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DESIGNING FOR, WITH, AND
   AROUND ADVERTISING




           OR:
  HOW I LEARNED TO STOP
WORRYING AND LOVE THE ADS
        *With apologies to Dr. Strangelove
PERSUADE YOU TO THINK
DIFFERENTLY ABOUT
ONLINE ADVERTISING



             2      Designing For Advertising | 20 March 2009 | IA Summit
TELL YOU SOME OF THE
BASICS ABOUT HOW
ADVERTISING WORKS



             3         Designing For Advertising | 20 March 2009 | IA Summit
SPECULATE ABOUT THE
FUTURE OF THE ONLINE
REVENUE MODEL



             4         Designing For Advertising | 20 March 2009 | IA Summit
THERE’S SO MUCH
I CAN’T COVER TODAY



             5        Designing For Advertising | 20 March 2009 | IA Summit
Concept ruthlessly stolen from Heather Champ @hchamp
                                                              6
Via Flickr User swirlspice under a Creative Commons License       Designing For Advertising | 20 March 2009 | IA Summit
7   Designing For Advertising | 20 March 2009 | IA Summit
ABOUT ME


!




    1998   1999   2000   2001    2002   2003   2004   2005      2006                 2007                  2008




                                         8                   Designing For Advertising | 20 March 2009 | IA Summit
DESIGNING FOR, WITH, AND
   AROUND ADVERTISING




           OR:
  HOW I LEARNED TO STOP
WORRYING AND LOVE THE ADS
        *With apologies to Dr. Strangelove
YOU ARE
NOT A
WIREFRAME
MONKEY
      Designing For Advertising | 20 March 2009 | IA Summit

YOU
STRATEGIZE
WAYS TO
MAKE
BUSINESSES
MORE
VALUABLE

             11   Designing For Advertising | 20 March 2009 | IA Summit
I’m going to
              move this to the
               bottom of the
                                           It’s
It takes up     page, okay?
                                       distracting
  so much
   space

                 BUY NOW!

                                  It clutters
  Do we
                                 up the page
really have
to put this
                 It’s just
  here?
                 so ugly

                       12          Designing For Advertising | 20 March 2009 | IA Summit
I consider many
           advertisers
           “stalkers”
                          Intrusive, annoying and just
                          plain ugly advertising is SO
                           bad! I block all advertising
If anything could be
                               just to avoid them.
worse than pop-ups,
      this is it.
   I HATE this ad!
                           It’s a free country, but if you
HATE HATE HATE.
                         put ads on your videos I will not
                       view them. Many of my friends feel
                            the same way. Get a grip!


                          13                Designing For Advertising | 20 March 2009 | IA Summit
IF WE IGNORE THE ADS




MAYBE THEY’LL GO AWAY
Source: Jakob Nielsen's Alertbox, August 20, 2007:
                                                     14
Banner Blindness: Old and New Findings                    Designing For Advertising | 20 March 2009 | IA Summit
INFORMATION
                                                              WANTS TO BE
                                                              FREE!




                                                         15
Via Flickr User Gwire under a Creative Commons License              Designing For Advertising | 20 March 2009 | IA Summit
U.S. ADVERTISING SPENDING
        IN BILLIONS OF DOLLARS
250
                                                                                                                           Total                        219.9
                                                                                                                           Internet                        18.5
200


                                                                                                  41.1                     Newspapers 39.7
                                                                                                                           Directories 17.2
150
                                                                                                                           Direct Mail 14.6

                                                                                                                           Broadcast                       35.5
100

                                                                                                                           Cable                           25.4
                                                                                                                           Magazines                       26.6
50
                                                                                                                           Radio                           15.7
                                                                                                                           Outdoor                          8.8
                                                                                                                           Other                           17.9
 0
      1998   1999          2000                2001               2002         2003        2004   2005   2006         2007
                    Source: The U.S. Census Bureau's Service Annual Surveys,
                                                                                      16                        Designing For Advertising | 20 March 2009 | IA Summit
                    U.S Advertising Spending 1998-2007
TIME SPENT ENGAGED IN MEDIA
INTERNET VS. TRADITIONAL MEDIA
                                                                                                                                        + 20%
                                                                                             15%
                                                                                                                                         +10%

19%                                                      30%                  33%
                        30%                                                                                                                    0%


                                                                                                                                         – 10%


                                                                                                                                         – 20%


                                                                                                                                         – 30%

                      Magazines
 Radio                                                  Newspaper                            Internet
                                                                                Television
         Source: The User Revolution, Piper Jaffray & Co., February 2007
                                                                           17
         Source: Arbitron/Edison Media Research Internet and Multimedia                      Designing For Advertising | 20 March 2009 | IA Summit
         2006: On-Demand Media Explodes and comScore Networks.
INTERNET AD SPENDING
                                                                                          DOLLARS SPENT
TIME SPENT BY USERS                                                                       BY ADVERTISERS
                                                            Internet                                                                    Internet
                                                                                                                         7%
                                          21%



                                                                                               93%
     79%



                                                                                          Traditional Media
Traditional Media
                                                                                     18
        Source: Television Advertising Bureau, Nielsen Media Research, Advertising
                                                                                                     Designing For Advertising | 20 March 2009 | IA Summit
        Age, and Piper Jaffray & Co. estimates
Print Dollars,
Internet Nickels



             Time Inc. CEO, Ann Moore
        19            Designing For Advertising | 20 March 2009 | IA Summit
The most popular
 Web 2.0 revenue model
 is based on advertising



                                                          Ask a V.C.
                                      20
Source: Ask a VC, Ad Revenue Models        Designing For Advertising | 20 March 2009 | IA Summit
21
Via Flickr User Jeremy Dunham under a Creative Commons License        Designing For Advertising | 20 March 2009 | IA Summit
TOP TEN THINGS YOU
SHOULD KNOW ABOUT
ONLINE ADVERTISING



            22       Designing For Advertising | 20 March 2009 | IA Summit
1. IT’S ALL MIDDLEMEN




              23        Designing For Advertising | 20 March 2009 | IA Summit
USERS



 MEDIA BUYERS   AGENCIES    AD SALES




ADVERTISERS                PUBLISHERS
                  24         Designing For Advertising | 20 March 2009 | IA Summit
2. MEDIA BUYERS ARE
   25-YEAR OLDS ARMED
   WITH SPREADSHEETS



             25         Designing For Advertising | 20 March 2009 | IA Summit
26   Designing For Advertising | 20 March 2009 | IA Summit
FOR $10,000 SHE BUYS 500 CLICKS

                           
Ad Positions

                           
Demographics
Cost per 1000
                             $20.00
(CPM)
Traf c x 0.1%              500,000

Price                      $10,000

Clickthrough                       500
                                                  27
                For illustration purposes only.        Not real data. Faulty math.   Designing For Advertising | 20 March 2009 | IA Summit
3. MEDIA BUYERS PURCHASE
   GLOBAL NAV CATEGORIES



             28      Designing For Advertising | 20 March 2009 | IA Summit
29   Designing For Advertising | 20 March 2009 | IA Summit
29   Designing For Advertising | 20 March 2009 | IA Summit
29   Designing For Advertising | 20 March 2009 | IA Summit
29   Designing For Advertising | 20 March 2009 | IA Summit
29   Designing For Advertising | 20 March 2009 | IA Summit
29   Designing For Advertising | 20 March 2009 | IA Summit
BANNER ADS ARE TOP DOWN



GOOGLE ADS ARE BOTTOM UP


           30     Designing For Advertising | 20 March 2009 | IA Summit
4. THE IAB IS A CABAL
   THAT CONTROLS
   EVERYTHING WE DO



               31       Designing For Advertising | 20 March 2009 | IA Summit
32   Designing For Advertising | 20 March 2009 | IA Summit
32   Designing For Advertising | 20 March 2009 | IA Summit
33   Designing For Advertising | 20 March 2009 | IA Summit
33   Designing For Advertising | 20 March 2009 | IA Summit
34   Designing For Advertising | 20 March 2009 | IA Summit
35   Designing For Advertising | 20 March 2009 | IA Summit
5. YOU MUST DESIGN
   YOUR GRID AROUND
   THE ADS



             35       Designing For Advertising | 20 March 2009 | IA Summit
36   Designing For Advertising | 20 March 2009 | IA Summit
37   Designing For Advertising | 20 March 2009 | IA Summit
6. YOU CAN SPECIFY
   WHAT’S OKAY AND
   WHAT’S NOT OKAY



             38      Designing For Advertising | 20 March 2009 | IA Summit
39   Designing For Advertising | 20 March 2009 | IA Summit
Specs
   unit       dimensions     placement           file types       max size   loops sound rich media
                           left column below
    wide                                                                                    user
                160x600      sub-navigation      gif, jpg, swf     35k       5                                   yes
 skyscraper                                                                               initiated

                            top, right in list
  medium                                                                                    user
                300x250           and            gif, jpg, swf     35k       5                                   yes
 rectangle                                                                                initiated
                              grid views

                            top, right in list
                                                                                            user
  big box       344x480           and            gif, jpg, swf     45k       5                                   yes
                                                                                          initiated
                              grid views

   super                   footer, below page                                               user
                728x90                        gif, jpg, swf        30k       5                                   yes
  banner                       navigation                                                 initiated


 showcase       750x175      page header           gif, jpg        60k       0               no                   no


                              10 second
   video        640x480        bumper at      dv, mpg, mov          -         -              yes                   -
                           beginning of video




COOL HUNTING                                                                      published by



                                           40                                     Designing For Advertising | 20 March 2009 | IA Summit
FOR MORE INFO,
JUST SEARCH FOR
“MEDIA KIT”



             41   Designing For Advertising | 20 March 2009 | IA Summit
7. ASK TO CUSTOMIZE
   TEXT PLACEMENTS



              42      Designing For Advertising | 20 March 2009 | IA Summit
43   Designing For Advertising | 20 March 2009 | IA Summit
44   Designing For Advertising | 20 March 2009 | IA Summit
8. YOU SHOULD THINK
   CREATIVELY ABOUT
   PLACEMENTS



             45       Designing For Advertising | 20 March 2009 | IA Summit
8. YOU SHOULD THINK
   CREATIVELY ABOUT
   PLACEMENTS
   (WHICH MEANS YOU
   SHOULD MAKE FRIENDS
   WITH AD SALES)
             45      Designing For Advertising | 20 March 2009 | IA Summit
46   Designing For Advertising | 20 March 2009 | IA Summit
47   Designing For Advertising | 20 March 2009 | IA Summit
47   Designing For Advertising | 20 March 2009 | IA Summit
48   Designing For Advertising | 20 March 2009 | IA Summit
48   Designing For Advertising | 20 March 2009 | IA Summit
9. WHAT GETS MEASURED
   MATTERS




             49     Designing For Advertising | 20 March 2009 | IA Summit
9. WHAT GETS MEASURED
   MATTERS

 MAYBE.


             49     Designing For Advertising | 20 March 2009 | IA Summit
DATA IS CHEAP.
INSIGHT IS EXPENSIVE.



               50       Designing For Advertising | 20 March 2009 | IA Summit
10.FORGET EVERYTHING I
   JUST TOLD YOU
   BECAUSE...



             51      Designing For Advertising | 20 March 2009 | IA Summit
THE BANNER IS DEAD




             52      Designing For Advertising | 20 March 2009 | IA Summit
TELL ME THE FUTURE




             53      Designing For Advertising | 20 March 2009 | IA Summit
54   Designing For Advertising | 20 March 2009 | IA Summit
Rumors of our death are
 greatly exaggerated




*With apologies to Mark Twain
                          55    Designing For Advertising | 20 March 2009 | IA Summit
THE WALL BETWEEN
ADVERTISING + CONTENT




                                                                56
   Via Flickr User old bacon under a Creative Commons License        Designing For Advertising | 20 March 2009 | IA Summit
Package your unit as a
“sponsorship.” Advertisers
 love to convey the feeling
that your brilliant content is
 “brought to you by” their
           brand.

                                                          Razor sh, Terri Walther and Sarah Baehr
                                                                     57
  Source: How to Sell-Out Like Gawker Media, Silicon Alley Insider                Designing For Advertising | 20 March 2009 | IA Summit
Sponsorships




Banner Ads

             58   Designing For Advertising | 20 March 2009 | IA Summit
INTERNET AD REVENUE % SHARE
     BY ADVERTISING FORMAT
50
                                                                                                                                                     2004
                   44
                                                                                                                                                     2005
     40 41 40 41
                                                                                                                                                     2006
40
                                                                                                                                                     2007
                                                                                                                                                     2008 (HY)
30

                                          22 21 21
                             19 20
20                                                                                            18 17 18
                                                                                                         16
                                                                                                              14
                                                                 10                   10 10
10                                                                       8                                               877                8
                                                                                  6                                    6                           5
                                                                                                                   3                                      332
0
                                    Display                          Rich Media                                      Lead
%                                   Banners                           + Video                   Classi eds                                   Sponsorships
        Search                                                                                                     Generation
                   Source: IAB Internet Advertising Revenue Report conducted by
                                                                                          59                             Designing For Advertising | 20 March 2009 | IA Summit
                   PricewaterhouseCoopers (PWC)
While publishers’ rst attempts
  at charging for content online
   (particularly micropayments)
largely failed, there has been an
 increasing interest in revisiting
            that model.

                                                                          FOLIO Media:PRO
                                                                     60
  Source: Condé Nast Strikes Video Deal with Hulu, FOLIO Media:PRO            Designing For Advertising | 20 March 2009 | IA Summit
61
Source: Wired        Designing For Advertising | 20 March 2009 | IA Summit
62
Source: The Economist        Designing For Advertising | 20 March 2009 | IA Summit
63   Designing For Advertising | 20 March 2009 | IA Summit
64
Via Flickr User petrichor under a Creative Commons License        Designing For Advertising | 20 March 2009 | IA Summit
ADVERTISING IS THE
WORST REVENUE MODEL
FOR THE INTERNET
EXCEPT FOR ALL THE OTHERS

*With apologies to Winston Churchill and Democracy

                                 65                  Designing For Advertising | 20 March 2009 | IA Summit
Everyone wants to think
the user experience is this
 paramount, untouchable
          Good


          President of Atlantic Media, Justin Smith
                66                 Designing For Advertising | 20 March 2009 | IA Summit
Don’t get seduced into
 thinking that better user
experience alone will drive
       more revenue


          President of Atlantic Media, Justin Smith
                67                 Designing For Advertising | 20 March 2009 | IA Summit
You need to give
 the advertisers
 what they want



     President of Atlantic Media, Justin Smith
           68                 Designing For Advertising | 20 March 2009 | IA Summit
PLEASE HELP
                                                                    MORE MONEY
                                                                    GET ONLINE




                                                               69
Via Flickr User Word Freak under a Creative Commons License           Designing For Advertising | 20 March 2009 | IA Summit
SPECIAL THANKS TO:

Justin Smith                     Chad Phelps                   Sarah Chubb
President of Consumer Media      VP of Online                  President, Condé Nast Digital




KC Estenson                      Dylan Fitch                   Ed Sussman
SVP & General Manager, CNN.com   Managing Director             President, Digital (Former)




                                                               Rich Meislin
Josh Rubin                       Sarah Baehr
                                                               Consultant, Internet Publishing
Editor in Chief                  VP and National Lead, Media
                                                               Martin Nisenholtz
Evan Orensten                    Garrick Schmidt
                                                               SVP of Digital
Executive Editor                 VP and National Lead, UX

                                                70                 Designing For Advertising | 20 March 2009 | IA Summit
www.bondartscience.com
THANKS!   info@bondartscience.com
          @bondartscience

          Karen McGrane
          karen@bondartscience.com
          @karenmcgrane

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Designing For, With, and Around Advertising

  • 1. DESIGNING FOR, WITH, AND AROUND ADVERTISING OR: HOW I LEARNED TO STOP WORRYING AND LOVE THE ADS *With apologies to Dr. Strangelove
  • 2. PERSUADE YOU TO THINK DIFFERENTLY ABOUT ONLINE ADVERTISING 2 Designing For Advertising | 20 March 2009 | IA Summit
  • 3. TELL YOU SOME OF THE BASICS ABOUT HOW ADVERTISING WORKS 3 Designing For Advertising | 20 March 2009 | IA Summit
  • 4. SPECULATE ABOUT THE FUTURE OF THE ONLINE REVENUE MODEL 4 Designing For Advertising | 20 March 2009 | IA Summit
  • 5. THERE’S SO MUCH I CAN’T COVER TODAY 5 Designing For Advertising | 20 March 2009 | IA Summit
  • 6. Concept ruthlessly stolen from Heather Champ @hchamp 6 Via Flickr User swirlspice under a Creative Commons License Designing For Advertising | 20 March 2009 | IA Summit
  • 7. 7 Designing For Advertising | 20 March 2009 | IA Summit
  • 8. ABOUT ME ! 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 8 Designing For Advertising | 20 March 2009 | IA Summit
  • 9. DESIGNING FOR, WITH, AND AROUND ADVERTISING OR: HOW I LEARNED TO STOP WORRYING AND LOVE THE ADS *With apologies to Dr. Strangelove
  • 10. YOU ARE NOT A WIREFRAME MONKEY Designing For Advertising | 20 March 2009 | IA Summit
  • 11.  YOU STRATEGIZE WAYS TO MAKE BUSINESSES MORE VALUABLE 11 Designing For Advertising | 20 March 2009 | IA Summit
  • 12. I’m going to move this to the bottom of the It’s It takes up page, okay? distracting so much space BUY NOW! It clutters Do we up the page really have to put this It’s just here? so ugly 12 Designing For Advertising | 20 March 2009 | IA Summit
  • 13. I consider many advertisers “stalkers” Intrusive, annoying and just plain ugly advertising is SO bad! I block all advertising If anything could be just to avoid them. worse than pop-ups, this is it. I HATE this ad! It’s a free country, but if you HATE HATE HATE. put ads on your videos I will not view them. Many of my friends feel the same way. Get a grip! 13 Designing For Advertising | 20 March 2009 | IA Summit
  • 14. IF WE IGNORE THE ADS MAYBE THEY’LL GO AWAY Source: Jakob Nielsen's Alertbox, August 20, 2007: 14 Banner Blindness: Old and New Findings Designing For Advertising | 20 March 2009 | IA Summit
  • 15. INFORMATION WANTS TO BE FREE! 15 Via Flickr User Gwire under a Creative Commons License Designing For Advertising | 20 March 2009 | IA Summit
  • 16. U.S. ADVERTISING SPENDING IN BILLIONS OF DOLLARS 250 Total 219.9 Internet 18.5 200 41.1 Newspapers 39.7 Directories 17.2 150 Direct Mail 14.6 Broadcast 35.5 100 Cable 25.4 Magazines 26.6 50 Radio 15.7 Outdoor 8.8 Other 17.9 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: The U.S. Census Bureau's Service Annual Surveys, 16 Designing For Advertising | 20 March 2009 | IA Summit U.S Advertising Spending 1998-2007
  • 17. TIME SPENT ENGAGED IN MEDIA INTERNET VS. TRADITIONAL MEDIA + 20% 15% +10% 19% 30% 33% 30% 0% – 10% – 20% – 30% Magazines Radio Newspaper Internet Television Source: The User Revolution, Piper Jaffray & Co., February 2007 17 Source: Arbitron/Edison Media Research Internet and Multimedia Designing For Advertising | 20 March 2009 | IA Summit 2006: On-Demand Media Explodes and comScore Networks.
  • 18. INTERNET AD SPENDING DOLLARS SPENT TIME SPENT BY USERS BY ADVERTISERS Internet Internet 7% 21% 93% 79% Traditional Media Traditional Media 18 Source: Television Advertising Bureau, Nielsen Media Research, Advertising Designing For Advertising | 20 March 2009 | IA Summit Age, and Piper Jaffray & Co. estimates
  • 19. Print Dollars, Internet Nickels Time Inc. CEO, Ann Moore 19 Designing For Advertising | 20 March 2009 | IA Summit
  • 20. The most popular Web 2.0 revenue model is based on advertising Ask a V.C. 20 Source: Ask a VC, Ad Revenue Models Designing For Advertising | 20 March 2009 | IA Summit
  • 21. 21 Via Flickr User Jeremy Dunham under a Creative Commons License Designing For Advertising | 20 March 2009 | IA Summit
  • 22. TOP TEN THINGS YOU SHOULD KNOW ABOUT ONLINE ADVERTISING 22 Designing For Advertising | 20 March 2009 | IA Summit
  • 23. 1. IT’S ALL MIDDLEMEN 23 Designing For Advertising | 20 March 2009 | IA Summit
  • 24. USERS MEDIA BUYERS AGENCIES AD SALES ADVERTISERS PUBLISHERS 24 Designing For Advertising | 20 March 2009 | IA Summit
  • 25. 2. MEDIA BUYERS ARE 25-YEAR OLDS ARMED WITH SPREADSHEETS 25 Designing For Advertising | 20 March 2009 | IA Summit
  • 26. 26 Designing For Advertising | 20 March 2009 | IA Summit
  • 27. FOR $10,000 SHE BUYS 500 CLICKS  Ad Positions  Demographics Cost per 1000 $20.00 (CPM) Traf c x 0.1% 500,000 Price $10,000 Clickthrough 500 27 For illustration purposes only. Not real data. Faulty math. Designing For Advertising | 20 March 2009 | IA Summit
  • 28. 3. MEDIA BUYERS PURCHASE GLOBAL NAV CATEGORIES 28 Designing For Advertising | 20 March 2009 | IA Summit
  • 29. 29 Designing For Advertising | 20 March 2009 | IA Summit
  • 30. 29 Designing For Advertising | 20 March 2009 | IA Summit
  • 31. 29 Designing For Advertising | 20 March 2009 | IA Summit
  • 32. 29 Designing For Advertising | 20 March 2009 | IA Summit
  • 33. 29 Designing For Advertising | 20 March 2009 | IA Summit
  • 34. 29 Designing For Advertising | 20 March 2009 | IA Summit
  • 35. BANNER ADS ARE TOP DOWN GOOGLE ADS ARE BOTTOM UP 30 Designing For Advertising | 20 March 2009 | IA Summit
  • 36. 4. THE IAB IS A CABAL THAT CONTROLS EVERYTHING WE DO 31 Designing For Advertising | 20 March 2009 | IA Summit
  • 37. 32 Designing For Advertising | 20 March 2009 | IA Summit
  • 38. 32 Designing For Advertising | 20 March 2009 | IA Summit
  • 39. 33 Designing For Advertising | 20 March 2009 | IA Summit
  • 40. 33 Designing For Advertising | 20 March 2009 | IA Summit
  • 41. 34 Designing For Advertising | 20 March 2009 | IA Summit
  • 42. 35 Designing For Advertising | 20 March 2009 | IA Summit
  • 43. 5. YOU MUST DESIGN YOUR GRID AROUND THE ADS 35 Designing For Advertising | 20 March 2009 | IA Summit
  • 44. 36 Designing For Advertising | 20 March 2009 | IA Summit
  • 45. 37 Designing For Advertising | 20 March 2009 | IA Summit
  • 46. 6. YOU CAN SPECIFY WHAT’S OKAY AND WHAT’S NOT OKAY 38 Designing For Advertising | 20 March 2009 | IA Summit
  • 47. 39 Designing For Advertising | 20 March 2009 | IA Summit
  • 48. Specs unit dimensions placement file types max size loops sound rich media left column below wide user 160x600 sub-navigation gif, jpg, swf 35k 5 yes skyscraper initiated top, right in list medium user 300x250 and gif, jpg, swf 35k 5 yes rectangle initiated grid views top, right in list user big box 344x480 and gif, jpg, swf 45k 5 yes initiated grid views super footer, below page user 728x90 gif, jpg, swf 30k 5 yes banner navigation initiated showcase 750x175 page header gif, jpg 60k 0 no no 10 second video 640x480 bumper at dv, mpg, mov - - yes - beginning of video COOL HUNTING published by 40 Designing For Advertising | 20 March 2009 | IA Summit
  • 49. FOR MORE INFO, JUST SEARCH FOR “MEDIA KIT” 41 Designing For Advertising | 20 March 2009 | IA Summit
  • 50. 7. ASK TO CUSTOMIZE TEXT PLACEMENTS 42 Designing For Advertising | 20 March 2009 | IA Summit
  • 51. 43 Designing For Advertising | 20 March 2009 | IA Summit
  • 52. 44 Designing For Advertising | 20 March 2009 | IA Summit
  • 53. 8. YOU SHOULD THINK CREATIVELY ABOUT PLACEMENTS 45 Designing For Advertising | 20 March 2009 | IA Summit
  • 54. 8. YOU SHOULD THINK CREATIVELY ABOUT PLACEMENTS (WHICH MEANS YOU SHOULD MAKE FRIENDS WITH AD SALES) 45 Designing For Advertising | 20 March 2009 | IA Summit
  • 55. 46 Designing For Advertising | 20 March 2009 | IA Summit
  • 56. 47 Designing For Advertising | 20 March 2009 | IA Summit
  • 57. 47 Designing For Advertising | 20 March 2009 | IA Summit
  • 58. 48 Designing For Advertising | 20 March 2009 | IA Summit
  • 59. 48 Designing For Advertising | 20 March 2009 | IA Summit
  • 60. 9. WHAT GETS MEASURED MATTERS 49 Designing For Advertising | 20 March 2009 | IA Summit
  • 61. 9. WHAT GETS MEASURED MATTERS MAYBE. 49 Designing For Advertising | 20 March 2009 | IA Summit
  • 62. DATA IS CHEAP. INSIGHT IS EXPENSIVE. 50 Designing For Advertising | 20 March 2009 | IA Summit
  • 63. 10.FORGET EVERYTHING I JUST TOLD YOU BECAUSE... 51 Designing For Advertising | 20 March 2009 | IA Summit
  • 64. THE BANNER IS DEAD 52 Designing For Advertising | 20 March 2009 | IA Summit
  • 65. TELL ME THE FUTURE 53 Designing For Advertising | 20 March 2009 | IA Summit
  • 66. 54 Designing For Advertising | 20 March 2009 | IA Summit
  • 67. Rumors of our death are greatly exaggerated *With apologies to Mark Twain 55 Designing For Advertising | 20 March 2009 | IA Summit
  • 68. THE WALL BETWEEN ADVERTISING + CONTENT 56 Via Flickr User old bacon under a Creative Commons License Designing For Advertising | 20 March 2009 | IA Summit
  • 69. Package your unit as a “sponsorship.” Advertisers love to convey the feeling that your brilliant content is “brought to you by” their brand. Razor sh, Terri Walther and Sarah Baehr 57 Source: How to Sell-Out Like Gawker Media, Silicon Alley Insider Designing For Advertising | 20 March 2009 | IA Summit
  • 70. Sponsorships Banner Ads 58 Designing For Advertising | 20 March 2009 | IA Summit
  • 71. INTERNET AD REVENUE % SHARE BY ADVERTISING FORMAT 50 2004 44 2005 40 41 40 41 2006 40 2007 2008 (HY) 30 22 21 21 19 20 20 18 17 18 16 14 10 10 10 10 8 877 8 6 6 5 3 332 0 Display Rich Media Lead % Banners + Video Classi eds Sponsorships Search Generation Source: IAB Internet Advertising Revenue Report conducted by 59 Designing For Advertising | 20 March 2009 | IA Summit PricewaterhouseCoopers (PWC)
  • 72. While publishers’ rst attempts at charging for content online (particularly micropayments) largely failed, there has been an increasing interest in revisiting that model. FOLIO Media:PRO 60 Source: Condé Nast Strikes Video Deal with Hulu, FOLIO Media:PRO Designing For Advertising | 20 March 2009 | IA Summit
  • 73. 61 Source: Wired Designing For Advertising | 20 March 2009 | IA Summit
  • 74. 62 Source: The Economist Designing For Advertising | 20 March 2009 | IA Summit
  • 75. 63 Designing For Advertising | 20 March 2009 | IA Summit
  • 76. 64 Via Flickr User petrichor under a Creative Commons License Designing For Advertising | 20 March 2009 | IA Summit
  • 77. ADVERTISING IS THE WORST REVENUE MODEL FOR THE INTERNET EXCEPT FOR ALL THE OTHERS *With apologies to Winston Churchill and Democracy 65 Designing For Advertising | 20 March 2009 | IA Summit
  • 78. Everyone wants to think the user experience is this paramount, untouchable Good President of Atlantic Media, Justin Smith 66 Designing For Advertising | 20 March 2009 | IA Summit
  • 79. Don’t get seduced into thinking that better user experience alone will drive more revenue President of Atlantic Media, Justin Smith 67 Designing For Advertising | 20 March 2009 | IA Summit
  • 80. You need to give the advertisers what they want President of Atlantic Media, Justin Smith 68 Designing For Advertising | 20 March 2009 | IA Summit
  • 81. PLEASE HELP MORE MONEY GET ONLINE 69 Via Flickr User Word Freak under a Creative Commons License Designing For Advertising | 20 March 2009 | IA Summit
  • 82. SPECIAL THANKS TO: Justin Smith Chad Phelps Sarah Chubb President of Consumer Media VP of Online President, Condé Nast Digital KC Estenson Dylan Fitch Ed Sussman SVP & General Manager, CNN.com Managing Director President, Digital (Former) Rich Meislin Josh Rubin Sarah Baehr Consultant, Internet Publishing Editor in Chief VP and National Lead, Media Martin Nisenholtz Evan Orensten Garrick Schmidt SVP of Digital Executive Editor VP and National Lead, UX 70 Designing For Advertising | 20 March 2009 | IA Summit
  • 83. www.bondartscience.com THANKS! info@bondartscience.com @bondartscience Karen McGrane karen@bondartscience.com @karenmcgrane

Editor's Notes

  1. karenmcgrane on twitter, also in real life will be hosting a lunch table today to discuss these topics True confessions time How many people have DVR or Tivo? How many people have an ad blocker on their browser How many people really hate the ads? Thesis of this talk: Because IAs are focused on providing the best experience for users, they often don’t know how to handle meeting the needs of advertisers
  2. QUICK 1. Open your mind about advertising, explain why you should care
  3. QUICK 2. Share some of the things I’ve learned over the years about ad placements
  4. QUICK 3. For those of you who are still uncomfortable with advertising I want to talk a little bit about where we go from here and other potential business models
  5. Not going to talk about designing creative for banner ads or microsites, like if you are an IA at an agency making microsites for Starbursts, this is not going to help you. Not going to talk about search ads (like Google Adwords) because choosing keywords is a whole different ball of wax Not going to get into the specific details of targeting, measurement, and optimization
  6. Want to establish my qualifications to speak about this Not a shill for the advertising industry Consider myself a longtime advocate for information architecture I’m a really unlikely advocate for online advertising
  7. My bio/history mapped against the S&P 500 Hired by Razorfish as the first person with a background in IA or usability, first title was information designer/writer Spoke at the first IA summit 10 yrs ago when it was a single day and everyone sat in the same room the whole time Got started at a time when you’d start your job and they’d ask you to design a bank (I don’t mean a piece of a bank, I mean an entire online bank) This was before online advertising really took off, but when there started to be more activity there Did two projects that were really IA focused that got me started thinking about advertising One was for Encyclopedia Britannica, where I learned everything I know about taxonomy and a fair amount about advertising vs. subscription revenue models, and the subject of user generated content never came up The other was a project for Disney to redesign their ill-fated portal, Go.com, where I explored a number of interesting advertising scenarios including ways to tie ads to search results, which was a really GOOD idea Advertising is highly cyclical, so when the market tanks advertising does as well, so I retreated to the relative safety of financial services Right at the very bottom of the market Razorfish got sold to SBI for about $8 million We all kind of huddled together for warmth for a while Got sold to aQuantive for $160 million and turned into Avenue A | Razorfish just a few years later Woke up one day and found myself working for an advertising agency Have a client conference each year, remember a long-time UX colleague saying “so, they’re really serious about this whole advertising thing.” Got a chance to work on some really great projects because of those relationships Conde Nast is the world’s largest magazine publisher Led the redesign of NYTimes in 2005 Worked on a project for CNN but left just as it was getting going Left Razorfish for many, many reasons but probably the most important was that I felt like the values of the company and my values were not aligned, I felt really uncomfortable as a UX practitioner in that kind of advertising environment Started Bond Art + Science with some other former RF people Wouldn’t be here today talking about what IAs need to know about online advertising if it weren’t for the experiences I’ve had in the past few years If I had my old job I would feel like I was toeing the company line, but now I feel like I’ve got some perspective Have worked with tons of publishers, big ones, small ones, online only, print focused, all with different approaches to social media, revenue generation, and user experience We also have our own online publication, a blog called Cool Hunting, so I have perspective as a publisher and as
  8. So based on all of that, I have learned some things and developed a perspective about how to lay out pages and create experiences for, with, and around advertising But this is also about how I opened my heart to this revenue model
  9. You’re not here because you see yourself as just drawing boxes You are an advocate for the user, actively trying to make sure that user needs are taken into account by the business and technology
  10. But you’re also focused on understanding the business
  11. So imagine if you heard people complaining about the placement of the Buy Now button on an e-commerce site. I have heard UX people say all these things about the ads. I have said them myself. I have heard them from fellow employees when we worked for a company that made all its money placing advertisements on websites. I have heard them when working on redesigns for major publishers, and have gotten my ass handed to me because of it. I have even heard them when talking about a blog that my company runs!
  12. I understand the rationale here. You are concerned that users HATE ads! When you’re a UX professional your job is to advocate for the user. So therefore ads are bad and wrong. I hope to explain that ads might be a necessary evil but they’re better than the alternative They’re what pays for the content And to show how you can provide the best possible experience even if there are ads
  13. Some of you cite well-known studies about “banner blindness” To suggest that this entire business model is a failure, the emperor has no clothes To this all I can say, everyone already knows he’s naked They have WAY more data than this about what ad “effectiveness” means
  14. Some of you might have this hackerish ethos that says that things on the internet should be free To this I say, the money that comes from advertising pays our salaries Pays for editors and content strategists and user research Pays for servers and new features and upgrades
  15. Internet ad spend is about 7-8% of a $220 billion industry just in the US With all the talk about user interest shifting away from traditional media and onto the internet There really hasn’t been a corresponding shift in revenue One way to think about this is that the entire industry has grown larger over the past 5 years It’s not that the internet has taken money away from other media, traditional media is GROWING The U.S. Census Bureau's Service Annual Surveys include data on advertising expenditure from 1998 to 2007. The Service Annual Surveys use statistically representative surveys of firms. These data are based on a consistent, well-documented methodology administered by an independent, highly professional organization (the U.S. Census Bureau). Because the surveys are firm-based, they allow some separation of advertising media expenditure, e.g. payments to television stations for advertising air time, from advertising service expenditure, e.g. fees paid to advertising agencies for preparing and placing ads. Based on data reported in the Service Annual Surveys for 2004-2007, expenditure on advertising agencies, media buying agencies, and media representatives amounts to about 18% of expenditure on advertising media. Advertising time and space often are sold with a variety of price discounts. Advertising time and space also are commodities commonly included in barter deals. Discounts and barter make advertising expenditure difficult to estimate even thought a set of well-known firms dominate the supply of radio, television, and cable advertising opportunities.
  16. But the internet has taken TIME away from traditional media People are spending less time watching TV, reading newspapers, etc And more time online
  17. This slide should really piss you off That’s our money! This means that even though people are spending more time online, that time is worth less Another way to look at it is that people’s time spent watching TV or reading newspapers is worth proportionally more This is based on different data than the previous slides, so the numbers might not match up exactly
  18. Online CPM is worth between one-seventh and one-tenth of a print CPM Hearst CEO Cathy Black says she spends 20% of her time on digital, but it accounts for less than 4-5% of consumer revenue For people who talk a lot about the value of the user experience online You should be aware that it is worth a FRACTION of the money it would be worth offline Maybe you’re thinking, well, who cares about old media not being able to make money online?
  19. Everyone is excited about new platforms like Facebook and Twitter, but they don’t really have a business model And whatever business model they figure out, I guarantee it will involve advertising
  20. You can’t hide your head in the sand. Advertising is not going away Even if advertising declines during this current period of economic uncertainty It will come back, and it will be a major -- if not the most important -- way that businesses make money online As a UX professional you have a responsibility to make things not suck, and that includes advertising.
  21. Advertisers and publishers work together to attract What advertisers call consumers What you call users In the middle are the the agencies who are responsible for Creating advertising yes, But most importantly they buy and sell the ad space This is an incredibly high touch business UX is still a relatively small field, and I bet if you gathered up everyone responsible for buying and selling ads online They would number like 10x more than us
  22. If you’re going to understand how advertising works, you need to meet Brooke. Brooke is in her mid-20s. She was in a sorority. She was hired for this job because she’s smart and personable But her job is not to reinvent the internet. Brooke has a spreadsheet, and her job is to fill in that spreadsheet.
  23. This is incredibly simplified Things like the ad positons and demographics are gating factors
  24. Media buyers want their ads to appear on the homepage and on the section fronts They are interested in buying big categories: technology, travel, health, business Categories that map to what they are trying to sell
  25. Media buyers want their ads to appear on the homepage and on the section fronts They are interested in buying big categories: technology, travel, health, business Categories that map to what they are trying to sell
  26. Media buyers want their ads to appear on the homepage and on the section fronts They are interested in buying big categories: technology, travel, health, business Categories that map to what they are trying to sell
  27. Media buyers want their ads to appear on the homepage and on the section fronts They are interested in buying big categories: technology, travel, health, business Categories that map to what they are trying to sell
  28. Media buyers want their ads to appear on the homepage and on the section fronts They are interested in buying big categories: technology, travel, health, business Categories that map to what they are trying to sell
  29. Media buyers want their ads to appear on the homepage and on the section fronts They are interested in buying big categories: technology, travel, health, business Categories that map to what they are trying to sell
  30. Media buyers want their ads to appear on the homepage and on the section fronts They are interested in buying big categories: technology, travel, health, business Categories that map to what they are trying to sell
  31. IAB is the interactive advertising bureau
  32. I love that verb “fend” What does “market making guidelines and standards mean?” I will translate it into a language you will understand
  33. The Stencil All ads must be this size You cannot make ads that are not one of these sizes Really, the only ad that matters is the rectangle or IMU
  34. If you want to know why all websites kind of look the same, it’s because there so few ad sizes so it’s hard to create a grid that feels different (add a dash of arial and georgia and you have a recipe for cookie cutter websites) You must put the rectangle ad above the fold (that is a gating factor, they won’t buy without it) And while you’re at it, stick a leaderboard in there too (they strongly prefer it to be in the content well) Never bump ads Buyers want to know how many placements they have to buy to get full coverage, so 4 is too many for that
  35. Being creative about placements does NOT mean being creative about ad sizes Cutting custom creative is a near-impossibility most of the time
  36. There is no shortage of people out there claiming the death of the banner is nigh Problem is they’ve been arguing that for more than 10 years now
  37. The industry’s reliance on banners is like our dependence on foreign oil Everyone thinks it’s a bad idea, but getting ourselves out of it is way more complicated than it seems Remember, there is enormous infrastructure built up around these things Display advertising -- in print, outdoor -- is the cornerstone of the advertising industry Rather than expecting banners to go away, you should expect bigger ads What we all should be pushing for is more money to be spent online, which will mean better creative for the ads (fewer punch the monkey, more well-designed ads like you see in print)
  38. In the olden days, media had very clear standards about what was advertising and what was editorial That is changing on the web
  39. Want to wrap up with three thoughts. First is that advertising is a terrible revenue model.
  40. Second is a quote from a client of mine, now runs Atlantic Media and previously was publisher of The Week When I interviewed him for this I asked if he had any parting words, any conclusions and he said YES Said that people always say, oh, the ads are so distracting, it would be better for the UX if we moved them
  41. He said you’re kidding yourselves if you think that providing a better UX will make up for the loss in revenue Just providing a good UX does not make money
  42. If you want to have money to pay for content and tools and services and jobs We all need to understand what advertisers want
  43. I really believe that if there is a group of people who can find smart ways to integrate ads provide value for advertisers, and still deliver a quality experience, it’s you guys. But please, let’s take the money away from traditional media and put it on the internet.
  44. Want to give a shout out to the people who really helped me with this presentation
  45. A few minutes for questions Don’t forget the lunch table today if you want to talk more about these issues.