Pricing Models and Controversy for Online Display Advertising
July 29, 2010 by admin2 · Leave a Comment
Introduction 
People outside the field, do not realize it, but the life of the online display account executive is one of negotiation, controversy and problem solving! Long gone are the days of reading prices off a sheet and filling orders by rote. Don’t miss out on the excitement, this article can be a refresher or introduction to some of the key terms and issues which need to be navigated to be successful in this innovative and quick-paced industry.
Opening Scene….
Consider with me, if you will how some advertisers will pay the original ad serving business with a 2-day conversion of ad serving to purchase, but many will not pay for anything other than a click-based conversion.
What is the web publisher or network’s Account Executive (AE) to do?
Well, the wise and prepared AE will have typically discussed in advance with the advertiser (or their agency) what gets counted. Determining whose count will be used in determining fees is one of the most common and important conversations between publishers and advertisers, and is part of the day to day job of most Account Executives.
Foundation Concepts Reviewed
Online Display Advertising campaigns are paid according to one of three models: CPM, CPC or CPA. The CPM (cost-per-thousand (or “mil”) pricing model means the advertiser agrees to pay for every 1,000 impressions shown. CPC pricing means that the advertiser will only be charged for clicks; CPA means cost-per-action (sometimes cost per acquisition or CPL, cost per lead) which means the advertiser pays when the user clicks on the ad AND goes on to buy (or take whatever action the advertiser wanted that user to take, for example registering or downloading something). When a user takes that desired action, it is called a “Conversion.”
When a user’s click path (from seeing the ad, clicking and converting) all happens in the same session, the conversion is said to be a “click-based” conversion. Typically, easy buying decisions, like the decision to download a ringtone for $1.00, will happen in one session. Sometimes, the user follows the click path toward conversion and steps away, perhaps returning a day or two later to complete the transaction. Many vacation packages are bought this way, for example. Although the actual path for that 2nd visit did not begin again with clicking on the same display ad, the site will recognize the user via cookies “dropped” on their browser during their first visit. It is possible to identify this user as someone who was there two days ago, who originally came to the site after clicking on X ad, which was served by Y. Let’s say that now, on the user’s second visit, the user buys. The resulting conversion will now be called a “view-based” conversion.
Potential Conflict Enters Stage Right
In a world of visibility, ad servers occasionally cause conflict between the agency and publisher – the publisher’s ad server counts “on the call” (that is, counts as soon as page loads) and the agency’s server counts “on the send” (when the ad starts to load on the user’s platform). In that gap, no more than a few seconds long, countless things can happen that may potentially change the count. The user could back-arrow off the page, or the user may have pop up blockers blocking pop up ads – which are frequently called -from actually serving. In one case an ad server might count on each call, and with another ad server it only counts when an ad pops up!
The Hero/ Heroine Arrives on the Scene
Resolving these differences and discrepancies is the job of the Account Managers (AMs). Account Executives and AMs need to work as a team to avoid surprises. The better the ad operations of the site or network, the better job they do in making sure that the available ad inventory was most efficiently used, ensuring the publisher and/or network received the highest possible yield.
Happy Ending
With greater clarity of the terms, differences and potential conflicts, hopefully this article has helped better prepare you to put your online digital sales knowledge to work today and tomorrow. Here is to your success!
About the Author
Steve Bookbinder, CEO and lead trainer for Internet Advertising Institute has over a decade of experience selling online media, search engine marketing, and advertising. He has written and co-written more than 25 books, articles and audio training programs, and is most recently the author, with Jeff Goldberg, of How to Be Your Own Coach.To read more about the topic in this article or explore the online training courses visit http://www.InternetAdvertisingInstitute.com
Internet Advertising Institute: The World is Changing, Are You?
e-Zine Article.com source: http://ezinearticles.com/?expert=Steve_Bookbinder
Account Managers’ Five Essentials for Success
July 29, 2010 by admin2 · Leave a Comment
Article Overview 
The Critical Player
There is a position that is important to every executive in any company that does business online, from the Head of Sales to the Head of Operations, from the Head of Finance to all the Account Executives and the entire Business Development team. This position becomes the face of the company to many customers. Everyone in the company relies on this one person and needs them to be consistent and effective in “saving” each client with which they interact. The focus of company success in this case, and our article, is the Account Manager.
In advertising and marketing, the Account Executive “hands off” the client to the Account Manager (AM) immediately after a sale. The AM leads each company’s formal on-boarding process: welcoming the client, establishing campaign visibility KPI reporting, as well other functions. That said, there are 5 things that the best AMs need to master in order to succeed every time they are working with clients. (Or as per our analogy, whenever they are on the pitching mound for their company.)
1. Thoroughly Understand The Customer and Their Goals.
It is surprisingly difficult to nail down exactly what a client’s goals are. Many clients haven’t reduced their aims down to realistic and meaningful metric goals. To really understand what each client is looking for, especially for a test campaign, start by understanding the client’s business. In essence, you need to understand as much about a client’s company as your own.
2. Reassure Everyone that They Are In Charge and Know What Needs To Be Done.
Once the AM begins to lead the opening conversation by asking “smart” questions, they establish who is really in charge. The subtle dance is the one where the AM is reactive to the customer while leading the service delivery, remembering that most customers want to be able to turn over the responsibility for their campaigns to an expert instead of having to micromanage the details. This is best done by sharing with the customer the kinds of clients you/your team has worked with that had similar goals and/or marketing challenges. Stories about how you have succeeded in similar situations in the past – especially when told with confidence – will go a long way toward getting the customer to put their faith in you.
3. Negotiate How They Will Define Success Each Week/Month of the Campaign
First impressions, whether in social situations or in the first week of a new campaign, are extremely powerful. Therefore, AMs need to grab the opportunity and need to pitch a winning game. But, to do that consistently, the AM must properly set the client’s expectations every week. To do that, the AM must let the client hear the thinking behind their plans. When clients do not see underlying strategy, they begin to question and doubt every move, like a nervous team owner with an uncertain general manager. But when they understand the thinking behind the moves, they are more open to accepting realistic results that each week.
4. Find A Way To Make An Unhappy Client Happy
Eventually, even the best AM will encounter an unhappy client. By the time the unhappiness emerges, it is often too late to backtrack to determine what really went wrong. The best strategy is take full responsibility for all errors. Just as importantly, this is the time to introduce a new strategy or optimization tactic. If you find a balance between these two, great things can happen.
5. Sell The Client On Trying Something Else
When an AM handles a campaign, they can sometimes increase that customer’s media spending. To do so, it is important to establish that you can be trusted with a smaller budget. Suggesting increased spending before earning that trust does not work. The customer becomes suspicious that the AM’s only interest is self interest. Timing in sales, like pitching, is everything.
About the Author
Steve Bookbinder, CEO and lead trainer for Internet Advertising Institute has over a decade of experience selling online media, search engine marketing, and advertising. He has written and co-written more than 25 books, articles and audio training programs, and is most recently the author, with Jeff Goldberg, of How to Be Your Own Coach.To read more about the topic in this article or explore the online training courses visit http://www.InternetAdvertisingInstitute.com
Internet Advertising Institute: The World is Changing, Are You?
e-Zine Article.com source: http://EzineArticles.com/?expert=Steve_Bookbinder
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