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The Secrets to Media Buying - How IT makes Millions of Dollars

Discussion in 'Media Buying' started by wasted, Mar 14, 2013.

  1. wasted

    wasted Jr. Executive VIP Premium Member

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    This is an edition to my series on BHW, The Secrets to Media Buying, How IT makes Millions.

    The Secrets to Media Buying
    How IT makes Millions of Dollars


    Maybe you were sitting in finance or economics when the professor mentioned the concept of Time Value of Money. For our case and point the definition of TVM is the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This is a concept you need to set in your mind when joining the MB industry.

    With that being said... let's look at the cycle of Media Buying to someone that doesn't know what they are doing compared to someone that knows what they are doing.

    What you think:

    TRAFFIC SOURCE ---> THE OFFER ---> PROFIT

    What it really is:

    TRAFFIC SOURCE ---> DATA COLLECTION ---> THE OFFER ---> DATA COLLECTION ---> LOSE MONEY

    TRAFFIC SOURCE + DATA ---> THE OFFER ---> MASSIVE 800% RETURNS


    Understanding the above is the difference between you spending $500 and losing it, to spending $1,000 and earning $4,000. It is the make or break difference in the business of Media Buying. Take note of it. Write it on a post-it, and stick it to the wall above your bathroom seat.

    This business is about DATA.
    Data controls everything.

    In Media Buying the data we look for are:


    • Clickthrough Tags
    • Conversion Tags
    • Event Tags
    • Re-marketing Data

    We'll eventually touch base on all of these, but in this post we are going to talk about the re-marketing data.

    What is Re-Marketing


    It's actually exactly how it reads. You are marketing to a re-marketing list. A list that captures the clicks coming from a user on your ads. This is going to get a little technical so try to stay with me....So let's say that you spend $5000 buying traffic, here is a realistic expectation:

    $5,000 @ at $.50 CPC = 10,000 Clicks

    or

    $5,000 @ a $1.00 CPM would reach 5,000,000 impressions @ a CTR rate of .20% (industry average) = 10,000 Clicks

    Ok, so obviously they're a lot of variables in the equation. You have a variable CPM, and a variable CTR. That is where skill comes into play. If you can be good at negotiating lower CPMs or be awesome at advertising and get high CTRs you will be extremely successful.

    For example,

    $5,000 @ a $.80 CPM would reach 6,250,000 impressions @ a CTR rate of .50% = 31250 Clicks <-- that is where skill is.

    Re-Marketing is data that allows even a beginner to give themselves an advantage in the industry. You are basically collecting your own "lists". Then you create a campaign that markets ONLY to your Re-Marketing list.

    Do you know how you may be on YouTube, or maybe on another site, and you are seeing ads for something you may have viewed like 8 hours before. Or even days before. THIS IS RE-MARKETING.

    WE... the MB industry... have you on a remarket list, and we can push to you strategic advertising series of subliminal messaging.

    One day I will get into the actual setup, but for now here is how you make a killing:

    re2.png
    Yep... 28.26% CTR. With the same ads.... this is what optimization is... this is what Media Buying is about.

    In closing, the time value of money means. If I spend $5,000 today and collect my "list", over the next weeks I can continue to market to that list at a very affordable price. This makes my money more valuable and my initial investment valuable.

    While you may not earn on the first campaign. Collect that list and do it again, watch what happens...

    The whole " The Secrets to Media Buying Series" --> HERE
     

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    Last edited: Mar 14, 2013
  2. Pilfer7

    Pilfer7 Regular Member

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    so remarketing works on both a cpm and cpc basis?
    what kind of minimum deposit is required for remarketing?
     
  3. thedorf

    thedorf Senior Member

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    Wasted,

    Thanks thanks thanks. Tomorrow I go chat with my company vp. I am going to offer to pay for $1000 of traffic to our financial offer if he will let me promote it my way - and - I get to show BHW what I am doing real-time, landing pages, media buys, product capture and all.

    Maybe I am crazy but I think I can earn more in feedback about our process than I will spend.

    Cheers mates~
     
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  4. wasted

    wasted Jr. Executive VIP Premium Member

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    @thedorf,

    There is so much value in the data, that "hint" "cough" "cough" companies will pay $10,000's of dollars to gain data insight on the best landing pages, audience, banners, etc.

    Good Luck!
     
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  5. wasted

    wasted Jr. Executive VIP Premium Member

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    @Pilfer7,

    They're a few networks that offer remarketing on a CPC basis. In some cases though, they only offer it in large Media purchases as the best remarketing is when you have a list of 100,000 people, which essentially means you gathered 100,000 clicks.

    CPM + remarketing is common, also Google has interesting remarketing products for CPC & CPM.
     
  6. BigBrown

    BigBrown Registered Member

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    all these links, i'm going in circles! :p
     
  7. abhi007

    abhi007 Jr. VIP Jr. VIP Premium Member

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    I think now Wasted should be the Moderator for the media buys section :)
     
  8. wealth54

    wealth54 Regular Member

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    awesome post !!!

    keep em coming wasted :D
     
  9. hardcorebiker

    hardcorebiker Jr. VIP Jr. VIP Premium Member

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    Your username should be "Profited" not "Wasted" :p

    Great post!
     
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  10. netmoney1

    netmoney1 Executive VIP Premium Member

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    Re-targeting def works - I know because I just fell victim to it earlier! LOL - I aws going to buy a product the other day and for the past 2 days I saw the ad follow me EVERYWHERE - and earlier today I saw it again and said "ahhh shit they got me" lol

    Good stuff wasted!
     
  11. fenafillah

    fenafillah Junior Member

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    Media buying threads always interesting and all useful ( negative or positive)
     
  12. reinie

    reinie Elite Member

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    Great post as always. Thanks for sharing!
     
  13. wasted

    wasted Jr. Executive VIP Premium Member

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    Thanks guys, more coming in this series tomorrow... Enjoy!
     
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  14. PrinceVisi

    PrinceVisi Elite Member

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    Hi wasted,

    I was wondering if you have used Ebook selling through media buy-ins and if yes, were they profitable?
     
  15. wasted

    wasted Jr. Executive VIP Premium Member

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    Hi prince,

    In short, yes and yes... I'll be going into this model more in the future during my series here in the BHW Media Buying Section.
     
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  16. alexa_s

    alexa_s Regular Member

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    Data collection is obviously what you are paying for when you may think you are just losing money, but at what point it's time to give up on a certain campaign, assuming that I don't have an infinite budget for testing? For example, let's say I am starting with 1k - do you think there is an optimal budget/number of campaigns tested ratio? Do you spend 1k to test one campaign, 500 per campaign and test two, or 50$ per campaign and test 20?
     
  17. wasted

    wasted Jr. Executive VIP Premium Member

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    Alexa,

    Great questions! This is an entire conversation in itself, and I will be sure to post information about it. Too much information to put into one post here.
     
  18. thedorf

    thedorf Senior Member

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    Sure, bear with me. I see you are saying something but not saying something at the same time. Are you saying you can sell the data you get from running the campaigns to other companies? The tag data specifically? Is the tag data worth anything without a matching advert?

    Outrageous number of clicks. Your CTR is nuts, your CPC is amazing, but I don't understand CPM of $12. What is that saying?

    Could you clear up what this represents? You put it under "what actually happens". The data collection you are talking about here - you're not talking emails but again are referencing the tag data - is that right?

    Last, do you collect emails during this process?

    Thanks again for your time and patience.
     
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  19. GutierresSEO

    GutierresSEO Registered Member

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    An awesome post, great help to a noob like me!
    But this part...
    :pound:[​IMG][​IMG]
     
  20. bhstudent

    bhstudent Junior Member

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    Good stuff. Please post more. Am thinking of getting into media buying. With SEO big G can cripple your business with one switch, just becos...