The Secrets to Media Buying - How IT makes Millions of Dollars

The Secrets to Media Buying - How IT makes Millions of Dollars

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:

• 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" --

The Secrets to Media Buying - Getting Started

The Secrets to Media Buying - Getting Started.



The world of Media Buying is a fast paced industry that scares a lot of marketers due to rumors of losing very large amounts of money. However, a lot of marketers do not understand that Media Buying has completely changed in the past few years. As technology enables better tracking systems and ways of serving ads it created the forefront for demand side platforms, real time bidding, and for the first time ever, your 5 year old nephew can buy ad space on sites like NYtimes.com, PerezHilton.com, and FoxNews.com.

A lot of marketers learned that you cannot put your entire business into the hands of third parties. With one clean swipe Google changed the SEO game and business’s that relied heavily on organic traffic were destroyed overnight. Media Buying offers you the chance to control your traffic.

What is Media Buying?

Media Buying can be anything from buying banner space on a website, contextual ads, a sponsored tweet, or a blog post. In overall, the Internet has broken the doors of traditional advertising and now offers much different type of Ad networks. I have a comprehensive database with close to 200 Ad Networks. I have them broken by different types of Media, budgets, and experience level that these networks require. The key to this business is testing different advertising placements and finding the right media for your offer. The equation is rather simple on the forefront, but don’t underestimate the work that is required to produce a profitable campaign. If it was easy… everyone would be doing it.

Before we dive into the above equation though you need to ask yourself, what am I buying Media for? I find a lot of confusion where members think Media Buying is a “system” or “scheme” to making money. Media Buying is the process of getting traffic. The traffic that you send to your offer through Media Buying is what creates the revenue. Thus, they’re two sides to learning Media Buying, understanding the traffic and the Offer.

The Offer

Throughout my series, when you hear me referring to “the offer” this can mean a handful of different things. In my experience these are the offers I have worked with, I also compare the pros and cons to working with these types of offers.

What’s best?

In regards to getting the best ROI on you’re spending we highly recommend that members go the route of creating their own product. This is because when you are selling someone else’s product and receiving a commission you need to calculate that the product sale price is not your revenue and in fact it is 25% commission of that sale price. You also are producing more risk as you let more control go to someone else. For example, we have produced a ton of sales for an advertiser that we were affiliates for and then for whatever reason the advertiser decided to pull the offer down. Now, we have to figure something else out. Your goal is to minimize your risk as much as possible and with your own product this is the only way.

What's Next

I will dissect each one of these type of funnels starting with List Building.

The Secrets to Media Buying - List Building release date 3/15