A Media Utopia | ad:tech NZ 2015
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The ability for consumers to make decisions around their own media is closer than you think, which is great news for both marketers and publishers’ Despite celebrating it’s 21st birthday last month, the banner ad has never been under greater threat. How can we change the traditional banner ad from a necessary annoyance into something that adds real value to consumers, advertisers, and publishers? This session looks how the consumer’s relationship with digital advertising has evolved over the last 21 years, and the small but important change that’s about to happen which will change digital marketing for the better.
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- 5. A brief history… Ad:Tech NZ | November 2015 1 9 9 4 The world’s first banner ad is bought by AT&T on hotwired.com. The click-through rate on the campaign is 44%.
- 6. A brief history… Ad:Tech NZ | November 2015 1 9 9 4 The world’s first banner ad is bought by AT&T on hotwired.com. The click-through rate on the campaign is 44%.
- 7. A brief history… Ad:Tech NZ | November 2015 1 9 9 4 The world’s first banner ad is bought by AT&T on hotwired.com. The click-through rate on the campaign is 44%. 1 9 9 6 The first rich media banner goes live for HP - it is an interactive game of Pong.
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- 9. Presentation name - April 2015 1 9 9 8 The first PPC search keyword auction goes live with goto.com DoubleClick is launched Ad:Tech NZ | November 2015 1 9 9 6 l a t e 9 0 ’ s The first pop-up ads start to appear on tripod.com (later bought by lycos.com) Google launches AdWordsO c t 2 0 0 0
- 10. Presentation name - April 2015 1 9 9 8 The first PPC search keyword auction goes live with goto.com DoubleClick is launched Ad:Tech NZ | November 2015 1 9 9 6 l a t e 9 0 ’ s The first pop-up ads start to appear on tripod.com (later bought by lycos.com) Google launches AdWordsO c t 2 0 0 0
- 11. Presentation name - April 2015 1 9 9 8 The first PPC search keyword auction goes live with goto.com DoubleClick is launched Ad:Tech NZ | November 2015 1 9 9 6 l a t e 9 0 ’ s The first pop-up ads start to appear on tripod.com (later bought by lycos.com) Google launches AdWordsO c t 2 0 0 0
- 12. Presentation name - April 2015 2 0 0 7 Early forms of retargeting start to appear Facebook launches advertising Ad:Tech NZ | November 2015 F e b 2 0 0 6 Facebook allows advertisers to start targeting using demographics N o v 2 0 0 7 2 0 0 7 YouTube — in-video ads go mainstream S e p 2 0 0 7 Google launches AdSense for mobile
- 13. Presentation name - April 2015 M a r 2 0 0 9 Google begins to test interest based advertising across YouTube & partner sites YouTube launches promoted videos & pre-roll Ad:Tech NZ | November 2015 2 0 0 8 2 0 0 9 Facebook launches self-service and allows advertisers to start targeting via language and radius 2 0 0 9 Retargeting goes mainstream with AdRoll and others
- 14. Presentation name - April 2015 2 0 1 0 Twitter launches promotional trends & tweets Real-time bidding launches Ad:Tech NZ | November 2015 2 0 0 9 2 0 1 1 Facebook launches Sponsored stories J a n 2 0 1 2 Facebook puts ads into newsfeeds 2 0 1 0 Native ads become mainstream 2 0 1 3 Machine learning begins being applied to online advertising
- 15. Presentation name - April 2015 2 0 1 4 First party data becomes front and centre Facebook launches video ads and relaunches the Atlas ad server Ad:Tech NZ | November 2015 2 0 1 4 2 0 1 5 Facebook launches Instant Articles 2 0 1 5 Apple launches News App 2 0 1 4 Large scale premium ad exchanges 2 0 1 6 ?
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- 28. Key Takeaways • Questions & answers are a natural human expression Ad:Tech NZ | November 2015 • Platforms now exist which allow you to scale Q&A throughout your business • Questions & answers can be integrated with and enrich (almost) any data set • This is great news for publishers, brands, retailers, marketers….and people • Questions & answers are the most effective way of moving a potential customer through their decision journey
- 29. Commercial Director lobrien@pureprofile.com 0406 641 085 Luke O’Brien THANK YOU
Editor's Notes
- Thanks everyone my presentation a visit in amounts some awesome speakers. Now, over the years I’ve seen many a presentation about the history of adtech — from ad networks to ad exchanges to adservers to DSPs to SSPs, DMPs….FML. Today instead, I want to focus on how the consumer’s relationship with online advertising has changed over the years up to this point, and then zoom in on one key aspect that I believe will propel us forward. But first, a video….
- Whilst Hollywood may have done what Hollywood does in this clip, and taken things to the extreme. I think there’d be few people in this room that wouldn’t agree that this is somewhat representative of where we’re headed — ads that are targeted to the individual, omnipresent, channel agnostic — from brands and agencies that know you, know whether you’re worth talking to, and most importantly, we think if done right, the consumer themselves will actually be able to play a part in the advertising they want to see based on the brands, categories, and things that they’re passionate. This will lead to the media utopia at the cross point of ads people actually want to see and the ultimate in media efficiency. [potential slide with cross point and awesome shit starts to happen] But before we start to get into how we get to this point, I want to go back in time and look at where we’ve come from, and how our relationship with ads has evolved over the last 21 years.
- 21 years ago last month this banner ad appeared on HotWired (the online version of Wired magazine) for AT&T. It was a multi channel campaign with ‘You Will’ as the tagline which transcended each channel and creative. When the users clicked on the ad they were taken on a virtual tour of seven of the world’s greatest museums. The thought behind this concept was to impress upon the users how AT&T could help them travel across time and space through Internet. Boy we’ve come a long way since then…. wait a second? Have we?
- When the users clicked on the ad they were taken on a virtual tour of seven of the world’s greatest museums. The thought behind this concept was to impress upon the users how AT&T could help them travel across time and space through Internet. The ad space was bought for three months at the price of $30,000. It produced a click through rate of whopping 44%. 1995: online ad spend around $37m (Forrester)
- Pop-unders Pop-ups 3% CTR Next major milestone in the banner ad industry was the launch of DoubleClick – an online ad-related-services providing agency- in 1996. This platform gave online advertising an entirely new perspective. Before Doubleclick, the ads were not organized or coordinated. Not only that, before its creation it was hard for websites to find parties interested in buying ad spaces. Doubleclick not only created a way to track banner ads and consumer behaviour but it also helped track the ROI. The banner was a great way to produce revenue for the websites and Doubleclick themselves. It was around this time that the surge in the number of content websites, whose revenue was based on selling ad spaces, happened. Before the end of the year 1996, Doubleclick developed a technology called DART (Dynamic Advertising Reporting and Targeting) which helped advertisers to track the clicks and optimize their ads before the campaign ends. Because of its huge network, Doubleclick allowed its advertisers to advertise in a plethora of websites, and unlike print and radio, Doubleclick provided the advertiser a chance to customize their ad campaigns depending on its performance. For example, if an ad was not doing good on one website, the advertiser had the option to take the ad down from that website and focus on another one that was producing results. DoubleClick made its revenue by brokering ads and by offering premium tracking & analytical services to their advertisers. The price for advertising on their network was based on Cost per thousand impressions (CPM) model. Doubleclick also generated CPM revenue from the email marketing services it provided. Banner Ad size become standard With thousands of businesses flocking to create e -stores, and websites, the amount of banner ads also increased. With it came the standard ad sizes. 468X60 was the first and basic standard size. Other sizes that became popular among advertisers were 125×125 cubes, 120×600 skyscrapers and 728×90 leaderboards. Goto.com, later became Overture, and was then acquired by Yahoo for $1.63 billion. Credit for PPC model is generally given to Bill Gross. The PPC model however, was included only in 2002, before that it was all CPM. Yahoo, on the other hand, offered its ad based on the PPC model right from the beginning in 1998. In 2001, GoTo.com renamed itself Overture. It allowed web portals like MSN and Yahoo to monetize their traffic. This proved to be highly profitable for both Overture and its partners. In fact, it even brought portals like AltaVista and AlltheWeb. In 2003, Overture was brought by Yahoo. In 2001, where Google made $85 million from its CPM based ad revenue, Overture earned $288 million selling ads on a PPM (Paid Placement Model – Overture’s version of PPC) basis. In 2002, Google revamped its Adwords program. It reintroduced Adwords which now included the option of PPC advertising. Google’s version of PPC was different from Overture’s PPM. Where Overture allowed its users to buy their way to the top, as in – the higher your bid, the higher your listing; Google understood the importance of relevance and better user experience. You see, any big company could buy their way to the top, but if the ad was not relevant then it would generate less clicks, the users who end up clicking will not get anything relevant to what they searched for and the company would make no profit either. For a more robust ranking mechanism, Google, as a means to measure an ad’s relevancy, introduced the “Click through rate” feature. This meant that if an ad with a lower bid got more clicks than the others above it, it would climb up the ranking ladder. A more sophisticated version is called the Quality Score today. Google did not invent the Pay per click model, but it simply adapted and perfected it.
- Pop-unders Pop-ups 3% CTR Next major milestone in the banner ad industry was the launch of DoubleClick – an online ad-related-services providing agency- in 1996. This platform gave online advertising an entirely new perspective. Before Doubleclick, the ads were not organized or coordinated. Not only that, before its creation it was hard for websites to find parties interested in buying ad spaces. Doubleclick not only created a way to track banner ads and consumer behaviour but it also helped track the ROI. The banner was a great way to produce revenue for the websites and Doubleclick themselves. It was around this time that the surge in the number of content websites, whose revenue was based on selling ad spaces, happened. Before the end of the year 1996, Doubleclick developed a technology called DART (Dynamic Advertising Reporting and Targeting) which helped advertisers to track the clicks and optimize their ads before the campaign ends. Because of its huge network, Doubleclick allowed its advertisers to advertise in a plethora of websites, and unlike print and radio, Doubleclick provided the advertiser a chance to customize their ad campaigns depending on its performance. For example, if an ad was not doing good on one website, the advertiser had the option to take the ad down from that website and focus on another one that was producing results. DoubleClick made its revenue by brokering ads and by offering premium tracking & analytical services to their advertisers. The price for advertising on their network was based on Cost per thousand impressions (CPM) model. Doubleclick also generated CPM revenue from the email marketing services it provided. Banner Ad size become standard With thousands of businesses flocking to create e -stores, and websites, the amount of banner ads also increased. With it came the standard ad sizes. 468X60 was the first and basic standard size. Other sizes that became popular among advertisers were 125×125 cubes, 120×600 skyscrapers and 728×90 leaderboards. Goto.com, later became Overture, and was then acquired by Yahoo for $1.63 billion. Credit for PPC model is generally given to Bill Gross. The PPC model however, was included only in 2002, before that it was all CPM. Yahoo, on the other hand, offered its ad based on the PPC model right from the beginning in 1998. In 2001, GoTo.com renamed itself Overture. It allowed web portals like MSN and Yahoo to monetize their traffic. This proved to be highly profitable for both Overture and its partners. In fact, it even brought portals like AltaVista and AlltheWeb. In 2003, Overture was brought by Yahoo. In 2001, where Google made $85 million from its CPM based ad revenue, Overture earned $288 million selling ads on a PPM (Paid Placement Model – Overture’s version of PPC) basis. In 2002, Google revamped its Adwords program. It reintroduced Adwords which now included the option of PPC advertising. Google’s version of PPC was different from Overture’s PPM. Where Overture allowed its users to buy their way to the top, as in – the higher your bid, the higher your listing; Google understood the importance of relevance and better user experience. You see, any big company could buy their way to the top, but if the ad was not relevant then it would generate less clicks, the users who end up clicking will not get anything relevant to what they searched for and the company would make no profit either. For a more robust ranking mechanism, Google, as a means to measure an ad’s relevancy, introduced the “Click through rate” feature. This meant that if an ad with a lower bid got more clicks than the others above it, it would climb up the ranking ladder. A more sophisticated version is called the Quality Score today. Google did not invent the Pay per click model, but it simply adapted and perfected it.
- Pop-unders Pop-ups 3% CTR Next major milestone in the banner ad industry was the launch of DoubleClick – an online ad-related-services providing agency- in 1996. This platform gave online advertising an entirely new perspective. Before Doubleclick, the ads were not organized or coordinated. Not only that, before its creation it was hard for websites to find parties interested in buying ad spaces. Doubleclick not only created a way to track banner ads and consumer behaviour but it also helped track the ROI. The banner was a great way to produce revenue for the websites and Doubleclick themselves. It was around this time that the surge in the number of content websites, whose revenue was based on selling ad spaces, happened. Before the end of the year 1996, Doubleclick developed a technology called DART (Dynamic Advertising Reporting and Targeting) which helped advertisers to track the clicks and optimize their ads before the campaign ends. Because of its huge network, Doubleclick allowed its advertisers to advertise in a plethora of websites, and unlike print and radio, Doubleclick provided the advertiser a chance to customize their ad campaigns depending on its performance. For example, if an ad was not doing good on one website, the advertiser had the option to take the ad down from that website and focus on another one that was producing results. DoubleClick made its revenue by brokering ads and by offering premium tracking & analytical services to their advertisers. The price for advertising on their network was based on Cost per thousand impressions (CPM) model. Doubleclick also generated CPM revenue from the email marketing services it provided. Banner Ad size become standard With thousands of businesses flocking to create e -stores, and websites, the amount of banner ads also increased. With it came the standard ad sizes. 468X60 was the first and basic standard size. Other sizes that became popular among advertisers were 125×125 cubes, 120×600 skyscrapers and 728×90 leaderboards. Goto.com, later became Overture, and was then acquired by Yahoo for $1.63 billion. Credit for PPC model is generally given to Bill Gross. The PPC model however, was included only in 2002, before that it was all CPM. Yahoo, on the other hand, offered its ad based on the PPC model right from the beginning in 1998. In 2001, GoTo.com renamed itself Overture. It allowed web portals like MSN and Yahoo to monetize their traffic. This proved to be highly profitable for both Overture and its partners. In fact, it even brought portals like AltaVista and AlltheWeb. In 2003, Overture was brought by Yahoo. In 2001, where Google made $85 million from its CPM based ad revenue, Overture earned $288 million selling ads on a PPM (Paid Placement Model – Overture’s version of PPC) basis. In 2002, Google revamped its Adwords program. It reintroduced Adwords which now included the option of PPC advertising. Google’s version of PPC was different from Overture’s PPM. Where Overture allowed its users to buy their way to the top, as in – the higher your bid, the higher your listing; Google understood the importance of relevance and better user experience. You see, any big company could buy their way to the top, but if the ad was not relevant then it would generate less clicks, the users who end up clicking will not get anything relevant to what they searched for and the company would make no profit either. For a more robust ranking mechanism, Google, as a means to measure an ad’s relevancy, introduced the “Click through rate” feature. This meant that if an ad with a lower bid got more clicks than the others above it, it would climb up the ranking ladder. A more sophisticated version is called the Quality Score today. Google did not invent the Pay per click model, but it simply adapted and perfected it.
- Facebook didn’t really concentrate on advertising until 2 years after being created. In 2006, Facebook announced a one year marketing agreement with J.P. Morgan Chase to promote its credit card. Facebook members at that time where able to see ads inviting them to join an exclusive Chase network that would earn them reward points. That same year, Facebook and Microsoft teamed up for advertising syndication. It was a strategy to bring relevant ads to the 9 million Facebook users. Microsoft was the sole provider of banner ads and sponsored links on the Facebook platform. AdSense launch allowing mobile optimised sites to run same ads as desktop In October of 2006, YouTube was acquired by Google for $1.65 Billion. In 2007, YouTube was launched in 9 countries. Its mobile version was also introduced. Along with that, this was the year of In-video ad and YouTube partnership program. In the year 2008, YouTube launched promoted videos and pre-roll
- 4 years after launch. Kim Kard reportedly $10K per tweet. In 2012 twitter mobile rev exceeded FB 130m to 73 Google adwords has always been native
- 4 years after launch. Kim Kard reportedly $10K per tweet. In 2012 twitter mobile rev exceeded FB 130m to 73 Google adwords has always been native
- Facial recognition Machine learning going mainstream Bitcoin will start to hit the mainstream as a legitimate means of payment
- Isn’t sometimes easier to just ask a question? Things become a lot easier when you just simply ask someone. Not only do you spend all this time, money, effort, trying to guess, but people are naturally more engaged when they’re asked a question. It’s in our DNA — we’re designed to be not just story tellers, but conversational. And they’ll be even more engaged when they realise that the answers they give actually provide them real value. They get offered products that they actually want, and offers from retailers, and new brands to add to their consideration set that they had never heard of let alone thought of…but that look pretty good….and they’re less annoyed with our ads we’re not guessing wrong…and pesky retargeting ads stop following them around as we can know when they’ve bought and what they’ve bought and whether they’re still interested….because we’ve asked them. Example of video store
- Your probably already getting forms filled over the place — sign up forms, CRM, market research surveys, voice of the customer surveys…but in most cases that data is used point in time to provide a metric to upper management, that hopefully one day filters back to the customer…but not directly. We think the next evolution of marketing will be the ability for marketers and advertisers to ask questions at scale. This could start on your website and be used to really tailor your content to the individual, or direct them to the right areas (we’re already seeing this with customer service moving online). And we’re already seeing this with the rise of bots …but through rich media very quickly extend off as well, the next evolution of retargeting, but without annoying the customer and less creepy because they’ve bought into the process Combine this with native and make it fast Use to improve lookalike modelling, and we can even apply machine learning to the questions that are asked. More efficient media spend, and much better experience for consumer. Cut through banner ad blindness We’re not the only ones —> AOL Create your own adventure P
- Your probably already getting forms filled over the place — sign up forms, CRM, market research surveys, voice of the customer surveys…but in most cases that data is used point in time to provide a metric to upper management, that hopefully one day filters back to the customer…but not directly. We think the next evolution of marketing will be the ability for marketers and advertisers to ask questions at scale. This could start on your website and be used to really tailor your content to the individual, or direct them to the right areas (we’re already seeing this with customer service moving online). And we’re already seeing this with the rise of bots …but through rich media very quickly extend off as well, the next evolution of retargeting, but without annoying the customer and less creepy because they’ve bought into the process Combine this with native and make it fast Use to improve lookalike modelling, and we can even apply machine learning to the questions that are asked. More efficient media spend, and much better experience for consumer. Cut through banner ad blindness We’re not the only ones —> AOL Create your own adventure P
- Your probably already getting forms filled over the place — sign up forms, CRM, market research surveys, voice of the customer surveys…but in most cases that data is used point in time to provide a metric to upper management, that hopefully one day filters back to the customer…but not directly. We think the next evolution of marketing will be the ability for marketers and advertisers to ask questions at scale. This could start on your website and be used to really tailor your content to the individual, or direct them to the right areas (we’re already seeing this with customer service moving online). And we’re already seeing this with the rise of bots …but through rich media very quickly extend off as well, the next evolution of retargeting, but without annoying the customer and less creepy because they’ve bought into the process Combine this with native and make it fast Use to improve lookalike modelling, and we can even apply machine learning to the questions that are asked. More efficient media spend, and much better experience for consumer. Cut through banner ad blindness We’re not the only ones —> AOL Create your own adventure P
- Your probably already getting forms filled over the place — sign up forms, CRM, market research surveys, voice of the customer surveys…but in most cases that data is used point in time to provide a metric to upper management, that hopefully one day filters back to the customer…but not directly. We think the next evolution of marketing will be the ability for marketers and advertisers to ask questions at scale. This could start on your website and be used to really tailor your content to the individual, or direct them to the right areas (we’re already seeing this with customer service moving online). And we’re already seeing this with the rise of bots …but through rich media very quickly extend off as well, the next evolution of retargeting, but without annoying the customer and less creepy because they’ve bought into the process Combine this with native and make it fast Use to improve lookalike modelling, and we can even apply machine learning to the questions that are asked. More efficient media spend, and much better experience for consumer. Cut through banner ad blindness We’re not the only ones —> AOL Create your own adventure P
- Your probably already getting forms filled over the place — sign up forms, CRM, market research surveys, voice of the customer surveys…but in most cases that data is used point in time to provide a metric to upper management, that hopefully one day filters back to the customer…but not directly. We think the next evolution of marketing will be the ability for marketers and advertisers to ask questions at scale. This could start on your website and be used to really tailor your content to the individual, or direct them to the right areas (we’re already seeing this with customer service moving online). And we’re already seeing this with the rise of bots …but through rich media very quickly extend off as well, the next evolution of retargeting, but without annoying the customer and less creepy because they’ve bought into the process Combine this with native and make it fast Use to improve lookalike modelling, and we can even apply machine learning to the questions that are asked. More efficient media spend, and much better experience for consumer. Cut through banner ad blindness We’re not the only ones —> AOL Create your own adventure P
- Your probably already getting forms filled over the place — sign up forms, CRM, market research surveys, voice of the customer surveys…but in most cases that data is used point in time to provide a metric to upper management, that hopefully one day filters back to the customer…but not directly. We think the next evolution of marketing will be the ability for marketers and advertisers to ask questions at scale. This could start on your website and be used to really tailor your content to the individual, or direct them to the right areas (we’re already seeing this with customer service moving online). And we’re already seeing this with the rise of bots …but through rich media very quickly extend off as well, the next evolution of retargeting, but without annoying the customer and less creepy because they’ve bought into the process Combine this with native and make it fast Use to improve lookalike modelling, and we can even apply machine learning to the questions that are asked. More efficient media spend, and much better experience for consumer. Cut through banner ad blindness We’re not the only ones —> AOL Create your own adventure P
- Your probably already getting forms filled over the place — sign up forms, CRM, market research surveys, voice of the customer surveys…but in most cases that data is used point in time to provide a metric to upper management, that hopefully one day filters back to the customer…but not directly. We think the next evolution of marketing will be the ability for marketers and advertisers to ask questions at scale. This could start on your website and be used to really tailor your content to the individual, or direct them to the right areas (we’re already seeing this with customer service moving online). And we’re already seeing this with the rise of bots …but through rich media very quickly extend off as well, the next evolution of retargeting, but without annoying the customer and less creepy because they’ve bought into the process Combine this with native and make it fast Use to improve lookalike modelling, and we can even apply machine learning to the questions that are asked. More efficient media spend, and much better experience for consumer. Cut through banner ad blindness We’re not the only ones —> AOL Create your own adventure P
- Your probably already getting forms filled over the place — sign up forms, CRM, market research surveys, voice of the customer surveys…but in most cases that data is used point in time to provide a metric to upper management, that hopefully one day filters back to the customer…but not directly. We think the next evolution of marketing will be the ability for marketers and advertisers to ask questions at scale. This could start on your website and be used to really tailor your content to the individual, or direct them to the right areas (we’re already seeing this with customer service moving online). And we’re already seeing this with the rise of bots …but through rich media very quickly extend off as well, the next evolution of retargeting, but without annoying the customer and less creepy because they’ve bought into the process Combine this with native and make it fast Use to improve lookalike modelling, and we can even apply machine learning to the questions that are asked. More efficient media spend, and much better experience for consumer. Cut through banner ad blindness We’re not the only ones —> AOL Create your own adventure P
- Creator of the first banner ad now says “Our goal was to ask “How can we help you?” Today it’s all about “What can we sell you?” When the users clicked on the ad they were taken on a virtual tour of seven of the world’s greatest museums. The thought behind this concept was to impress upon the users how AT&T could help them travel across time and space through Internet.
- Creator of the first banner ad now says “Our goal was to ask “How can we help you?” Today it’s all about “What can we sell you?”