: drive to purchase
» Retail: drive in-store (store locator, product research)
Search Terminology
o Keyword
• Search term or phrase against which an advertisement is run

o Negative Keyword
• Negative keywords prevent your ad from appearing when a search includes a
keyword that isn't relevant to your ad. Your ad won't appear when a negative
keyword you've specified is included in a user's search query.

o Ad Group
• Bucket or group of keywords bundled together with similar qualities

o Tail-Term
• Extension of broad based keywords to drive extremely qualified traffic. i.e.
“book” broad based; “children’s story book” tail-term

o Dynamic Headline
• Ad Words automatically insert the keyword that triggered your ad each time your
ad shows. This makes your ad more relevant for users while making it easier for
you to create multiple unique ads for a large number of keywords.
Search Terminology
o Content Network Advertising
• A collection of websites and other products, such as email programs and blogs, who
have partnered with Google to display Ad Words ads that are targeted based on
content themes rather than specific keywords.

o Contextual Advertising
• Contextual targeting is used to match ads to web pages which match the theme of the
advertising via factors such as text, language, link structure, and page structure. As a
result, contextually targeted ads provide useful information to readers, and attract an
audience with an established interest in your message.

o SEM
• SEM is a form of paid online advertising as search engines are paid to place the
advertiser next to the sites.

o SEO
o Search Engine Optimization (natural or organic search improvement)
Search Plays a Crucial Role for
Driving Sales
Demographic Targeting

Conversion Propensity
Contextual
Targeting
Behavioral
Targeting
EDM

Performance
Network
SEM

SEO
Paid Search Results List at the Top and
Right Side of Search Results

Position
1

Position
2

Position
3

» Paid Search is known as Search Engine Marketing, or SEM

» Position is determined by “quality score”, based on a formula of “max CPC x CTR”
along with several other factors
Organic Search Results List Below Paid
Search Results

» Improving Organic Search is also known as Search Engine Optimization or SEO

» Sites can list higher through optimization of the site’s code, content, load speed,
outside linking, and user-friendliness and popularity.
Negative Keywords Ensure SEM
Displays Against Relevant Searches
» Negative keywords prevent your ad from appearing when a search includes a
keyword that isn't relevant to your ad. Your ad won't appear when a negative
keyword you've specified is included in a user's search query.

Example: For the broad-matched keyword BMW and negative keyword

-Xbox, your ad will only display when search users enter the following
query:

Keyword Keyword
‘BMW’ ‘BMW Xbox Game’
Tail Terms Increase Efficiency and
Conversion Rates
» What are ‘Tail Terms’?
» Tail Terms speak to the audience without distractions of competitive
pressures.
» They cost far less than more prominent keywords squeezed by bid inflation,
allowing more clicks within the same daily budget.
» They heighten conversion rates by addressing a user’s search intent with
complete confidence.
Tail Term Keyword Examples:

flights international flight International flights Cathay

Pacific
Lower Costs: Keyword Average CPC
International flight $2.51

International flight Cathay Pacific $0.09