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How can an ad supported publisher understand the value of its traffic and optimize the traffic flow?
March 2012
Economic Theory
Incoming traffic
Generate immediate value (e.g. eCPM) Drive users deeper into experience generate future value
Opportunity: If you already have the content, traffic and sales, knowing content valuation in real time presents untapped potential pool of revenue
The Chart This Scatterplot plots every page/URL observed a large content portal on a map where the x-axis (log scale) represents the number of Page Views (hits) in that page and the Y-axis represents the JumpTime calculated FloPower
March 2012
About JumpTime
"Most content sites...have 500 links on their homepage. Would they not buy a solution like JumpTime to, in real time (!), look at the FloPower of every link and economic value it is delivering (still in real time!) to go from 500 to just 200 links? I believe the answer to every single one of those questions is yes. Yes, they would.
Avinash Kaushik
http://www.kaushik.net/avinash/measure-choose-smarter-kpis-incentives/
May 2012
Implementing FloPower
1. Value (ads served, goods sold, brand objectives) 2. Traffic path data (jumps)
Innovation:
Economic Theory: A dynamic network requires specialized equation Patent on the calculation IP: Big data application
Outcome:
March 2012 6
Revenue
123% gain 87% gain
Engagement
March 2012 7
Case Studies
Understanding Value of Traffic allows for optimizing ROI on marketing action: e.g. Buying Keywords
Imagine marketers knowing the true ROI every time they purchase keywords
Having definitive ROI metrics provide clear justification for advertising spending
Including downstream value can increase the amount that can be spent
Value of a Visit
Landing Page Landing Page 1 Landing Page 2 Landing Page 3 eCPM $11 $31 $5 FloPower $308 $234 $230
Cost of Visit
Keyword Keyword 1 Keyword 2 Keyword 3 CPC (000) $260 $100 $100
True ROI
Potential ROI per 1000 referrals
Data from large news site, for one day in January 2012. Keyword price estimates are from Adwords.
March 2012
Case Studies
Understanding Value of Traffic allows for optimizing ROI on marketing action: e.g. Understanding Value of Referral Traffic
When publishers understand the ROI on their referral sources, they can better manage their search and social spending. Example: Google has scale, Facebook has greater economic value
Focus on increasing FloPower of Google referrals and the number of Facebook referrals.