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Facebook is a social media giant, best known for connecting world events (e.g. sports, politics, entertainment etc.) into a common space and giving people the power to connect with family, friends and kindred spirits around the world. From its founding in 2004, it has became the place to share experiences, knowledge and opinions about what matters to them.

Increasingly, Internet marketers are turning to Facebook to achieve their video marketing goals.

Here are the reasons why Facebook video marketing has become a viable option in such a short period.

1.  High Volume Traffic that cannot be Ignored

As the second busiest website in the United States and globally as measured by Alexa (behind Google.com), Facebook offers online entrepreneurs a super opportunity to define and pursue target audiences based on “ideal candidate” criteria. Each of Facebook’s half a billion active users come into the social network with hungry eyes, even if being sold is not necessarily on their mind.

Even a short fifteen or thirty (30) second video clip can be enough to trigger interest and follow-up.

 

2. Fantastic Opportunities to go Viral

After YouTube, Facebook houses the most source referred videos on the Internet. This means that making a good impression with even a few people can mean exponential exposure via sharing in a matter of days, if not hours.

Learning to market with Facebook videos can work whether your aim is educational, instructional or social (relationship-oriented).

3. Facebook Embraces Mobile Marketing

Over one-hundred fifty million people carry Facebook with them on their mobile devices, which makes it especially important to reach this active demographic whenever they go. Mobile device growth far exceeds that of desktops and laptops, making Facebook ideally positioned as a “goto” app to connect with prospects via mobile-friendly video.

4. Advertising Optimization for Multiple Goals

Facebook supports a number of video marketing goals that are self-contained within the website itself:

  • Boost your posts.
  • Get installs of your app.
  • Get video views.
  • Increase conversions on your website.
  • Increase engagement in your app.
  • Promote your Page.
  • Send people to your website.

5. Strong Level of Actual Face Time on Website

The average Facebook user remains on the site for over twenty-one minutes per session, and views about thirteen pages. You can take advantage of this devotion by offering valuable content that hooks visitors and encourages them to share your content with others (see above).

With up to twenty (20) minutes per video, cater the length to your target audience and the type of message you want to send.

6. Visibility that Leads to More Conversions

Today, Facebook videos are visible within Google searches which adds credibility to your marketing efforts. In addition to search engine optimization (SEO) benefits, you have keyword or hashtag capabilities similar to what Twitter offers. In order to encourage visitor action, you can add triggers at strategic moments of your video presentations.

Facebook video marketing can be a boon to your online business efforts, regardless of your current level of marketing experience. It is the behemoth among social media websites, offering both advertising and relationship-building chances on an ongoing basis.

Regardless of platform (desktop, laptop, tablet, mobile) Facebook deserves to be a part of your video marketing mix.

Feature Image: Jose Luis Pelaez Inc/Blend Images/Getty Images Prestige

Sourced from the balance

The new study highlights that the huge economic impact is just “tip of the iceberg” with independent creators.

By MediaStreet Staff Writers

So here it is, another study from the USA about the power of the new economy. While it doesn’t feature what Europeans are doing, we can use the information to see just how fast the new creative economy is moving. Put it this way: that horse has bolted.

The new report released by the Re:Create Coalition finds that 14.8 million independent, American creators earned a baseline of almost $6 billion from posting their music, videos, art, crafts and other works online in 2016. The research is only a snapshot of the entire New Creative Economy, analysing just some of the biggest online platforms: Amazon Publishing, eBay, Etsy, Instagram, Shapeways, Tumblr, Twitch, WordPress and YouTube.

Despite the study being conducted in the USA, YouTube’s top earner is British. Daniel Middleton (DanTDM) brought in $16.5 million in 2017 alone. 26-year-old Dan, otherwise known as TheDiamondMinecart, posts daily reviews and gameplay videos plus some other silliness that kids love.

“Before the internet, a creator was forced to rely on traditional gatekeepers like movie studios and the recording industry to be successful. Today, anyone with a creative idea and a wifi signal can be successful and make money on the internet, reaching millions of people around the globe almost instantly,” said Re:Create Executive Director Joshua Lamel. “This analysis is just the tip of the iceberg when it comes to understanding the full economic impact of the New Creative Economy. However, its findings demonstrate that millions of Americans rely on the balanced copyright policies that support internet platforms like YouTube, Instagram and Etsy in order to earn billions of dollars from their creative work.”

Selena Gomez is the number one person on Instagram, with close to 70 million followers, more than any other celebrity.

Said study author Dr. Robert Shapiro, “The development of this multi-million user network and multi-billion dollar ecosystem for independent new creators reflects the power of the internet. Even with these highly conservative estimates, this study demonstrates the economic power of the new creative economy and its enormous potential for continued growth.”

For each platform, only a single component of how users can earn income was studied, due to limited public data and insufficient information. Independent creators earn billions of dollars each year online through website ads, sponsorship/influencer compensation, social media traffic, direct sales and other methods, but this study analysed only one revenue-sharing model per platform.

For the full report is here.

 

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If you are marketing anything in the tourism game, this is what you need to know.

By MediaStreet Staff Writers

For those that are lucky enough to get away on holiday or go on an extended travel stint, we can predict what actvities you might be doing after a new study has been published by Hotels.com

The company have used a data-crunching bot to track what people are hashtagging the most on their sojourns. More than five million brags globally were analysed using a combination of Tweet data, Instagram posts and travel keywords and destinations mentioned on other social media. So here are the results.

Worldwide travellers are all about the culture: they enjoy musing around museums (300,000 brags), old-town charm (170,000 brags) and a spot of sunshine (130,000 brags), but they can also be found in floating restaurants, erotic museums and night markets.

TOP 10 GLOBAL THEMES

  1. Museum
  2. Rooftop bar
  3. Old Town
  4. Modern Art
  5. Opera
  6. Sunshine
  7. Olympic Games
  8. Cathedral
  9. Gallery
  10. Ballet

This travel bragging trend echoes the findings from the recent Hotels.com Mobile Travel Tracker report, which revealed that one in six travellers search social media before their trip to plan the photos they’ll take. And 56% of people surveyed admit to spending more than an hour a day on their smartphones while on holiday.

While travellers naturally brag about taking in the tourist hotspots and cultural offerings, more people than ever are sharing foodie ‘grams, shopping stories and luxe posts.

#Foodporn
You’re never more than an Insta-scroll away from #FoodPorn and the brag lists are brimming with culinary treats. Cakes in Stockholm and curry in Toronto spice up the brag lists, and New York steak and pizza both made the cut. Perhaps more surprisingly, enchiladas proved twice as popular as modern art in Mexico City, ice cream scooped 10% of all San Francisco brags and Jumbo Kingdom floating restaurant in Hong Kong took second place in the Hong Kong chart with more than 20,000 brags.

Shop ’til you drop
Shopping is a must-do for most travellers. Those visiting Paris brag more about the Rue Vieille du Temple, famous for its boutiques, than Le Louvre! Other top shop-spots included Bal Harbour in Miami, the Harbour City mall in Hong Kong, vintage shops in Melbourne and the stylish Cecile Copenhagen fashion brand made the Danish capital’s top 10.

Five-star luxury
When travellers check into a posh, luxury hotel they naturally want the world to know. The stunning 5-star Ritz Carlton in San Francisco topped the city’s brag list, the Four Seasons in Singapore proved brag-worthy and the Park Hyatt came in at number one in Seoul – most likely for its awe-inspiring rooftop pool.

Scott Ludwig at Hotels.com said, “Bragging about your travel experiences on social media has become the norm – if you didn’t get social kudos out of it, it didn’t happen!”

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Adweek has called in the big guns for a huge collaboration which could be an example of how the rest of us will work in the future.

By MediaStreet Staff Writers

Everyone in advertising knows Adweek, a bible for marketers. Adweek has published articles for the brand marketing ecosystem since 1979. Adweek’s coverage reaches an engaged audience of more than 6 million professionals across platforms including print, digital, events, podcasts, newsletters, social media and mobile apps.

Today, the publication announced the launch of the Adweek Advisory Board, made up of 24 of the most innovative and creative executives who are shaping the modern brand marketing ecosystem.

Adweek says they recognise the need to synthesise a diversity of opinions to maintain its position as a voice in the marketplace. “Our newly formed Advisory Board will provide us – and our audiences – with the thought leadership and expertise we all need to help navigate the complex and constantly shifting ecosystem of today’s marketing and media world,” said Adweek editorial director James Cooper. “Adweek’s ultimate goal each day is helping our readers stay ahead of the curve and do their jobs better.”

“I am excited to be partnering with Adweek and joining its Advisory Board,” said GE CMO Linda Boff. “With digital transformation built into our DNA, we are in an especially unique position to guide and advise Adweek and the business community it serves.”

The Advisory Board will meet regularly with Adweek’s senior editorial team at gatherings across the country to discuss the pressing issues of the day. Members will also be on hand to publish thought leadership columns, speak at Adweek events and provide Adweek with insight and analysis on an as-needed basis across all platforms.

“The times we operate in aren’t easy. The pressure to deliver is daunting for even the most experienced here,” said board member Colleen DeCourcy, chief creative officer for agency network Wieden + Kennedy. “When an organisation like Adweek consciously turns its efforts to developing our talent, I am all in. Collaboration feels like the thing we need right now. All boats rise with the tide.”

Adweek’s Advisory Board Members:

  • Marisa Thalberg, Global CMO, Taco Bell
  • Linda Boff, CMO, GE
  • Adrienne Lofton, SVP of Global Brand Management, Under Armour
  • Andrew Keller, Global Creative Director, Facebook Creative Shop
  • Cameron Clayton, GM of Watson Content and IoT, IBM
  • Jon Suarez-Davis, Chief Strategy Officer, Salesforce Marketing Cloud
  • Ben Lamm, CEO and Founder, Conversable and Hypergiant
  • Caroline Papadatos, SVP of Global Solutions, LoyaltyOne
  • Alicia Hatch, CMO, Deloitte Digital
  • Baiju Shah, Chief Strategy Officer, Accenture Interactive
  • Joel Stillerman, Chief Content Officer, Hulu
  • Colin Kinsella, CEO North America, Havas Media Group
  • Michelle Lee, Editor in Chief, Allure
  • Tiffany R. Warren, SVP and Chief Diversity Officer, Omnicom, and Founder and President, ADCOLOR
  • Susie Nam, COO, Droga5
  • David Sable, Global CEO, Y&R
  • Colleen DeCourcy, Chief Creative Officer, Wieden + Kennedy
  • Michael Dill, President and CEO, Match Marketing Group
  • Bonin Bough, Author and TV Host
  • Terrance Williams, CMO and President of Emerging Businesses, Nationwide
  • Kasha Cacy, CEO, UM U.S.
  • David Mondragon, CEO of Triton Automotive Group and Senior Partner, Motormindz
  • Linda Yaccarino, Chairman of Advertising and Client Partnerships, NBCUniversal
  • Nannette LaFond-Dufour, Global Chief Client Officer, McCann Worldgroup

To read further about Adweek’s Advisory Board initiative, click here 

 

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Now? Fashion brands are meeting with social media influencers directly.

By MediaStreet Staff Writers

Hundreds of NY Fashion Week influencers were invited to a party specifically held to put them in front of brands that want some of the spotlight. The party was held by a company called Influence, which connects brands and influencers. Together, they create social campaigns that expand visibility and engage new audiences for brands. The influencer gets paid, and the brands get to reach audiences that they might not be able to access using other methods. Welcome to the “now” of fashion and brand marketing.

Influence is a sister company to the already-successful operation called Newswire. Newswire currently have an online portal that publishes thousands of press releases every day. Journalists and influencers can go straight to company news, by keyword or subject search. This means that they can get their news directly from the companies, rather than have the interaction brokered through a PR agency. This renders the traditional PR agency almost obsolete.

The way the PR industry is changing is similar to the way that fashion magazines are going. Teen magazines and fashion publications are no longer the huge, powerful entities that brokered deals between brands/fashion houses and their audiences. Now, it is the online fashion influencers who have huge sway with their fans, and brands can contact them directly. This circumvents the hugely expensive fashion magazines, whose circulations are falling dramatically.

As an example, a top YouTube fashion influencer is Chriselle Lim. Her channel is growing at a breakneck pace. Her videos reveal how to transform basic pieces of clothing into stylish apparel. Chriselle has support from global brands such as Target and Estee Lauder.

The change in the way brands and fashion are marketed has been incredibly rapid. Fashion magazines? Pah. Now Facebook, Instagram, Twitter and YouTube are the place to put brand marketing spend.

But back to the party. The event hosted hundreds of NY Fashion Week Influencers at Manhattan’s chic Sixty Soho Hotel. Influencers and brands from across the globe arrived to share in networking and developing opportunities for campaign partnerships that strengthen an Influencer’s channel and widen content reach for brands. The party was also used to promote Influence.com itself. And it worked, because here you are, reading about this new company.

Said Director of Influencer Marketing, Magnolia Sevenler, “Whether you are an influencer or marketer, the Influence by Newswire platform provides a community to build your campaigns.”

According to Sevenler, the platform has been well-received from both marketers and creators for its simplicity and reach. “It’s exciting to see all the positive feedback…as we enter a new era of marketing, where micro-influencers can be rewarded for their passions and brands can reach new untapped audiences.”

The company has plans to expand its network and add additional features to enhance users’ experience. And it is doing this all because the fashion magazine industry is destined for a papery grave. It’s time to move on, people, and bring your marketing spend with you.

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The search by brand marketers for consumer engagement has led to the continued growth and funding of the social media influencer that has made millionaires of some vloggers and online celebrities the world over.

However, as these seemingly normal people have grown their fame, demand by brands for their audiences has similarly grown and the rules and regulations around their ability to promote products became a problem for marketing regulators. And in that time some have developed that relationship to become the face and voice of individual brands they truly connect with. Examples are endless, from Cole LaBrant and Mackenzie Davis to Maia Mitchell, who have used different platforms and shared their own life skills and insights to develop personal fan bases. And as Facebook changes its newsfeed algorithm to drive more personalised content to the fore, over media content, those organic relationships will become more coveted by advertisers.

According to research by blog discovery website Bloglovin’ 32% of marketers saw influencer campaigns as being essential to their strategies, with 41% admitting to seeing more success from their influencer campaigns over their traditional advertising.

“Brands are learning,” states Peter Willems, head of marketing activities and sponsorship for world footballing body, Uefa, while speaking on a panel organized by FCB Inferno about influencers and his experience of working with them through the launch of a new project alongside freestyle soccer skills channel, F2.

“Brands are more and more trying to put the objective first. We believe in data but we struggle a little bit with specific target groups, especially youngsters, and therefore one of the objectives of working with F2 was to grow our database within that specific target group. We believe at the moment that influencers can help us there.” he continues to explain, adding that sharing the objective with the influencers who are involved in the collaboration is now crucial too.

Willems also cites the comparison over the share prices of Adidas and main rival Nike as examples of how powerful the use of influencers can be in delivering sales, with Adidas having spent years now working with online personalities to achieve global growth and product awareness.

“For me, the biggest problem has to be how you measure success, which is still in its infancy to show what it can bring and what it can do,” Willems continues.

That problem around measuring return on investment is definitely to be an issue that brands entering this burgeoning sector face, agrees Laura Visick, head of social for FCB Inferno.

“There are soft and hard metrics that we can put in place such as reach and engagement which can be given to the influencers themselves to benchmark against their own content and to identify how things are resonating. One of the most important things is upfront identifying what the objective is and articulating what success looks like to ensure that everyone is on board.. there are a huge number of ways to work with influencers,” she explains of the clearly maturing marketing strategy, where one celebrity tweet is not seen as success in itself.

“The ASOS model is a good one. They are building a group of influencers that are engaging with and advocating the brand all of the time, and there are a few campaigns that we are seeing coming through that the moment that are very similar. They are building a group of ambassadors who are engaging with the brand and creating a very authentic relationship rather than a ‘one-hit-wonder’,” she continues, adding that that course helps create more robust measurements.

Using tools to help monitor and achieve return on investment is an obvious route. Verena Papik, director of marketing EMEA of Musical.ly, says it is important for brands to understand why each tool is being used and used to meet specific set goals and objectives.

She also advises that brands and influencers set objectives that see both succeed together.

“When brands and influencers really collaborate together, and they include a tool like Musical.ly, it is to add value to each other. Everyone is getting lost in setting goals and achieving data numbers, numbers of posts; but in reality is actually about adding value to each other,” she explains. “For a long term relationship you definitely have to understand what benefit the other party can actually bring to this partnership.”

Influencer, Bangs Carey-Campbell, fitness editor at Elle Magazine and blogger, advises that brands recognise the importance of not just paying online celebrities to pose with one-off products but to agree an ongoing strategy and to really follow through on the partnership for the most successful collaborations. She also advises that influencers understand the brand’s perspective rather than forcing their own ways of working fully, too.

“It’s about finding that middle ground when creating content. Especially if you are being paid to do that. You do have to understand from a brand’s perspective that they have a certain job description and certain markers that they have to achieve even if they are not 100% clear on them. It can be tough from the creative’s point of view as you have a way that you like to produce your content, but that’s why the brand got in touch with you. It can be tough to find that middle ground but as a creator, if that is the direction that you want to take your brand in, and you want to be more involved with other brands, you have got to be willing to meet in the middle somewhere. It’s not compromising your material. It’s finding a way to work together and find a way to be flexible,” she relays but later offers a reminder to brands that they are working and partnering with individual people, and not to forget that and treat them as a soulless commodity.

There is a long way still to go for the brand and influencer model, and the bubble has far from burst judging by the growing numbers offering their services and audiences to brands, however another piece of advice that all contributors agreed with was that influencers were more successful if they offered authentic insights and had achieved success in the fields their audiences held interests in. Otherwise it was likely that such influence would be fleeting and of little long-term commercial value in tandem.

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Sourced from THE DRUM

Keep this in mind if you are marketing sexy products.

By MediaStreet Staff Writers

What does a company that makes sex products do for their annual Valentine’s sales push? They do a survey, to find out how best to market to their customers. And here are the results.

Valentine’s Day, it seems, is starting to suck for everyone. Singles have made it their own anti-holiday, full of memes and proclamations about the commercialisation of the day. But what about couples? Is it all it’s really cracked up to be?

A company called K-Y undertook a survey to find out how to best market their sex products to customers. And it makes for depressing reading. What was once thought to be a romantic and sexy day has become an experience full of pressure and hype. Pressure to buy the right card, pick the sexiest lingerie and have the most mind-blowing sex of your life – and you only have one day to make it all happen.

According to the Love All 365 survey, half of Millennials feel they are missing out if they don’t have sex on Valentine’s Day, but more than 60% of them report that the sex doesn’t live up to the hype. That’s a lot of lead up for a big letdown.

The survey further illuminates the Valentine’s Day tension by revealing that while 82% of people are more likely to have sex with their partner on Valentine’s Day, 83% report that sex is best when it’s impulsive versus planned. Preparing for sex at Valentine’s Day is certainly a faux pas many couples are guilty of committing in spite of the fact that, as the statistics affirm, our preference is for spontaneity.

The good news is that 97% of couples report that having good sex with their partners makes them feel more connected.

“We don’t want couples saving their ‘sexy’ for special occasions, when great sex can and should happen any day of the year,” said Nadja Korner, Marketing Director of K-Y. “Good sex helps strengthen the relationship, so instead of putting all your romantic energy into nights like Valentine’s Day, surprise your partner with that special sexy something on an unexpected night. After all, the essence of pleasure is spontaneity.”

So if you are creating an advertising campaign using a sexy theme, keep the idea of spontaneous sex in mind. Especially if you are targeting Millennials. ■

 

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Academics have identified four distinct personas of social media user that teenagers describe as shaping how they behave on social media.

By MediaStreet Staff Writers

Young social media users are categorised as either acting like the Geek, the Internet Celebrity, the Victim or the Lurker depending on their levels of online activity and visibility, University of Sussex academics say.

The categorisations are based on interviews the researchers conducted with children aged between 10 and 15-years-old for a new book, Researching Everyday Childhoods, published by Bloomsbury last month.

The interviews revealed many youngsters were increasingly savvy about maintaining their privacy online, often being motivated to protect themselves by unpleasant past personal experiences or negative incidents that affected classmates.

Dr Liam Berriman, lecturer in digital humanities at the University of Sussex, said: “Our research found that concerns about staying safe online created an atmosphere of intense anxiety for young people, even if they had not directly experienced any problems themselves. The young people we spoke to felt a great weight of responsibility for their safety online and were often motivated by the concern of being labelled a victim.”

“While there has been a lot of negative media coverage around teenagers’ interaction with social media, our findings are more hopeful that teenagers are responsible users of social media, are very conscious of the dangers and make considerable efforts to protect themselves against those risks.”

Teenagers navigate between the desire to be praised and recognised online and anxieties over the risk of opening themselves up to criticism and trolling. Among the four personas is the Internet Celebrity who is able to best use the latest trends and increasingly values “visibility of the self” through Instagram, Snapchat, the selfie and YouTube vlogging.

The internet celebrity

But academics also identified how young people are experimenting with and enjoying invisibility online. They describe the Lurker as someone able to avoid peer dramas arising through platforms such as Facebook, whilst still engaging in fun peer activities such as stalking their favourite music bands online.

The lurker

The Geek, meanwhile, uses invisibility to anonymously share and promote their amateur media creations online, such as music videos or fan fiction writing. The academics described how the Geeks’ long hours of labour on projects risked parental concern that their behaviour was obsessive or addictive.

The geek

Professor Rachel Thomson, professor of childhood and youth studies at the University of Sussex, said, “What is distinctive about these active social media users was the entrepreneurial character of their practice, with ‘play’ re-envisaged as a form of economically rewarding work. By gaining an audience, young people are aware that they could capture advertising and corporate sponsorship. The dream is to ‘go viral’, establishing a career as a cultural creator.”

The research also highlights the risks contained in a world dominated by personal visibility with the Victim left to suffer personal exposure and shame following the creation and display of intimate material such as sexting and the loss of control of this material.

The victim

The Victim’s high visibility is often out of their control with their presence and heightened without their consent as private material is extracted from them and exchanged under false premises.

This can vary from the frustration of being tagged in photographs and the creation of an unflattering digital footprint through the activities of others to the more invasive techniques of fraping, where a person’s online identity is hijacked without their permission, or sharing of intimate photographs.

Dr Berriman said, “These examples reveal the impossibility of non- participation in the world of social media. A teenager does not necessarily have to create an online persona, it is something that can be created by others.”

This is great food for thought for anyone trying to catch the attention of teenagers online. You may even need to consider four different approaches when targeting the teen market. Thanks, science!

 

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By Lana Bandoim

Social media has become an easy scapegoat. From creating unrealistic parenting standards to hurting your mental health, social media gets a bad rap. Although comparing yourself to others on these networks can lead to social media envy and depression, there’s a positive side that may benefit you. A new study from the Journal of Consumer Psychology reveals that microblogging on social networks may actually be *good* for your health. Yes, you read that correctly!

Defining Microblogging

The researchers defined “microblogging” as sharing status updates on Facebook or Twitter. However, they didn’t include individual pictures or one or two-word captions. Microblogging has become a way for people to share details about their personal lives with a broader group of friends and family that may not be located nearby. Whether you need to vent about a difficult day at work or need support after getting some bad news, social media is a relatively easy platform to help release your emotions.

Benefits of Microblogging on Social Media

The study found that people who already have social anxiety were more likely to microblog after experiencing negative emotions (those who were lower on the scale of social anxiety tended to DM or reach out to people in-person). So for people who already feel a little isolated from others or may be uncomfortable directly talking to someone about their feelings, social media networks can be a safer space to do so to regulate their emotions.

“When people feel badly, they have a need to reach out to others because this can help reduce negative emotions and restore a sense of well-being. But talking to someone face-to-face or on the phone might feel daunting because people may worry that they are bothering them. Sharing a status update on Facebook or tweet on Twitter allows people to reach out to a large audience in a more undirected manner,” says Eva Buechel, one of the authors of the study.

Buechel warns that relying solely on social media for communication with others is not ideal, but having a platform to express certain emotions is better than not having one at all. So go ahead and let yourself have a Facebook rant every now and then; it really can be good for your health.

Feature Image Credit: Getty

By Lana Bandoim

Lana Bandoim is a freelance writer and editor. Her work has appeared on Yahoo! News, CNN iReport, The Huffington Post, Lifescript, Healthline, and many other publications.

Sourced from BRIT+CO

Before you dish out money to bid for a top-ranked ad position on a search engine, you may want to pause and make sure it’s actually going to pay off.

By MediaStreet Staff Writers

New research out of Binghamton University, State University of New York suggests that instead of just spending to get that top spot, advertisers should be considering other factors as well to ensure they are getting the best results from their sponsored search advertising campaigns.

Sponsored search advertising involves paying search engines, like Google and Bing, to bid for placements on the search results pages for specific keywords and terms. The ads appear in sponsored sections, separate from the organic search results, on those pages.

“The common belief in sponsored search advertising is that you should buy the top ad position to get more clicks, because that will lead to more sales,” said Binghamton University Assistant Professor of Marketing Chang Hee Park. “But the fee for the top position could be larger than the expected sales you’d get off that top position.”

Park, with the help of Binghamton University Professor of Marketing Manoj Agarwal, analysed data collected from a search engine and created a model that can forecast the number of clicks advertisers could expect in sponsored search markets based on four factors:

  • Rank in the sponsored listings
  • Website quality
  • Brand equity
  • Selling proposition

The model gives advertisers a way to quantify the expected clicks they’d get by adjusting these four factors, while also taking into consideration how their competitors are managing these four factors. This could enable advertisers to find a perfect blend of the four factors to ensure they are getting the most out of what they are paying for their ad positions.

It may also indicate that they should be spending more money to bolster their brand or website rather than amplifying their offers in top ad positions.

“Using this model, you may find that paying less for a lower ad position while investing more in improving your website is more effective than spending all of that money strictly on securing top ad positions,” said Agarwal.

This applies especially if your competitor has a poorer-quality website, but is spending more than you on securing top ad positions.

Their model found that poor-quality advertisers that are ranked higher in ad positions drive consumers back to the search results page, leading consumers to then click on advertisers in lower ad positions to find what they are looking for.

In contrast, they also found that a highly-ranked good-quality advertiser results in significantly less clicks for all the advertisers ranked below them.

“It’s more likely that in the top position, all advertisers being equal, you’ll get more clicks. But depending on these four factors, as well as the quality of your competitors, you may find that you’ll get more clicks in the second or the third position,” said Park.

“Conceptually, this is not a new idea, but now the model can help determine this by accounting for multiple factors at play at the same time.”

Advertisers aren’t the only ones who can benefit from this research.

Park and Agarwal’s model found that simply reordering the listed advertisers could result in significant changes in overall click volume (the total number of clicks across all advertisers) for search engines.

“Because they often charge on a pay-per-click model, search engines can now simulate which ordering of advertisers in a sponsored search market results in the most overall clicks and, therefore, most revenue” said Park. “Search engines may want to consider charging advertisers in a way that gives the search engine more flexibility in determining the order in which the ads in sponsored sections are displayed.”

 

 

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