can display advertising survive the web?

Can Display Advertising Survive the Web?

JONATHAN MENDEZFounder & CEO,RAMP Digital

• Former Chief Strategy Officer/Offermatica, Founder/OTTO Digital. Merged strategy and creative services with advanced marketing technology to establish first of its kind optimization agency

• Record of success with over 50 clients including Amazon.com, Disney, Citibank, H&R Block, IBM, Intuit, Microsoft, Monster.com, Sears & T-Mobile

• Evangelist on technology driven advertising and marketing platforms and creative optimization

•Leverage Advanced Web Technology (APIs, Semantic Markup, Real-Time Web)•Create Intelligent Digital Marketing Solutions (Applications for Display, Search, Social & Mobile)•Measure, Analyze & Optimize Performance(Source, Behavior, Temporal, Environment, Creative)

Introduction to RAMP

Founded March 2008New York & San Francisco

The Medium is the Messenger

"The laying of the telegraph around the world is the great work of the age."

- New York Herald, April 20, 1857

The Web “Solution”Information Management Services

•Hypertext ‣content

•Computer conferencing‣social media

•Document retrieval‣search

•Information management‣cms/platform/cloud

•Project control‣messaging

The Medium is the Messenger

Services are not

an ad supported medium!

The Medium is the Messenger

Advertising is a premium content biz

The Medium is the Messenger

Advertising is an impression biz

The Medium is the Messenger

what is premium on the web?

The Medium is the Messenger

what is the value of a web impression?

“I do not regard advertising as entertainment or an art form but as a medium of

information”- David Ogilvy

•Speed•Control •Relevance

The Medium is the Messenger

The web is the greatest medium of information ever known to man!

•discovery & recovery•information & content•user control•interest/intention based

The Medium is the Messenger

Response: People will respond to advertising if you leverage the medium of information...

The Publisher Dilemma

September, 2008

“The gap is widening between spending on simple search ads and display ads. Search-ad spending is on track to reach $10.4

billion this year, double what will be spent on display ads, according to research firm eMarketer. That divergence of fortunes may be bad news for companies counting on a

comeback for display ads, which ruled the Web in its early days.”

Old content hierarchies“information architectures”

above tools that fracture content

The Publisher Dilemma

The Fault Line

The Publisher Dilemma

September 2006

The Publisher Dilemma

September 2006

Only 16% of search terms aligned with NYT IA

The Publisher Dilemma

Top 50 Internal Search Queries !

September 2006 February 2007

150 days later 60% of search terms were the same

✓Free traffic from search✓Big display networks✓High CPMs✓PV,PV,PV

The Publisher Dilemma

1997-2007: The Good Times

•Google as Media Biz•Lots of display networks•Rise of Exchanges•Falling CPMs•Performance

The Publisher Dilemma

2007 - 20??: The New World Order

Rise of Self Publishing Tools

The Publisher Dilemma

The Publisher Dilemma

Rise of the New Publisher

•Aggregators

•UGC

•Self-serve classified

•Amateurs

The biggest value creation in web publishing was never about the content 

...but the discovery & distribution of it!

The Publisher Dilemma

The Publisher Dilemma

“For All the New Media Spin, It's Just an 'Old' Media” – Advertising Age story on Display Media, July 28, 2008

The Advertiser Dilemma

The Advertiser Dilemma

“8 in 10 Americans are now online and spend as much time on the Web as on TV”

“Most marketers allocate only 5%-10% of their ad budgets to digital media.”*

“Are Big Ad Agencies So Clueless That Corporations Should Avoid Them?”July 26, 2007

*BAH/AMA Survey 10/07

Impressions

% ServedCPM

CTR

SOVView-Through

Frequency Cap

The Advertiser Dilemma

Flight Dates

Campaigns

Brand vs. DM worldview continuum

Why? Old habits (budgets) die hard

The Advertiser Dilemma

DM leveraged the platform

•testing•targeting•buy side & sell side

The Advertiser Dilemma

performance marketing = optimization

Wanna know a Direct Marketing secret?The Advertiser Dilemma

Brand has always ruled volume and ROI for the DM

How are we measuring brand success?

•Are we afraid to measure?•Are we afraid to leave the silo?

The Advertiser Dilemma

The Advertiser Dilemma

Maybe, the problem is not with our ability as advertisers to reach people but what we are reaching them with?

The Advertiser Dilemma

•spyware•pop ups•pop unders

•spam•phishing•interstitials

Everybody pissed off the audience

Messaging

The Advertiser Dilemma

•Power has shifted in the marketplace•Consumers have an active voice in the marketing and the ultimate success of products•Reviews, recommendations and social networks necessitate factual and helpful messages•Marketing must quantify the benefits

Why?

Info Overload/ Authenticity This is the only way consumers will hear you!

•irrelevance•banner blindness•worse

The Advertiser Dilemma

Creative

•Who is using advanced technology?•Who understands analytics? testing? optimization?

The Advertiser Dilemma

creative optimization

•limited inventory•click attribution•little perceived brand value

The Advertiser Dilemma

Search

BT is not the holy grail

•Volume & cost (performance) issues•Targeting = multiple creatives=$•Privacy

The Advertiser Dilemma

Behavioral

The Advertiser Dilemma

Where is the Transparency?

We are not advancing in our use of marketing technology at the pace our audience is becoming more advanced in their use of the web.

The Advertiser Dilemma

...and the delta is growing

communication technology has always made consumers savvier, more educated & amplified their diversity

The Advertiser Dilemma

...making our jobs harder

“This is the first mass marketing medium ever that

isn't supported by ads!”

- Seth Godin, September, 2008

The Answers Lie Within

Lazy Marketing

The Answers Lie Within

$ flow to online?

6% year-over-year decrease in display spend overall in the first two quarters of 2008

-Nielsen Online

Ex. A

Ex. B

The Answers Lie Within

The Answers Lie Within

Imagine there’s no ads. It isn’t hard to do.   

The Answers Lie Within

    Google #1 Brand in the World in 8 short years    Advertising Budget 2000‐2007: $0

The 6 largest digital media/content properties grew without the use of advertising

“People don't read advertising, they read what interests them... Sometimes that's advertising." -Howard Gossage

The Answers Lie Within

Value added relevance Helpful & useful parts of an experience

or

Net new relevance Experiences interesting enough to change the behavior

The Answers Lie Within

Ads need to be relevant!

•Real-time web

•Content Targeting – helps a lot

•User control/segmentation

•Testing & Optimization

The Answers Lie Within

Why Search Ads Rock

Ads can add value to content

‣Programmable Web

‣Semantic Web

The Answers Lie Within

Technology Can Drive Relevance

‣Real‐time Web

‣Implicit Web

...with a caveat

The Answers Lie Within

WARNING!!!Technology does not create great marketing. It only helps you aim better.

The Answers Lie Within

WARNING!!!Technology does not create great marketing. It only helps you aim better.

The Answers

Yes!

The Answers

Display Advertising works in this medium if you:

1.Give people control2.Deliver relevant content3.Test, measure & optimize4.Properly value & attribute actions

The Answers

Publishers:

What are you doing to make your content more

relevant to the ads?

Advertisers:

What are you doing to make your ads more

relevant to the content?

Everyone:

What marketing technology are you and your organization expert at?

How are you using this technology to create better experiences?

How are you quantifying & acting on that data?

The Answers

Thank You!

My Blog: www.optimizeandprophesize.com

My Company: www.rampdigital.com