wasted
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- Mar 30, 2011
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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:
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:
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
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:
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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