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Traditional Advertising Mentality Applied to Digital
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Traditional Advertising Mentality Applied to Digital

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Traditional advertising was based on the premise of "reach and frequency" to drive ROI. However, in digital, the same "spray and pray" mentality means advertisers are underutilizing digital ads' ...

Traditional advertising was based on the premise of "reach and frequency" to drive ROI. However, in digital, the same "spray and pray" mentality means advertisers are underutilizing digital ads' potential -- as a highly measurable medium.

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Traditional Advertising Mentality Applied to Digital Presentation Transcript

  • 1. Traditional Advertising Mentality Applied to Digital Dr. Augustine Fou http://linkd.in/augustinefou February 2014 -1- Augustine Fou
  • 2. Traditional Advertising (Reach & Frequency) -2- Augustine Fou
  • 3. Case: Jlo/Fiat (2011) “the jlo ad” “Fiat, who?” -3- Fiat’s TV ad generated huge search interest for Jennifer Lopez but had virtually no impact for Fiat, launching the 500C. Augustine Fou
  • 4. People Remember Celebrity 2012 Superbowl Ads -4- Augustine Fou
  • 5. Ace Metrix Study: 56% Consumers say celebrities make little difference 45% of US adults believe that celebrities can make either a large (11%) or some (33%) positive difference to issues they are promoting, but a greater proportion (51%) feel that they make little to no difference, per results from a study by Harris Interactive. Interestingly, respondents were more convinced of celebrities’ potential negative impact: 55% believe that celebrities’ negative publicity can have a somewhat (35%) or very (20%) damaging impact on the issue they’re promoting. Source: Ace Metrix via Marketing Charts Feb 6, 2014 -5- Augustine Fou
  • 6. 2012 Olympics TV Ad… http://www.youtube.com/watch?v=c8Y_oeYlmUw -6- Augustine Fou
  • 7. … drove sales for Audible Specific titles: Moby Dick, Odyssey spiked up Odyssey -7- Moby Dick Augustine Fou
  • 8. Case: Kodak Canon and Fuji were harvesting ROI online because they had better search optimized websites and better reviews on Amazon. -8- Augustine Fou
  • 9. Spray & Pray “Mentality” “Advertisers have brought their „spray and pray‟ mentality to digital – reach and frequency now means tonnage of digital ads.” -- Augustine Fou -9- Augustine Fou
  • 10. “Spray and Pray” in Digital - 10 - Augustine Fou
  • 11. Google – 12 ads per page 1 5 2 6 3 7 4 8 9 10 11 12 - 11 - Augustine Fou
  • 12. NY Times – 25 ads Do advertisers know their ads are shown next to so many others? Top half Bottom half 25 ads per page! - 12 - Augustine Fou
  • 13. Extreme Ad Load - 13 - Augustine Fou
  • 14. Facebook 7–9 Ads /pageview 2012 2011 2010 1 2 3 4 5 6 7 8 9 Source: Facebook Display Ads | go-Digital Blog - 14 - Augustine Fou
  • 15. 155 Video Ads /user /mo Nov 2013 reach = 56% frequency = 155 ads /mo Source: comScore, dec 2013 via MarketingCharts - 15 - Augustine Fou
  • 16. Ad “Tonnage” Doesn’t Equal ROI - 16 - Augustine Fou
  • 17. “If ad impressions were generated by bots and not humans, if the ads were not in view or adblocked, or if the ads are not targeted properly, they will not lead to paying customers for the advertiser.” -- Augustine Fou - 17 - Augustine Fou
  • 18. Suspicious/Confirmed Bot Traffic 51% suspicious 24-29% confirmed bot Source: Solve Media via Marketing Charts September 12, 2013 - 18 - Source: Solve Media Dec 31 2013 Augustine Fou
  • 19. 54% Online Ads Aren’t In View Source: comScore June 2013 via MarketingCharts - 19 - Augustine Fou
  • 20. 23% of Users Use Adblockers Source: PageFair, August 2013 Average Adblocking Rate 22.7% - 20 - Augustine Fou
  • 21. Properly Targeted Impressions Source: Nielsen, October 2011 25% average on-target delivery Case Example 5% properly targeted - 21 - Augustine Fou
  • 22. Areas of Optimization 30% 40% 30% - 22 - targeting improving optimization delivery viewability bots /not seen by humans waste reduction Augustine Fou
  • 23. Low Hanging Fruit The most immediate, direct impact on ROI comes from reducing waste 25% On-Target Delivery (Nielsen) 54% Not In View (comScore) 23% Ad Blocked (PageFair) 24 – 29% confirmed bot (Solve Media) - 23 - Augustine Fou
  • 24. Forms of Ad Waste Source: Ted McConnell, Brand Innovators Summit I didn’t get what I paid for: • • • • • • • • • 10% never get loaded into the browser – Moat 31% are never “in-view” (fraud or not) – comScore 20-80% are off demo target (depending on density) – Nielsen 29% are served to bots – Solve Media 20-40% are over frequency (bots or not) – Audience Science 5-30% are served outside your market geography – comScore 10% (est.) Dwell time < 1 second – SWAG 5% Overzealous Ad Verification (didnt get shown) – SWAG 20% Video: Autoplay, Sound off, Below the fold – TubeMogul Net using average values and statistical overlap: - 24 - 87% wasted Augustine Fou
  • 25. Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing advertising across all channels. One aspect of this is detecting waste and fraud; and then taking steps to mitigate it. After that is resolved then we further optimize the performance of the ads.” 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://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou - 25 - @acfou Augustine Fou
  • 26. Related Articles Digital Ad Fraud Briefing By: Augustine Fou December 2013 ROI Case For Solving Ad Fraud By: Augustine Fou, February 2014 Ad Fraud Fighting Techniques By: Augustine Fou October 2013 An Ecosystem of Digital Ad Fraud By: Augustine Fou, October 2013 How Display Fraud Works By: Augustine Fou, May 2013 The Magnitude of Digital Ad Fraud By: Augustine Fou, November 2013 How Click Fraud Works By: Augustine Fou, November 2013 - 26 - Augustine Fou