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WTF: Why Do Banner Ads Still Exist in Mobile?Arel Lidow, VP, Product Management, AppNexus

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No One Seems to Like Banner Ads These Days “…one of the most misguided and destructive technologies of the Internet age.”- FARHAD MANJOO“Fall of the Banner Ad: The Monster that Swallowed the Web”, Farhad Manjoo, NY Times, Nov 5, 2014

“Yes. Internet advertising suffering horribly by premature format standardization. Has been rolling fiasco for 2 decades.” - MARC ANDREESSEN“Marc Andreessen: Ad Tech has fueled a ‘race to the bottom’,” Brian Morrissey, Digiday, Feb 5, 2014

“We messed up when we decided banner ads would be how we make

money on the Web.”- JOHN BATTELLE

“’CHANGE OR DIE’: Why Federated Media Has to Reinvent Online Advertising All Over Again”, Alyson Shontell, Business Insider, Nov 23, 2012

"How do you reimagine things, and bring back catchy, engaging advertising?" says Peretti. "You

can't really do it in banners because there's no space. But you can do it if you give people a full

post or a bigger canvas to work with.”- JONAH PERETTI

“INSIDE BUZZFEED: The Story Of How Jonah Peretti Built The Web’s Most Beloved New Media Brand”, Alyson Shontell, Business Insider, December 11, 2012

“It’s almost like a prank that was played by the technology industry

on the media industry 20 years ago.”- CHRIS DIXON

“Fall of the Banner Ad: The Monster that Swallowed the Web”, Farhad Manjoo, NY Times, Nov 5, 2014

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Mobile Publishers Especially Dislike Banner Ads

“Meanwhile, STEVEN SORDELLO, CHIEF FINANCIAL OFFICER AT LINKEDIN – said their business had

witnessed a 30% year-on-year decline in traditional display-ad revenue. As a

result, they will shift away from this

offering and towards sponsored ads in a

plight to boost annual subscriptions.”

“We believe that eliminating brand advertising,

which we also refer to as our display

advertising product, will benefit the company over the long term," said YELP FOUNDER AND CEO JEREMY STOPPELMAN. "The

industry trend toward increasingly disruptive

display advertising is at odds with our focus on

the consumer experience, particularly within

[our mobile] app.”

“The mobile banner might be the

worst ad since the popup. We

killed that thing because it was awful.

The mobile banner is just as bad.”

DAVID JAKUBOWSKI, FACEBOOK

“Yelp, LinkedIn shift resources from old-fashioned display ads”, Jennifer Booton, MarketWatch, Aug 4, 2015

“Yelp: Display Advertising Will Be 'Discontinued' by End of Year”, George Slefo, AdAge, July 28, 2015

“Facebook Head of Ad Tech: Five Marketing Opportunities Not to Miss Out On”, Business Zone UK, Nov 9, 2015

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And Yet, Banner Ads Are STILL Everywhere

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Native is a Small Minority of the Display Ecosystem

Source: Socinetel 360 as Cited in Company Blog, Sept 1, 2014 (eMarketer)Source: eMarketer Sept 2015

18% 20% 22% 24% 27%

2014 2015 2016 2017 2018

Native Ad Spend

Other Display Ad Spend

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WTF? WHY ARE BANNER ADS still

FORMAT?THE DOMINANT

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hasn’t native advertising completely replaced banners?

WHY

4 Blame it on consumers

Blame it on XXX

Blame it on XXX

Text “PUBSUMMIT” to 22333

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Publishers have been slow to adapt sites and apps to new formats

DSPs, SSPs, and Ad Servers have been slow to support new formats.

Banner ads are still the preferred format of Marketers & Agencies

Something else…

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It’s All About Supply Chain

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The “Open Ecosystem”

TRADING DESK

PUBLISHER SALES

MARKETER

PYM

AdOps

FORECASTING

PUB AD SERVEROMS

SITE/APP

CREATIVE AGENCY

RICH MEDIA VENDOR

MEDIA AGENCY

VIEWABILITY VENDOR

AGENCY AD SERVER

VERIFICATION VENDOR

RFP PROCESS

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The Benefits of the Open Ecosystem

FAIRNESS CONTROL MODULARITY TRANSPARENCY

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The Achilles Heel of the Open Ecosystem

But the Open Ecosystem Cannot Easily Adapt to New Formats

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Closed Ecosystems are More Flexible

AGENCIES

3RD PARTYPUBLISHERS

3RD PARTYPUBLISHERS

3RD PARTYPUBLISHERS

MARKETER

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So what does this mean for you?

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Be careful and do not put all of your eggs in one basket

PUBLISHERMARKETER

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Keep the path to Open

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PUBLISHERMARKETER

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WTF Why Do Banner Ads Still Exist In Mobile?

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Thank you!