State of Display17 September 2012

Linus GregoriadisResearch Director, Econsultancy

linus@econsultancy.comhttp://econsultancy.com

Twitter: @LinusGreg

| State of Display – OMMA Display, London, 17 September 2012| 2

Me at the Paralympics closing ceremony…

| State of Display – OMMA Display, London, 17 September 2012| 3

| State of Display – OMMA Display, London, 17 September 2012| 4

| State of Display – OMMA Display, London, 17 September 2012| 5

| State of Display – OMMA Display, London, 17 September 2012| 6

Growth

Complexity

Integration

| State of Display – OMMA Display, London, 17 September 2012| 7

Growth

Complexity

Integration

| State of Display – OMMA Display, London, 17 September 2012| 8

Growth

Complexity

Integration

| State of Display – OMMA Display, London, 17 September 2012| 9

Growth

Complexity

Integration

| State of Display – OMMA Display, London, 17 September 2012| 10

Growth

Complexity

Integration

| State of Display – OMMA Display, London, 17 September 2012| 11

The global display advertising market will reach $32.9bn this year.

Expected to increase to 41% of internet advertising by 2014.

(Source: ZenithOptimedia)

| State of Display – OMMA Display, London, 17 September 2012| 12

Growth of RTB in the US and UK, 2010-2015

Source: IDC

2010 2011 2012 2013 2014 20150%

5%

10%

15%

20%

25%

30%

4%

10%

16%

20%

24%

27%

1%

6%

12%

17%

21%

25%

US UK

| State of Display – OMMA Display, London, 17 September 2012| 13

Facebook launches RTB for advertisers

| State of Display – OMMA Display, London, 17 September 2012| 14

Top ten US online display ad publishers by number of impressions in millions

Source: comScore

Facebook starts to capitalise on the dynamic RTB market

| State of Display – OMMA Display, London, 17 September 2012| 15

 The growth of social media advertising

Source: ZenithOptimedia

2011 2012 2013 20140

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

3,937

5,291

6,941

8,833

14%

16%

18%19%

Social media advertising ($m) Share of display (%)

| State of Display – OMMA Display, London, 17 September 2012| 16

Online ad spend in the UK (IAB/PwC)

Total 2011 online ad

spend

£4.784bn

16%

24% 58% Search

Classifieds

Display(surpassed

£1bn for the first time)

| State of Display – OMMA Display, London, 17 September 2012| 17

| State of Display – OMMA Display, London, 17 September 2012| 18

| State of Display – OMMA Display, London, 17 September 2012| 19

“If you want to reach the masses, you still have to use television”

| State of Display – OMMA Display, London, 17 September 2012| 20

“If you want to reach the masses, you still have to use television”

51% of marketers disagree with this statement

| State of Display – OMMA Display, London, 17 September 2012| 21

Growth

Complexity

Integration

| State of Display – OMMA Display, London, 17 September 2012| 22

| State of Display – OMMA Display, London, 17 September 2012| 23

| State of Display – OMMA Display, London, 17 September 2012| 24

Source: Econsultancy

The RTB ecosystem

| State of Display – OMMA Display, London, 17 September 2012| 25

The CMO doesn’t care…

| State of Display – OMMA Display, London, 17 September 2012| 26

The consumer doesn’t care either ...

| State of Display – OMMA Display, London, 17 September 2012| 27

Consumers expect a personalised, seamless experience across every

channel

| State of Display – OMMA Display, London, 17 September 2012| 28

| State of Display – OMMA Display, London, 17 September 2012| 29

Brands are engaging consumers in many different ways / channels

Source: FT.com

| State of Display – OMMA Display, London, 17 September 2012| 30

The goal: the pleasure of leisurely newspaper browsing with the immediacy and interactivity of a website.

An experience which feels tailored on every device.

A unified business: one customer, one access.

FT’s mobile strategy

| State of Display – OMMA Display, London, 17 September 2012| 31

The Olympics Opening Ceremony drew a peak broadcast audience of 27.1m people, of which34% were via the mobile site and 9% on tablets

| State of Display – OMMA Display, London, 17 September 2012| 32

Growth

Complexity

Integration

| State of Display – OMMA London, 17 September 201228/07/2012 - Cross-Channel Marketing Report

| 33

Website

Email

SEOSocial

Paid search

Newspapers

Direct mail

Online display advertising

Mobile: web / apps / messaging

Brand

| State of Display – OMMA Display, London, 17 September 2012| 34

Website94%

SEO83%

Social83%

Email89%

Which online channels does your organisation use as part of its marketing efforts?

Companies need an integrated approach to marketing

Display63%

| State of Display – OMMA Display, London, 17 September 2012| 35

Owned, ‘earned’ and paid-for media

Paid

EarnedOwned

ADVERTISINGPaid search, display, affiliate

DIGITAL PROPERTIES

Websites, blogs,

microsites, social

presence

OFF-SITE SOCIAL MEDIA

Word of mouth, digital PR, influencer

outreach

| State of Display – OMMA Display, London, 17 September 2012| 36

Extent of integration of display with other channels

On-site content management

Search engine marketing

Email Social media marketing

Mobile marketing0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

44%

37%

31%28%

14%

Source: Econsultancy / Responsys Cross-Channel Marketing Report 2012

| State of Display – OMMA Display, London, 17 September 2012| 37

Integration of display advertising with other channels

On-site content management

Search engine marketing

Email Social media marketing

Mobile marketing0%

10%

20%

30%

40%

50%

60%

70%

80%

44%

37%

31%28%

14%

66%70%

64%59%

55%

Proportion of respondents integrating with display advertisingPositive impact on conversions

Source: Econsultancy / Responsys Cross-Channel Marketing Report 2012

| State of Display – OMMA Display, London, 17 September 2012| 38

Trends regarded as ‘significant’ by marketers

Source: Econsultancy / Responsys Cross-Channel Marketing Report 2012

0%

20%

40%

60%

80%

100% 96% 96% 93%84% 82%

71% 67%

| State of Display – OMMA Display, London, 17 September 2012| 39

Only 14% currently integrating mobile and display

Of these, 55% report a positive effect on conversions

Mobile

Display advertising

Effect on conversion: 55%

Companies integrating: 14%

Source: Econsultancy / Responsys Cross-Channel Marketing Report 2012

| State of Display – OMMA Display, London, 17 September 2012| 40

Greater interaction with social channels owing to the evolution of smart TVs

It’s early, but smart TV will impact display advertising

| State of Display – OMMA Display, London, 17 September 2012| 41

Growth

Complexity

Integration

| State of Display – OMMA Display, London, 17 September 2012| 42

Related Econsultancy content

| State of Display – OMMA Display, London, 17 September 2012| 43

All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsulancy.com Ltd 2012.

Related Econsultancy content Real-Time Bidding Buyer’s Guide

http://econsultancy.com/reports/rtb-buyers-guide

Real-Time Bidding Ecosystem (infographic)http://econsultancy.com/reports/real-time-bidding-ecosystem

Best Practices in Digital Display Advertisinghttp://econsultancy.com/reports/best-practices-in-digital-display-advertising

Cross-Channel Marketing Reporthttp://econsultancy.com/reports/cross-channel-marketing-report

| State of Display – OMMA Display, London, 17 September 2012| 44

Future Shopping Experiences – Andy Harding, House of Fraser (FODM 2012, Econsultancy)

http://www.flickr.com/photos/crazybob/2755035844/

http://www.flickr.com/photos/jabberwock/517861757/

http://intellectualodditiesnetwork.com/showthread.php?tid=13276&pid=111545

http://www.tumblr.com/tagged/paralympics-closing-ceremony

http://cdn.walyou.com/wp-content/uploads//2011/04/Amazing_Steampunk_Star_Wars_Art_25.jpg

http://fc09.deviantart.net/fs39/f/2008/366/a/1/ZEUS_os_X__Earth__Space_by_ZEUSosX.jpg

http://upload.wikimedia.org/wikipedia/commons/e/e2/Jupiter-Earth-Spot_comparison.jpg

http://www.sxc.hu/photo/944284

http://www.flickr.com/photos/royalty-free-images/145118335/

https://community.kinaxis.com/servlet/JiveServlet/showImage/38-2458-4790/consumer_shopping.jpg

Image credits

| State of Display – OMMA Display, London, 17 September 2012| 45

http://janrain.com/wp-content/uploads/drupal/Personalized%20Site.jpg

http://januaryskyy.com/wp-content/uploads/macys.jpg

http://thetruthandlight.files.wordpress.com/2012/08/london-fireworks-illuminate-the-sky-over-olympic-stadium-during-opening-ceremonies-at-the-2012-summer-olympics-saturday-july-28-2012-in-london-ap-photo-mark-j-terrill.jpg

http://www.sxc.hu/photo/1361428

http://www.consciousnessis.net/images/Brain.PNG

http://babacita.com/wp-content/uploads/2011/06/cmo_chief_marketing_officer_tshirt.jpg

http://www.helpingchurchleaders.com/wp-content/uploads/2011/04/question.jpg

Image credits