online advertising -a new source of non-dues revenue--higher logic

Online Advertising: A New Source of Non-Dues Revenue

Agenda

1. Interesting stats and facts about online ads

2.Tips for a Successful Online Ad Sales Program

3.Online Pricing Strategies

4.Analytics—Friend or Foe?

5.Case Study

6.Q&A

Interesting Stats and Facts

Interesting Stats and Facts

Social Networking Statistics 2010• 47% of online adults use social networking sites• 73% of teens and young adults are a member

of at least one social network

Sources:

http://www.facebook.com/press/info.php?statistics

http://mashable.com/2010/03/19/global-social-media-usage/

http://www.census.gov/Press-Release/www/releases/archives/population/014511.html

http://blog.twitter.com/2010/02/measuring-tweets.html

http://webtrends.about.com/b/2010/03/15/the-top-10-most-popular-social-networks.htm

http://compete.com

http://www.pewinternet.org/Reports/2010/Social-Media-and-Young-Adults.aspx

Interesting Stats and Facts

US Total Online Advertising Spending 2006-2011(in billions of $)

Source: e-marketer, December 2007

2006 2007 2008 2009 2010 2011

16.9 21.4 27.5 32.5 37.5 42

Interesting Stats and Facts

US Online Social Network Ad Spending 2006-2011(in millions of $)

Source: e-marketer, December 2007

Ad spending on social-networking sites will grow 55 percent to $3.08

billion in 2011, up from $1.99 billion in 2010. In 2012, eMarketer expects

social media spending to grow yet another 27 percent. (December 2010)

2006 2007 2008 2009 2010 2011

350 920 1,560 2,020 2,400 2,700

Interesting Stats and Facts

Percent of Online Ad Spending 2007-2012

Source: e-marketer, April 2008

2007 2007 2008 2009 2010 2011

.77% 1.07% 1.3% 1.48% 1.60% 1.62%

Tips for a Successful Online Ad Sales Program

1. Know your audience

2. Know/educate your prospectshttp://www.njscpa.org/story.cfm?sid=15304

3. Know your technology

4. Keep things simple

5. Create a strong media/sales kit

Survey question #1

1. What ad space do you currently offer?1. Banner ads

2. Button ads

3. Skyscraper ads

4. Text ads

5. Content

Tips for a Successful Online Ad Sales Program

Home Page

Tips for a Successful Online Ad Sales Program

Interior Page

Tips for a Successful Online Ad Sales Program

Discussion Groups

Survey question #2

1. How do you price your online advertising options?

1. Time based (i.e. monthly)

2. Issue based (i.e 1 newsletter)

3. Pay per click

4. All of the above

5. Other

Online Pricing Strategies

1. Time baseda. Monthlyb. Weekly

2. Response baseda. Pay-per-clickb. Pay-per-lead

Recommendation: Time based with a maximum and a minimum amount of time!

Survey Question #3

How often do you provide tracking and click-through information to your advertisers?

1. Upon request2. Self service system3. Monthly4. Never

Case Study: National Apartment Association

About NAA:-Comprised of 126 affiliate

organizations with 53,000 individual members.

-Launched Connected Community, “NAA Community Site & Online Resource Center” in November 2010

NAA Case Study: Creating a Sales Plan

• NAA Sales Department responsible for all sales work related to Web ads, and NAA IT Department responsible for managing ads (placing, removing, functionality, etc.)

• Ad Program based on three different ad types: Vertical Banner Ad (120x240), Square Button Ad (125x125) and a Leaderboard one-year sponsorship (728x90). Flat rate per month.

• Ad prices based on other associations and lowered due to the fact that the site was new and there were no numbers to show advertisers.

• Since we launched in November, companies purchasing 12-month ad campaigns received November and December 2010 for free, and their campaign officially runs 1/1/11-12/31/11.

NAA Case Study: Ad Information Sheet

NAA Case Study: Sample Home Page

NAA Case Study: Sample Interior Page

NAA Case Studies: Identifying Advertisers

• NAA Sales team approached known sponsors, advertisers and supporters of NAA.

• It didn’t take more than a few days to find a company willing to buy the 12-month Leaderboard sponsorship. Unlike many other industries, the multifamily housing industry is thriving and companies are looking to spend more dollars in advertising this year.

NAA Case Study: How We’re Doing

• Sold:– 1 Leaderboard Sponsorship(1 year)--$12,000– 1 Vertical Banner for (1 year)--$6,000 ($500/month)– Total of $18,000.

With minimal effort, two ads have generated $18,000.– These were not budget items for 2011 because we

didn’t know what to expect, so any revenue generated is a bonus, not a necessity.

Questions and Answers

Contact Information:

Scott D. Oser Mary ScottPresident Online Resource ManagerScott Oser Associates National Apartment Association301-279-0468 703-797-0645scott@scottoserassociates.com mary@naahq.orgwww.scottoserassociates.com www.naahq.org