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Pedro Gonçalves

Cost Per Like: A Subjective Valuation of Your Facebook Fans - 0 views

  • Earlier this month, Facebook unveiled a new metric for evaluating advertising campaigns on Facebook, called "cost per action" (CPA). Now, advertisers can pay not just for impressions or click-throughs, but for specific actions they want consumers to perform once they've seen an ad — including becoming a fan of a Page. For example, an advertiser could specify it is willing to pay $2.00 for a "Like" — that is, for a new fan on its company or product Page — and only pay when the Page gets a new fan. Other actions include Offer claims and clicks on links to third-party sites.
  • a fan is worth an average of $174 to a company. But as the chart below shows, the value of a fan can differ widely across companies:
  • "Marketers should define the value of a fan based on how it impacts the key criteria that determines the success or failure of their business," says Kalehoff. Specifically, marketers should measure the spending habits of fans versus non-fans, to see if fans are more likely to make a purchase, make purchases at great amounts and/or purchase repeatedly. Advocacy — the probability of a customer recommending a product to others, and the probability of that recommendation to affect sales — is another key metric. Another area that is more difficult to measure is brand affinity — that is, the emotional draw that a customer feels towards a brand because of the relationship that develops between brands and fans over Facebook. If positive brand affinity tends to be a powerful sales indicator on other channels, it may be worth cultivating on Facebook, too.
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  • Once a company has determined how much a certain target prospect worth, it needs to decide the amount of money it wants to spend to acquire and continue to communicate with that fan. "[Marketers] really need to bring it down to a cost equation," says Kalehoff. "No one else can say what a fan is worth except the brand itself, and then it has to decide what to spend to acquire fans, and what it costs to communicate with them once a day or week to remind them to buy throughout the year."
  • A luxury fashion brand's fanbase, for instance, might be made up a small percentage of actual buyers and a greater number of aspirational consumers who will never purchase any goods from the company. Likewise, a T-shirt company may have some fans that will only ever purchase one T-shirt, while other fans may purchase repeatedly over months and years. Thus, it's important to target the consumers most likely to purchase, and to measure the behavior of fan groups over a long time period of time to get a better picture of their lifetime value.
  • acquiring a fan is just one part of the cost equation. Once a fan has been acquired, companies need to calculate the costs of developing compelling content to keep that fan coming back. Once these costs have been measured, it's then important for a company to see if fan acquisition is the most efficient way to achieve its goal, versus, say, paying for click-throughs to third-party sites. "You might see 1% of your homepage click-throughs end up converting, while 20% of people who watch a tutorial on your Facebook page end up converting,"
  • Don't acquire for the sake of acquiring — use metrics to support your Facebook strategy.
Pedro Gonçalves

The 3 Keys To Agile Content Development | Co.Create: Creativity \ Culture \ Commerce - 0 views

  • When brands come to agencies for agile content development, the main criteria is usually that the content must be high quality, compelling, low-cost, high frequency, and quick-turnaround. But often their internal structure and processes aren’t yet optimized to embrace this type of approach. In agile content development, timing and efficiency is everything. Without it, there is no liftoff.
  • Brands can optimize themselves for agile content development by making internal adjustments that improve communication, the first of which should be to empower a small team to manage the process. This team should have the authority to secure and approve budgets, as well as weigh in creatively and strategically on content as it goes to market. Creating a nimble group that has real ownership of the process will make things more efficient and reduce the chances of unnecessary stress being put on your brand marketing team as a whole.
  • When strategy, creative, and production teams can sit side by side and collaborate fluidly, agile content is the by-product.
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  • Agile content development is best executed by a partner that has strategy, production, and analytics under one roof, combining what agencies traditionally do best with what production companies traditionally do best.
  • This exercise will also help your brand get into the right mind-set. Think of your brand marketing team as the police force, and your agile content group as the SWAT team.
  • A perfect example of this is Red Bull, which has even gone a step further to combine brand, agency, and production company into one. No one would argue that they are not one of the most successful agile content marketers on the planet.
  • The most important part of setting your brand’s agile content strategy is having a clear idea of why your brand is creating content to begin with.
  • Next, your responsibility is to make sure that the content you’re creating is meeting your brand’s overall objectives. Your selected content partner should be responsible for making sure the content you create is something that your target consumer actually wants to see.
  • Once your brand’s content strategy is set, it should be seen as a living framework that should evolve over time. Recognize that your brand and content both live in a dynamic world that changes constantly.
Pedro Gonçalves

Chinese Viewers Flocking to Brands' Online Mini-Movies - 0 views

  • In China, he said, online branded content is "the only thing that makes sense in advertising." 
  • DiIanni said Chinese audiences want stories and "want to engage with content and social media." But he cautioned that "brands need to be flexible and open to new ideas" in content. Too often in his experience, he said, brands do not see the opportunity in some roles offered in content. 
  • Sirena Liu, founder and president of Filmworks China, an agency that also specializes in assembling content for brands, doesn't think the branded content in its most recent form will necessarily last forever. "The trend of mini-movies will continue to be popular for a while, but probably not for too long," Liu told brandchannel.
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  • Liu reasons that the high costs of production and promotion make branded content one of the riskier propositions. "The brands will soon realize that it makes more sense to do placement in a high-profile film," she said. "Less cost, more exposure."
Pedro Gonçalves

On Mobile, Google Demotes The Click | Fast Company - 0 views

  • You click. You buy. An advertiser pays. In an over-simplified sense, that’s how desktop digital advertising works. That system doesn’t work as well on mobile, however, where an estimated 40% of clicks are accidents (or fraudulent) and advertisers are still wary of their value. Research firm eMarketer projects that advertisers will dedicate just 2% of their budgets to mobile advertising this year--even though customers are increasingly logging in through their mobile devices.
  • At Google and other companies that sell advertising, the golden question has become not how to get consumers to simply click more mobile ads, but how to measure effectiveness beyond the click--even if that means tracking offline actions or purchases made on another screen.
  • “There’s this incredibly new, incremental engagement point called ‘out and about’ or called ‘sitting on public transportation’ or called ‘at home on the couch in front of the TV' and these are places where we didn’t used to be connected,” Jason Spero, Google's head of mobile ads for the Americas, tells Fast Company.
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  • In these new mobile settings, maybe success for an ad doesn’t mean lots of clicks or even lots of online purchases. Maybe it means phone calls, or foot traffic to stores. Maybe it means someone searches for something now and later follows up on a desktop computer. Google has been exploring ways to measure all of these possibilities.
  • aims to turn foot traffic into a measurable outcome of mobile ads, something that it has already done with phone calls. With a click-to-call ad offering, users can click a phone number within their search results to call an advertiser who has sponsored the term.
  • A Google spokesperson says that on average, campaigns see on average a 6% to 8% increase in average click-through rate when brands include a click-to-call phone number in an ad.
  • About 30% of restaurant searches and 25% of movie searches take place on mobile devices. About 25% of YouTube traffic is mobile. But according to earnings reports the company filed with the SEC, its cost-per-click fees and profit margins are smaller for mobile advertising products than for similar advertising on its websites.
  • He argues that it makes more sense to measure effectiveness of mobile advertising by metrics such as reach, frequency, and recall--like TV--than by the same click-through metric on which desktop digital advertising relies.
  • Facebook's Head of Measurement and Insights, Brad Smallwood, recently made a similar argument for all digital advertising, desktop included. He wrote in a blog post that when brands focus on reach rather than clicks on Facebook, they have 70% higher return on investment from their campaigns. T
Pedro Gonçalves

Facebook's Email Scanning Isn't A Privacy Issue, It's A Credibility Issue - 0 views

  • Facebook's practice of scanning messages and counting links as likes isn’t a privacy issue. It's common knowledge that what users do online - even in so-called private messaging - is potentially public. Rather, Facebook's activity raises a credibility issue. It shows that the company is fudging the numbers when it comes to advertising.
  • “It's not in Facebook's best interest to proactively solve this problem," said Tom Corson-Knowles, an online marketer who consults with small-business owners on ways to promote products on social networks. "Facebook's revenue is directly proportionate to the number of pageviews the site gets, and banning one percent of [pageviews] will cost the company a lot of missed ad impressions."
Pedro Gonçalves

Content & SEO Alignment: 3 Steps To Create The Perfect Win-Win - 0 views

  • brands invest $44 billion in content every year.
  • The modern-day marketer balances left- and right-brain thinking. They use SEO and technology as an enabler and distributor, using content marketing creativity to build holistic content and SEO programs that result in measurable business outcomes.
  • SEO and content strategies need to be aligned for optimal marketing performance, yet the costs and time associated with training and development can negatively impact productivity, scale and revenue. This catch 22 makes it difficult to achieve such levels of collaboration, and divergence remains.
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  • According to the yet-to-be-released BrightEdge 2014 Search Marketers survey across a customer base of 8500 brands, over 83% of marketers are placing a greater strategic importance on content performance by optimizing for organic search.
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