ben fox discusses the future of brands

THE PAST, PRESENT, ANDFUTURE OF ADVERTISING

[ Follow me!: linkedin.com/in/benfox, @benfoxgo ]

4 KEY DRIVERS OF THE FUTURE BRAND ADVERTISER

Simultaneous Consumer Behavior

+MOBILE SOCIAL

+TV EMAIL

+SEARCH DISPLAY

Old and New Ad Marketplace

PRINT

TV UPFRONTS

DIGITAL

Ad Exchanges and RTB required

The Nth screen is here now!

1 2 3 4

EMAIL

$700 MM

2011 ADVERTISING SPEND IN THE US

BROADCAST

$36 BBCABLE

$28 BB

SOURCE: Emarketer 2011, Forrester 2011

ADVERTISING REVENUE MARKET SHARE BY MEDIA, IN BILLIONS

SOURCE: IAB Internet Advertising Revenue Report; PwC

* Broadcast television includes Network, Syndicated, and Spot television advertising revenue. ** Cable Television includes

National Cable Networks and Local Cable television advertising. *** Magazine includes Consumer and Trade magazines

2011

2012

ADVERTISING REVENUE MARKET SHARE BY MEDIA, IN BILLIONS

SOURCE: IAB Internet Advertising Revenue Report; PwC

* Broadcast television includes Network, Syndicated, and Spot television advertising revenue. ** Cable Television includes

National Cable Networks and Local Cable television advertising. *** Magazine includes Consumer and Trade magazines

$40?

ADVERTISING MARKETPLACES

Broadcast Television

Digital Cable Television

Newspaper Magazines Radio

Out of Home Video Games Cinema

BUYERS SELLERS

THE OPPORTUNITY TO INFLUENCE A CONSUMER

A D M A R K E T P L A C E S

EACH AD MARKETPLACE HAS ITS OWN BENEFITS, DRAWBACKS, METHODOLOGIES, AND METRICS.

ADVERTISING MARKETPLACES

Broadcast Television

Digital Cable Television

Newspaper Magazines Radio

Out of Home Video Games Cinema

BUYERS SELLERS

THE OPPORTUNITY TO INFLUENCE A CONSUMER

A D M A R K E T P L A C E S

EACH AD MARKETPLACE HAS ITS OWN BENEFITS, DRAWBACKS, METHODOLOGIES, AND METRICS.

SOME MARKETPLACES ARE CONTRACTING

SOURCE: Business Intelligence, Sept 2012; Newspaper Association of America; Carpe Diem Blog

NEWSPAPER ADVERTISING REVENUE IN MILLIONS OF 2012 DOLLARS, 1950-2012

INCLUDING

ONLINE

PRINT ONLY

?

SOME MARKETPLACES ARE CONTRACTING

SOURCE: Business Intelligence, Sept 2012; Newspaper Association of America; Carpe Diem Blog

NEWSPAPER ADVERTISING REVENUE IN MILLIONS OF 2012 DOLLARS, 1950-2012

INCLUDING

ONLINE

PRINT ONLY

?

OTHER MARKETPLACES HAVE BEEN GETTING MORE EXPENSIVE

SOURCE: Nielsen, Coady Diemar Partners, June 2012, Horizon Media estimates

BROADCAST NETWORK SHARE OF TV VIEWING (PRIME TIME)

YEAR

AVG. BIG

FOUR

RATING

(18-49)

COST

($MM) TO

BUY 400

GRPs

COST

PER

RATING

POINT

HISTORICAL UPFRONT COSTS TO ADVERTISERS

1991-92

2001-02

2011-12

7.0

4.0

2.5

$5.4

$10.9

$20.5

$13,586

$27,295

$51,304

OTHER MARKETPLACES HAVE BEEN GETTING MORE EXPENSIVE

SOURCE: Nielsen, Coady Diemar Partners, June 2012, Horizon Media estimates

$ Cost per rating point has

increased by almost 4x – but you

get almost 50% fewer viewers!

So are Brand advertisers getting

4x the value of someone

watching network TV?

BROADCAST NETWORK SHARE OF TV VIEWING (PRIME TIME)

YEAR

AVG. BIG

FOUR

RATING

(18-49)

COST

($MM) TO

BUY 400

GRPs

COST

PER

RATING

POINT

HISTORICAL UPFRONT COSTS TO ADVERTISERS

1991-92

2001-02

2011-12

7.0

4.0

2.5

$5.4

$10.9

$20.5

$13,586

$27,295

$51,304

THE DIGITAL MARKETPLACE IS TAKING OFF!

SOURCE: IAB PwC 2011 Annual Report

“In every year since 2005, the annual growth rates of Internet advertising exceeded those of other advertising media”

DIGITAL MARKETPLACEAnnual Revenue, in Billions

THE DIGITAL MARKETPLACE IS TAKING OFF!

SOURCE: IAB PwC 2011 Annual Report

DIGITAL MARKETPLACEAnnual Revenue, in Billions

Forbes

Google

Emarketer

$50B

$200B

$60B

WHAT IS SO DIFFERENT ABOUT THE DIGITAL MARKETPLACE?

Millions of

publishers and

advertisers!

BUT THERE IS A CATCH… THERE’S ALWAYS A CATCH!

DIGITAL EXCHANGES NEED TO CONSOLIDATE

DIGITAL EXCHANGES NEED TO CONSOLIDATE

DIGITAL EXCHANGES NEED TO CONSOLIDATE

DIGITAL EXCHANGES NEED TO CONSOLIDATE

DIGITAL EXCHANGES NEED TO CONSOLIDATE

DIGITAL EXCHANGES NEED TO CONSOLIDATE

DIGITAL EXCHANGES NEED TO CONSOLIDATE

DIGITAL EXCHANGES NEED TO CONSOLIDATE

THE DAY OF THE SINGLE SCREEN COUCH POTATO IS OVER

THE DAY OF THE SINGLE SCREEN COUCH POTATO IS OVER

Consumer activity is simultaneous… are we thinking this way?

TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE

SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012

TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE

SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012

EMAIL IS THE #1 ACTIVITY FOR USERS ON MULTI-SCREEN!

TV BUDGETS AND MULTI-SCREEN ACTIVITY

SHOULDN’T ADVERTISER TV BUDGETSACCOUNT FOR THIS?

WHEN USERS ARE

ON MOBILE DEVICES,WHAT IS

THE PRIMARYCONSUMER ACTIVITY?

SOURCE: Edwin Wong, Senior Director, B2B of Strategic Insights, Yahoo!SOURCE: ExactTarget channel study 2012

EMAIL DOMINATES MOBILE ACTIVITYIN MULTIPLE STUDIES

TECHNOLOGY IS EXPANDING CHOICE FASTER THAN CREATIVE

FUTURE CONSUMER: THE NTH SCREEN IS HERE TODAY

FUTURE CONSUMER: THE NTH SCREEN IS HERE TODAY

FUTURE CONSUMER: THE NTH SCREEN IS HERE TODAY

CONSUMERS ARE LIVING IN A REAL TIME WORLD!

CONSUMERS ARE LIVING IN A REAL TIME WORLD!

CONSUMERS ARE LIVING IN A REAL TIME WORLD!

CONSUMERS ARE LIVING IN A REAL TIME WORLD!

CONSUMERS ARE LIVING IN A REAL TIME WORLD!

CONSUMERS ARE LIVING IN A REAL TIME WORLD!

CONSUMERS ARE LIVING IN A REAL TIME WORLD!

CONSUMERS ARE LIVING IN A REAL TIME WORLD!

MEDIA PLANS REFLECT TECHNOLOGY AVAILABLE YESTERDAY

LAST CLICK / LAST VIEW:

Rudimentary Attribution Capability

ECONOMETRIC MODELS

“50% of my TV budget is wasted, I just

don’t know which 50%”

MEDIA PLANS REFLECT TECHNOLOGY AVAILABLE YESTERDAY

NEAR TERM TECHNOLOGY REQUIREMENTS

Direct to exchange bidding

Access to all exchanges

Profile Server

Global Datawarehouse

Email/Consumer 1:1

Integrated CRM

1

2

3

ADVERTISING TECHNOLOGY ECOSYSTEM IN 2020

4 KEY DRIVERS OF THE FUTURE BRAND ADVERTISER

Simultaneous Consumer Behavior

+MOBILE SOCIAL

+TV EMAIL

+SEARCH DISPLAY

Old and New Ad Marketplace

PRINT

TV UPFRONTS

DIGITAL

Ad Exchanges and RTB required

The Nth screen is here now!

1 2 3 4

FOLLOW ME!:linkedin.com/in/benfox

@benfoxgo

C ON TAC T AD C ON ION D IR EC T AT:s a l e s @ a d c o n i o n d i r e c t . c o m