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Why Advertisers (& their agencies)  Will Destroy Us Tiger Global 2008 Internet Conference New York City • October 2, 2008 Greg Stuart Former CEO, Interactive Advertising Bureau Co-author: What Sticks … And What We (Online Publishers) Can Do to Stop Them
Problem Is That They Don’t Know What Works, Nor Do They Care ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Deutsch is the 14 largest agency in the US
Today’s Intent ,[object Object],[object Object],[object Object]
$1 Billion Ad Spending Researched 1.1 million consumers surveyed
What Did Learn From the Research? 36% Media Motivations Messaging
ING’s 4 Year Campaign ,[object Object]
Today’s Ads for ING Simplifies a Complicated Financial World
More, What Do We Know? 36% 31% Media Motivations Messaging
How Big A Difference Can Creative Make? Source: IAB Cross Media Study B A
Creative Makes a  BIG  Difference Better creative can make the difference between success and  absolute  failure Ad A Source: IAB Cross Media Study
And Just to See It Again Source: IAB Cross Media Study B A
Yes, It’s That Bad, and Worse 36% 31% 83% Media Motivations Messaging
Why Were Marketers So Slow… When the Data is So Compelling? ,[object Object],[object Object]
The Truth Is…Marketing is Hard ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],3,125 combinations 10 to 10 th  =  1   billion  combinations
 
What Sticks was Written to Be… ,[object Object],[object Object],[object Object]
But What If They Don’t Take the Call? Used with permission Cartoonbank.com
What is Online Media’s Destiny for Getting Brand Dollars?
Let’s Examine One Model for Online Advertising Success ,[object Object],[object Object]
What is That Worth to Google? ,[object Object],[object Object],[object Object]
Some of What Google Figured Out  (& the other Media still don’t get) ,[object Object],[object Object],[object Object],[object Object]
So Why Bother? 2 Data Points ,[object Object],[object Object],[object Object],[object Object],[object Object]
What Will Be Our Future? ,[object Object],[object Object],[object Object]
If Advertisers Don’t Take Responsibility, What Should We Do?
What Sticks 3 Step Action Plan Publishers & Ad Sellers ,[object Object],[object Object],[object Object]
[object Object],Own House in Order..
Stop Selling International Impressions to Domestic Advertisers ,[object Object],[object Object]
Respect Diminishing Returns It’s a Law of Physics in Media % of Brand Impact Awareness, Image or Purchase Intent 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Frequency Diminishing returns 1 2 3 4 5
Heaviest Online Quintile Garners Half the Ad Imps Percent of Total Impressions Light Users All other quintiles Heavy Users Avg Freq: 1.0 2.1 3.2 5.5 25.0
One Solution: Website Frequency Caps Can Really Help Frequency of 3 Per Week per Site Dramatically  Increases Reach & Thus Performance Light Users All other quintiles Heavy Users Increased reach by 72% +50% to 70% in Ad Effectiveness
Many Things can Affect Effectiveness  (e.g., Time of Day) +10% to 15% in Ad Effective-ness Average If Marketer had focused impressions on the 6hours around lunch time, impact would have been significantly better % Purchase Intent Lunch
Results: Size Matters 1  Aggregated results for three brands tested 2  The average of four brand measures tested The 336x280 resulted in an average +54% increase in brand impact vs. 468 x 60 2 +20% to 54% in Ad Effective-ness IAB, DoubleClick Ad Effectiveness Research 2001 Banner Small Rectangle Small Skyscraper Large Rectangle
Improving Publisher Ad Effectiveness Insights from the What Sticks Research ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],+0% to INFINITY in Ad Effectiveness
Some Companies That Can Help ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],Help Them…
Of Course, Context Matters +~10 Pts
But Behavior Targeting Is Better ,[object Object],[object Object],[object Object],[object Object],[object Object],Purchase Intent
Next Generation Targeting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Optimizing Each Campaign  Is High Value Same Media Budget    310% Increase Source: InsightExpress
Optimizing Online Ad Inventory Yield is Becoming Critical Today ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
However, Biggest Gains Where In The Marketing Mix Introducing New Menu Item:    Grilled Chicken Flatbread Sandwich Ad Frequency (or Budget) % Aided Awareness 20% of Broadcast  Budget Reinvested  13.6%  in Online Point of  Diminished Returns 5pt Gain! Cut 6.4% TV & Radio 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0.0%
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Some Companies That Can Help
[object Object],[object Object],Package It Well
Forbes.com  Brand Effectiveness Guarantee ,[object Object],[object Object],[object Object],[object Object],[object Object],Increase Brand Ad Effectiveness,  Or your money back!
Yahoo!’s Consumer Direct ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
In Summary, Unlike the Other Media, Online Has Many Effectiveness Levers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
So, Why Bother?
“ Most Important Launch In History Of Ford”     - Bill Ford F150 Truck is #1 selling vehicle in U.S.
The F-150 Online Ads
How Big a Difference Can Little Changes Make? Roadblock 43% One Day Reach
Cost Effectiveness of Each Medium Cost to Increase  Purchase Consideration   Interpretation: If it cost Roadblock $1 (indexed at 100) to increase purchase consideration, then it cost $1.35 for Online, $4.56 for magazine and $11.04 to TV to achieve the same increase. $1.35 $1.00 $4.56 $11.04 Relative Cost 100 Roadblock 456 Magazine 1104 TV 135 Online Relative  Cost Index Brand Metric: Purchase Consideration  (top 2 box)
What’s the CPM for This!? ,[object Object],[object Object],[object Object],Ford Media Mix * Traditional Media (TV, Magazines) * Approx. $200 Million Budget Equal to $750,000,000 in U.S. Truck sales  Equal to +$1,350,000,000 in U.S. Truck sales
Ford Put It Best ,[object Object],[object Object],[object Object]
So What Is Your Destiny? ,[object Object],[object Object],[object Object]
Greg Stuart +1.631.702.0682 New York City [email_address] Want a copy? email me. Thank You
If You Don’t Like The Way Things are NOW… ,[object Object],[object Object]

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How Can Onlline Publishers Capture More (Brand) Ad Dollars

  • 1. Why Advertisers (& their agencies) Will Destroy Us Tiger Global 2008 Internet Conference New York City • October 2, 2008 Greg Stuart Former CEO, Interactive Advertising Bureau Co-author: What Sticks … And What We (Online Publishers) Can Do to Stop Them
  • 2.
  • 3.
  • 4. $1 Billion Ad Spending Researched 1.1 million consumers surveyed
  • 5. What Did Learn From the Research? 36% Media Motivations Messaging
  • 6.
  • 7. Today’s Ads for ING Simplifies a Complicated Financial World
  • 8. More, What Do We Know? 36% 31% Media Motivations Messaging
  • 9. How Big A Difference Can Creative Make? Source: IAB Cross Media Study B A
  • 10. Creative Makes a BIG Difference Better creative can make the difference between success and absolute failure Ad A Source: IAB Cross Media Study
  • 11. And Just to See It Again Source: IAB Cross Media Study B A
  • 12. Yes, It’s That Bad, and Worse 36% 31% 83% Media Motivations Messaging
  • 13.
  • 14.
  • 15.  
  • 16.
  • 17. But What If They Don’t Take the Call? Used with permission Cartoonbank.com
  • 18. What is Online Media’s Destiny for Getting Brand Dollars?
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. If Advertisers Don’t Take Responsibility, What Should We Do?
  • 25.
  • 26.
  • 27.
  • 28. Respect Diminishing Returns It’s a Law of Physics in Media % of Brand Impact Awareness, Image or Purchase Intent 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Frequency Diminishing returns 1 2 3 4 5
  • 29. Heaviest Online Quintile Garners Half the Ad Imps Percent of Total Impressions Light Users All other quintiles Heavy Users Avg Freq: 1.0 2.1 3.2 5.5 25.0
  • 30. One Solution: Website Frequency Caps Can Really Help Frequency of 3 Per Week per Site Dramatically Increases Reach & Thus Performance Light Users All other quintiles Heavy Users Increased reach by 72% +50% to 70% in Ad Effectiveness
  • 31. Many Things can Affect Effectiveness (e.g., Time of Day) +10% to 15% in Ad Effective-ness Average If Marketer had focused impressions on the 6hours around lunch time, impact would have been significantly better % Purchase Intent Lunch
  • 32. Results: Size Matters 1 Aggregated results for three brands tested 2 The average of four brand measures tested The 336x280 resulted in an average +54% increase in brand impact vs. 468 x 60 2 +20% to 54% in Ad Effective-ness IAB, DoubleClick Ad Effectiveness Research 2001 Banner Small Rectangle Small Skyscraper Large Rectangle
  • 33.
  • 34.
  • 35.
  • 36. Of Course, Context Matters +~10 Pts
  • 37.
  • 38.
  • 39. Optimizing Each Campaign Is High Value Same Media Budget  310% Increase Source: InsightExpress
  • 40.
  • 41. However, Biggest Gains Where In The Marketing Mix Introducing New Menu Item: Grilled Chicken Flatbread Sandwich Ad Frequency (or Budget) % Aided Awareness 20% of Broadcast Budget Reinvested 13.6% in Online Point of Diminished Returns 5pt Gain! Cut 6.4% TV & Radio 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0.0%
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.
  • 48. “ Most Important Launch In History Of Ford” - Bill Ford F150 Truck is #1 selling vehicle in U.S.
  • 50. How Big a Difference Can Little Changes Make? Roadblock 43% One Day Reach
  • 51. Cost Effectiveness of Each Medium Cost to Increase Purchase Consideration Interpretation: If it cost Roadblock $1 (indexed at 100) to increase purchase consideration, then it cost $1.35 for Online, $4.56 for magazine and $11.04 to TV to achieve the same increase. $1.35 $1.00 $4.56 $11.04 Relative Cost 100 Roadblock 456 Magazine 1104 TV 135 Online Relative Cost Index Brand Metric: Purchase Consideration (top 2 box)
  • 52.
  • 53.
  • 54.
  • 55. Greg Stuart +1.631.702.0682 New York City [email_address] Want a copy? email me. Thank You
  • 56.