Download - 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