Total revenues of internet advertising hit $88 billion in 2017, compared to $72.5 billion the year before, according to 2018 IAB internet advertising revenue report. Out of the $88 billion, $49.9 billion is responsible for mobile advertising. Just ten years ago the amount spent on mobile advertising was zero. Now everything is mobile. So the key to win in this mobile world is effective targeting. Buzzvil’s average ROAS (Return On Advertising Spend) of South Korea’s major e-commerce ads was 1,500 percent in September thanks to its efficient ad targeting technology. How was this possible? We sat down with ad operators Bumi and Bling for details!
Please introduce yourselves.
Bling: Hello, I’m Bling, in charge of ad operation within Buzzvil’s Sales Team, and
Bumi: I’m Bumi.
Bumi: The ad operation team sets, operates, and monitors overall efficiency of ads. We also perform development and improvement work on ads administration tools. We communicate with the staff of advertisement companies, run advertisement tests, and continuously work to maximize ad efficiency.
Why should mobile, online, and digital advertising marketers pay attention to BuzzScreen?
Bumi: BuzzScreen is currently working with 50 partner companies from home and abroad. Our partner companies’ apps, such as OK Cashbag, CliP, and CJ ONE, are used by a majority of domestic users. This means that BuzzScreen has a diverse user base to which advertising companies can send advertisements and conduct tests. They will be able to get insight from diverse data.
Bling: Because we have secured users of diverse age groups, it is possible to target to users with purchasing power. Looking at the data, users who rack up points one by one make a lot of purchases. Also, users can experience the advertising and content more readily, as it takes up their whole lock screen. Users look at their phone’s lock screen almost once every 10 minutes, so companies can be frequently exposed to users, boosting brand awareness.
How can I effectively execute advertisements on BuzzScreen?
Bling: The marketer must determine the target user base of the product you’re selling. BuzzScreen is continuously improving our product, so that we can serve ads to the right targets. Marketers should communicate with the BuzzScreen advertisement operation team in order to assure high efficiency. If you consistently update us on which user bases to target ads to, our team will execute. Recently, a client judged that their ad’s efficiently was lagging, so they requested ads to show only to male users. After determining frequency and only sending ads to our apps from partner companies with majority male users, the unit price fell from 20,000 won (about 17 USD) to 10,000 won.
Bumi: I remember a partner company who served diverse product ads to a single target base. The products had wildly varying prices, and the efficiency was quite low. From the user perspective, being consistently shown lower priced products from the same company and then suddenly being shown a more expensive product, they don’t show much interest.
Bling: It’s important to test different targets to find the right location. Seeing the ad on the lockscreen and being able to access with just one click makes the purchase much more effortless, in our opinion.
Are only ads for household items or those directed to teens and 20-somthings efficient?
Bumi: There seems to be a misunderstanding that the users of lockscreen apps are mostly teens and 20-somethings. As I mentioned above, BuzzScreen partners with apps with users of all ages. We are continuously expanding our inventory relative to various users.
We are currently serving ads related to the branding of an automobile company. Automobile companies calculate their KPI (Key Performance Indicator) by the number of test drive applications and showroom visits. The chosen KPI is being exceeded monthly. Looking at these results, you can see just how diverse our user base is.
Bling: We are also proceeding with ads for a P2P service provider. The number of users who have invested after seeing the ad on their lock screen is increasing, according to the marketer. Throughout the long-term campaign, it’s not just the the number of clicks and registrations that have increased, but also the number of investments, which I’m proud of. We have diverse partners such as credit card companies, financial corporations, public institutions, telecommunication providers, airlines, and content providers.
What’s the plan for the future?
Bumi: If the marketers let us know their desired targeting, we can support them to reach that target base. We are developing and launching targeting products judged to have high efficiency.
We have launched a fine dust targeting advertising product, which will use weather API to determine fine dust levels in the user’s location, to optimize exposure of ads for lifestyle and environment products and cosmetics, such as masks and skin protective lotion. We predict that this will raise conversion rates and visit rates by minimizing budget exhaustion, only serving ads to adequate users according to current fine dust, ultra-fine particles, and ozone levels. Additionally we will use the strategy of one-click purchasing.
*Apologies for not being able to insert real company names of our advertisers.