B2B Display Advertising

1. B2B Display Advertising B2B DISPLAY ADVERTISING HOW-TO GUIDE

2. 2 B2B Display Advertising How-to Guide Business marketers have always advertised in specialized media such as trade magazines, but their audiences have traditionally been too narrow to use television, radio, and similar mass outlets. This limitation has carried over into the digital world, where business marketers could target ads on search terms and industry websites but not buy display ads that reach broad audiences. This has become an increasing problem as buyers do more research anonymously on the web, making them harder to identify and nurture. Tools such as content marketing and social media have filled some of the gap by offering alternative methods of acquiring new names. But those methods are labor and content intensive, making them difficult to scale. As a result, business marketers have longingly eyed the “insert coin here” efficiency that lets consumer advertisers reliably increase results by raising their display ad spend. Happily, new methods have now made online display advertising a more effective, higher volume option for business marketers. Improved audience targeting expands the number of prospects marketers can reach and how frequently they can be contacted. Business marketers must learn a few new tricks to take advantage of this opportunity. But in return they gain greater control over the flow of new names and more precise targeting of the messages for each individual. This guide will ease your entry to the new world of effective B2B display advertising. Let the journey begin. Web display advertising includes any kind of advertising presented on a website other than a search engine. (Search advertising, such as Google AdWords, is different enough that it’s best treated as a separate topic.) Search advertising is much simpler to manage than display adver- tising, so most business marketers are already familiar with how to use it. HOW-TO GUIDE B2B Display Advertising Display Advertising Basics Site-Based vs. Visitor-Based Targeting The fundamental benefit of display advertising is that it takes advantage of audiences assem- bled by website owners. Usually the audience will be attracted by the content of the website and thus share a common interest related to the advertiser’s product: corporate travelers will go to a corporate travel website, steam turbine buyers will go to a steam turbine website, and so on. For this reason, marketers are often content to show their advertisements to everyone who visits a site, without knowing anything else about them. 2 B2B Display Advertising How-to Guide Business marketers have always advertised in specialized media such as trade magazines, but their audiences have traditionally been too narrow to use television, radio, and similar mass outlets. This limitation has carried over into the digital world, where business marketers could target ads on search terms and industry websites but not buy display ads that reach broad audiences. This has become an increasing problem as buyers do more research anonymously on the web, making them harder to identify and nurture. Tools such as content marketing and social media have filled some of the gap by offering alternative methods of acquiring new names. But those methods are labor and content intensive, making them difficult to scale. As a result, business marketers have longingly eyed the “insert coin here” efficiency that lets consumer advertisers reliably increase results by raising their display ad spend. Happily, new methods have now made online display advertising a more effective, higher volume option for business marketers. Improved audience targeting expands the number of prospects marketers can reach and how frequently they can be contacted. Business marketers must learn a few new tricks to take advantage of this opportunity. But in return they gain greater control over the flow of new names and more precise targeting of the messages for each individual. This guide will ease your entry to the new world of effective B2B display advertising. Let the journey begin. Web display advertising includes any kind of advertising presented on a website other than a search engine. (Search advertising, such as Google AdWords, is different enough that it’s best treated as a separate topic.) Search advertising is much simpler to manage than display adver- tising, so most business marketers are already familiar with how to use it. HOW-TO GUIDE B2B Display Advertising Display Advertising Basics Site-Based vs. Visitor-Based Targeting The fundamental benefit of display advertising is that it takes advantage of audiences assem- bled by website owners. Usually the audience will be attracted by the content of the website and thus share a common interest related to the advertiser’s product: corporate travelers will go to a corporate travel website, steam turbine buyers will go to a steam turbine website, and so on. For this reason, marketers are often content to show their advertisements to everyone who visits a site, without knowing anything else about them.

3. 3 B2B Display Advertising How-to Guide HOW-TO GUIDE Ads may also be targeted at specific visitors based on information such as past behaviors or known interests. This requires technology to identify those visitors. In this case, the contents of the website where the ad appears are largely irrelevant. (Exception: marketers often avoid ads on websites whose content they consider objectionable.) Visitor- based targeting usually relies on web browser cookies that associate a computer with behaviors or interests, even though they may not be linked to a specific person. Visitor-based targeting is increasingly available for business marketers. It can be more effective than site-based targeting, and greatly expands the number of opportunities to deliver targeted advertisements. Targeting may also be based on other attributes such as the user’s physical location, their employer, search terms, previously visited websites, or the type of device they are using. This information is derived from technical data provided during web interactions. Employer-based targeting is especially relevant to business marketers. Purchase Models Process Flow Display ads may be sold on basis of cost per impression (cost per thousand or CPM), cost per click (CPC), or cost per action (CPA), depending on the publisher and the situation. Most ads are sold at a fixed price, typically as part of a negotiated contract for large number of impressions. Others are sold on ad exchanges through real time bidding on individual impressions. Different approaches serve different needs. Many marketers use several methods to provide the most effective results. For example, they might make a bulk purchase of site-based ads and supplement this with visitor-based ads targeted at high value individuals. The actual mechanics of web display advertising can be surprisingly complex. Indeed, the advertising technology industry sometimes seems to take a perverse pride in the obscurity of its processes. Still, the basic steps and related systems can be summarized as follows. Advertisers create their messages (banner ads, videos, etc.) and store them in an ad server where they can later be fed onto actual webpages. Publishers create webpages with tags that will display advertisements when the pages are delivered. The tags may call the publisher’s own ad server directly, or they may call an ad network that controls what is displayed. The tags can also set and read browser cookies to identify the user to the publisher. B2B Display Advertising 3 B2B Display Advertising How-to Guide HOW-TO GUIDE Ads may also be targeted at specific visitors based on information such as past behaviors or known interests. This requires technology to identify those visitors. In this case, the contents of the website where the ad appears are largely irrelevant. (Exception: marketers often avoid ads on websites whose content they consider objectionable.) Visitor- based targeting usually relies on web browser cookies that associate a computer with behaviors or interests, even though they may not be linked to a specific person. Visitor-based targeting is increasingly available for business marketers. It can be more effective than site-based targeting, and greatly expands the number of opportunities to deliver targeted advertisements. Targeting may also be based on other attributes such as the user’s physical location, their employer, search terms, previously visited websites, or the type of device they are using. This information is derived from technical data provided during web interactions. Employer-based targeting is especially relevant to business marketers. Purchase Models Process Flow Display ads may be sold on basis of cost per impression (cost per thousand or CPM), cost per click (CPC), or cost per action (CPA), depending on the publisher and the situation. Most ads are sold at a fixed price, typically as part of a negotiated contract for large number of impressions. Others are sold on ad exchanges through real time bidding on individual impressions. Different approaches serve different needs. Many marketers use several methods to provide the most effective results. For example, they might make a bulk purchase of site-based ads and supplement this with visitor-based ads targeted at high value individuals. The actual mechanics of web display advertising can be surprisingly complex. Indeed, the advertising technology industry sometimes seems to take a perverse pride in the obscurity of its processes. Still, the basic steps and related systems can be summarized as follows. Advertisers create their messages (banner ads, videos, etc.) and store them in an ad server where they can later be fed onto actual webpages. Publishers create webpages with tags that will display advertisements when the pages are delivered. The tags may call the publisher’s own ad server directly, or they may call an ad network that controls what is displayed. The tags can also set and read browser cookies to identify the user to the publisher. B2B Display Advertising

4. 4 B2B Display Advertising How-to Guide HOW-TO GUIDE Advertisers place orders that determine who will see their advertisements. They can either purchase ads based on where they will appear (site- and page-based targeting) or who will see them (visitor-based targeting). The advertiser can buy directly from publishers or ad networks, purchase through an agency trading desk, or enter orders into a demand side platform that coordinates purchases from multiple sources. When purchases are based on visitor characteristics, a list of cookies to target is loaded into the demand side platform from a data management platform, which in turn gets cookies with the desired characteristics from data brokers. When an individual visits a Web page, the ad tag within the page either loads a page-based advertisement or sends cookie information to the publisher or ad network, which may serve an ad based on the visitor characteristics, or let an ad exchange offer the impression to multiple buyers via real time bidding. Bidders use cookie data and other considerations to decide what the impression is worth. Once an ad is selected, it is loaded from the ad server and rendered on the webpage. Tags on the webpage or within the advertisement may later send the publisher or advertiser addi- tional information used to measure results and optimize future selections, such as whether the ad is viewed or clicked on, location of the viewer, and time of day. Social media networks such as Facebook, Google+, and LinkedIn use different technical mech- anisms, but can also deliver targeted advertising based on either the contents being viewed or characteristics of the viewers. The main factor limiting business marketers’ use of web display advertising has been the rela- tively small number of impressions available on business websites. This has led to high prices and limited the volume of business that marketers could generate. Visitor-based targeting has greatly expanded the inventory of available impressions by enabling marketers to reach their target audiences on non-business websites. Although marketers are sometimes concerned about the context of these advertisements, they can be more effective than content-based ads if the targeting is based on sufficiently precise information. One powerful example of visitor-based advertising is retargeting, which shows ads on other websites to people who have visited a company’s own site. Because the retargeting can be based on browser cookies placed during the original site visit, the ads can be served even if the visitor did not identify themselves by filling out a form or taking some other action. This greatly expands the reach available to company marketers. Display Advertising For Marketers B2B Display Advertising 4 B2B Display Advertising How-to Guide HOW-TO GUIDE Advertisers place orders that determine who will see their advertisements. They can either purchase ads based on where they will appear (site- and page-based targeting) or who will see them (visitor-based targeting). The advertiser can buy directly from publishers or ad networks, purchase through an agency trading desk, or enter orders into a demand side platform that coordinates purchases from multiple sources. When purchases are based on visitor characteristics, a list of cookies to target is loaded into the demand side platform from a data management platform, which in turn gets cookies with the desired characteristics from data brokers. When an individual visits a Web page, the ad tag within the page either loads a page-based advertisement or sends cookie information to the publisher or ad network, which may serve an ad based on the visitor characteristics, or let an ad exchange offer the impression to multiple buyers via real time bidding. Bidders use cookie data and other considerations to decide what the impression is worth. Once an ad is selected, it is loaded from the ad server and rendered on the webpage. Tags on the webpage or within the advertisement may later send the publisher or advertiser addi- tional information used to measure results and optimize future selections, such as whether the ad is viewed or clicked on, location of the viewer, and time of day. Social media networks such as Facebook, Google+, and LinkedIn use different technical mech- anisms, but can also deliver targeted advertising based on either the contents being viewed or characteristics of the viewers. The main factor limiting business marketers’ use of web display advertising has been the rela- tively small number of impressions available on business websites. This has led to high prices and limited the volume of business that marketers could generate. Visitor-based targeting has greatly expanded the inventory of available impressions by enabling marketers to reach their target audiences on non-business websites. Although marketers are sometimes concerned about the context of these advertisements, they can be more effective than content-based ads if the targeting is based on sufficiently precise information. One powerful example of visitor-based advertising is retargeting, which shows ads on other websites to people who have visited a company’s own site. Because the retargeting can be based on browser cookies placed during the original site visit, the ads can be served even if the visitor did not identify themselves by filling out a form or taking some other action. This greatly expands the reach available to company marketers. Display Advertising For Marketers B2B Display Advertising

5. 5 B2B Display Advertising How-to Guide HOW-TO GUIDE Frequency caps that limit the number of times an individual is shown an advertisement. This ensures that ad spending is not concentrated on a small number of frequent site visitors. It depends on cookies or other methods of identifying individuals. Other testing of such variables as audience segments, frequency, time of day, and place- ment on the Web page to find the best performers. Systems can often automatically monitor results and remove the losing options to improve results over time. Users select the metric used to define good performance, which may be page views, clicks on links within the ad, or subsequent conversions such as filling out a form or making a purchase. Personalization that tailors ad messages to individual interests or characteristics, such as company, location, industry, or title. This information may be inferred from behaviors, provided by visitors when they fill out forms, or purchased from third parties and linked to the visitor via cookies, IP address, or other identifiers. Budget limits that ensure advertisements are spread over time by capping the number of ads or amount spent per day. Similar constraints may limit the cost per impression or cost per action. Such limits can usually be defined as part of the campaign set-up and enforced automatically. Content testing that automatically delivers different advertisements to similar viewers to see which performs best. Such testing can usually be built into the ad serving process so the human effort is minimal. Some systems can automatically construct different ads by combining alternative headlines, photos, and offers to find which combination performs the best. This allows marketers to test more options than they could manage manually. Alternative formats, such as video, animation, or in-ad surveys. These often attract more attention than static standard advertisements. They may cost more but marketers can easily measure performance to determine whether they are worth the added expense. Other techniques to improve display advertising results include: B2B Display Advertising 5 B2B Display Advertising How-to Guide HOW-TO GUIDE Frequency caps that limit the number of times an individual is shown an advertisement. This ensures that ad spending is not concentrated on a small number of frequent site visitors. It depends on cookies or other methods of identifying individuals. Other testing of such variables as audience segments, frequency, time of day, and place- ment on the Web page to find the best performers. Systems can often automatically monitor results and remove the losing options to improve results over time. Users select the metric used to define good performance, which may be page views, clicks on links within the ad, or subsequent conversions such as filling out a form or making a purchase. Personalization that tailors ad messages to individual interests or characteristics, such as company, location, industry, or title. This information may be inferred from behaviors, provided by visitors when they fill out forms, or purchased from third parties and linked to the visitor via cookies, IP address, or other identifiers. Budget limits that ensure advertisements are spread over time by capping the number of ads or amount spent per day. Similar constraints may limit the cost per impression or cost per action. Such limits can usually be defined as part of the campaign set-up and enforced automatically. Content testing that automatically delivers different advertisements to similar viewers to see which performs best. Such testing can usually be built into the ad serving process so the human effort is minimal. Some systems can automatically construct different ads by combining alternative headlines, photos, and offers to find which combination performs the best. This allows marketers to test more options than they could manage manually. Alternative formats, such as video, animation, or in-ad surveys. These often attract more attention than static standard advertisements. They may cost more but marketers can easily measure performance to determine whether they are worth the added expense. Other techniques to improve display advertising results include: B2B Display Advertising

6. 6 B2B Display Advertising How-to Guide Challenges HOW-TO GUIDE Some of the challenges that display advertising presents to business marketers include: Visitor tracking — Many audience tracking techniques are based on browser cookies, which are far from perfect. Privacy conscious users often block their browsers from accepting cookies or periodically delete cookies they have previously accepted. Many people browse on multiple devices, such as home and office computers, smart phones, and tablets, which have separate sets of cookies that are not easily linked to provide a complete customer view. Some mobile devices will not accept cookies at all, although advertisers have developed some ways to at least partially compensate for this. Privacy — Marketers must limit the data they collect from visitors and how they use what they gather, both to comply with legal restrictions and to avoid making visitors uncomfortable. It’s important to be aware of the rules that govern the use of individual data, to recognize that these rules differ in each country, and to keep an eye on new regulations and evolving industry best practices. Measurement — Display advertising generates plenty of data, including impressions, cost per impression, clicks, and conversions. But those metrics often don’t capture the real value created by an advertisement, such as customer attitudes or changes in long-term behavior. One critical issue is that display advertising often indirectly influences future leads when they see an ad but don’t click on it. Traditional methods such as attributing leads to the first or last ad they view are widely recognized as misleading, and often underestimate the impact of display in particular. More sophisticated methodologies are available but can be expensive and difficult to understand. Marketers can gain some insight from simpler analyses such as correlating changes in lead production with changes in ad spend, or measuring how many new leads viewed a display at any point in their life cycle. Expertise — Creating effective display ads, buying media, and measuring results are new skills for many business marketers. The options for purchasing display ads are especially confusing: content-based vs. viewer-based, fixed price vs. bid, cost per impression vs. cost per action. Although self-service options are available, many marketers do best by working with agencies to provide the necessary skills and experience. B2B Display Advertising 6 B2B Display Advertising How-to Guide Challenges HOW-TO GUIDE Some of the challenges that display advertising presents to business marketers include: Visitor tracking — Many audience tracking techniques are based on browser cookies, which are far from perfect. Privacy conscious users often block their browsers from accepting cookies or periodically delete cookies they have previously accepted. Many people browse on multiple devices, such as home and office computers, smart phones, and tablets, which have separate sets of cookies that are not easily linked to provide a complete customer view. Some mobile devices will not accept cookies at all, although advertisers have developed some ways to at least partially compensate for this. Privacy — Marketers must limit the data they collect from visitors and how they use what they gather, both to comply with legal restrictions and to avoid making visitors uncomfortable. It’s important to be aware of the rules that govern the use of individual data, to recognize that these rules differ in each country, and to keep an eye on new regulations and evolving industry best practices. Measurement — Display advertising generates plenty of data, including impressions, cost per impression, clicks, and conversions. But those metrics often don’t capture the real value created by an advertisement, such as customer attitudes or changes in long-term behavior. One critical issue is that display advertising often indirectly influences future leads when they see an ad but don’t click on it. Traditional methods such as attributing leads to the first or last ad they view are widely recognized as misleading, and often underestimate the impact of display in particular. More sophisticated methodologies are available but can be expensive and difficult to understand. Marketers can gain some insight from simpler analyses such as correlating changes in lead production with changes in ad spend, or measuring how many new leads viewed a display at any point in their life cycle. Expertise — Creating effective display ads, buying media, and measuring results are new skills for many business marketers. The options for purchasing display ads are especially confusing: content-based vs. viewer-based, fixed price vs. bid, cost per impression vs. cost per action. Although self-service options are available, many marketers do best by working with agencies to provide the necessary skills and experience. B2B Display Advertising

7. 7 B2B Display Advertising How-to Guide Resources HOW-TO GUIDE Several vendors have developed specialized offerings for B2B display advertising. Most can provide general information on the topic even if you don’t use their services. Companies to consider include: The complexity of creating, buying, and evaluating web display advertising can seem over- whelming but, marketers can ignore many of the technical details and hire experts to handle much of the remaining work. Getting started isn’t as hard as it looks. Just follow the action plan below. Bizo — A B2B advertising network with particular strength in business advertising on Face- book and LinkedIn, supports cookie-based personalization on company webpages, and integrates with marketing automation systems for cross-channel campaigns. DemandBase — Uses the IP address of webpage visitors to identify their employer and delivers targeted advertising on that basis. Also supports marketers and sales teams by iden- tifying website visitors by company, auto-filling web forms with company information, enhan- cing lead records, and targeting messages on corporate websites based on the visitor’s employer. Vendemore — A Sweden-based B2B ad network that uses IP address and cookies to target and retarget display advertising and to deliver website personalization. Particular strength outside the United States. BBN Solutions — B2B ad network that offers site-based ads and real time bidding on impres- sions outside its network. B2B Display Advertising Web display advertising is a new frontier for many business marketers. Like any frontier, it hides unknowns and presents risks that more familiar terrain does not. But the paths to success are increasingly well marked, the rough spots are increasingly paved over, and experienced guides are widely available. Business marketers should plan an initial journey to explore the new terrain and find out how they can harvest its resources. Bottom Line 7 B2B Display Advertising How-to Guide Resources HOW-TO GUIDE Several vendors have developed specialized offerings for B2B display advertising. Most can provide general information on the topic even if you don’t use their services. Companies to consider include: The complexity of creating, buying, and evaluating web display advertising can seem over- whelming but, marketers can ignore many of the technical details and hire experts to handle much of the remaining work. Getting started isn’t as hard as it looks. Just follow the action plan below. Bizo — A B2B advertising network with particular strength in business advertising on Face- book and LinkedIn, supports cookie-based personalization on company webpages, and integrates with marketing automation systems for cross-channel campaigns. DemandBase — Uses the IP address of webpage visitors to identify their employer and delivers targeted advertising on that basis. Also supports marketers and sales teams by iden- tifying website visitors by company, auto-filling web forms with company information, enhan- cing lead records, and targeting messages on corporate websites based on the visitor’s employer. Vendemore — A Sweden-based B2B ad network that uses IP address and cookies to target and retarget display advertising and to deliver website personalization. Particular strength outside the United States. BBN Solutions — B2B ad network that offers site-based ads and real time bidding on impres- sions outside its network. B2B Display Advertising Web display advertising is a new frontier for many business marketers. Like any frontier, it hides unknowns and presents risks that more familiar terrain does not. But the paths to success are increasingly well marked, the rough spots are increasingly paved over, and experienced guides are widely available. Business marketers should plan an initial journey to explore the new terrain and find out how they can harvest its resources. Bottom Line

8. 8 B2B Display Advertising How-to Guide 1 2 3 4 Is it Worth Trying? Create a Test Program Measure Results Expand Is your company having a hard time finding enough new leads? Do you have the budget to create new ads and purchase ad impressions? Is it impossible to reach the complete pool of potential buyers directly through purchased lists or trade shows? Most companies would answer “yes” to all these questions, but your situation might be different. The key benefit of display advertising is that it reaches potential buyers early in the buying cycle, well before they are ready to contact you on their own. This expands your audience beyond those people who know your company already. Action Plan STEP 1 - Decide whether Web advertising is worth trying Display Advertising Opens Doors in the Buying Cycle 8 B2B Display Advertising How-to Guide 1 2 3 4 Is it Worth Trying? Create a Test Program Measure Results Expand Is your company having a hard time finding enough new leads? Do you have the budget to create new ads and purchase ad impressions? Is it impossible to reach the complete pool of potential buyers directly through purchased lists or trade shows? Most companies would answer “yes” to all these questions, but your situation might be different. The key benefit of display advertising is that it reaches potential buyers early in the buying cycle, well before they are ready to contact you on their own. This expands your audience beyond those people who know your company already. Action Plan STEP 1 - Decide whether Web advertising is worth trying Display Advertising Opens Doors in the Buying Cycle

9. 9 B2B Display Advertising How-to Guide 1 2 3 4 Define specific goals for your initial campaign, including the types of people you want to reach, the message you want to convey, and the results you hope to generate. Much of the creative can be based on existing marketing materials, but bear in mind that display adver- tising has its own requirements for effective promotions. Use an experienced agency to guide you in the right direction for both ad creation and media buys. The initial program doesn’t have to be very large; its goal is only to measure potential results. If budget permits, try a couple of different approaches, such as site-based and individ- ual-based targeting. If money is very tight, consider starting with a retargeting program, which almost always provides a positive return on investment. Action Plan STEP 2 - Create a test program Measure Results Expand Create Pilot Projects to Set Campaign Goals and ROI Is it Worth Trying? Create a Test Program 9 B2B Display Advertising How-to Guide 1 2 3 4 Define specific goals for your initial campaign, including the types of people you want to reach, the message you want to convey, and the results you hope to generate. Much of the creative can be based on existing marketing materials, but bear in mind that display adver- tising has its own requirements for effective promotions. Use an experienced agency to guide you in the right direction for both ad creation and media buys. The initial program doesn’t have to be very large; its goal is only to measure potential results. If budget permits, try a couple of different approaches, such as site-based and individ- ual-based targeting. If money is very tight, consider starting with a retargeting program, which almost always provides a positive return on investment. Action Plan STEP 2 - Create a test program Measure Results Expand Create Pilot Projects to Set Campaign Goals and ROI Is it Worth Trying? Create a Test Program

10. . 10 B2B Display Advertising How-to Guide 1 2 3 4 Measure Results Accurately measuring the results of your test is critical. Be sure before you launch that you have mechanisms to capture the names of any leads the advertisements might generate – typically via landing page forms linked to your ads. But also recognize that the value from display ads often accrues over time to people who don’t respond immediately and may later connect through other channels. Look for indirect measures such as changes in website traffic, contacts from people or companies you know saw your ads, and recall of ad messages. Action Plan STEP 3 - Measure Results Expand Use the Right Metrics to Assess Your Test Is it Worth Trying? Create a Test Program

11. . 11 B2B Display Advertising How-to Guide 1 2 3 4 Expand The initial test is just a starting point. Assuming results are promising, you’ll want to refine your display program by trying different audiences, media strategies, and creative approaches. This should easily double or triple your original results over time. One caution: the number of impressions on high-performing sites is often very limited, especially if you are chasing a narrow audience. This can limit the volume of business that display advertising can generate. It’s also why individual-based targeting and real time bidding are so important: they let you reach the right people outside of industry-targeted Web sites. Action Plan STEP 4 - Expand Measure Results Keep On Building and Leveraging Your Results Is it Worth Trying? Create a Test Program

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