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How do online ad agencies work ? Where do they buy ads from and where do they display it. I heard they take 50% of the ad sales ? Are there some online ad networks I can use instead ? |
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First of all , i want to thank Mohammad Sahli for the recommendation and for the explanation and was well done in answering the questions (i wish i can express / write in Arabic as he did) ... Just want to try to clear some issues here, considering the question coming from a "Publisher" side and not from an "Advertiser" side .... cause there are some SECRETS we dont reveal to the advertisers :) just kidding ... Terms (abbreviations) for CPM, CPC, CPA can be found in this link , pls check before you continue since they are mentioned over and over .. Online / Digital Ad agencies represent / help clients to advertise on the web according to the advertiser campaign brief / targeted audience / demographics ...etc "will give example later stage" ... so they approach publishers as follows: 1- Direct approach, example www.maktoob.com ((which is a Yahoo! property now), www.jeeran.com , www.ikbis.com or international website like www.cnn.com or your website if it is well branded and can reach their target audience ... with high traffic Example: Client / Advertiser : Pepsi Arabia Online Media Agency : OMD Digital Campaign Breif: Pepsi Arabia want to reach youth online, sport addicted, specially football, in saudi arabia and GCC ...etc Note: this approach usual end up with higher CPM rates / prices, so the advertiser needs to be prepared to pay more money to reach internet users on these particular websites .. Online Advertising Agencies, names like, OMD Digital, NEO Digital , MindShare Interaction , Starcom IP , MediaEdge Interaction , and many more ... almost every Advertising Agency or Media Buying Unit (MBU) has their new Digital Online department or even separate entity ... 2- Website Networks approach and they do buying and help in media planning for them, so the online ad agency will contact these website networks ... and buy from them (usualy bulk banner impressions) ... this goes for bigger or limited advertising budgets and lower rates option ... and higher reach of course. Website Networks in the middle east are: A- ikoo.com (used to be called e-Marketing Mena) The biggest website network so far (not because i was the co-founder), cause of the enormous reach, targeting capabilities, advertising management / technology used (Dart from Double Click) and the TEAM ... and many other aspects such as banners spread over 100+ websites .... numbers can express more ... ikoo can reach 39 Million Unique users / month and deliver 1,400,000,000 imp/month (yes 1.4 Billion banner impressions / Month) even without facebook inventory :) ... and we are talking here display banner advertising that means non-text ads like google .... although ikoo just implemented a new text advertising called Kalimat for more information pls click here How they deal with publishers? 1- Booking Banner (SPACE/s) one or two on a website after they certify the website statistics through double click system ... and pay for it ... usually this is a long term deal / contract .. for a year or two, and then they rotate advertisers in this banner space ... and publisher get paid whether ikoo SELL this space or NOT ... so it is a win-win deal for the publisher ... and publisher can sign with as MANY ad networks as he wish ... this always depend on the website nature and traffic he has ... and usually works with very high traffic local websites .... but still a headache for the publisher ... option two can explain how .. 2- Exclusive Representation they book ALL banner spaces on a website and either they pay cash or revenue share (cannot disclose their revenue share model %) and % varies from a publisher to another ... depends on many factors .. Advertising Sales Models: Since ikoo reach and deliver millions and millions of people / banner impressions, they work on different sales models, such as CPM, CPC, CPL and CPA and lately Text ADs , and that is why ikoo utilize most of their impressions inventory and they dont just wait for advertisiers to buy only CPM bases. In Brief ikoo OWNS the inventory ... B- Net Advantage (another website network) They represent 15+ websites as they mentioned in their website and reach 3.4 Million unique users as mention in this link, and they have moderate reach, but since they sell banner advertising for flagship websites such as Al Jazeera TV and Spacetoon TV and Kooora, they have higher CPM price values ... How they deal with publishers? Most probably on revenue share model & exclusive agreements is their aim ... i believe they sell CPM bases and since they dont own all of the inventory they might not accept CPC and other sales models ... Note: by the way BrandCentral (almost like Double Click), Neo Digital (Online Media Adency, for plannig, strategy and buying / selling) and FlipCorp (More into creative and development) so "ALL" are not website ad networks ... just wanted to clear this issue ... since it has confused the market a bit ... C- Other websites networks in the middle east 1- Media Scope Digital Division, they represent some websites mainly website started from Jordan, such as MediaME.com which is a great media recourse, and ikbis.com which is an arabic youtube like , watwet.com an arabic twitter like .... i really dont know how they deal with publishers .. 2- Sarmady Egypt owned by Vodafone they represent some good websites filgoal.com , filbalad.com and have signed an agreement with Net Advantage as coordination between two networks ... to have more reach and sales exposure ... 3- AlClick it is very well known in the publisher community but has more international advertisers who are willing to pay per click or per lead .. so it is not very will known between advertisers and advertising agencies although the company is in Dubai and was active since 2004 ... it has more into an automated system for advertisers and publishers for buying and selling online ads .. almost like google adsense for publishers and google adwords for advertisers ... but i believe without the bidding model ... not sure :), they claim reaching 41 million unique users ... and focus on GCC countries .. How they deal with publishers? Usually on pre-approved fixed price or rate on click bases as they mentioned in their website in the publisher page ... Note: Since they dont reveal their website network and just put logos of portals ... so we call this type of networks "Blind Networks", so advertisers book certain number of impressions and target countries without knowing on which website their banner will appear on ... and this type of advertising can reach huge amount of unique users with very LOW cost ... specially when they buy on CPC bases "cost per click" ... and they pay for the clicks only :) never mind how many banner impressions they received!! can reach to millions .. 4- Other networks for TV and e-Publications Al Khaleejiah Network "new" , MBC Group Network ...etc these types of Networks usually sell and market for thier owned portals ... D- Other International Ad Networks targeting Middle East i want to mention some of them since there are many ... but the one i am mentioning i allready delt with them and have high cridibilty in the market: 1- Banner Connect , check there video on home page, really informative and will explain more ... they were on of the first to sell for facebook ads, and they have great relations with socail media websites .. and very nice people to deal with ... since i know them personally ... as i mentioned they have mainly advertisers form abroad ... 2- CPX Interactive , they have good credibility and always looking for inventory from the middle east and north Africa ... most of their advertisers are international from abroad .. and they have the automated system for advertisers and publisher as we mentioned before ... How they deal with publishers? Mainly they have the same model of AlClick blind network , and sell on low priced CPM, CPC and CPL models ... they go for flat rate with publisher on CPM & CPC or revenue share on CPL and CPA. E- Last Google Network (the Adsense Program for publishers) , is a free program that enables website publishers of all sizes to display relevant Google ads and earn money from their websites, it is a good model but needs a process , from inquiring the code, till you get google approval ... but easy to implement, and you will never know how much u will be paid , since it is not on flat or pre-approved click rate ... but almost always you will get some $$ ... the other thing is you need time to filter "un-wanted ads" and believe it or not you can be banned at any time and might loose your previous income for the past months .. for reasons you will not be aware of or by just doing a simple mistake on the website such as adding a pop-up banner :) ... for more information you can check Adsense videos. Finally and Very Improtant: I want to apologize for the long answer, but i took this chance to have a small reference for all people interested in the online advertising model in the middle east ... All mentioned above (in this post) reflects my opinion ONLY, and does not reflect or express any official methodology or pricing used form these companies mentioned ... and might be updated on later stage after or during this post. Good Luck and i wish, that i have answered some of the questions in a normal and non official boring way ... and excuse my poor English and spelling mistakes, since as you know i am an Arab and English is my second language :) For more specific information or consultancy (free of charge) for individuals and startups, regarding a special project or website pls contact me via email on kjabasini@gmail.com Khaled, that's exactly the information I was looking for the past days - nice one, thanks! Thanks .. This answer breifly provide an exact oerview of Advertising Market in the Middle East. Amazing answer :) Thanks for sharing the deep insights !! Quite an informative answer... I would just fix one comment regarding Netad-vantage, the link mentions they reach 3.5 Million users from EGYPT and not the whole MENA...Al Jazeera alone, which they represent, has double that number based on this link: https://www.google.com/adplanner/planning/site_profile#siteDetails?identifier=aljazeera.net&lp=true Thanks for an amazing write up! |
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إذا كان موقعك يستقبل عددا كبيرا من الزيارات، يمكنك أن تراسل تلك الوكالات بنفسك وتقدم لها موقعك. لكل منها معايير وشروط معينة، في حالة تحققها في موقعك سيتم التعاقد معك. غالبا تكون النسبة التي تحصل عليها الوكالة بين 30% و40%. والمؤكد أنه لن يمكنك التعاقد سوى مع وكالة واحدة لا غير، في نفس الوقت. جرب التواصل مع هذه الوكالات: تحديث: تحصل هذه الوكالات على الإعلانات كما أي وكالات إعلانية أخرى (أوف لاين). لديهم مندوبي مبيعات يتصلون مباشرة بالشركات التجارية للحصول على عقود لتوزيع إعلاناتهم أون لاين. لاحقا حين تنجح الوكالة فهي تستطيع استقبال طلبات معلنين جدد يأتون بأنفسهم إليها. أما بخصوص التوزيع فهناك نوعان: النوع الأول قريب تقنيا من نظام جوجل أدسنس. حيث تقوم الوكالة هنا بتوزيع الإعلانات آليا على المواقع المشتركة لديها. أما النوع الثاني (وهو الشائع) فتلعب فيه الوكالة دور الوسيط لا غير. إذ تستقبل الإعلانات من المعلن وتحولها إلى المواقع التي يختارها المعلن بنفسه، عبر نظام نشر الإعلانات المعتمد لديها. أرجو أن يكون الرد مفيدا الآن يا نجيب. إذا كنت تحتاج إلى تفاصيل تقنية دقيقة، سيكون من الأفضل أن تراسل خالد جبصيني. Thanks Mohammed, but I meant how do the agenecies themsevles work. Where do they get the ads and clients from and how do they decide to spread them over websites. حسنا نجيب، عدلت الرد الآن :) |
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interesting question. in fact was discussing this with a colleague of mine last week and we couldnt reach a sound answer. there are some startups dedicate to online media buying and content distribution- check nervora.com i wish i had a precise answer! |
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Hello Naguib, There is no doubt that Khaled Jabasini's answer is very interesting and covers all the different types of Online Advertising and the different types of Networks. If I may add a little detail or advice, it is very important to find the right advertising mix for your website depending on your traffic, and then choose the right online advertising network or networks to achieve your goal. The mistake that newly established websites often make is that they try to copy the business model of the well established ones and try to sell their advertising space on a CPM basis only. As an alternative for not being able to sell their digital inventory on a CPM basis, those websites turn to CPC like Google Adsense in order to monetize their traffic even tough the revenue per click is very minimal and they have no control on the Ad displayed on their site. The argument I often hear is that "something" is better than "nothing". In my opinion, a more successful approach is to use different types of online advertising methods such as CPA, CPC and CPM at once in different parts of your site depending on the behavior of your readers in order to optimize the monetization of your traffic. I tend to promote CPA campaigns for newly established websites and specialized blogs as this type of advertising will allow them to generate a higher revenue than CPC if the campaign is well targeted towards the readers of the site. Please check our website www.menaclicks.com if you would like to know more about Affiliate Marketing in the Middle East. Regards, |
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