Online Advertising Made Simple, Instant & Profitable What’s Happening to Online Advertising, Really? Max Kalehoff, VP Marketing March 4, 2009
The divergence of fortune for pay-per-click and other performance-based models vs. CPM-based models will only intensify as the economy worsens. ‘Spray and pray' is a little harder to do when you're under economic pressure. - Ted McConnell, GM-interactive marketing and innovation at Procter & Gamble Co “
10 Truisms. Accept Them. <ul><li>Media are commodities </li></ul><ul><li>Premium is over </li></ul><ul><li>Remnant is the new premium </li></ul><ul><li>CPMs plummet </li></ul><ul><li>Demand dictates </li></ul><ul><li>Buyer resurgence </li></ul><ul><li>From clicks to profit </li></ul><ul><li>Instant gratification </li></ul><ul><li>Economic decisiveness </li></ul><ul><li>Purpose </li></ul>
Inventory Explosion Pressuring CPM U.S. Banner Ad Impressions & CPM, 2005-2007 U.S. Rich Media Impressions & CPM, 2005-2007 Source: Internet Advertising Bureau (IAB), Nielsen NetRatings, Morgan Stanley Research.
Performance Valued Higher Note: (1) Search effectiveness here measured by dividing the total search advertising revenue by total search ads impressions (000); (2) Banner Ad / Rich Media CPM calculated as total banner / rich media advertising revenue divided by total impressions (000). These metrics are not directly comparable to “Ad Revenue per 1,000 Page Views” data presented in slide 21, since many pages do not have ads (thus pvs >> impressions). Source: Morgan Stanley Research
Performance Driving More Acquisition % of New Online Customers for Online Retailers / Marketing Spend Mix Source: The State of Retailing Online 2007 / 2008 (Forrester Research), comScore global 7/08, Morgan Stanley Research
Advertiser Mindset Shifting From… <ul><li>“ Perfect, Launch & Wait” to… “Impact, Track & Respond” </li></ul>06/08/09 Footer here <ul><li>What’s Out </li></ul><ul><li>Brand Advertising Less Favorable </li></ul><ul><li>Slow-Impact Experimental Spending </li></ul><ul><li>What’s In </li></ul><ul><li>Goal-Based Advertising </li></ul><ul><li>Transparency & Attribution </li></ul><ul><li>Faith In Analytics To Drive Performance </li></ul><ul><li>Offers & Incentives Bedrock Of Marketer & Consumer Mindset </li></ul>
The end. Max Kalehoff [email_address] www.attentionmax.com
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