Online Advertising: Today > Web 3.0 Alec Newcomb Vice President, MyWebGrocer
304 Years of Print Advertising in America
“… you have to go back 500 years to the printing press, the birth of mass media – which, incidentally, is what really dest...
In  1965  an advertiser could reach 80% of Americans by running an Ad on ABC, CBS, and NBC.
In  2004  the share of ABC,  NBC, CBS, Fox was  31% By March of  2008  network viewership  had dropped to  37.6 million  –...
17.2 % of these households have a DVR
On average, the networks are off the mark by 10% from last year in total viewers and off 17% in the 18- to 49-year-old dem...
People's time spend online is between 30% and 40%  Advertising expenditure  online is 9%
 
The most popular video on YouTube has been seen 88 Million Times
“ The days of making funny things that may or may not have an effect on the client's business are ending.” Jeff Benjamin I...
 
Where we are today  Web 2.0
141 Million unique US visitors in April 2008
 
VS Ford $9.6 Million  two 60 second spots Toyota  $2.8 Million - One Ad plus  search keywords Toyota increased it’s websit...
By this time next year… Google's search business alone will be larger and more profitable than the most profitable monopol...
$2 Million per minute
“ We’re not in the business of keeping the media companies alive. We’re in the business of connecting with consumers.” Tre...
Google AdWords AdSense DoubleClick YouTube Blogger Gmail Microsoft AdCenter Atlas aQuantive WindowsLive MSN Hotmail VS
May 8, 2008 Tools for different jobs: Search & Display Advertising
How do I make Money Online?
The Deck: The ad network of creative, web and design culture
“ The idea of an ad network is… disaggregating the ad spend from the content. And you can only push that so far before the...
Web 1.0 Email, Search,  Communicate, Consume Share and Create Web 2.0 Web 3.0
"640K ought to be enough for anybody.” Bill Gates, 1981
 
<ul><li>Surprise…You’re the Brand!  </li></ul>
<ul><li>You trust your peers and select brands that you love </li></ul>
 
If you had 15 minutes: 17 %  Check out social networking sites 17%  Talk on your cellphone 14%  Watch TV
 
MySpace Users: 32% Increased internet use 26% Increased email usage 24% Increase instant messaging
“ I don’t want companies to advertise to me.  I want them to be my friend.” Rob, 27 Los Angeles
Every  minute, 10 hours  of video  are uploaded to YouTube
We search for everything. Make it local. Track it ALL online. Market where people spend their time
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Online Marketing Boot Camp: Outlooks in Online Advertising

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Online Marketing Boot Camp Presentation: Current State & New Outlooks in Online Advertising.

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  • Welcome to Online Marketing session Boot Camp. My name is Alec Newcomb. It’s Post Lunch. I’ll try to keep you awake, on your toes, and learning. I’ve spent the last 13 years on both sides of the online advertising equation. My goal &gt; few key tips and trends that you can turn around and use in your business tomorrow. But to understand where we are and where we are headed we need to start with the past.
  • humans writing in various forms from 3,500 years. We need to remember that the first newspaper advertisement was in 1704, an announcement seeking a buyer for some real estate on Long Island which was published in the Boston News-Letter.
  • An Ad for Road funding via 6000 lottery tickets for Charles town Mass. Good idea. So why is Rupert smiling? Because he has hedged his bets by owning MySpace he has a vehicle to drive his content forward.
  • Newspapers local &gt; Radio &gt; National Magazines &gt; Radio Networks &gt; TV &gt; Cable &gt; Online
  • Today Average US house hold receives 118 channels
  • Over 50% say they “always” fast-forward through commercials; 36% say they do so at least three-quarters of the time.
  • Yet Ad sales dollars are up about 1% YoY. Why? Because everything else: Newspapers, Radio, Magazines did worse.
  • Why? Old Habits die hard. The numbers are dramatic yes but when is the shift coming. GM is moving half of its $3 Billion dollar budget online over the next three years. P&amp;G is moving 20% of its budget online. I’ll believe it when I see it. I spend my days in the field.
  • Throwing Darts. It’s still too hard to buy digital media ads, and too easy to buy millions of eyeballs on broadcast. This chart gets me motivated. Traditional media is expensive for what you get, today. Some of this has to do with it being an election year.
  • Vs TV
  • Captive audience
  • The traditional media landscape is a train wreck and digital is confusing. It is also hard. I know because I spend my week every week out talking to CEO’s, CMO’s and agencies about it.
  • Alec, I get it I need to change. I want to change my media buying habits. But how?
  • If you only take one point away today. Take this. EVERYHING and I mean Everything goes through this box. People are lazy. .com Web sites, UPC’s. 18% YoY growth for Google. Letting it surpass Yahoo for the most visited site. There are 150-180 Million web sites and growing by the minute. YOU NEED Google to sift through the data. Google &gt; GE &gt; Microsoft &gt; Coke &gt; China Mobile They Won. I lost.
  • Googled to get directions and…
  • We do PPC/SEO all day long in a low margin business. Grocery Retail. Where we compete against Wal Mart and FreshDirect. You need to get serious about PPC. Today. Now.
  • Show of hands how many people are using AdWords or PPC? Google is 60-70% more effective at the long tail keywords than Yahoo or MSN I don’t care what your business is. Solo proprietor, Non profit, University, government. If you have a marketing budget you need to be on Ad Words or doing SEO. This is not an option in the world we live in. Other wise guys like me will steal all you hard work in your other mediums.
  • Connect with your consumers. The question is where and when. Using the right tools at the right time.
  • Google dominates the market, taking in 77% of text ads that show up alongside Internet search queries. Microsoft, after years of trying, is at 5% of U.S. search revenue, according to search marketing firm Efficient Frontier. Microsoft dominates display advertising and sales. Viacom.
  • Everyone is getting bigger. Why? Big makes it easier for the buyers like you to buy. Right tool at the right time. Search is a better for task related activities. Display more for branding and awareness. Different Tools for Different jobs.
  • It is hard. Review Chart. Avg eCPM’s are sub $1.50 on most Ad Networks. We make about $.82 with Google AdWords. You need a two tiered strategy.
  • The Deck. The current rate for ads is $6400 USD per ad per month and this rate is valid through July 31, 2008. Companies and brands like Adobe, Microsoft, Proctor &amp; Gamble, Six Apart, Columbia Records, Crate &amp; Barrel and O’Reilly Media have found The Deck an efficient way to reach a large and influential audience.
  • To summarize
  • Web 1.0 evolved around the tools to enable you to perform tasks online. Web 2.0 has been much more about sharing and creating things that you are interested and passionate about with people. FlickR, Twiter, YouTube, Facebook, and MySpace.
  • Predicting the future is dangerous…
  • It is all global. MWG &gt; India. Moblie &gt; Internet &gt;
  • And the Ad. And you helped create it. And you may have done it all for free because you loved the brand. Millennial’s.
  • Lake Champlain Hot Chocolate VC Story. How do I advertise in that medium? You don’t you market. You add value. You ask permission. You collaborate.
  • You Tube – BlendTec Try a Facebook Ad traditional advertising, which was developed for CAPTIVE audiences, and web users are increasingly anything but captive.
  • Millennial’s. Stuck in the Detriot airport and he Texted on his cell phone the entire two hour drive to Kalamzoo, MI. The majority of people in Japan access the internet via their phones. The Iphone will push that here in the US. So, everything gets more complicated because now you have to be relevant and local.
  • Average age on Social Networking sites is 32.
  • Advertise on You Tube: Every minute 10 hours of video gets uploaded to UTube 71 Million Uniques a Month Avg 50 Min of videos per user $750 Million 2008 Ad spend going to $4 Billion in 2012 Txt Overlay – Window Shade – CPC or CPM basis Animated Overlay CPM Flash Overlay CPC &amp; CPM End Caps
  • Web 3.0 Advertising Rules: Search, Local, Track it. Don’t advertise.
  • Questions
  • Online Marketing Boot Camp: Outlooks in Online Advertising

    1. 1. Online Advertising: Today > Web 3.0 Alec Newcomb Vice President, MyWebGrocer
    2. 2. 304 Years of Print Advertising in America
    3. 3. “… you have to go back 500 years to the printing press, the birth of mass media – which, incidentally, is what really destroyed the old world of kings and aristocracies. Technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now it’s the people who are taking control.” And he’s smiling. Rupert Murdoch, CEO News Corp, Wired 2006
    4. 4. In 1965 an advertiser could reach 80% of Americans by running an Ad on ABC, CBS, and NBC.
    5. 5. In 2004 the share of ABC, NBC, CBS, Fox was 31% By March of 2008 network viewership had dropped to 37.6 million – That’s 12% of the US
    6. 6. 17.2 % of these households have a DVR
    7. 7. On average, the networks are off the mark by 10% from last year in total viewers and off 17% in the 18- to 49-year-old demographic. May 18 TVweek
    8. 8. People's time spend online is between 30% and 40% Advertising expenditure online is 9%
    9. 10. The most popular video on YouTube has been seen 88 Million Times
    10. 11. “ The days of making funny things that may or may not have an effect on the client's business are ending.” Jeff Benjamin Interactive Creative Director Crispin Porter + Bogusky AdWeek March 2008
    11. 13. Where we are today Web 2.0
    12. 14. 141 Million unique US visitors in April 2008
    13. 16. VS Ford $9.6 Million two 60 second spots Toyota $2.8 Million - One Ad plus search keywords Toyota increased it’s website traffic by 300% Super Bowl 2007
    14. 17. By this time next year… Google's search business alone will be larger and more profitable than the most profitable monopoly in history -- Microsoft Windows.
    15. 18. $2 Million per minute
    16. 19. “ We’re not in the business of keeping the media companies alive. We’re in the business of connecting with consumers.” Trevor Edwards Vice President, Global Brand & Category Management Nike New York Times October 2007
    17. 20. Google AdWords AdSense DoubleClick YouTube Blogger Gmail Microsoft AdCenter Atlas aQuantive WindowsLive MSN Hotmail VS
    18. 21. May 8, 2008 Tools for different jobs: Search & Display Advertising
    19. 22. How do I make Money Online?
    20. 23. The Deck: The ad network of creative, web and design culture
    21. 24. “ The idea of an ad network is… disaggregating the ad spend from the content. And you can only push that so far before the content becomes less good” Jim Spanfeller President of Forbes.com
    22. 25. Web 1.0 Email, Search, Communicate, Consume Share and Create Web 2.0 Web 3.0
    23. 26. &quot;640K ought to be enough for anybody.” Bill Gates, 1981
    24. 28. <ul><li>Surprise…You’re the Brand! </li></ul>
    25. 29. <ul><li>You trust your peers and select brands that you love </li></ul>
    26. 31. If you had 15 minutes: 17 % Check out social networking sites 17% Talk on your cellphone 14% Watch TV
    27. 33. MySpace Users: 32% Increased internet use 26% Increased email usage 24% Increase instant messaging
    28. 34. “ I don’t want companies to advertise to me. I want them to be my friend.” Rob, 27 Los Angeles
    29. 35. Every minute, 10 hours of video are uploaded to YouTube
    30. 36. We search for everything. Make it local. Track it ALL online. Market where people spend their time
    31. 37. Attribution-NonCommercial [email_address]

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