Case Study: Advertisement Monetization

Himanki Shahu
Manfest-Varchasva | Confidential 0
PCOM : 148
 Monetization Avenues
Monetization can be through three avenues: Usage of user data ; Advertisements ; Promotional Articles/Lists

Data Monetization Ads Monetization Promotional Articles

1. Customer Data Insights
• Sale of customer data
• Customer buying behavior and history
2. Location/Event Based Sales
• Exclusive sales promotion based on
user data and existing geographic/
demographic trends
Ex: Sales of neon Lipstick to 18-30 age group
• Exclusive sale based on presence of a customer
in a event (geofencing advertising)
Ex: Adidas excusive sale in NBA All star game
1. Ads of Products listed on website
• Projection of relevant ads based on:
• User buying behavior; history; searches
• Customer product search history
• Data through 3rd party aggregators
• Ads can be developed by:
• Ecommerce website themselves
• Contextual Ads Using 3rd party
• Click on Ads redirects to own webpage
2. Ads of products/services not listed
• Ads developed by 3rd party ad agencies
• Click on ads redirects to their webpage
Ex: Ad of Travel website based on backpack sale
1. For specific product families/brands
• Articles similar to blogs/articles/Lists
highlighting products of a company
• Reference: MensXP, Jabong
• Promotion of specific family of products
• Click on links/sales via the URL is mapped
MensXP promoting
Jabong promoting
Philips grooming
beauty products
products

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Go To Market Strategy (Ad Monetization)
Monetization strategy for both ad models has been discussed below

• Companies with listed products looking for promotions, new product launches, sales
§ Ex: A/C promotions during summers, Promotion of just launched phones

Target Group & • Ad agencies looking to cross-sell complementary products based on customer buying
Segmentation § Ex: Cross-selling of travel booking based on buying of backpacks & trekking gear

• Companies selling products which are trending in customer searches

§ Ex: If majority customers are searching for smart home products, companies selling them are the TG

Unique Selling • Availability of Customer Insights through past searches, buying behavior & budget
• Ability to provide Precision Marketing based on information on customer personality,
Proposition
lifestyle & social class, along with degree of brand loyalty and readiness to buy

• Premium advertisement space due to precision marketing capability

• Ability to connect with specific TG customers providing a higher conversion rate
• Pricing can be done on various models as follows:
Positioning & Pricing
§ Based on No of Impressions (Generic promotional ads)
§ Based on CPC model (Cross-selling to 3rd party, precision marketing)
§ Based on Cost per Action (Precision marketing, sale based on earned actions)

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KPIs for Ad Monetization
The following KPIs have been identified
Impressions
No of times ad is displayed on website
Reach
No of unique people ad is displayed to
Clicks
No of clicks on the advertisement
Display frequency
No of times ad is shown to the same customer
Ad Relevance
Relevance of ad to the customer
Conversion
Tracking ad clicks into actions(add to cart/buy)

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Revenue Model (1/3)
Revenue generation per month from 3 models have been analysed, considering 10million monthly active users
Model1 : Precision ads of Listed products
No of times an active user used the site 1.2 Flipkart monthly active users 2019
% of people for whom ads are generated 20% based on sufficient data to predict customer preference
% of people viewing the ads 80% Since they are displayed at top of the homepage
% of people clicking on ads 35% Since they are targeted based on customer buying behaviour
% of people who add to cart 20% 20% of the people add the product to cart
% of people who buy the product 10% 10% of people buy fom the cart

Revenue per 1000 impressions 150 https://learningcatalyst.in/adsense-rate-in-india/

Revenue per click 10 https://learningcatalyst.in/adsense-rate-in-india/
https://www.quora.com/How-much-does-an-Indian-app-
developer-earn-from-in-app-per-ad-click-from-Google-AdMob-
Revenue per action of add to cart 15
and-Inmobi-ads
Revenue per action of buying 25
Avg. Ticket size 2000 gadgets avg ticket size
Share of revenue 5%

Revenue from impressions 2,88,000

Revenue from clicks 67,20,000 Incremental revenue from clicks over impressions
Revenue from action of add to cart 20,16,000 Incremental revenue from add to cart over clicks
Revenue from action of buying 3,36,000 Incremental revenue from action of buying over add to cart
Revenue share from ticket size 13,44,000 Revenue share from additional buying of products
Total Revenue 1,07,04,000

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Revenue Model (2/3)
Revenue generation per month from 3 models have been analysed, considering 10million monthly active users
Model2 : Promotion ads of Listed products
No of times an active user used the site
% of people for whom ads are generated
% of people viewing the ads
% of people clicking on ads
% of people who add to cart
% of people who buy the product
1.2 Flipkart monthly active users 2019
80% based on sufficient data to predict customer preference
30% Since they are displayed at top of the homepage
20%
https://www.smartinsights.com/ecommerce/ecommerce-
15%
analytics/ecommerce-conversion-rates/
3%

Revenue per 1000 impressions 100 https://learningcatalyst.in/adsense-rate-in-india/

Revenue per click 6 https://learningcatalyst.in/adsense-rate-in-india/
Revenue per action of add to cart 10 https://www.quora.com/How-much-does-an-Indian-app-
Revenue per action of buying 25 developer-earn-from-in-app-per-ad-click-from-Google-AdMob-
Avg. Ticket size 2000 gadgets avg ticket size
Share of revenue 5%

Revenue from impressions 2,88,000

Revenue from clicks 34,56,000 Incremental revenue from clicks over impressions
Revenue from action of add to cart 8,35,200 Incremental revenue from add to cart over clicks
Revenue from action of buying 62,640 Incremental revenue from action of buying over add to cart
Revenue share from ticket size 2,50,560 Revenue share from additional buying of products
Total Revenue 48,92,400

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Revenue Model (3/3)
Revenue generation per month from 3 models have been analysed, considering 10million monthly active users
Model3 : Ads of non listed products/services
No of times an active user used the site
% of people for whom ads are generated
% of people viewing the ads
% of people clicking on ads
% of people who add to cart
% of people who buy the product
Revenue per 1000 impressions
Revenue per click
Revenue per action of add to cart
Revenue per action of buying
Revenue from impressions
Revenue from clicks
Revenue from action of add to cart
Revenue from action of buying
Total Revenue
1.2 Flipkart monthly active users 2019
20% based on sufficient data to predict customer preference
80% Since they are displayed at top of the homepage
20%
https://www.smartinsights.com/ecommerce/ecommerce-
15%
analytics/ecommerce-conversion-rates/
3%
100 https://learningcatalyst.in/adsense-rate-in-india/
6 https://learningcatalyst.in/adsense-rate-in-india/
5 https://www.quora.com/How-much-does-an-Indian-app-
12 developer-earn-from-in-app-per-ad-click-from-Google-AdMob-
1,92,000
23,04,000 Incremental revenue from clicks over impressions
2,78,400 Incremental revenue from add to cart over clicks
20,045 Incremental revenue from action of buying over add to cart
27,94,445
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Strategy to improve ROI (Ad Monetization)
Strategy to improve ROI for Precision marketing has been discussed below

• Understand the segments which have a high conversion rate and focus more on those
segments
Continuous Feedback § Ex: New phone which sells well with millennials can be projected in all segments
• Identify similar segments and focus more on them by tweaking the ads and also
Loop
varying the price ranges according to the purchase capacity
§ Ex: If Iphone SE sells with 16-23 age group market Iphone 9 with 24-35 age group of the
same social class.

• Pitch new and innovative ideas to companies and launch it to random sampling and
give results to companies. This can provide companies a platform for ground testing.
A/B Testing
§ Ex: If a new earphone is launched with particular jack people with certain phone purchases can be
targeted

• Successfully converted customers can be re-targeted with similar or complimentary

products
Re-targeting & § Ex: People who purchased phone can be pitched with wireless charging gadgets
• Failed conversions at cart can be re-marketed with new approach to see the success
Re-marketing
rate of various ideas.
§ Ex. If person who bought trekking bag wouldn’t convert for long treks short trek options can be
shown.

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THANK YOU

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