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Can Display Advertising Survive the Web?
 

Can Display Advertising Survive the Web?

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

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

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    Can Display Advertising Survive the Web? Can Display Advertising Survive the Web? Presentation Transcript

    • Can Display Advertising Survive the Web?
    • 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
    • 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)
    • 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
    • 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
    • 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 •Control •Relevance
    • 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
    • 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.”
    • The Publisher Dilemma The Fault Line Old content hierarchies “information architectures” above tools that fracture content
    • 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 Queries ! 150 days later 60% of search terms were the same
    • The Publisher Dilemma 1997-2007: The Good Times ✓Free traffic from search ✓Big display networks ✓High CPMs ✓PV,PV,PV
    • The Publisher Dilemma 2007 - 20??: The New World Order •Google as Media Biz •Lots of display networks •Rise of Exchanges •Falling CPMs •Performance
    • 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 & distribution of it!
    • The Publisher Dilemma
    • The Advertiser Dilemma “For All the New Media Spin, It's Just an 'Old' Media”  – Advertising Age story on Display Media, July 28, 2008
    • 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?”
    • The Advertiser Dilemma Impressions Frequency Cap % Served CPM Flight Dates View-Through SOV Campaigns
    • 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 & sell 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 reaching them with?
    • The Advertiser Dilemma Everybody pissed off the audience •spyware •spam •pop ups •phishing •pop unders •interstitials
    • 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!
    • The Advertiser Dilemma Creative •irrelevance •banner blindness •worse
    • The Advertiser Dilemma creative optimization •Who is using advanced technology? •Who understands analytics? testing? optimization?
    • 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 = multiple creatives=$ •Privacy
    • 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, September, 2008
    • The Answers Lie Within Lazy Marketing
    • 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
    • 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 largest digital media/content properties grew without the use of advertising
    • The Answers Lie Within “People don't read advertising, they read what interests them... Sometimes that's advertising.quot; -Howard Gossage
    • 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
    • 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
    • The Answers Lie Within Technology Can Drive Relevance ‣Programmable Web ‣Real‐time Web ‣Semantic Web ‣Implicit Web ...with a caveat
    • 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, measure & optimize 4.Properly value & attribute actions
    • 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?
    • 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?
    • Thank You! My Blog: www.optimizeandprophesize.com My Company: www.rampdigital.com