Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

AYN Market Overview - Trends

76 views

Published on

  • Be the first to comment

  • Be the first to like this

AYN Market Overview - Trends

  1. 1. 1 Confidential. Property of AdYouNet – Do Not Distribute Precision Marketing - Direct Marketing on the Web Market Overview
  2. 2. 2 Confidential. Property of AdYouNet – Do Not Distribute Breakout of US Marketing Spending
  3. 3. 3 Confidential. Property of AdYouNet – Do Not Distribute The Problem: More than $450 in Global Ad Spending and Average Conversion is Dismal TV Search Online Ads Radio Newspaper Global Advertising* > $450B $170B $28B $24B $21B $18B Direct Marketing* > $100B $58B $54B $17B $12B $1.5B Telesales Direct Mail Yellow Pages Catalogs Email Average Conversion Rates < 2% * Source: Veronis Suhler, Piper Jaffray, JP Morgan, DMA, eMarketer
  4. 4. 4 Confidential. Property of AdYouNet – Do Not Distribute With Budget Under Pressure AYN Addresses Marketers’ Top Challenges 8% 9% 9% 14% 16% 16% 18% 19% 20% 24% 29% 31% 40% 0% 20% 40% 60% 80% 100% Coordinating media buying and creative messaging Addressing the decreasing quality of consumers' responses Finding enough decent inventory Coordinating online and off-line strategies Addressing the increasing ad clutter Comparing online and off-line results Addressing consumers' decreasing response rates Coming up with compelling creative Efficiently trafficking and executing Finding a way to integrate social marketing Accurately measuring effects of campaigns Determining where or how to reach target audience Getting a positive return on investment Source: JupiterResearch Advertiser Executive Survey (6/08), n = 202 (advertisers, US) Percentage of Online Advertisers
  5. 5. 5 Confidential. Property of AdYouNet – Do Not Distribute Growth of Behavioral Targeting Foretells Expected Direct Display Growth Trend The rapid increase of behavioral targeting spending by advertisers is a validation of the trend that increases the value of remnant inventory at the expense of more premium inventory. We expect this spending to be increasingly directed toward Direct Display Marketing
  6. 6. 6 Confidential. Property of AdYouNet – Do Not Distribute Direct Marketing ROI Performance Parallels Direct Display
  7. 7. 7 Confidential. Property of AdYouNet – Do Not Distribute Another Problem: We Don’t Want To Sell a Direct Marketing Service to Broadcast Advertisers TV Search Online Ads Radio Newspaper Global Advertising* > $450B $170B $28B $24B $21B $18B Direct Marketing* > $100B $58B $54B $17B $12B $1.5B Telesales Direct Mail Yellow Pages Catalogs Email Average Conversion Rates < 2% * Source: Veronis Suhler, Piper Jaffray, JP Morgan, DMA, eMarketer
  8. 8. 8 Confidential. Property of AdYouNet – Do Not Distribute NetConversionRate 0%.00025%.025%.05%.1%+ Combo of Digital Targeting and Direct Marketing Drives Paradigm Shift in Display Performance Broadcast 1999 2002 2005 2008 2011 Introduction of Cookie Farming Customer Data Web Data Ad Networks The AdYouNet Paradigm Shift Re-Targeting Behavioral Targeting Precision Marketing
  9. 9. 9 Confidential. Property of AdYouNet – Do Not Distribute Issues Related To The Scope of Our Offering If we only offer the new new thing, it’s harder to convince a prospect that we have something they can benefit from right now If we offer a full plate of services it can dilute the competitive distinction of our key service DDM can only focus on a portion of the customer lifecycle. By adding retargeting we can say we serve the full customer lifecycle and can cross-sell our own services in two directions.
  10. 10. 10 Confidential. Property of AdYouNet – Do Not Distribute Issues Related To Penetrating The Market With This New Channel Media buyers often control the purse strings, but are cut out of the process in our model Brands don’t have direct marketing creative skill set in the online division Many brands associate us with behavioral and re-targeting, which are acquisition strategies. We have to refocus them on two dimensions, not just one. We need to create clear distinctions on at least two dimensions: 1:1 Delivery with maximum reach, frequency and range Ability to leverage more effective data to drive higher conversion rate. Eliminate constraints on cross-sell channels? eCPM argument?
  11. 11. 11 Property of AdYouNet – Do Not Distribute The Relevant Entities in Our Targeted Marketplace •Source of budgets •Definition of strategies •Keeper of customer data •Campaign management, in some cases •Gatekeepers •Campaign management, in some cases •Subject matter experts •Budget allocation •Technology providers •Data managers •Ad serving •Analytics BrandsAgenciesServices
  12. 12. 12 Property of AdYouNet – Do Not Distribute The Relevant Entities in Our Targeted Marketplace BrandsAgenciesServices Large Medium Small Financial Services Travel Retail Education OtherAutomotive Large Brand Agencies Small Digital DM Agencies Ecommerce Analytics Data Multivariate Optimization EmailAd Serving CRM
  13. 13. 14 Property of AdYouNet – Do Not Distribute Budgets Shifting from Large Agencies to Smaller yet Better Performing Digital Boutiques 1995 2000 2008 2016 Small Interactive Boutiques: Lower Costs, Higher Performance Large Agencies: Higher costs, lower performance PercentofClientBudget 0%20%40%60%80%100%
  14. 14. 15 Property of AdYouNet – Do Not Distribute Ad Agencies – Friends or Foes? Performance-Based Digital Agencies Focus on Performance Marketing Need technological innovation to compete with ad giants Lack means and inclination to develop innovation in house. Highly measurable Large Digital Agencies Focus on Brand Advertising Aspire to be a one stop shop for Advertising Services Try to own whole marketing budget Regard Direct Display Marketing as a threat to budget ownership Less measurable Foes Allies
  15. 15. 16 Property of AdYouNet – Do Not Distribute Company Site Offers Company Site Offers Targeting Precision Contextual Targeting Contextual Targeting Direct Display Marketing Direct Display Marketing Direct Marketing Competitive Landscape – AYN Positioning Within The Marketplace Remains To Be Finalized SEM / SEOSEM / SEO Ad Optimization Ad Optimization EmailEmail Behavioral Targeting Behavioral Targeting Re-TargetingRe-Targeting CustomersProspects Broadcast SalesCyclePhase Targeting Precision Contextual Targeting Contextual Targeting EmailEmail SEM/SEOSEM/SEO Company Site Offers Company Site Offers Re- Targeting Re- Targeting Ad Optimization Ad Optimization Behavioral Targeting Behavioral Targeting Direct Display Marketing Direct Display Marketing
  16. 16. 17 Confidential. Property of AdYouNet – Do Not Distribute Category Differentiation 1 - Retargeting.com, Fetchback 2 - Tacoda, Blue Lithium, etc. 3 - Lyris, Vertical Response, etc.
  17. 17. 18 Confidential. Property of AdYouNet – Do Not Distribute Thank you 1032 Elwell Court Palo Alto, CA 94303 650-776-7725

×