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A new digital advertising 
model might 
SAVE 
premium content on the 
web
The US advertising market 
is huge 
250.0 
200.0 
150.0 
100.0 
50.0 
0.0 
2012 2013 2014 2015 2016 2017 2018 
Billions of...
Advertising on all of those 
mediums is sold based on 
impressions or actions 
Why?
It’s really easy to measure 
There are 2 impressions in this view* 
*AOL sells this rich media ad as one unit and gives th...
Since it’s easy to measure, 
it’s easy to price 
Total cost x 1000 
Number of impressions 
CPM =
Ad agencies and media companies 
are used to pricing this way 
New York Times Pages 3 – 5, June 11, 1974 
8 impressions 
1...
But there is a huge PROBLEM 
with this model on the 
web… 
What?
In 2013, there were 5 TRILLION 
impressions served! 
$17.6 billion x 1000 
5 trillion impressions 
$3.52 eCPM = 
1 
2 
1. ...
$3.52 eCPM 
CANNOT 
support the traditional 
media business model
3,000 
2,500 
2,000 
1,500 
1,000 
500 
0 
Newspaper ad revenue drop-off 
has been dramatic 
9,000 
8,000 
7,000 
6,000 
5...
No large paper has been spared 
6,000 
5,000 
4,000 
3,000 
2,000 
1,000 
- 
Ad Revenue (Millions of Dollars) 
NYT Ad Reve...
- 
500 
1,000 
1,500 
2,000 
2,500 
3,000 
1953 
1954 
1955 
1956 
1957 
1958 
1959 
1960 
1961 
1962 
1963 
1964 
1965 
1...
THE SUPPLY 
of impressions 
is unsustainable
Before the internet 
impressions were 
constrained and 
SCARCE
CIRCULATION 
PAPER 
PRINTING 
constrained the supply of 
impressions
Now, an advertiser can 
buy any audience 
CHEAPLY and 
AUTOMATICALLY via 
programmatic buying 
technology
WE’RE IN TROUBLE IF 
SOMETHING DOESN’T 
CHANGE! 
“our print and digital products face increasing 
competition for audience...
Advertisers are LOSING 
too 
Why?
When was the last time YOU 
looked at a digital ad?
The average interaction rate with a 
display ad is 2.94% 1 
5.00% 
4.50% 
4.00% 
3.50% 
3.00% 
2.50% 
2.00% 
1.50% 
1.00% ...
A lot of money is spent on digital 
ads that DO NOT work 
2012 2013 2014E 
$45.0 
$40.0 
$35.0 
$30.0 
$25.0 
$20.0 
$15.0...
What’s going to 
SAVE 
premium content?
A NEW 
ADVERTISING 
MODEL
TIME 
is the only 
SCARCE 
asset on the web
In 2014, Americans had a shorter 
attention span than GOLDFISH 
1 
1. Nancy Kane, Harvard Business School
Technology has improved – 
we can measure EVERYTHING
Rising content engagement 
increases the percentage of ads 
seen 
Percent of Ads Seen 
Engaged Time on Page 
Source: Chart...
As an audience 
spend MORE 
TIME reading 
content with 
an ad in view, 
ad RECALL 
INCREASES
The best content DEMANDS 
our attention, and 
advertisers will pay for it
Rather than being 
forced to play tricks, 
media companies can 
focus on grabbing 
OUR ATTENTION
User experience benefits 
Focus on great, attention 
grabbing content 
No need for annoying slideshows 
One ad that scroll...
The Media Ratings Council 
APPROVED and 2 publishers are 
now selling time-based ads
Soon, all premium digital 
ads will be sold based on 
ATTENTION
THE WINNERS 
1 Premium publishers 
2 Advertisers 
3 The display ad
THE LOSERS 
1 Digital ad trading desks 
2 Real-Time Bidders 
3 Programmatic buyers 
4 Long-tail publishers
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Time-Based Advertising Could Save The Display Ad And Premium Content

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A new advertising format based on time and attention could save media companies and the display advertising unit. We may finally move away from impression-based advertising and to attention/time based ads. The winners will be advertisers and premium publishers. The immediate losers will be advertising agency trading desks, programmatic buyers, RTBs, and long-tail publishers.

Published in: Marketing

Time-Based Advertising Could Save The Display Ad And Premium Content

  1. 1. A new digital advertising model might SAVE premium content on the web
  2. 2. The US advertising market is huge 250.0 200.0 150.0 100.0 50.0 0.0 2012 2013 2014 2015 2016 2017 2018 Billions of Dollars TV Spend Digital Spend Print Spend Other Spend Source: eMarketer
  3. 3. Advertising on all of those mediums is sold based on impressions or actions Why?
  4. 4. It’s really easy to measure There are 2 impressions in this view* *AOL sells this rich media ad as one unit and gives the advertiser 100% share of voice at a premium price.
  5. 5. Since it’s easy to measure, it’s easy to price Total cost x 1000 Number of impressions CPM =
  6. 6. Ad agencies and media companies are used to pricing this way New York Times Pages 3 – 5, June 11, 1974 8 impressions 1 impression 5 impressions
  7. 7. But there is a huge PROBLEM with this model on the web… What?
  8. 8. In 2013, there were 5 TRILLION impressions served! $17.6 billion x 1000 5 trillion impressions $3.52 eCPM = 1 2 1. eMarketer estimate of display ad revenue in the US 2. comScore estimate of US impressions served in 2013
  9. 9. $3.52 eCPM CANNOT support the traditional media business model
  10. 10. 3,000 2,500 2,000 1,500 1,000 500 0 Newspaper ad revenue drop-off has been dramatic 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 New York Times Ad Revenue (Millions of Dollars) Total Newspaper Industry Ad Revenue (Billions of Dollars) Total Newspaper Industry Ad Revenue NYTimes Ad Revenue
  11. 11. No large paper has been spared 6,000 5,000 4,000 3,000 2,000 1,000 - Ad Revenue (Millions of Dollars) NYT Ad Revenue McClatchy Ad Revenue Graham Holdings Ad Revenue Gannett Ad Revenue
  12. 12. - 500 1,000 1,500 2,000 2,500 3,000 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenue (Millions of Dollars) Ad Revenue Circulation Revenue For the first time since 1953, the New York Times subscription revenue is greater than its advertising revenue
  13. 13. THE SUPPLY of impressions is unsustainable
  14. 14. Before the internet impressions were constrained and SCARCE
  15. 15. CIRCULATION PAPER PRINTING constrained the supply of impressions
  16. 16. Now, an advertiser can buy any audience CHEAPLY and AUTOMATICALLY via programmatic buying technology
  17. 17. WE’RE IN TROUBLE IF SOMETHING DOESN’T CHANGE! “our print and digital products face increasing competition for audience and advertising from… digital advertising networks and exchanges, real-time bidding and other programmatic buying channels and other new forms of media.”
  18. 18. Advertisers are LOSING too Why?
  19. 19. When was the last time YOU looked at a digital ad?
  20. 20. The average interaction rate with a display ad is 2.94% 1 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Interaction Rate Percentage 1. This is the percentage of ads served on the Double Click network that a viewer interacted with
  21. 21. A lot of money is spent on digital ads that DO NOT work 2012 2013 2014E $45.0 $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $- Display $14.8 $17.6 $20.6 Search $17.3 $19.6 $21.6 USD (Billions) US Digital Advertising Spend Source: eMarketer
  22. 22. What’s going to SAVE premium content?
  23. 23. A NEW ADVERTISING MODEL
  24. 24. TIME is the only SCARCE asset on the web
  25. 25. In 2014, Americans had a shorter attention span than GOLDFISH 1 1. Nancy Kane, Harvard Business School
  26. 26. Technology has improved – we can measure EVERYTHING
  27. 27. Rising content engagement increases the percentage of ads seen Percent of Ads Seen Engaged Time on Page Source: Chartbeat
  28. 28. As an audience spend MORE TIME reading content with an ad in view, ad RECALL INCREASES
  29. 29. The best content DEMANDS our attention, and advertisers will pay for it
  30. 30. Rather than being forced to play tricks, media companies can focus on grabbing OUR ATTENTION
  31. 31. User experience benefits Focus on great, attention grabbing content No need for annoying slideshows One ad that scrolls with content 1 2 3 4 Eliminate pagination
  32. 32. The Media Ratings Council APPROVED and 2 publishers are now selling time-based ads
  33. 33. Soon, all premium digital ads will be sold based on ATTENTION
  34. 34. THE WINNERS 1 Premium publishers 2 Advertisers 3 The display ad
  35. 35. THE LOSERS 1 Digital ad trading desks 2 Real-Time Bidders 3 Programmatic buyers 4 Long-tail publishers

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