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1 How to optimize your banner ad performance while complying with new privacy regulations

2 Introductions Daniel Burstein, Director of Editorial Content Spencer Whiting, Research Analyst Bob Bahramipour, Vice President of Business Development,

3 Who is TRUSTe? Founded in 1997 Headquartered in San Francisco 3,000+ clients We offer privacy certifications, seals and solutions for: Websites Advertising Mobile apps Cloud

4 Join the conversation on Twitter #SherpaWebinar

5 Index Key terminology Introduction Banner and Landing Page Goal Distinction Banner Analysis Placement analysis Traffic funnel analysis Message continuity analysis MECLABS Online Ad Sequence Methods to capture attention Methods to build interest Methods to ask for a click Overview of Ad Targeting and Emerging Online Privacy Regulations Summary Banner check list

6 Key Terminology Web banner: web banner or banner ad is a form of advertising on the internet. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser (Wikipedia) Impressions: number of times banner is displayed Clicks: number of times banner is clicked Click-through-rate: clicks / impressions Conversion rate: sales (completed applications) / impressions Call to action (CTA): action we want visitors to take Online Behavioral Advertising (OBA): Per the DAA, the collection or use of information gathered about a user s visits (over time and across non-affiliated websites) in order to help predict their preferences and show them more relevant ads DAA (Digital Advertising Alliance): Independent association of advertising bodies formed in 2010 to help formulate a set of OBA self-regulatory guidelines DAA Self-Regulatory Program for OBA: A program launched in 2010 requiring advertisers and publishers who use behavioral advertising to provide consumers with notice and choice

7 Introduction A web banner or banner ad is intended to attract traffic to a specific landing page. The banner is constructed from an image (GIF, JPEG, PNG), JavaScript program or multimedia object employing technologies such as Java, Shockwave or Flash, often employing animation, sound, or video to maximize presence. Banners are tagged to track impressions, clicks and final sale. Data collected from this tracking can tell how many of those visitors that clicked on the banner really converted. Also, this data can tell whether the banner is attracting the right type of traffic (qualified traffic) or not. Banner Landing page Application pages

8 Banner and Landing Page Goal Distinction Purpose of the Banner 1. Gain a visitors attention 2. Get a visitors interest 3. Ask for and get a click Purpose of the Landing Page Any landing page must answer the following questions: 1. Where am I? 2. What they can do here? 3. Why should I spend my money with you?

9 Banner Analysis Before jumping to design a new banner, you need to understand how your current banner is performing in terms of location, generating traffic and supporting the value proposition message. Three types of analysis are recommended: 1. Banner placement analysis: assess banner location, relevance on the page and competing elements. 2. Traffic funnel analysis: evaluate how much of traffic generated is converting into final sales. 3. Message continuity analysis: determine if there is a consistent message carried through banner, landing page, and application pages. Let s look at each of these analysis in more detail

10 Banner Placement Analysis Goals: Identify opportunities to make banner standout Get information that can help the banner be more relevant to content around it What to Consider? Competing banners: What other banners are present on the page? Is there a way to make your banner stand out? Page content: What is the primary purpose of the page? Is banner message relevant to content on the page? Location: Prime position The image from Google shows the best banner placements in dark orange, 2 nd best in orange, 3 rd best in yellow and 4 th best in white. Banners in the body text get the best click performance Banner design: Does the banner become part of the page or does it fight for attention? Movement: How many elements on the page have movement? Too many elements with movement will decrease attention to the banner Best Banner Placement per Google

11 Media Planning Analysis MarketingExperiments Conversion Sequence C = 4m + 3v + 2(i-f) - 2a This empirically derived framework brings structure and clarity to analysis of the conversion process and directs the focus and prioritization for optimization energy. An Interactive Advertising Bureau survey of ad agencies earlier this year found that 80% or more of digital advertising campaigns were touched by behavioral targeting.

12 Poll Question #1 What percentage of your ads utilize behavioral targeting?

13 Online Behavioral Advertising Some examples What OBA is Retargeting Users Across Unaffiliated Websites Tracking Users With Cookies Across Unaffiliated Websites Demographic Targeting Across Unaffiliated Websites What OBA is not Contextual Advertising Demographic Targeting Within a Single Site Ad Reporting Statistical Analysis Performance Tracking

14 Traffic Funnel Analysis Goal: Measure traffic and number of sales generated from the banner What to Consider? Collect following data from tracking system (i.e. Coremetrics, Google Analytics, SiteCatalyst, etc): Banner Impressions Banner Clicks (note: the latest emarketer statistics show that annual average click-through-rate (CTR) is about 0.09%. This highlights the need for quality banners). Landing page clicks Applications completed Progression of Visitors Page Views/ Impressions Banner Clicks Landing Page Clicks Conversions Need to identify not only if banner is generating enough traffic, but qualified traffic (traffic that converts). If you see a large drop out at the landing page, this usually signals a disconnection between banner and landing page and the opportunity to test new banner designs

15 Message Continuity Analysis Goal: Making certain that each step of the sale process either states or supports the value proposition. What to consider? Consistent message communicated to visitors throughout the sales process. Banner: copy and call to action Landing page: headline, copy and call to action Application page: header message and call to action Let s see an actual example

16 Message Continuity Analysis Example In analyzing the path for visitors to Marketing Sherpa s Landing Page Optimization, continuity and value proposition is maintained and the perceived value is increased through the addition of supporting messaging. Messaging is consistent through banner, landing page and application pages. For example, banner mentions Apply the Science of Optimization.., limited Time Offer, etc. Banner Landing page Application pages

17 Principles of Online Ad sequence MECLABS Online Ad Sequence ea = 2at + I + as The ad development sequence is a heuristic that identifies key variables of an effective ad (ea). It is a function of attracting visitors attention (at), creating interest (i), and asking (as) for the click. Objectives of the ad Gain visitors attention Create enough interest Ask for the click a successful outcome for the banner Every ad has it s own value proposition and should address a specific need

18 Methods to Capture Attention Banner Design Need to consider creatives that use design elements effectively Design elements: color, size, shape, motion, and text (copy) Consider appropriate banner size. As reference, charts below indicate the relative performance of differing banner sizes.

19 Methods to Capture Attention Banner Location Consider visitor s eye path on the page. Usually, visitors attention tend to concentrate most on top-left side of the page. Position placing the ad where it will be more visible Avoid typical banner locations as much as possible. Banner blindness occurs because visitors have learned to disregard content where ads will most likely be displayed. Over time they have realized that ads generally do not address their needs. The three heat maps below represent three sequential visits to the same page. As you can see, visitors quickly learned to disregard the banner on the left side. 1 st visit 2 nd visit 3 rd visit

20 Methods to Capture Attention - Exercise How many ad tactics can you identify on the Boston Globes home page?

21 Methods to Capture Attention - Exercise On the Boston.com homepage there are at least 9 tactics: 1. Takeover strategy (1, 2, 3, 5) - JetBlue with 4 ads running across the page and in the largest formats dominate the real estate. 2. Blend in (4) - Monster.com ad resembles rest of the content on the page. It can decrease the chance of banner blindness, but content needs to be very relevant to be effective. 3. Sponsorship (6) - Herb Chambers.com joint venture with Boston Globe to deliver specific content sections like video in this case. 4. Typical ads (9, 8) (189 x 35 px)

22 Methods to Build Interest Once you have a visitors attention, let them know as quickly and easily as possible what you want them to do. Need to match visitors need Every ad has its own value proposition. Use copy effectively to present a solution to their need: I want my campaigns to be effective I want to save money on my lunch If you don t demonstrate value you may get a click, but you will probably not get a sale This banners Identify a need and a way to satisfy that need. This banner Identifies an interesting fact, but does not address a need. It is not clear where the learn more link will take visitor to. This banner has no message at all. Visitors will know it s an ad, but will not know what it s for.

23 Methods to Build Interest Consider message from other marketing activities like , newsletter, direct mail, social media, and others. Maintaining continuity in your banners from other marketing activities can increase results for your banners. Example of MarketingSherpa Marketing Activities (Source: MarketingSherpa, 2010) Notice how many and different types of campaigns need to be run to maintain high and consistent traffic levels Banner is just one of the many different marketing activities Matching banner message to other marketing activities can be a way to increase interest

24 Methods to Ask for a Click Every banner should have a clear and simple call to action. Having a button that states exactly what you want the visitor to do and they know where they are going is most effective Buttons with creative calls to action tend to decrease clarity and cause confusion. A confused visitor spends time trying to figure out whether they should click or not. Clear calls to action Creative call to action, but may not be clear to all visitors

25 Methods to Ask for a Click Another way to increase chances of getting a click is to increase credibility Internet users are constantly exposed to lots of banners, most of them not very trustworthy, they have learned to be very careful with banners they click on The case below shows how by simply adding companies logo on the banners significantly increased brand recognition. First banner The Volvo logo was added on the top-right corner and just that little change resulted in an 86% increase in brand recognition among people who saw those ads versus control group. Second banner Kept the Mitsubishi logo in every other frame, along with the name, and then interspersed it in between the other sort of creative messaging, so that it was really obvious who did the ad. With that one change the ad saw a 219% increase in brand recognition. Source: InsightExpress, March 2008

26 Methods to Ask for a Click Overcoming Anxiety MarketingExperiments Conversion Sequence C = 4m + 3v + 2(i-f) - 2a A USA Today/Gallup poll in December found that 67% of U.S. Internet users say advertisers should not be allowed to match ads to their browsing history. Strive for transparency and clarity in your marketing. Today s consumer expects it; tomorrow s consumers will demand it. To make credibility indicators more powerful, you must: Use them in proximity to the sources of anxiety. Increase their specificity. Consider the intensity is it strong enough to over-correct for anxiety and address both the substance and perception? Strive for authority by using the most reputable brands or names and as much detail as possible with attribution.

27 Optimizing Ad Performance The impact of emerging privacy regulations Ad Targeting is another way to optimize your ad performance Ad targeting can improve performance up to 2x, per a recent NAI study. But, Ad Targeting has Consumers and Regulators are Concerned 46% of consumers are uncomfortable with behavioral advertising without notice and choice. The government has proposed various Do Not Track laws. The Digital Advertising Alliance (DAA) has created a new OBA self-regulatory program The DAA program calls for companies to provide consumers with notice and choice around behavioral advertising.

28 Poll Question #2 How familiar are you with Digital Advertising Alliance (DAA) Regulations and Online Behavioral Advertising (OBA) Compliance?

29 Privacy In the News Are you prepared? 2009: Industry self-regulatory principles issued 2010: Congressional hearings held; privacy bills introduced 2010: Digital Advertising Alliance (DAA) forms OBA self-regulatory program 2010: Investigative journalism drives public awareness 2010: FTC issues privacy report; proposes Do Not Track 2011: Microsoft ads tracking protection & DNT to IE9; Mozilla DNT to FF3,4 2011: DAA begins self-regulatory enforcement

30 What does the DAA self-regulatory program require? Basic DAA Compliance: Using the Advertising Option Icon to serve privacy notice and choice on or near behavioral ads or tracking activities. Specific compliance obligations can include: Providing notice of OBA activities in your privacy policy Providing notice of OBA activities on or near behavioral ads Provide an opt-out choice on or near behavioral ads Maintaining data security for OBA data that is collected or used Refraining from using sensitive personal information for OBA Learn more at

31 What are your DAA Compliance Options? Do Nothing Build Your Own Solution Expose your company to possible lawsuits and regulatory intervention. Risk losing business to compliant competitors. Invest significant capital and resources to build custom compliance technology from scratch. Run the risk of not meeting DAA requirements. Partner with a DAA-approved solution provider Leverage End-to-End DAA Approved Solution Cost Effective Readily Scalable and Flexible Full Customer Support & Guidance

32 A DAA-Approved Compliance Solution Example 1. Serves icon 2. Generates notice 3. Offers opt-outs ABC Bank cares about your privacy. Advertising.com delivered this personalized ad for ABC Bank based on your interests. Who is it for? Advertisers Ad Networks Publishers Ad Agencies Features Serve accurate ad privacy notice and choice per DAA requirements Scale to billions of ad impressions Generate custom compliance reports Monitor and mange consumer opt-outs Protect brands with confidential privacy dispute resolution services

33 And what about the browsers? Browser Ext. Browser Ext. Browser Ext. Browser Ext. Cookie Mgt P3P IE6+ Cookie Persistence Abine Abine Privacy Choice TRUSTe Keep My Opt-outs Priv. Choice Abine Domain Blocking IE9 (TPL) AdBlock+ Script Blocking NoScript Ghostery AdBlock+ NoScript Ghostery NoScript Ghostery NoScript Ghostery DNT Header IE9 FF3+ AdBlock+* NoScript*

34 Tracking Protection for IE9 Allows users to download Tracking Protection Lists Lists can BLOCK or ALLOW tracking companies ALLOWs override BLOCKs

35 TRUSTe IE9 Tracking Protection List

36 Summary Objectives of the ad is to get a click An effective ad needs to attract attention and create interest by addressing a need Don t jump to create a new banner without considering how current banner is performing Also, it is always good to have someone else look at your banner Can they find the banner? (eye path/placement) Do they have to squint to read the banner (design) Will they actually click? (appeal/value prop) MECLABS Online Ad Sequence ea = 2at + I + as

37 Summary 1. Identify your point person for OBA self-regulation 2. Get DAA Compliant 3. Address browser-based Do Not Track features 4. Continue to monitor evolving regulatory news 5. Call TRUSTe if you need help #1 Consumer Privacy Brand Over a decade of regulatory experience A DAA-approved solution provider 1. Quarterly TNS study

38 Checklist Current banner analysis Banner placement analysis Competing banners: Is there a way to make your banner stand out? Page content: Is banner message relevant to content on the page? Banner location: Is banner in a visible location? Banner design: Does the banner become part of the page or does it fight for attention? Movement: How many elements on the page have movement? Traffic funnel analysis Banner Impressions Banner clicks Landing page clicks Applications completed

39 Checklist Message continuity analysis. Banner: copy and call to action Landing page: headline, copy and call to action Application page: header message and call to action Consider the following when developing a new banner Design Design elements: color, size, shape, motion, and text (copy) Consider appropriate banner size Questions to ask What are the main design elements of the proposed web page placement? What design elements will be immediately adjacent to the proposed banner? What are the main design elements of the destination page after the click?

40 Checklist Location Find visible area for your banner (consider eye-path) Avoid typical banner location as much as possible Questions to ask How many visitors visit the proposed web page? What is the purpose of the page? Does the purpose support the banner? Clear value proposition Question to ask Why do you believe your visitors/members would want by your product or service from your company?

41 Checklist Continuity from other marketing activities Questions to ask What other marketing activities do you plan on conducting? What image elements and value proposition will be communicated? Clear and simple call to action Questions to ask What is the top value proposition for your visitors? Which call to action will be the most effective with your visitors? Credibility indicators

42

43 More than 3,000 companies rely on TRUSTe Health & Medical Media & Entertainment Consumer Products Technology / Telecom Financial / Insurance Travel / Hospitality

44 Resources t: Bob B bobb@truste.com sales@truste.com Please remember to fill out the webinar survey

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