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Death to Display Ads - UPDATED FOR 2019

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Marketers spent $112 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 - UPDATED FOR 2019

  1. 1. Death to Display Ads @phil_herbert#DSSLC phil-herbert.com/dtda
  2. 2. #DSSLC @phil_herbert I’ve worked with
  3. 3. Internet TV Newspapers Global Ad Spend
  4. 4. $129 billion Total US Display Ad Spending #DSSLC @phil_herbert
  5. 5. 67.3% Of all digital advertising will be on mobile in 2019 #DSSLC @phil_herbert
  6. 6. Why Do Brands Like Display?
  7. 7. Easy implementation #DSSLC @phil_herbert
  8. 8. Broad reach to new audiences #DSSLC @phil_herbert
  9. 9. Data about behaviors and clicks #DSSLC @phil_herbert
  10. 10. Why Do Agencies Like Display?
  11. 11. Historical Infrastructure #DSSLC @phil_herbert
  12. 12. Commissions #DSSLC @phil_herbert
  13. 13. For every dollar spent on display ads
  14. 14. 15% commission to the agency + creative costs
  15. 15. 32% kept by Google
  16. 16. $.58 on every dollar actually goes to the end website
  17. 17. Bad Business
  18. 18. Actual Conversions (enlarged to show texture)
  19. 19. $0.000008 Of increased revenue per targeted ad #DSSLC @phil_herbert
  20. 20. #DSSLC @phil_herbert Return for every dollar spent Display $2.63
  21. 21. #DSSLC @phil_herbert Return for every dollar spent Display Paid Search $2.63 $3.67
  22. 22. #DSSLC @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. #DSSLC @phil_herbert
  27. 27. #DSSLC @phil_herbert
  28. 28. The most intrusive ad types are the least liked #DSSLC @phil_herbert
  29. 29. 56% Of internet users have enabled some type of ad blocking #DSSLC @phil_herbert
  30. 30. 67% Of all 18-24 year olds use ad blocking software #DSSLC @phil_herbert
  31. 31. If you want to reach Millennials and Gen Z consumers, display is not the place.
  32. 32. 60% Of all mobile ad clicks are mistakes #DSSLC @phil_herbert
  33. 33. #DSSLC @phil_herbert 68% Annoyed 22% Angry 42% Frustrated
  34. 34. 2. People are worried about data
  35. 35. 71% Worried about how brands use their personal data #DSSLC @phil_herbert
  36. 36. Real-time bidding exposes sensitive personal data #DSSLC @phil_herbert
  37. 37. ● Sexual Orientation ● Race and ethnicity ● Survivors of incest and abuse ● Health data ● Eating disorders #DSSLC @phil_herbert
  38. 38. The IAB knew real-time bidding would violate GDPR before it became law. #DSSLC @phil_herbert
  39. 39. “Incompatible with consent” #DSSLC @phil_herbert
  40. 40. 84% Don’t want tailored ads once educated about the platforms #DSSLC @phil_herbert
  41. 41. 35% Think executives should be jailed if data is used illegally #DSSLC @phil_herbert
  42. 42. 3. People think it’s creepy
  43. 43. 75% Of all consumers consider many forms of marketing creepy #DSSLC @phil_herbert
  44. 44. AND THEY WILL ALL SAY THE SAME THING Ask your non-marketing friends about a creepy ad experience
  45. 45. RETARGETINGRETARGETING
  46. 46. 55% Of customers will put off purchasing if shown too many retargeting ads #DSSLC @phil_herbert
  47. 47. 22% Of customers will choose other brands after a creepy ad experience #DSSLC @phil_herbert
  48. 48. 11x Ads on unrelated sites cause customers to be 11x less likely to purchase #DSSLC @phil_herbert
  49. 49. Is display on brand for you? #DSSLC @phil_herbert
  50. 50. Ad Fraud
  51. 51. 77% Of marketers know ad fraud exists #DSSLC @phil_herbert
  52. 52. 1 in 5 Believe their campaigns are affected #DSSLC @phil_herbert
  53. 53. 1% What marketers think they lose to fraud #DSSLC @phil_herbert
  54. 54. 20-50% Ad spend lost to fraud #DSSLC @phil_herbert
  55. 55. 1 in 5 Ad-serving websites are visited exclusively by fraud bots #DSSLC @phil_herbert
  56. 56. Of clicks on Facebook ads come from bots 80% #DSSLC @phil_herbert
  57. 57. Increase in in-app fraud in 2018 800% #DSSLC @phil_herbert
  58. 58. DAILY (!) revenue generated by a single fraud operation $3-5 million #DSSLC @phil_herbert
  59. 59. $19 billion Lost to Fraud in 2018 #DSSLC @phil_herbert
  60. 60. $44 billion Lost to Fraud in 2022 #DSSLC @phil_herbert
  61. 61. Where are your ads showing up?
  62. 62. Brand with ads that have shown up on ISIS Sites, Pro Nazi Groups or Child Exploitation Apps #DSSLC @phil_herbert
  63. 63. “We had strict rules to prevent our ads from serving on sensitive content and they were not effective as promised” Spokesperson for Vitacost to Buzzfeed News, 2/22/19
  64. 64. These brands preemptively pulled all of their YouTube ads over recent child pornography reports #DSSLC @phil_herbert
  65. 65. What can you do for your marketing?
  66. 66. Mitigate the downsides #DSSLC @phil_herbert
  67. 67. Mitigate downsides Move away from problematic ad types #DSSLC @phil_herbert
  68. 68. Mitigate downsides Buy directly from publishers where possible #DSSLC @phil_herbert
  69. 69. Mitigate downsides Scale back creepy and disruptive content #DSSLC @phil_herbert
  70. 70. Move the Money #DSSLC @phil_herbert
  71. 71. Move the Money ● Paid Search ● SEO ● Organic Social ● PR ● Print, TV, Outdoor #DSSLC @phil_herbert
  72. 72. Move the Money #DSSLC @phil_herbert Focus on high ROI channels first
  73. 73. Move the Money #DSSLC @phil_herbert Contextual, non-disruptive advertising is preferred by consumers and is more effective.
  74. 74. Sell into Stakeholders #DSSLC @phil_herbert
  75. 75. Sell into Stakeholders Ignore vanity metrics #DSSLC @phil_herbert
  76. 76. Sell into Stakeholders Nail your attribution models #DSSLC @phil_herbert
  77. 77. Profit #DSSLC @phil_herbert
  78. 78. Profit Seriously. You will make more money this way. #DSSLC @phil_herbert
  79. 79. Thank You phil-herbert.com/dtda@phil_herbert#DSSLC

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