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Death to Display Ads

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Marketers spent $83 billion dollars on display ads last year, and the dirty little secret is that most of the money is wasted. This presentations makes the business, brand and moral case against display ads.

From terrible conversion rates, negative brand value and disturbing downstream effects, display ads are one of the worst channels in marketing.

Published in: Marketing
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Death to Display Ads

  1. 1. Death to Display Ads @phil_herbert @phil_herbert #DSPDX
  2. 2. Internet TV Newspapers Global Ad Spend
  3. 3. 69.9% Of all digital advertising will be on mobile #DSPDX @phil_herbert
  4. 4. “Overall, mobile advertising will grow more than three times faster than total media this year, 23.5% vs. 6.6%.” - eMarketer, 4/19/18
  5. 5. $83 billion Total Display Ad Spending #DSPDX @phil_herbert
  6. 6. Why Do Brands Like Display?
  7. 7. Easy implementation #DSPDX @phil_herbert
  8. 8. Broad reach to new audiences #DSPDX @phil_herbert
  9. 9. Data about behaviors and clicks #DSPDX @phil_herbert
  10. 10. Deployed by AI and algorithms #DSPDX @phil_herbert
  11. 11. Why Do Agencies Like Display?
  12. 12. Historical Infrastructure #DSPDX @phil_herbert
  13. 13. Commissions #DSPDX @phil_herbert
  14. 14. For every dollar spent on display ads
  15. 15. 15% commission to the agency + creative costs
  16. 16. 32% kept by Google
  17. 17. $.58 on every dollar actually goes to the end website
  18. 18. Bad Business
  19. 19. Actual Conversions (enlarged to show texture)
  20. 20. #DSPDX @phil_herbert Return for every dollar spent Display $2.63
  21. 21. #DSPDX @phil_herbert Return for every dollar spent Display Paid Search $2.63 $3.67
  22. 22. #DSPDX @phil_herbert Return for every dollar spent Display Paid Search Email $2.63 $3.67 $44
  23. 23. Display is bad for business
  24. 24. Brand Damage
  25. 25. 1. People hate them
  26. 26. #DSPDX @phil_herbert
  27. 27. #DSPDX @phil_herbert
  28. 28. The most intrusive ad types are the least liked #DSPDX @phil_herbert
  29. 29. 60% Of all mobile ad clicks are mistakes #DSPDX @phil_herbert
  30. 30. #DSPDX @phil_herbert 68% Annoyed 22% Angry 42% Frustrated
  31. 31. 2. People are worried about data
  32. 32. 71% Worried about how brands use their personal data #DSPDX @phil_herbert
  33. 33. 41% Would be annoyed at an ad that seemed to be based on their search history or personal data #DSPDX @phil_herbert
  34. 34. 3. People think it’s creepy
  35. 35. 75% Of all consumers consider many forms of marketing creepy #DSPDX @phil_herbert
  36. 36. AND THEY WILL ALL SAY THE SAME THING Ask your non-marketing friends about a creepy ad experience
  37. 37. RETARGETINGRETARGETING
  38. 38. 22% Of customers will choose other brands after a creepy ad experience #DSPDX @phil_herbert
  39. 39. 55% Of customers will put off purchasing if shown too many retargeting ads #DSPDX @phil_herbert
  40. 40. 11x Ads on unrelated sites cause customers to be 11x less likely to purchase #DSPDX @phil_herbert
  41. 41. Display is bad for your brand bad for business
  42. 42. Bad for the Internet
  43. 43. Because of #GDPR, USA Today decided to run a separate version of their website for EU users, which has all the tracking scripts and ads removed. The site seemed very fast, so I did a performance audit. How fast the internet could be without all the junk! 5.2MB → 500KB Marcel Freinbichler @fr3ino
  44. 44. 56% Of internet users have enabled some type of ad blocking #DSPDX @phil_herbert
  45. 45. 67% Of all 18-24 year olds use ad blocking software #DSPDX @phil_herbert
  46. 46. “Online advertising is looking more and more like a contest that publishers can’t win—not on a large scale, at least.” - Slate, 11/21/17
  47. 47. Death spiral of click chasing
  48. 48. Highlight controversy More clicks and more $ More ad units per page Degraded web experience #DSPDX @phil_herbert
  49. 49. Alienate their core audience Optimize sites for non-human traffic END RESULT #DSPDX @phil_herbert
  50. 50. Click Fraud
  51. 51. 1 in 5 Ad-serving websites are visited exclusively by fraud bots #DSPDX @phil_herbert
  52. 52. 1 in 3 Dollars spent on digital ads goes to fraud #DSPDX @phil_herbert
  53. 53. Of impressions on Internet Explorer were to non-human traffic 50% #DSPDX @phil_herbert
  54. 54. DAILY (!) revenue generated by a single fraud operation $3-5 million #DSPDX @phil_herbert
  55. 55. Smartphone click fraud increased January – April 2017 102% #DSPDX @phil_herbert
  56. 56. $7.2 billion Lost to Click Fraud in 2016 #DSPDX @phil_herbert
  57. 57. Where are your ads showing up?
  58. 58. “Advertisements for hundreds of large companies, universities and charities, including Mercedes-Benz, Waitrose and Marie Curie, appear on hate sites and YouTube videos created by supporters of terrorist groups such as Islamic State and Combat 18, a violent pro-Nazi faction.” - The Times 2/9/17
  59. 59. Display is bad for the world bad for business bad for your brand
  60. 60. RETARGETINGIt’s time for display ads to die.
  61. 61. How to leave display
  62. 62. 1. Convince stakeholders
  63. 63. Convince Stakeholders What kind of business are you? ROAS? Top line? Bottom line? Activist? #DSPDX @phil_herbert
  64. 64. Convince Stakeholders Find your real conversions and real return. Ignore vanity metrics and use the data given. #DSPDX @phil_herbert
  65. 65. Convince Stakeholders Avoid listening to experts with vested interests. #DSPDX @phil_herbert
  66. 66. 2. Move the money
  67. 67. Move the Money Display money can many times be shifted to paid search inside existing contracts. #DSPDX @phil_herbert
  68. 68. Move the Money Retention > Conversion > Acquisition #DSPDX @phil_herbert
  69. 69. Move the Money Make something of value #DSPDX @phil_herbert
  70. 70. Move the Money Mitigate the brand downsides as much as possible during transition periods. #DSPDX @phil_herbert
  71. 71. 3. Profit
  72. 72. Profit Seriously. You will make more money this way. #DSPDX @phil_herbert
  73. 73. Thank You @phil_herbert @phil_herbert #DSPDX

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