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Soho Digital Background

Soho Digital Background. Founded by three partners with traditional SEO backgrounds Migrated SEO client portfolio to WhenU. Discuss WhenU exit, need to remain network agnostic. Congrats on the new marriage Migrated same client portfolio to 6+ additional adware networks . What is adware?.

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Soho Digital Background

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  1. Soho DigitalBackground Founded by three partners with traditional SEO backgrounds Migrated SEO client portfolio to WhenU. Discuss WhenU exit, need to remain network agnostic. Congrats on the new marriage Migrated same client portfolio to 6+ additional adware networks

  2. What is adware? • Show of hands, how many of you buy adware right now? • Software platform which delivers contextually targeted ads to a distributed user base • Users opt in to receive adware in exchange for receiving a wide variety of free software (screensavers, toolbars, P2P file sharing applications, etc) • Advertisers buy media in various cost unit formats and the ads are targeted to user behavior at any given moment (foot locker and cheap tickets examples)

  3. Soho Digital’s role in adware • Over 150 advertisers rely on Soho Digital to consolidate the planning, buying, and management of adware media from 10+ unique sources • Award-winning creative and client service teams deliver value in many ways to media buyers • Media buyers gain efficiency and market place intelligence when buying adware media from Soho Digital

  4. Current Clients

  5. Dating Clients (past and present)

  6. Adware Cost Structure CPM, CPC, CPV (explanation of each) Competing advertisers run on adware networks in rotation Network inventory delivery is Darwinian; priority is established on an effective CPM basis

  7. CPV – the emerging winner A “view” = a single impression where the advertiser's landing page is served in a separate browser window as opposed to a clickable graphical image Adware networks determine effective CPM by taking CPV cost and multiplying by 1000. (e.g. $.02 CPV = $20 ECPM) Media buyers take heed! Avoid the temptation to avoid CPV buying because the effective CPM is so much higher than what you are used to seeing as CPM prices for traditional clickable graphical image inventory. All impressions are not created equally.

  8. Benefits of CPV Consider CPV prices for Dating inventory commonly found in the marketplace. $.015 to $.04 are standard depending on level of targeting. This imputes to an effective CPM range of $15 - $40 that you pay to a network when buying CPV. Consider that a cost-per-click (CPC) prices for Dating inventory are $.35 - $.40. If you are lucky and have a pretty girl on your creative you just might get a 2% click through rate. That imputes to a $7 - $8 effective CPM. In either case market prices are established organically by supply and demand and are a function of the effective CPA “pain tolerance” of advertisers who buy the media. The bottom line is this: On an impression-per-impression basis, CPV is a significantly more efficient use of media as evidenced by the relatively high effective CPM that is paid in CPV campaigns verses CPC campaigns while the advertiser is bound in either case to the same effective CPA targets.

  9. Case Study Dating Adveriser X. Previously buying $0.40 CPC on the network BestOffers. Getting a 2% CTR, therefore netting an $8.00 CPM to network, while hitting a $5.00 effective CPA, which was beyond max pain tolerance. Recommendation was made to convert the campaign to CPV, specifically paying $0.015 CPV or a $15CPM to the network, nearly double than the CPC buy. Effective CPA dropped to $2.70! Volume on the campaign also increased dramatically because of heightened prioritization among other dating advertisers in the rotation.

  10. The point of all this Remember, DARWINIAN inventory allocation. Think Overture. The more you pay per unit, the more units you get overall. On an adware network there can be as many as 10 dating advertisers clamoring for inventory. In order to be near the top of the totem pole in terms of delivery, you need any edge you can get. As a CPV buyer, you will kick the CPC buyers to the curb on an ECPM basis. It’s likely that your only competition will be the other guys smart enough to be buying CPV. Go out to the adware networks, look for arbitrage opportunities. Take advantage of marketplace inefficiency. Opportunity lies in networks that allow for CPV buyers to compete against CPC buyers in the rotation. Look for new emerging adware platforms with “wild west” style pricing policies.

  11. Questions Thank you all very much!

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