audience extension panel at borrell 2015

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The Case for Audience Extension Lorren Elkins Granite Broadcasting Corp. [email protected] @lorren_elkins

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The Case for Audience Extension

Lorren Elkins

Granite Broadcasting [email protected]

@lorren_elkins

Audience Extension Benefits

• Expand publisher reach

• Enable audience targeting

•Automate buying process

The market for geo-targeted display ads is

poised for aggressive

growth over the next few

years

As early as 2009, targeted ads were predicted to be in high demand

2009 2011 2012 2013 2014

“The big driver will be

targeted display”

In 2011 Borrell mentioned targeted ads as a growth driver

2009 2011 2012 2013 2014

In 2012 Pew predicted targeted display would grow far faster than other ad formats

“Targeted display will overtake all other local online ad formats”

2009 2011 2012 2013 2014

In 2013 SMBs got into the game

2009 2011 2012 2013 2014

“13% of US SMBs planned to spend $ on

targeted display ”

Borrell in 2014

2009 2011 2012 2013 2014

“targeted display ”

Kelsey predicts mobile targeted display will grow from 32% of buys to 43% by 2019

Source: BIA/Kelsey, November 2014

32% in 2014”

43% in 2019”

U.S. Local Video Advertising Revenues

Source: BIA/Kelsey, November 2014

The other major growth area has been online video

7% of all video in 2014”

19% of all video in 2019”

2009 2011 2012 2013 2014 2015 2016 2017 2018 2019

eMarketer points out higher video CPMS

“What’s at stake here is a lot of money”

We’re also reminded that pure plays dominate local digital share

Source: Borrell Associates

Pure-Play

Newspaper

YP

TV

MagazineRadio Cable

Given these trends, it was important for us to:

•Combat pure-play competitors

•Consider ROI vs other sales programs

•Develop targeted audience capabilities

• Find an outsourced solution

Our Approach

Audience Extension is one of many sales programs

Onboarding the Sales Team

•Provide targeted display capability

• Enable more inventory

•Develop training program

• Establish Ad Ops procedures

•Create marketing materials

Challenges

• Selling audiences instead of impressions

• Explaining and delivering targeted audiences

• Added expense of targeting

• Questions about observable impressions & sites

• Need for transparent reporting

• Pricing the program properly

Expectations & Results

Revenue Impact

0

20

40

60

80

100

120

Q1-14 Q2-14 Q3-14 Q4-14

# of Audience Extension Campaigns RunDisplay Video

How often do you include/plan to include audience extension on campaign proposals?

Source: 2014 Digiday sample of 226 publishers at the Director level or higher

“48% include audience

extension on most campaign

proposals”

Digiday says audience extension helps win business

Source: 2014 Digiday sample of 226 publishers at the Director level or higher

“42% have won

new business”

Things to Consider

• If you’re big, it’s likely you already have your own direct solution

• If you’re smaller, audience extension is still possible

• Many third-party vendors offer access to exchanges. Ask them about:• reporting• site transparency• best practice case studies• their staff turnover• order entry process• # of platforms they use• flexibility in creating new audience segments

• Use your own program name rather than that of your vendor

Thank you@lorren_elkins

[email protected]