state of the industry study: digital advertising
Post on 21-Oct-2014
3.877 views
DESCRIPTION
DataXu CEO Mike Baker's keynote presentation from DigiDay: ON MEDIA. This presentation includes some of the key findings from the recent "State of the Industry in Digital Advertising" Study sponsored by DIGIDAY and DataXu.TRANSCRIPT
![Page 1: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/1.jpg)
State of the Industry in Digital Advertising
December 2010, DigiDay:ONMEDIA
1© 2010 DataXu, Inc. Privileged & Confidential
![Page 2: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/2.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 2
publishers,146agencies, and
advertisers took our survey
21367
![Page 3: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/3.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 3
brands & agencies surveyed believe the industry is going through a seismic shift to 100% digital
92%
Photo attribution: flickr.com/photos/trochee/424850077/
![Page 4: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/4.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 4
What’s the pace of the digital migration?
![Page 5: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/5.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 5
50%
52%
54%
56%
58%
60%
62%
64%
2010
2011
Percent of Digital Ad Budgets
Brand and Agencies
![Page 6: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/6.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 6
Is 2011 the year of convergence?
![Page 7: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/7.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 7
78% of Agencies 60% of Brand say they have a holistic approach
Really?
Photo attribution: flickr.com/photos/wolfgangstaudt/2896131064
![Page 8: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/8.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 8
73% of Agencies and Brands will run video
campaigns in 2011
Photo attribution: sxc.hu/photo/1189614
![Page 9: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/9.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 9
80% of Agencies and
88% of Brands will run display campaigns in 2011
Photo attribution: flickr.com/photos/thetruthabout/2821726795
![Page 10: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/10.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 10
78% of Agencies and
64% of Brands will run mobile campaigns in 2011
Photo attribution: flickr.com/photos/kitcowan/2103850699
![Page 11: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/11.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 11
Why spend more on digital advertising?
![Page 12: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/12.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 12
Performanceis most important
Photo attribution: flickr.com/photos/jordanfischer/72510316
Technology is not
![Page 13: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/13.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 13
Is digital changing the funnel?
![Page 14: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/14.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 14
There is a big shift in Brand usage of digital
Photo attribution: flickr.com/photos/julianbleecker/2434362687
![Page 15: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/15.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 15
Branded Performanceis where it’s at
Photo attribution: flickr.com/photos/beverlyhillsporsche/5152065475
![Page 16: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/16.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 16
2011 is About Branded Performance
![Page 17: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/17.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 17
So where’s the heat in 2011?
![Page 18: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/18.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 18
Photo attribution: flickr.com/photos/28177041@N03/3666158737/ ç
cut in general ad network spend.
41%
![Page 19: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/19.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 19
Shift in Ad Spend
General Ad Networks
Demand Side Platforms
0
10
20
30
40
50
60
70
80
90
100
Agencies
General Ad Networks
Demand Side Platforms
0
5
10
15
20
25
30
Brands
![Page 20: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/20.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 20
Why Use a DSP?
![Page 21: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/21.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 21
Agencies are using
DSPs for direct response
Brands value DSPs
for prospecting
Photo attribution: flickr.com/photos/kevinpoh/4507945736
![Page 22: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/22.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 22
What is the most important quality for selecting a media partner?
![Page 23: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/23.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 23
Trust and alignment with buy side interests.
Photo attribution: flickr.com/photos/virtualfarmboy/4421793779
![Page 24: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/24.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 24
What is your greatest concern in buying digital media?
![Page 25: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/25.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 25
1st concern is effective targeting.2nd is measurement tools.
3rd is inventory quality.
Photo attribution: flickr.com/photos/vizzzual-dot-com/2655969483
![Page 26: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/26.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 26
Which types of targeting are most effective?
![Page 27: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/27.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 27
Most Effective
Psychographic
Geographic
Demographic
Social Graph Targeting
Contextual
Behavioral
Retargeting
Performance based optimization
0% 20% 40% 60% 80% 100% 120%
Agencies and Brands
![Page 28: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/28.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 28
Why are we buying cookie lists?
Photo attribution: flickr.com/photos/thetruthabout/2763075223
![Page 29: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/29.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 29
It’s all about analytics, right?
![Page 30: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/30.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 30
Photo attribution: flickr.com/photos/killercyberman400/2610544345
Consumer Insight > Media fees
![Page 31: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/31.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 31
How can analytics be improved?
![Page 32: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/32.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 32
Photo attribution: flickr.com/photos/jordanfischer/72510316
Analytics can be improved with actionable insights
![Page 33: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/33.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 33
#1 More Actionable Insights
Integration with Ad servers (reconciliation)
Better attribution models
Integration with Client's data
Clearer analysis
Cross-channel media models
Better insights about consumers
More actionable insights
0% 10% 20% 30% 40% 50% 60% 70% 80%
Agencies and Brands
![Page 34: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/34.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 34
What will you still depend on your agency for in 2011?
![Page 35: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/35.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 35
Photo attribution: flickr.com/photos/chelseagirlphotos/444131481
Clients look to agencies primarily for planning and buying, regardless of technology
![Page 36: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/36.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 36
Chew on that, and thank youGet the whitepaper:
http://info.dataxu.com/whitepapers/digitalshiftor email [email protected]
![Page 37: State of the Industry Study: Digital Advertising](https://reader033.vdocuments.us/reader033/viewer/2022061106/54465755b1af9fe33a8b45d1/html5/thumbnails/37.jpg)
© 2010 DataXu, Inc. Privileged & Confidential 37
DataXu Promise