Riga, September 25-26
Interactive advertising trends. How it will affect Baltic markets
Deividas Talijūnas
Adnet, Lithuania

media trust
RSS digital
blog/weblog html AdWords
budget Google advertising
search iPhone
contextual video
WEB 2.0 display network
banner
web java social mobile
XML
sharing engagement local

Global Spending by Medium,
2006 - 2010 ($ Millions)
600.000
450.000
300.000
150.000
0
2006 2007 2008 2009 2010
Newspapers Magazines TV Radio
Cinema Outdoor Internet
2008 - to overtake radio advertising;
2009 - to attain a double-digit share of
global advertising (10,4%);
2010 to overtake magazine advertising,
with 11.5% of total ad spend;
http://flickr.com/photos/tracy_olson/61056391/sizes/l/ Suorce:ZenithOptimedi

Advertising budgets UK (%)‫‏‬
Group M forecasts that the UK will be on the brink of passing the milestone at the
end of 2008, when the internet will account for 24.8% of UK media spend, just
behind the 26% share held by the TV ad sector

Advertising budgets Baltic's
LT LV EE
3% 6% 8%
6% 1%
7% 9% 7% 27%
35% 7%
10%
13% 46%
11%
17%
25% 22% 40%
TV Newspapers
TV Newspapers TV Newspapers
Magazines Radio
Magazines Radio Magazines Radio
Outdor Internet
Outdor Internet Outdor Internet
Cinema

Smart guys know :)
I don’t know anybody under 30 who has
ever looked at a classified advertisment
in a newspaper. With broadband they do
more and more transactions online
Rupert Murdoch

Where do money go? UK 2007
The internet is not one medium, its growth rate is a blend of three distinct
businesses growing at different speeds: search, display and classified

Google
Google is becoming the
“operating system” for marketing

Google
Google - Media company
Google - the biggest internet advertising
network
&

Google
Google Trends – research company?
Google Ad Planner? Some are calling it
the ‘ad agency killer’.

EE
Google
1%
1%
1% Neti
Google
38% Delfi
58% WWW
Others
LV
2%
3%
3% Google Search advertising in Baltics?
3%
Delfi
Siets
MSN
Others
89%
LT
1%
0%
1%
1%
Google
MSN
Delfi
Yahoo
Others
97%

Mobile internet
Speaking on US TV, Schmidt said, “We can make more money in mobile than
desktop eventually because the mobile computer is more targeted. You carry your
phone everywhere, it knows all about you, it knows what you’re up to. We can do a
very, very targeted ad. Over time, we’ll make more money from mobile
advertising.”
Photo: http://www.crunchgear.com/wp-content/uploads/2008/01/iphone-google.jpg

Mobile internet
IPhone initiate 50 times more
searches than other handsets
Says Google

Mobile internet

Mobile internet. Why now?
1) handsets becoming small functional computers;
2) cheaper / faster / more data;
3) more content
- 450MM (48%) of new handsets shipped Mobile Internet ready (can
run Java applications...), 2006
- 2,9B subscribers with <2.5G (~50kbps) network access; 311MM
3G subscribers have broadband-like services (browsing, full track
music), 2007E
- Mobile content improving steadily - consumers are spending
billions on it
Source: Informa, Morgan Stanley Research

Mobile internet. Japan
http://www.flickr.com/photos/manganite/2088599558/ Source: http://www.videoi.co.jp/release/20070417.html

Mobile internet

Mobile internet. Portal reach LT
250 000 unique users
180 000 unique per month. More 250 000. unique
users per month. than 8 mln. users per month.
More than 2 mln. pageviews (SurfPort More than 4 mln.
pageviews + SurfOpen) pageviews
Source: portal’s data

Mobile inernet
wap.one.lt >100 000 000
Lithuanian websites ranked according page views.
Gemius Audience 2008 August.
Admobi.lt data

In ad we trust!
We do!
What about consumers?

In ad we trust?
76%
of consumers don’t belive that companies tell truth in
advertisements
Yankelowich

person like me
68%
“a person like me” is considered the most credible source of
information about a company
Edelman. Trust barometer 2006
http://www.flickr.com/photos/luc/1824234195/

What is - WEB 2.0
•The term “WEB 2.0” defines an era, like
“DOT COM”
•Read/Write - anyone can be a publisher
(Blogas.lt, Blogger.com, Wordpress.com...)
•Search (Google.com, Alternative Search
Engines)
•Social Networks (Draugiem.lv, One.lv, My
Space, Facebook...)
•Online media (YouTube, Last.fm...)
•Content Aggregation/Sindication (Bloglines,
Google Reader, Netvibes...)
•Mashups (Google Maps, Flcker, You Tube)
http://www.flickr.com/photos/catspyjamasnz/2287072287/ Source: Read/Write Web

Social internet (WEB 2.0)‫‏‬
Text
This shows massive growth in a very short period of time and users
have gradually moved from passive consumers to active creators
Source: Universal McCann Social Media Tracker – Power to the People

Social internet. The sources of information I trust
6,8 Personal recommendations from friends/family
6,2 Personal recommendations from professionals
5,8 Emails from a friend/colleague
5,7 Instant Messenger conversation with a friend/colleague
5,6 Consumers reviews on retail sites e.g Amazon.com
4,9 Blogs/Weblogs - personal blog written by people you know
4,6 Magazine/Newspaper article
4,3 Company/Brand website
4,2 Shelf information and product displays in store
4,2 Blogs/Weblogs - professional blog
4,1 Comments on social network sites e.g Facebook.com
4,1 Recommendation in a television programme
4,0 Blogs/Weblogs - written by people you do not know
3,9 Outdoor advertising
3,8 Online chat rooms/message boards
3,8 TV adverts
3,7 Magazine/Newspaper advertising
3,3 Emails from companies
3,2 Celebrity recomendation
0 2,5 5,0 7,5 10,0
Graph shows the extent to which global web users trust different
sources of information on products, brands and services
Source: Universal McCann Social Media Tracker – Power to the People

Social internet (WEB 2.0)‫‏‬
Paid advertising
e-shop
independent
website
e-shop
652 searches per
corporate month
e-shop
wikipedia
e-shop
website
price comparison engine

Social internet (WEB 2.0)‫‏‬
Paid advertising
forum
forum
website 310 searches per
month
forum
...and only user
generated
blog content!
blog
classified

Reklamos biudžetai web
Cut & Paste
TRENDS:
Information, entertainment and all web
content is becoming portable
SOLUTION:
•Openness Make sure that every digital program
•Users decide how to use content allows information to be consumed/
•Widget’isation engage with wherever the individual
wants to engage with it

Reklamos biudžetai
Cut & Paste web
A Web widget can be best described as a mini application tat an add functionality to
your web page, blog, social profile, etc. If you find a widget that you like, you simply
copy and paste some code and add it to the HTML of your web page. Photo
galleries, news, videos, advertising, mp3 players and prgnancy countdown tickers!
You name it, there is probably a widget that does it.
Yahoo finance Weather channel Amazon.com Twiter.com for
for iPhone forecast for “giver” for desktop
iGoogle Facebook

Reklamos biudžetai
Cut & Paste web

Challenge for advertisers:
new targeting models
•Baiba (female/urban/high incomes/
25 25-30 years old)?
•Contextual targeting
29 •Behavioral targeting

Reklamos biudžetai
Challenge for advertisers: new metrics
TRENDS:
The new Marketing needs not only to attract, but also engage &
excite
Reach & Frequency are not catering to measure the quality of
Engagement & Exitement
SOLUTION:
The new metric is - Brand Expose Duration - BXD
BXD is the lenght of time an individual is exposed to a given
advertisment, branded website, branded game, online video...
Suorce: Atlas DMT

Challenge for advertisers: new staff
TRENDS:
Some companies are hiring in-house experts who guide the
company toward becoming more digital
These professionals are “cross-trained” in talking technology and
marketing, which often don’t mix
SOLUTION:
Consider hiring a geek marketer/digital proffesional

Localization
The world is becoming more local and location-aware. The next
internet and mobile wave of innovation are going to come from
location based services able to provide locally relevant information
to anyone anywhere in the world.

3D/virtual worlds

Digital dominance
Internet versus TV
Source: Microsoft

Thank you!
deividas@adnet.lt