Can Display Advertising Survive the Web?
JONATHAN MENDEZ
       Founder & CEO,RAMP Digital

• Former Chief Strategy Officer/Offermatica,
  Founder/OTTO Digital. Mer...
Introduction to RAMP




          Founded March 2008
        New York & San Francisco

•Leverage Advanced Web Technology
...
The Medium is the Messenger




quot;The laying of the telegraph around the world is the great work of the age.quot;
- New...
The Medium is the Messenger
The Web “Solution”
Information Management Services


 •Hypertext
      ‣content
 •Computer con...
The Medium is the Messenger


    Services
     are not
an ad supported
    medium!
The Medium is the Messenger



Advertising is a premium content biz
The Medium is the Messenger

Advertising is an impression biz
The Medium is the Messenger



what is premium on the web?

         what is the value of
         a web impression?
“I do not regard advertising
as entertainment or an art
 form but as a medium of
        information”
       - David Ogilvy
The Medium is the Messenger

The web is the greatest medium
of information ever known to man!

            •Speed
        ...
The Medium is the Messenger


Response: People will respond to advertising if
you leverage the medium of information...

 ...
The Publisher Dilemma




                          September, 2008
  “The gap is widening between spending on simple sear...
The Publisher Dilemma




             The Fault Line
    Old content hierarchies
  “information architectures”
above tool...
The Publisher Dilemma
   September 2006
The Publisher Dilemma
           September 2006




Only 16% of search terms aligned with NYT IA
The Publisher Dilemma
 September 2006                     February 2007




                        Top 50 Internal Search...
The Publisher Dilemma

1997-2007: The Good Times

  ✓Free traffic from search
  ✓Big display networks
  ✓High CPMs
  ✓PV,PV...
The Publisher Dilemma

     2007 - 20??: The New World Order




•Google as Media Biz
•Lots of display networks
•Rise of E...
The Publisher Dilemma

Rise of Self Publishing Tools
The Publisher Dilemma

Rise of the New Publisher
   •Aggregators


   •UGC


   •Self-serve classified


   •Amateurs
The Publisher Dilemma

The biggest value creation in web 
publishing was never about the content 

...but the discovery & ...
The Publisher Dilemma
The Advertiser Dilemma
“For All the New Media Spin, It's Just an 'Old' Media” 
– Advertising Age story on Display Media, J...
The Advertiser Dilemma
                          “8 in 10 Americans are now
                          online and spend as ...
The Advertiser Dilemma

             Impressions
                        Frequency Cap
             % Served
   CPM
      ...
The Advertiser Dilemma
Brand vs. DM worldview continuum

Why? Old habits (budgets) die hard
The Advertiser Dilemma

DM leveraged the platform

performance marketing = optimization


•testing
•targeting
•buy side & ...
The Advertiser Dilemma
Wanna know a Direct Marketing secret?



Brand has always ruled
volume and ROI for the DM
The Advertiser Dilemma
How are we measuring brand success?




•Are we afraid to measure?
•Are we afraid to leave the silo?
The Advertiser Dilemma


Maybe, the problem is
not with our ability as
advertisers to reach
people but what we are
reachin...
The Advertiser Dilemma
Everybody pissed off the audience




•spyware              •spam
•pop ups              •phishing
•...
The Advertiser Dilemma

Messaging
•Power has shifted in the marketplace
•Consumers have an active voice in the marketing a...
The Advertiser Dilemma
    Creative
•irrelevance
•banner blindness
•worse
The Advertiser Dilemma




                      creative optimization




•Who is using advanced technology?
•Who underst...
The Advertiser Dilemma




Search

 •limited inventory
 •click attribution
 •little perceived brand value
The Advertiser Dilemma

    Behavioral
BT is not the holy grail

 •Volume & cost
 (performance) issues
 •Targeting = multi...
The Advertiser Dilemma




Where is the Transparency?
The Advertiser Dilemma




...and the delta is growing
The Advertiser Dilemma




...making our jobs harder
The Answers Lie Within


  “This is the first mass
marketing medium ever that
 isn't supported by ads!”

    - Seth Godin, ...
The Answers Lie Within
   Lazy Marketing
The Answers Lie Within

              $ flow to online?


Ex. A



        6% year-over-year decrease in display spend
Ex. ...
The Answers Lie Within


Imagine there’s no ads. It isn’t hard to do.
                       
The Answers Lie Within

    Google #1 Brand in the World in 8 short years
    Advertising Budget 2000‐2007: $0




The 6 l...
The Answers Lie Within



  “People don't read advertising,
  they read what interests them...
  Sometimes that's advertis...
The Answers Lie Within
         Ads need to be relevant!

Value added relevance 
Helpful & useful parts of an experience

...
The Answers Lie Within


           Why Search Ads Rock

•Real-time web
•Content Targeting – helps a lot
•User control/seg...
The Answers Lie Within

  Technology Can Drive Relevance

‣Programmable Web      ‣Real‐time Web

‣Semantic Web          ‣I...
The Answers Lie Within




WARNING!!!
Technology does not create
great marketing.
It only helps you aim better.
The Answers Lie Within




WARNING!!!
Technology does not create
great marketing.
It only helps you aim better.
The Answers




Yes!
The Answers

Display Advertising works in this medium if you:

1.Give people control
2.Deliver relevant content
3.Test, me...
The Answers
           Publishers:

      What are you doing to
      make your content more
        relevant to the ads?
...
The Answers
        Everyone:

What marketing technology
are you and your
organization expert at?

How are you using this
...
Thank You!

My Blog: www.optimizeandprophesize.com

   My Company: www.rampdigital.com
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Can Display Advertising Survive the Web?

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Keynote Address at AdMonsters Leadership Forum. New York City Fall 2008

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Can Display Advertising Survive the Web?

  1. Can Display Advertising Survive the Web?
  2. JONATHAN MENDEZ Founder & CEO,RAMP Digital • Former Chief Strategy Officer/Offermatica, Founder/OTTO Digital. Merged strategy and creative services with advanced marketing technology to establish first of its kind optimization agency • Record of success with over 50 clients including Amazon.com, Disney, Citibank, H&R Block, IBM, Intuit, Microsoft, Monster.com, Sears & T-Mobile • Evangelist on technology driven advertising and marketing platforms and creative optimization
  3. Introduction to RAMP Founded March 2008 New York & San Francisco •Leverage Advanced Web Technology (APIs, Semantic Markup, Real-Time Web) •Create Intelligent Digital Marketing Solutions (Applications for Display, Search, Social & Mobile) •Measure, Analyze & Optimize Performance (Source, Behavior, Temporal, Environment, Creative)
  4. The Medium is the Messenger quot;The laying of the telegraph around the world is the great work of the age.quot; - New York Herald, April 20, 1857
  5. The Medium is the Messenger The Web “Solution” Information Management Services •Hypertext ‣content •Computer conferencing ‣social media •Document retrieval ‣search •Information management ‣cms/platform/cloud •Project control ‣messaging
  6. The Medium is the Messenger Services are not an ad supported medium!
  7. The Medium is the Messenger Advertising is a premium content biz
  8. The Medium is the Messenger Advertising is an impression biz
  9. The Medium is the Messenger what is premium on the web? what is the value of a web impression?
  10. “I do not regard advertising as entertainment or an art form but as a medium of information” - David Ogilvy
  11. The Medium is the Messenger The web is the greatest medium of information ever known to man! •Speed •Control •Relevance
  12. The Medium is the Messenger Response: People will respond to advertising if you leverage the medium of information... •discovery & recovery •information & content •user control •interest/intention based
  13. The Publisher Dilemma September, 2008 “The gap is widening between spending on simple search ads and display ads. Search-ad spending is on track to reach $10.4 billion this year, double what will be spent on display ads, according to research firm eMarketer. That divergence of fortunes may be bad news for companies counting on a comeback for display ads, which ruled the Web in its early days.”
  14. The Publisher Dilemma The Fault Line Old content hierarchies “information architectures” above tools that fracture content
  15. The Publisher Dilemma September 2006
  16. The Publisher Dilemma September 2006 Only 16% of search terms aligned with NYT IA
  17. The Publisher Dilemma September 2006 February 2007 Top 50 Internal Search Queries ! 150 days later 60% of search terms were the same
  18. The Publisher Dilemma 1997-2007: The Good Times ✓Free traffic from search ✓Big display networks ✓High CPMs ✓PV,PV,PV
  19. The Publisher Dilemma 2007 - 20??: The New World Order •Google as Media Biz •Lots of display networks •Rise of Exchanges •Falling CPMs •Performance
  20. The Publisher Dilemma Rise of Self Publishing Tools
  21. The Publisher Dilemma Rise of the New Publisher •Aggregators •UGC •Self-serve classified •Amateurs
  22. The Publisher Dilemma The biggest value creation in web  publishing was never about the content  ...but the discovery & distribution of it!
  23. The Publisher Dilemma
  24. The Advertiser Dilemma “For All the New Media Spin, It's Just an 'Old' Media”  – Advertising Age story on Display Media, July 28, 2008
  25. The Advertiser Dilemma “8 in 10 Americans are now online and spend as much time on the Web as on TV” “Most marketers allocate only *BAH/AMA Survey 10/07 5%-10% of their ad budgets to digital media.”* “Are Big Ad Agencies So Clueless That Corporations July 26, 2007 Should Avoid Them?”
  26. The Advertiser Dilemma Impressions Frequency Cap % Served CPM Flight Dates View-Through SOV Campaigns
  27. The Advertiser Dilemma Brand vs. DM worldview continuum Why? Old habits (budgets) die hard
  28. The Advertiser Dilemma DM leveraged the platform performance marketing = optimization •testing •targeting •buy side & sell side
  29. The Advertiser Dilemma Wanna know a Direct Marketing secret? Brand has always ruled volume and ROI for the DM
  30. The Advertiser Dilemma How are we measuring brand success? •Are we afraid to measure? •Are we afraid to leave the silo?
  31. The Advertiser Dilemma Maybe, the problem is not with our ability as advertisers to reach people but what we are reaching them with?
  32. The Advertiser Dilemma Everybody pissed off the audience •spyware •spam •pop ups •phishing •pop unders •interstitials
  33. The Advertiser Dilemma Messaging •Power has shifted in the marketplace •Consumers have an active voice in the marketing and the ultimate success of products •Reviews, recommendations and social networks necessitate factual and helpful messages •Marketing must quantify the benefits Why? Info Overload/ Authenticity This is the only way consumers will hear you!
  34. The Advertiser Dilemma Creative •irrelevance •banner blindness •worse
  35. The Advertiser Dilemma creative optimization •Who is using advanced technology? •Who understands analytics? testing? optimization?
  36. The Advertiser Dilemma Search •limited inventory •click attribution •little perceived brand value
  37. The Advertiser Dilemma Behavioral BT is not the holy grail •Volume & cost (performance) issues •Targeting = multiple creatives=$ •Privacy
  38. The Advertiser Dilemma Where is the Transparency?
  39. The Advertiser Dilemma ...and the delta is growing
  40. The Advertiser Dilemma ...making our jobs harder
  41. The Answers Lie Within “This is the first mass marketing medium ever that isn't supported by ads!” - Seth Godin, September, 2008
  42. The Answers Lie Within Lazy Marketing
  43. The Answers Lie Within $ flow to online? Ex. A 6% year-over-year decrease in display spend Ex. B overall in the first two quarters of 2008 -Nielsen Online
  44. The Answers Lie Within Imagine there’s no ads. It isn’t hard to do.    
  45. The Answers Lie Within     Google #1 Brand in the World in 8 short years     Advertising Budget 2000‐2007: $0 The 6 largest digital media/content properties grew without the use of advertising
  46. The Answers Lie Within “People don't read advertising, they read what interests them... Sometimes that's advertising.quot; -Howard Gossage
  47. The Answers Lie Within Ads need to be relevant! Value added relevance  Helpful & useful parts of an experience or Net new relevance  Experiences interesting enough to change  the behavior
  48. The Answers Lie Within Why Search Ads Rock •Real-time web •Content Targeting – helps a lot •User control/segmentation •Testing & Optimization Ads can add value to content
  49. The Answers Lie Within Technology Can Drive Relevance ‣Programmable Web ‣Real‐time Web ‣Semantic Web ‣Implicit Web ...with a caveat
  50. The Answers Lie Within WARNING!!! Technology does not create great marketing. It only helps you aim better.
  51. The Answers Lie Within WARNING!!! Technology does not create great marketing. It only helps you aim better.
  52. The Answers Yes!
  53. The Answers Display Advertising works in this medium if you: 1.Give people control 2.Deliver relevant content 3.Test, measure & optimize 4.Properly value & attribute actions
  54. The Answers Publishers: What are you doing to make your content more relevant to the ads? Advertisers: What are you doing to make your ads more relevant to the content?
  55. The Answers Everyone: What marketing technology are you and your organization expert at? How are you using this technology to create better experiences? How are you quantifying & acting on that data?
  56. Thank You! My Blog: www.optimizeandprophesize.com My Company: www.rampdigital.com
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