RAPID MEDIA BUYING AT MASSIVE SCALE
ILYA LICHTENSTEIN
COFOUNDER,
PERFORMANCE MARKETING SUMMITMARCH 12, 2013
ABOUT ILYA
• Affiliate marketing -> creating software
• 2007: Facebook Ads
• 2009: Google Content Network
• 2010: Display Media Buys
• 2011- Co-founder,
THEME: RAPID SCALE THROUGH AUTOMATION
MARKETING HAS CHANGED
WHY DISPLAY MEDIA BUYS?
1. http://searchenginewatch.com/article/2200730/Organic-vs.-Paid-Search-Results-Organic-Wins-94-of-Time
2. http://www.emarketer.com/newsroom/index.php/realtime-bidding-poised-quarter-display-spending/
3. http://www.ignitionone.com/en/about/research-white-papers.html
• 94% of traffic goes to organic results1
• Display still growing 20% a year2
• Large fluctuations in CPMs persist3
• Inefficient market=opportunity
MOST MEDIA BUYS FAIL…
92%
8%
Long Term Campaign Performance_x000d_
Negative/Zero ROI
Positive ROI
…UNTIL THEY SUCCEED
Revenue
Spend
Total
Month 1
$7420
$12600
($5180)
Month 2
$13880
$16500
($2620)
Month 3
$37600
$22900
$14700
TRENDS IN DIGITAL MARKETING
• Social
• Mobile
• Dynamic
• Micro-targeted
ALL MARKETING IS PERFORMANCE MARKETING
HOW BRANDS BUY MEDIA IN 2013
• Direct access to inventory
• Precise audience targeting
• Channel-specific CPA goals
• Constant split testing
DIRECT ACCESS TO INVENTORY
PRECISE AUDIENCE TARGETING
CHANNEL-SPECIFIC CPA GOALS
CONSTANT SPLIT TESTING
HOW TO SCALE FAST
• Go direct (broad) or RTB (micro-targeted)
• Micro-target creatives and landing pages
• Iterate towards profitability
• Automate media planning and trafficking
