State Of Display 5 12


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State Of Display 5 12

  1. 1. <ul><li>with insights from: </li></ul><ul><li>Dynamic Logic </li></ul><ul><li>Nielsen Online </li></ul><ul><li>comScore </li></ul><ul><li>Microsoft/Atlas </li></ul><ul><li>Google </li></ul><ul><li>Compete </li></ul>
  2. 2. If you believe what you read… What are we doing here? “ Demand for display ads has ebbed, particularly as the rate at which consumers click on display ads bottoms out at a fraction of a percentage point.” 5/8/09 “ Online display advertising sucks.” 3/10/09 “ The demise of a popular but unsustainable business model [online display advertising] now seems inevitable.” 3/19/09 “ Online display-ad spending will fall in 2009, probably sharply. It will probably fall again in 2010.” - Henry Blodget 10/20/2008
  3. 3. It’s all so… <ul><li>“ The need for innovation became more urgent in November, after Internet advertising saw its first ever quarterly dip… Faced with tight budgets and a difficult economic outlook , many marketers are opting to stick with traditional advertising outlets …because of the Internet’s abysmal click through rate .” </li></ul>February 26 2001
  4. 4. Sector Shift ’03 – ‘08: Financial services becomes #1, retail declines, auto gains Source: Nielsen Online % of Total Online Impressions 2003 vs. 2008
  5. 5. Ad impressions for Automotive increase steadily year-over-year and display seasonality Total Ad Impressions for Automotive Industry 2003 - 2008 Source: Nielsen Online
  6. 6. Fi-Serve impressions rise dramatically during the period banks begin to falter Source: Impressions from Nielsen Online vs. S & P Banking Index Did all those loan ads work too well?
  7. 7. 2008 Online Advertisers: The year of Phones and Loans Top 10 Advertisers 2008: Ad Impressions by Brand During 2008 Source: Nielsen Online
  8. 8. Financial services down YOY for ‘09 – but they are still spending; insurance enters the scene Top 10: Impressions by Brand 1-2/08 Top 10: Impressions by Brand 1-2/09 Drop off the list in 2009 Insurance enters list in 2009 Source: Nielsen Online Brand Impressions 1,968,822,000 869,059,000 Citibank, N.A. 630,858,000 TrueCredit 357,224,000 203,927,000 Travelers Insurance 166,594,000 Countrywide 149,095,000 Allstate 118,959,000 Citi Credit Cards 99,322,000 MBNA Bank 63,704,000 Brand Impressions 7,102,587,000 GetSmart 3,146,130,000 2,079,711,000 1,546,808,000 Citibank, N.A. 1,163,221,000 Orchard Bank 785,641,000 WAMU 718,657,000 Countrywide 571,346,000 GMAC Mortgage 333,794,000 Household Bank 275,064,000
  9. 9. Source: Nielsen Online Change in Share of Impressions by Industry Jan/Feb 2008 vs. Jan/Feb 2009 Health, B2B & Telecommunications grow strongly in ‘09
  10. 10. Source: comScore Ad Metrix, February 2009 Clutter down over 11% 2008 – 2009; must account for some of the volume drop Great!
  11. 11. Overall trends in ad effectiveness deltas (% impacted) remain stable since ‘06 Source: Dynamic Logic MarketNorms, Last 3 Years, Q4/2008, N=2,380, n=3,889,602;
  12. 12. Trends in Purchase Intent remain stable; Fi-Serve dips in Q4 ’06 and then stabilizes Source: Dynamic Logic MarketNorms, Last 3 Years, Q4/2008, N=2,380, n=3,889,602; Financial Services Norms, Last 3 Years, Q4/2008, N=277, n=567,275
  13. 13. <ul><li>Ken Mallon SVP Custom Solutions & Ad Effectiveness Consulting, Dynamic Logic </li></ul>What really matters for brand impact?
  14. 14. It’s the creative: Large variation in performance between best/worst performers Percent Impacted Source: Dynamic Logic MarketNorms, Last 3 Years, Q4/2008, N=2,380, n=3,889,602
  15. 15. Creative Best Practices Principles <ul><li>Show brand prominently on all frames of the ad </li></ul><ul><li>Each frame of ad should be able to stand on its own </li></ul><ul><li>“ Reveal” ads are almost always ineffective </li></ul><ul><ul><li>In the online environment, viewers tune out quickly </li></ul></ul><ul><ul><li>You have less than 3 seconds to communicate your message </li></ul></ul><ul><ul><li>In reviewing thousands of online creative, reveal ads have consistently worked poorly *There are a few exceptions: </li></ul></ul><ul><ul><ul><li>Video ads are much more likely to succeed in this but still risky </li></ul></ul></ul><ul><ul><ul><li>Ads with high entertainment or comedic value can be effective </li></ul></ul></ul><ul><li>Keep the messaging very simple </li></ul>
  16. 16. Creative Best Practices Principles <ul><li>Don’t make people work for the message </li></ul><ul><li>If your goal is persuasion rather than awareness, be careful not to annoy the site visitor </li></ul><ul><li>Integrate online creative concepts with offline </li></ul><ul><ul><li>Use creative elements that are consistent with offline ads </li></ul></ul><ul><li>Avoid “border” ads – ad sizes that frame the content of a webpage </li></ul><ul><ul><li>They train site visitors to focus on the center of the page and tune out ads </li></ul></ul><ul><ul><li>Rectangle ad sizes do not frame content and are therefore, more noticeable </li></ul></ul>
  17. 17. <ul><li>Jon Gibs VP Media Analytics, Nielsen Online </li></ul>Why should online display be bought based on impressions?
  18. 18. Online advertising is broken.
  19. 19. We need to fix it.
  20. 20. Why have we not achieved our goals? To this point our focus has been on… This has led to…
  21. 21. How do we fix it? The problem is… The solution is…
  22. 22. We must recognize that Counting is not the same as Accountability    > Online Driving: CPG Purchase, Ratings, Box Office ,Telco
  23. 23. We must build for Engagement and then guarantee against it Time based advertising measures. Video Total Campaign Duration {hrs} % of Total Campaign Duration Avg. Exposure Duration per Person {sec} Average Frequency Time Per Impression TOTAL 12,983 100% 9.9 0.2 0.1 Site A 2,856 22% 7.4 2.5 0.6 Site B 4,934 38% 10.6 4.9 2.7 Site C 4,025 31% 8.9 2.8 1.8 Site D - 0% - - - Site E 1,169 9% 11.3 4.6 2.3 Site F - 0% - - -
  24. 24. <ul><li>Lynn Bolger EVP Advertising Solutions, comScore </li></ul>Does display have impact on online & offline sales – without a click?
  25. 25. Most people do not click on Display Ads Clickers Non-Clickers Source: comScore, Total US Online Population, July 2007 comScore Tacoda Study: Natural Born Clickers
  26. 26. Clickers follow the 80/20 rule Source: comScore, Total US Online Population, July 2007 Clickers are predominantly younger (25 - 44) with lower income (under $40K)
  27. 27. Decline in online ad click-through rates Sources: Doubleclick, eMarketer, Eyeblaster, IAB Research estimates In 2008, comScore measured click rates as less than 0.1%
  28. 28. Display Ads drive visits to advertiser sites Source: comScore ‘How Online Advertising Works: Whither the Click?’ White Paper, 2008 <ul><li>Impact is greatest in first week following exposure, but continues over four weeks </li></ul>
  29. 29. How Display and Search impact offline retail sales Higher offline sales lifts are found for search advertising vs. display but when combined the synergy provides even more lift Source: Norms from the comScore Ad Effectiveness Database, N = 137 Tests Incremental Impact on Offline Sales per (000) Exposed
  30. 30. Advertisers: Are you hitting your target? Area of improvement Likely Waste Source: comScore Campaign Metrix
  31. 31. <ul><li>John Chandler-Pepeljak Director, Microsoft/Atlas </li></ul>How do you appropriately attribute conversions?
  32. 32. The Long Road to Conversion 60 90 30 21 14 7 2 1 16.7 18.5 13.8 12.3 10.7 8.4 5.5 2.2 Cumulative Frequency
  33. 33. The Digital Purchase Funnel
  34. 34. Last-Ad ROI and the Purchase Funnel Social Media, Portals, Video, News, Entertainment, Sports, Music, Technology, Travel, etc… A few Publishers Benefit While the Majority Suffer Week 1 Week 2 Week 3 Week 4 Week 5+ Search Engines Affiliates Awareness Interest Desire Action Repeat
  35. 35. Search & Display combined lift over Search only Portals Networks Content sites 54% 56% 47% 35% 10% 7% 68% 52% 97% AOL MSN Yahoo! 24/7 Value Click CBS Digital Trip Advisor Impact is especially pronounced on content sites and portals Source: Microsoft Atlas Publisher/Advertiser data 2008
  36. 36. Short windows = Shortsighted ROI Search In-Stream Video Social Media Portal 75% of View Conversion Windows are Less than 14 Days Month 1 Month 2 Month 3 94% more data beyond the last ad. $ Sale
  37. 37. <ul><li>Ari Paparo Group Head, Advertising Products, Google </li></ul>How do size and rich media impact performance?
  38. 38. DoubleClick benchmarks <ul><li>“ Creative Insights on Rich Media” report provides data that shows how: </li></ul><ul><ul><ul><li>Larger creative sizes get better results in terms of clicks and interactions </li></ul></ul></ul><ul><ul><ul><li>Video gets better results across several dimensions: </li></ul></ul></ul><ul><ul><ul><ul><li>Clicks, interactions, expansion times and rates, video completions </li></ul></ul></ul></ul><ul><li>Provides benchmarks for Rich Media: </li></ul><ul><ul><ul><li>Interaction rates and times </li></ul></ul></ul><ul><ul><ul><li>Expansion rates and times </li></ul></ul></ul><ul><ul><ul><li>Video complete rates </li></ul></ul></ul><ul><ul><ul><li>Click-through rates </li></ul></ul></ul>
  39. 39. Larger creative sizes get more clicks Source: DoubleClick DART for Advertisers, U.S. advertisers, DoubleClick Rich Media in-page and expanding formats only, January–July 2008 Creative Size 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% Half Page Ad (300x600) Large Rectangle (336x280) Medium Rectangle (300x250) Wide Skyscraper (160x600) Skyscraper (120x600) Rectangle (180x150) Leaderboard (728x90) Full Banner (468x60) Half Banner (234x60) Click-Through Rate 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 200000 Area (in Pixels) CTR % Area (in Pixels)
  40. 40. Larger creative sizes get more interactions Source: DoubleClick DART for Advertisers, U.S. advertisers, DoubleClick Rich Media in-page and expanding formats only, April–July 2008 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Creative Size Interaction Rate 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 200000 Area (in Pixels) Interaction Rate % Area (in Pixels) Half Page Ad (300x600) Large Rectangle (336x280) Medium Rectangle (300x250) Wide Skyscraper (160x600) Skyscraper (120x600) Rectangle (180x150) Leaderboard (728x90) Full Banner (468x60)
  41. 41. Rich Media example: Volvo Twitter ad <ul><li>Features: </li></ul><ul><li>960x250 expanding unit </li></ul><ul><li>Twitter feed </li></ul><ul><li>360 degree view of the car Volvo XC60s </li></ul><ul><li>Video game highlighting the &quot;City Safety” </li></ul><ul><li>Technology: </li></ul><ul><li>Produced with DoubleClick Rich Media </li></ul>
  42. 42. Rich Media example: McDonald’s Tandem <ul><li>Features: </li></ul><ul><li>New tandem mast format 960x250 </li></ul><ul><li>McDonald’s first rich media buy on YouTube </li></ul>
  43. 43. <ul><li>Kyle Johnson Director of Media Products, Compete </li></ul>Seen anything innovative lately?
  44. 44. Display is alive and kicking Nonstop innovation breathes new life into the medium
  45. 45. Ad innovations shape new behaviors Brand advertisers can opt for appealing trade-offs Viewthrough 0.1% 0.3% KPI conversion 24% 12% Time ∆ on page + 1:38 + 0:08 Time on 7:49 14:34
  46. 46. New possibilities push for new measures of success <ul><li>A single metric or ratio can miss what’s important </li></ul><ul><li>Highly interactive units can </li></ul><ul><ul><li>build awareness / educate </li></ul></ul><ul><ul><li>and </li></ul></ul><ul><ul><li>advance publisher goals </li></ul></ul>Viewthrough 0.1% 0.3% KPI conversion 24% 12% Time ∆ on page + 1:38 + 0:08 Time on 7:49 14:34
  47. 47. So what is it…
  48. 48. What do we know? <ul><li>It’s a recession , ad spend online will recover </li></ul><ul><li>Desperate times call for “innovative” measures </li></ul><ul><ul><li>Let’s finally focus on the creative </li></ul></ul><ul><ul><li>Let’s finally measure appropriately </li></ul></ul><ul><ul><li>Let’s pay attention to media 101: </li></ul></ul><ul><ul><ul><li>Clutter </li></ul></ul></ul><ul><ul><ul><li>Test! </li></ul></ul></ul><ul><li>Question authority – or at least the business media </li></ul><ul><li>What crisis? It’s an OPPORTUNITY </li></ul>
  49. 49. Go to: Download the whitepaper Get the bigger picture… Contact: