1 00:00:01,260 --> 00:00:03,720 Unknown: Welcome to digital advertising and marketing one on 2 00:00:03,720 --> 00:00:09,660 one course number four buying the actual ads in this course 3 00:00:09,660 --> 00:00:12,840 will cover about five different topics versus the different 4 00:00:12,840 --> 00:00:18,060 buying models. Second, our general price ranges, the RFP 5 00:00:18,060 --> 00:00:25,110 process, and IO, and then any additional considerations versus 6 00:00:25,290 --> 00:00:27,300 buying models. There are a number of different buying 7 00:00:27,300 --> 00:00:33,030 models. The first and most basic is a CPM at a cost per 1000 8 00:00:33,030 --> 00:00:36,180 impressions. The N stands for milli which is Latin for 1000. 9 00:00:36,180 --> 00:00:39,060 So do not be confused.

This is not cost per million 10 00:00:39,060 --> 00:00:44,010 impressions. This is cost per 1000 impressions. Second is cost 11 00:00:44,010 --> 00:00:47,610 per click. This is the most common way to buy search. You 12 00:00:47,610 --> 00:00:51,840 bid how much you are willing to pay for a click on your ad unit. 13 00:00:53,730 --> 00:00:56,940 Then cost per engagement similar to cost per click you're bidding 14 00:00:56,940 --> 00:01:00,270 for how much you are willing to pay for an engagement really 15 00:01:00,270 --> 00:01:02,640 common and social because if you think about Facebook, for 16 00:01:02,640 --> 00:01:05,880 example, there are multiple ways to engage with an ad, you could 17 00:01:05,880 --> 00:01:08,760 click on it, you can watch a video, you can like it, you can 18 00:01:08,760 --> 00:01:11,580 share it, you can comment it on.

On it, there are a number 19 00:01:11,580 --> 00:01:14,190 different ways to engage with it. So as an advertiser, you 20 00:01:14,190 --> 00:01:17,130 might say, I don't really care what that engagement is, as long 21 00:01:17,130 --> 00:01:20,400 as there is engagement. So I'm going to bid on any popular 22 00:01:20,400 --> 00:01:27,270 engagement model. CPA is a cost per acquisition. This is really 23 00:01:27,270 --> 00:01:30,960 important for either a direct response campaign, or if you 24 00:01:30,960 --> 00:01:34,110 want people to sign up for a website, if you are selling 25 00:01:34,110 --> 00:01:36,690 insurance, think about something like that, where you are 26 00:01:36,690 --> 00:01:40,980 acquiring either a sale or a registration. So maybe you want 27 00:01:40,980 --> 00:01:43,680 people to sign up for your newsletter.

And you say every 28 00:01:43,680 --> 00:01:48,210 customer is worth $10. So maybe we'll bid up to a $2 and 50 29 00:01:48,210 --> 00:01:52,530 cents, cost per acquisition. Then the partner runs, how many 30 00:01:52,530 --> 00:01:56,610 impressions and clicks they need to work within that cost per 31 00:01:56,610 --> 00:01:59,820 acquisition model and you only pay when you actually get that 32 00:01:59,820 --> 00:02:05,550 accurate. Whatever it might be CPC VI is cost per completed 33 00:02:05,550 --> 00:02:09,180 view this is really common for video. If you have a 32nd spot 34 00:02:09,180 --> 00:02:11,310 you want people to watch it all the way through, you don't want 35 00:02:11,310 --> 00:02:15,210 to run it have people watch it five seconds and then leave. So 36 00:02:15,210 --> 00:02:20,940 you pay only when the video is watched to completion.

It 37 00:02:21,150 --> 00:02:25,260 appears a gross rating point. This is the most common way to 38 00:02:25,260 --> 00:02:30,780 buy TV and radio traditional broadcast. It is calculated by 39 00:02:31,140 --> 00:02:34,920 your reach times your frequency and that is calculated based on 40 00:02:34,920 --> 00:02:38,670 the population how many impressions you have, etc. This 41 00:02:38,670 --> 00:02:41,790 is not as common in digital but it's being used a little bit 42 00:02:41,790 --> 00:02:46,650 more now to compare a digital buy to TV buy. If you are if you 43 00:02:46,650 --> 00:02:49,470 are clients who's working a brand for 40 years and you've 44 00:02:49,470 --> 00:02:52,590 only bought TV now you have to buy digital. You want to say an 45 00:02:52,590 --> 00:02:55,890 apples to apples comparison.

What are my digital dollars 46 00:02:55,890 --> 00:03:01,860 doing for me when compared to TV and then last vCPM. This is 47 00:03:01,860 --> 00:03:05,700 becoming one of the most talked about in common topics right now 48 00:03:06,270 --> 00:03:09,660 being viewability. so in this situation you were only paying 49 00:03:09,660 --> 00:03:13,380 when your ad is actually viewed. That might sound good. So why 50 00:03:13,380 --> 00:03:15,720 buy an ad? Of course I want it to be viewed, why would I pay it 51 00:03:15,900 --> 00:03:19,500 for otherwise?

Well, if you have a website, think about 52 00:03:19,500 --> 00:03:23,790 Huffington Post, for example. You go to Huffington Post Comm. 53 00:03:24,390 --> 00:03:28,080 And you see the headline and top stories. But if you scroll down, 54 00:03:28,080 --> 00:03:31,140 there are more stories and more ad units that you don't see 55 00:03:31,170 --> 00:03:34,230 unless you scroll down. Well, their ad units down there that 56 00:03:34,230 --> 00:03:38,220 will fire and if you don't scroll down and see them, they 57 00:03:38,220 --> 00:03:41,580 still get counted as an impression. So we've known for 58 00:03:41,580 --> 00:03:44,700 years that was happening, but we didn't really have a way to tell 59 00:03:44,760 --> 00:03:48,120 if that was actually in screen or if it was below the fold and 60 00:03:48,120 --> 00:03:51,690 somebody didn't see it.

Now there are companies such as is 61 00:03:51,690 --> 00:03:55,770 and mode and double verify, that can track that stuff. So now 62 00:03:55,770 --> 00:03:58,770 advertisers are saying I only want to pay for viewable 63 00:03:58,770 --> 00:04:02,130 impressions. I can track that. I can use these third parties to 64 00:04:02,130 --> 00:04:05,280 verify it. And we are going to adjust our plans accordingly. 65 00:04:07,080 --> 00:04:09,540 Now general price ranges and we got a picture of Johnny Cash 66 00:04:09,540 --> 00:04:14,700 here to help us out we're talking about money.

The first 67 00:04:14,700 --> 00:04:18,990 one that we're gonna talk about are standard display banners. In 68 00:04:18,990 --> 00:04:22,050 most situations, you're doing a CPM here. For planning costs, 69 00:04:22,050 --> 00:04:26,820 you can talk about a five to $15 cost, depending on how premium 70 00:04:27,240 --> 00:04:32,700 those placements might be. Then rich media banner, so your 71 00:04:32,700 --> 00:04:35,310 standard but taken a little bit further, maybe there's video 72 00:04:35,310 --> 00:04:38,640 there's maybe interactive features, less inventory and it 73 00:04:38,640 --> 00:04:41,100 takes up more room and space, they cost a bit more money. 74 00:04:41,340 --> 00:04:43,410 You're talking about 10 to $25 CPM. 75 00:04:44,820 --> 00:04:49,170 For video, in the digital world, a 15 second and a 32nd will 76 00:04:49,170 --> 00:04:53,730 usually cost the same amount.

So if you're doing a CPM for pre 77 00:04:53,730 --> 00:04:57,120 roll, you could be looking at 12 to $20. That's something like a 78 00:04:57,120 --> 00:05:01,620 video ad network. That's like YouTube or Or on something like 79 00:05:01,620 --> 00:05:05,070 CNN calm think that kind of ad. If you do it a full episode 80 00:05:05,070 --> 00:05:07,950 player which is like your Hulu or your crackle or your ABC 81 00:05:07,950 --> 00:05:11,520 Family, your CBS, whatever it might be, those are more 82 00:05:11,520 --> 00:05:14,280 expensive than more premium placements. And in general, 83 00:05:14,280 --> 00:05:17,190 those ads are watched all the way to completion. So you're 84 00:05:17,190 --> 00:05:23,160 talking about 25 to $45, CPM takeovers and skins which we 85 00:05:23,160 --> 00:05:25,920 talked about, these are really big executions, they generally 86 00:05:25,920 --> 00:05:29,490 only last for a day or two, and usually bought on a flat rate.

87 00:05:30,210 --> 00:05:34,080 You could sort of $10,000 a day and go all the way up. I mean, 88 00:05:34,080 --> 00:05:36,780 you could be talking about a quarter million dollars for one 89 00:05:36,780 --> 00:05:41,130 day on a major site like Yahoo. So these really, really range 90 00:05:43,230 --> 00:05:46,470 social media, on Facebook and Twitter. There's pretty big 91 00:05:46,470 --> 00:05:49,920 range here because it depends on your audience. You usually will 92 00:05:49,920 --> 00:05:54,000 buy on a CPE but you can buy on the CPM. And if when you're 93 00:05:54,000 --> 00:05:58,950 looking at CPM, it'll be about $1 50 upwards to $8 the more 94 00:05:58,950 --> 00:06:02,580 targeted your audience is, the more it's going to cost.

So if 95 00:06:02,580 --> 00:06:05,250 you're targeting everyone in the US gonna have a pretty low CPM. 96 00:06:05,580 --> 00:06:09,030 If you're targeting people only in Wyoming, it's going to be 97 00:06:09,030 --> 00:06:12,930 pretty expensive. That's a simple supply and demand. The 98 00:06:12,960 --> 00:06:15,780 smaller the audience, the more it's going to cost to reach 99 00:06:15,780 --> 00:06:20,190 them. And then finally, search, like we said before, you 100 00:06:20,220 --> 00:06:23,280 generally buy it on cost per completed our cost per click 101 00:06:23,280 --> 00:06:27,300 CPC, you could do a really cheap one as low as 10 cents, or this 102 00:06:27,300 --> 00:06:30,510 can be $5. Plus, think about if you're a Coca Cola and you're 103 00:06:30,510 --> 00:06:33,540 just doing awareness.

You don't need to spend a lot of money cuz 104 00:06:33,540 --> 00:06:36,420 people buying Coke, so you want to bid pretty low, maybe 10 105 00:06:36,420 --> 00:06:41,550 cents. If you're selling cars, then you could be saying 510 $20 106 00:06:41,550 --> 00:06:44,970 more because it's a car and if they buy it, there's a great 107 00:06:45,000 --> 00:06:50,490 return on investment there. Now the request for proposal process 108 00:06:50,520 --> 00:06:54,570 or the RFP process. First you identify where do you want your 109 00:06:54,570 --> 00:06:57,270 ads to run? Who you're targeting? Do you want it to run 110 00:06:57,270 --> 00:06:59,970 on a sports website or it's a male female as a cooking show?

111 00:07:00,000 --> 00:07:03,720 Stop being excetera. Aside from just knowing the web, there's a 112 00:07:03,720 --> 00:07:06,780 tool called comScore that most media planners will use. 113 00:07:07,020 --> 00:07:10,110 comScore ranks every website it'll tell you how many people 114 00:07:10,110 --> 00:07:13,260 go there. What is their index? Male, female kids in the 115 00:07:13,260 --> 00:07:16,920 household? Are their spikes in the year, everything you need to 116 00:07:16,920 --> 00:07:20,100 know.

So you can go to comScore and check. You can say I use 117 00:07:20,130 --> 00:07:22,650 target males with a high household income, where did they 118 00:07:22,650 --> 00:07:26,850 go? comScore spit you out of rancor, which will show you the 119 00:07:26,850 --> 00:07:29,820 like top 100 sites for that particular audience. You do a 120 00:07:29,820 --> 00:07:32,250 lot of research in here and comScore is a highly used tool 121 00:07:32,250 --> 00:07:35,940 in the industry. Now you actually create your proposal. 122 00:07:36,270 --> 00:07:39,990 What this is, is usually either a Word document, a PDF, or an 123 00:07:39,990 --> 00:07:42,870 Excel doc that just outlines everything about your brand, 124 00:07:42,870 --> 00:07:44,700 your audience, the type of creative, you'll have the 125 00:07:44,700 --> 00:07:48,960 message where you're targeting it, everything that a website 126 00:07:48,960 --> 00:07:51,330 would need to know to put together the right proposal for 127 00:07:51,330 --> 00:07:54,870 you.

You also include a budget here generally, I like to put in 128 00:07:54,870 --> 00:08:00,000 a range. So if you say unlikely, most likely I'm going to get 129 00:08:00,960 --> 00:08:05,700 Around $600,000. But I want to see a plan at 400 600 and 130 00:08:05,700 --> 00:08:10,230 $800,000. So that you can see, do prices change. If I spend 131 00:08:10,230 --> 00:08:15,090 more money, can I negotiate what else is out there. So if you get 132 00:08:15,150 --> 00:08:20,520 multiple price ranges, then you have more to work with.

Then you 133 00:08:20,520 --> 00:08:23,550 actually send it. So if you work at an agency, you will generally 134 00:08:23,550 --> 00:08:26,760 have a lot of contacts already. If you don't work at an agency, 135 00:08:26,850 --> 00:08:29,220 just go to the website of whoever you want to work for. 136 00:08:29,220 --> 00:08:31,890 There's an About section, usually somewhere to contact the 137 00:08:31,890 --> 00:08:34,560 sales rep. And if you say, Hey, I'm an advertiser, and I want to 138 00:08:34,560 --> 00:08:37,020 spend money, they'll get back to you pretty quickly, and you'll 139 00:08:37,020 --> 00:08:40,110 have a few contacts. This is all done through email now. So if 140 00:08:40,110 --> 00:08:41,910 you have a general email address, that's usually good 141 00:08:41,910 --> 00:08:46,530 enough.

Then I usually get people about two weeks to send 142 00:08:46,530 --> 00:08:49,230 everything back. Once you get it back. You review it and you 143 00:08:49,230 --> 00:08:54,720 start negotiating. So maybe you are RP, an FTP Calypso player, 144 00:08:55,110 --> 00:08:58,770 and they came back with a $50 CPM. And you said, hey, that's 145 00:08:58,770 --> 00:09:01,890 pretty high. Premium your premium content, but I don't 146 00:09:01,890 --> 00:09:04,620 think 50 is a reasonable amount.

Let's bring that down to maybe 147 00:09:04,620 --> 00:09:07,980 40. Maybe you'll meet in the middle, maybe they'll work with 148 00:09:07,980 --> 00:09:11,010 you and say 40 is fine. But negotiation process of being 149 00:09:11,010 --> 00:09:15,300 part of the actual RFP process. You can negotiate rates, 150 00:09:15,540 --> 00:09:19,740 placements, days for a takeover, all sorts of different things. 151 00:09:20,790 --> 00:09:23,280 Then once you're actually done, you've negotiated your rates, 152 00:09:23,310 --> 00:09:26,280 you know who you're working with you ready to go, you actually 153 00:09:26,310 --> 00:09:31,050 place the buy, when you place a buy you issue and insertion 154 00:09:31,050 --> 00:09:35,160 order. So once you've like I said you agreed upon the 155 00:09:35,160 --> 00:09:35,760 proposal.

156 00:09:35,940 --> 00:09:38,820 Now this is the outline everything about what you 157 00:09:38,820 --> 00:09:42,900 negotiate every placement on the plan and size, length of the 158 00:09:43,230 --> 00:09:46,680 campaign, the flight, what by model are you using and what is 159 00:09:46,680 --> 00:09:50,040 the rate? What is the total budget that you have agreed 160 00:09:50,040 --> 00:09:50,400 upon? 161 00:09:51,030 --> 00:09:53,550 Both parties must sign this document before it's completed. 162 00:09:54,300 --> 00:09:57,210 And then this IO generally includes the standard IB turns, 163 00:09:57,210 --> 00:10:01,950 which we mentioned earlier on in this course. So the IEP terms 164 00:10:01,950 --> 00:10:05,190 are pretty long. They're not the entire terms are included in the 165 00:10:05,190 --> 00:10:09,570 i O, but it used to be a link to the IEP terms online and say, 166 00:10:09,810 --> 00:10:14,610 this contract agrees to all terms set forth by the IEP.

Once 167 00:10:14,610 --> 00:10:16,350 you've done that there are usually additional 168 00:10:16,350 --> 00:10:20,460 considerations. One of the most common is the IEP terms do they 169 00:10:20,460 --> 00:10:25,170 not work for this campaign, and for the most part, they do, but 170 00:10:25,170 --> 00:10:29,670 one thing that could cause an issue is a 14 day out clause. So 171 00:10:29,670 --> 00:10:34,020 the IEP terms say that all advertisers much must agree to a 172 00:10:34,020 --> 00:10:38,100 14 day out clause, which means that if you need to cut budget, 173 00:10:38,130 --> 00:10:40,710 you've agreed upon a budget, but you need to cut it. You have to 174 00:10:40,710 --> 00:10:43,470 give the partner a 14 day heads up 175 00:10:43,680 --> 00:10:44,820 to say we're going to cut your budget. 176 00:10:45,450 --> 00:10:48,930 That partner can continue to run ads for that 14 day and charge 177 00:10:48,930 --> 00:10:52,440 you for ads run during that time period.

It's put in there the 178 00:10:52,440 --> 00:10:56,520 safeguard so that you're not an advertiser who changes your mind 179 00:10:56,520 --> 00:11:00,000 on a whim and just cuts budget and leaves everybody hanging 180 00:11:00,000 --> 00:11:03,120 dry. And then it's great for the website because even if budget 181 00:11:03,120 --> 00:11:06,510 is cut, they still have 14 days worth of ads that they can run 182 00:11:06,720 --> 00:11:09,180 and get a little bit of money out of this campaign that put 183 00:11:09,180 --> 00:11:12,120 together for you. Now, if you're doing something that's really 184 00:11:12,240 --> 00:11:16,890 awesome, 14 days might not work. Maybe you say if you're going to 185 00:11:16,890 --> 00:11:19,200 cut it, you need to give us a month. So we need a 30 day 186 00:11:19,200 --> 00:11:22,200 window. Or you can say we don't really care two days it's fine 187 00:11:22,200 --> 00:11:27,360 because it's small campaign.

Another thing is additional 188 00:11:27,360 --> 00:11:30,780 services that can be provided that usually the vendor will pay 189 00:11:30,780 --> 00:11:34,290 for so if you're a brand or an advertiser, and you want to do 190 00:11:34,290 --> 00:11:37,230 something like a verification or you want to use a rich media 191 00:11:37,230 --> 00:11:40,530 partner or you want to do a brand study, you will generally 192 00:11:40,530 --> 00:11:43,680 ask that whatever partners you're working with will cover 193 00:11:43,680 --> 00:11:47,400 those costs. So we have a number of different examples here point 194 00:11:47,400 --> 00:11:51,330 roll is rich media integral and mote our verification flash 195 00:11:51,330 --> 00:11:56,160 shocking rich media double verify is verification. 196 00:11:56,370 --> 00:12:01,320 Obviously, Nielsen and mil brown are brand studies. That's just a 197 00:12:01,320 --> 00:12:04,500 small handful of the dozens of other companies out there that 198 00:12:04,890 --> 00:12:08,370 big advertisers work with on a daily basis.

And usually to make 199 00:12:08,370 --> 00:12:10,770 it easier, they say we want the partner to bake everything into 200 00:12:10,770 --> 00:12:13,680 the cost of the campaign and pay for all of that. And that will 201 00:12:13,680 --> 00:12:20,490 be outlined in the actual i O. And that's it. Once you've kind 202 00:12:20,490 --> 00:12:23,700 of figured out exactly what you're willing to buy, that is 203 00:12:23,700 --> 00:12:25,770 the process for buying them.