Evolution of Display Advertising – From GIF to RTBChandrakanth B NCo-founder & Managing DirectorTheorem India 30-Nov-2012
Agenda■ Relevance of Display in the era of search, social andmobile?■ Evolution of Display Advertising■ Trends globally
Why is display advertising so effective? People are naturally drawn to imagesPeople respond positively to visual thingsGenerate actions that go beyond clicksMere exposure effect - subconscious multi-taskingRepeated exposures = familiarity = one of the goals of advertisingBetter value option than other media
Role of Display in Purchase funnelSource: Eyeblaster: “Search & Display: Reach Beyond the Keyword”
Display advertising campaign life cycle Media Media Creative Creative Traffic/ Retarget/ Report Analyze NewPlanning Buying Strategy Build Deploy Campaign
The Display Ad serving Value Chain Pre - Order Order Management Billing & FinanceBuyer Side Advertisers Ad Serving ASP Tool (DFA, ATLAS, MediaPlex etc.) Media Creative Planning & Generation Trafficking Ad Delivery Reporting Optimization Invoicing Buying Content Integrated Partnership Curation Platform Review Inventory Proposal Trafficking Ad Delivery Reporting Optimization Management Invoicing Generation Publishers Trafficking ASP Tool (DFP, OAS, ADTECH, Yahoo APT etc.)Seller Side
1994: Origin of banner ads AT&T’s “You Will” campaign ran on HotWired in October 1994. It was among the first web ads.
Standard Banners Leaderboard Full Banner Wide Skyscraper Skyscraper Medium Rectangle
1996: Beginnings of rich media HP’s Shockwave “Pong” banner; first rich media ad (you could play Pong in the banner). Created by San Francisco-based agency RedSky Interactive in 1996.
Video Ads• Pre-roll • Post-roll• Mid-roll • Overlays
Future of Video There is a steep rise in professional video content coming online High-definition, full-screen video is becoming commonplace on the Web Improved players—most notably Flash and Microsoft’s Silverlight At a 46.5% growth rate, digital video ad spending will continue to post the strongest gains Increasing sales of more expensive and more effective preroll ads on YouTube 70% of people are now engaging with video content outside of the traditional TV set
Early days of ad servingSource: Online Advertising Business 101 by Ian Thomas
Enter the publisher ad serverSource: Online Advertising Business 101 by Ian Thomas
Enter the advertiser (third-party) ad serverSource: Online Advertising Business 101 by Ian Thomas
Content Delivery Network (CDN)Source: Online Advertising Business 101 by Ian Thomas
The Evolution of Display Media Buying Direct from Ad Ad DSPs Publishers Networks Exchanges 2009 1996 1998 2005
Real-time bidding (RTB) Real-time bidding (RTB) is a relatively new advertising technology that Today allows online advertising to be purchased and served on the fly. Is it Display’s answer to search?
Real-Time Bidding: How it Works? Sites place an exchange User types in a URL 1 tag on their pages with 2 and browser renders available inventory webpage Site 1 Site 2 Site 3 Winning bidder’s Exchange federates 6 creative is served to the 3 bid request to all user. Bidder pays .01 bidders for an auction more than 2nd place Exchange Exchange evaluates Bidders evaluate request (hold 5 all bid responses and 4 auction among their advertisers) selects winning bid and send bid responses to the exchange, including bid price and creative Bidder Bidder Bidder Bidder Bidder Bidder Bidder
Why RTB?• Winning formula of right user, right placement at the right time• Greater actionable insights at impression level• Extensive reach, performance and scale with full transparency• High level of control to optimize campaign performance.• Enhanced ROI for advertiser• Relevant ad experience for the user• Revenue Maximization for Publisher
Evolution of Media planning and buying AD EXCHANGE PUBLISHER ATD DSP SSP 34343434ADVERTISER 67676767 34343434 34343434 67676767 34343434 / AGENCY 6 AD NETWORK
Trends globally and in India Strong growth for video and rich media is apparent RTB to get more sophisticated and greater adoption Currently this eco system is very fragmented and too many players More consolidation possible as the space is very cluttered India in its early stage of adoption and as the digital marketing eco system evolves we may see more players in the DSP and RTB next year Higher scale of transaction and better audience data will drive RTB adoption in India