Secular Shift FromDisplay to Search         Dr. Augustine Fou         http://www.linkedin.com/in/augustinefou         May ...
From Display to Search         1996                     2000                     2004                     2008            ...
Ad Revenues by Pricing Model               Source: IAB, PwC April 2011May 24, 2012                                 3
Display to SearchMay 24, 2012.       4
Display ad impressions…                             Except                             Facebook, which                    ...
If users can’t see the ads...                   “about half are never in view”                    “quality problem in long...
If users don’t look...                                                   Source: Banner Blindness “The ads to the right ar...
Display ads on portals…                            Portals were the                            largest share of           ...
Pay for impressions vs... Display Ads Pay for impressions                            Search Ads                           ...
Why is search so much better?     Display Ads              Search Ads       Ads next to content    Ads based on what the  ...
Search is always better                                            Search CTR: 0.19%                                      ...
CompanyPerformanceMay 24, 2012.   12
AOL - FinancialsMay 24, 2012.      13
YHOO - FinancialsMay 24, 2012.       14
Planned SpendingChangesMay 24, 2012.      15
Display ads shifting to …                … social media sitesMay 24, 2012.                      16
So What?      “Smart advertisers are shifting away from      display ads which are paid on an      impression basis to oth...
Dr. Augustine Fou – Chief Digital Strategist   “I advise clients on shifting their   marketing mix among traditional   and...
APPENDIXMay 24, 2012.   19
AOLMay 24, 2012.   20
Relative CPM – industryMay 24, 2012.             21
Relative CTR – industryMay 24, 2012.             22
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Secular Decline Shift Away from Display Advertising

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As advertisers focus more on ROI, there is a permanent and irreversible shift from display advertising (CPM) to search advertising (CPC) where the advertiser only pays when they get the action -- e.g. the click.

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Secular Decline Shift Away from Display Advertising

  1. 1. Secular Shift FromDisplay to Search Dr. Augustine Fou http://www.linkedin.com/in/augustinefou May 24, 2012.
  2. 2. From Display to Search 1996 2000 2004 2008 2011 $267 million $8.2 billion $9.6 billion $23 billion $31 billion 100% banner ads 40% display 40% search 45% search 47% search 31% sponsorships 39% display 33% display 35% display 10% classifieds 18% other 14% other 17% other Source: IAB March 1997 Source: IAB April 2001 Source: IAB April 2005 Source: IAB March 2009 Source: IAB March 2009 http://bit.ly/JKwCJ1 http://bit.ly/MA9FIh http://bit.ly/LlB6zY http://bit.ly/LuiZhD http://bit.ly/JK2lIu crossoverMay 24, 2012 2
  3. 3. Ad Revenues by Pricing Model Source: IAB, PwC April 2011May 24, 2012 3
  4. 4. Display to SearchMay 24, 2012. 4
  5. 5. Display ad impressions… Except Facebook, which is artificially inflating impressions by serving up to 9 ads per pageview. Source: go-digital Blog, May 12, 2012May 24, 2012 … are headed downward. 5
  6. 6. If users can’t see the ads... “about half are never in view” “quality problem in long-tail content sites” … no wonder click rates suck.May 24, 2012 6
  7. 7. If users don’t look... Source: Banner Blindness “The ads to the right are only noticed by 23% of the respondents, and they spend only half a second on the ads.” Source: Mashable 12/29/2011 … even “branding” doesn’t happen.May 24, 2012 7
  8. 8. Display ads on portals… Portals were the largest share of display ads (e.g. AOL and Yahoo) They are among the fastest-losing areas of display ad spending. … are dropping by double-digits.May 24, 2012 8
  9. 9. Pay for impressions vs... Display Ads Pay for impressions Search Ads Pay for clicks … pay only for results (clicks).May 24, 2012 9
  10. 10. Why is search so much better? Display Ads Search Ads Ads next to content Ads based on what the the user wants to user is looking for read – (keyword) at the exact email, scores, news, moment in time. content, etc.April 13, 2012 10
  11. 11. Search is always better Search CTR: 0.19% Display CTR: 0.05% Search CTR: 0.25% Display CTR: 0.03% Search CTR: 0.13% Display CTR: 0.07% Search CTR: 0.24% Display CTR: 0.07% Source: Search versus Display | go-Digital BlogMay 24, 2012 11
  12. 12. CompanyPerformanceMay 24, 2012. 12
  13. 13. AOL - FinancialsMay 24, 2012. 13
  14. 14. YHOO - FinancialsMay 24, 2012. 14
  15. 15. Planned SpendingChangesMay 24, 2012. 15
  16. 16. Display ads shifting to … … social media sitesMay 24, 2012. 16
  17. 17. So What? “Smart advertisers are shifting away from display ads which are paid on an impression basis to other forms of online ads such as search and social, for better measurability and return. Look at your entire mix and determine what mix is optimal for your business and industry.” - Dr. Augustine FouMay 24, 2012 17
  18. 18. Dr. Augustine Fou – Chief Digital Strategist “I advise clients on shifting their marketing mix among traditional and digital tactics, and unifying them to work optimally together.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23 ClickZ Articles: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefouMay 24, 2012 18 acfou@mktsci.com
  19. 19. APPENDIXMay 24, 2012. 19
  20. 20. AOLMay 24, 2012. 20
  21. 21. Relative CPM – industryMay 24, 2012. 21
  22. 22. Relative CTR – industryMay 24, 2012. 22

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