The Past, Present and Potential of Display Advertising A4U Expo Peter Gowrie-Smith Farzad Jamal Managing Director Commercial Director Magnetise Group EMEA, OpenX
Agenda 1. Introduction 2. Where we were / where we are 3. Reasons for resurgence: I. Major players II. New formats III. Retargeting IV. Ways to buy V. Rise of data VI. New pricing models VII. Ways to measure 4. Where it’s heading next I. Challenges II. Opportunities III. Close and questions
Who We Are - Magnetise Marketing technology company delivering solutions for the creation and management of advertising, marketing and lead generation campaigns. tbc Portfolio of bespoke, highly scalable performance Lead management and analytics consultancy and advertising and engagement solutions. technology for multi-channel campaigns.
Who We Are - OpenX Yield All buyers complete in Optimizer the ad server to max yields Ad RTB increases non-guaranteed Exchange CPMs with full controls Sell direct across all formats Ad Server (Display, mobile, email, video)
The $200 Billion Dollar Gorilla• 2012 global display market is forecast at $33 billion , share of online ad spend will be 41% by 2014 (ZenithOptimedia)• Display is now growing 20% annually (Forrester)• Display is growing faster than search (IAB Europe) & will overtake search by 2015 (eMarketer)
The Major Players• Microsoft - Bought aQuantive in 2007…plus Skype in 2011 • Has 4.5% of 2012 US display ad market• Facebook - Bought Rel8tion in 2011, Instagram and Face.com in 2012 • 14.4% of 2012 US display ad market• AOL - Bought advertising.com in 2004, Pictela in 2010 …plus TechCrunch in 2010, HuffPo in 2011 • 3.6% of 2012 US display ad market• Yahoo! - Bought Right Media in 2007, Dapper in 2010 • 9.3% of US 2012 display ad market• Google - Bought DoubleClick 2007, AdMob 2009, AdMeld in 2011 …and YouTube in 2006 • 15.4% of the 2012 US display ad market• WPP Group… Bought 24/7 Real Media in 2007
Opportunities Ahead• Billboards / OOH • Infrastructure – spending doubles to $5.2 billion from 2011-2016 (MagnaGlobal) • Appetite - by 2020 90% of OOH will be digital• Targeting • Interactive mirrors – ‘try before you buy’ • Facial recognition – tailoring display to the physical audience • Search retargeting• Mobile • Mobile media accounts for 23% of consumer time, but 1% of ad spend (Flurry) • NFC – in 20% of smartphones by 2014 (Juniper Research)• Integration & Innovation • Social channels • Real-time rich media
Conclusion• Display is a completely different beast to 18 years ago• New formats, engagement options, pricing models, measurement metrics, ways to buy and the rise of data all play their part• The future is looking rosy, but the industry must be mindful of growing privacy issues• Mobile, billboards and innovations in display will deliver a $200 billion industry within the next 10 years.