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Our Skip Button Love Affair | SXSW 2017

Admit it – you love the “Skip Ad” button on YouTube. You love to swipe your thumb past a Facebook ad. You love the option of installing ad blockers on your phone. And so does your customer. By 2017, social network ad spending alone is expected to surpass banner ad spending for the first time. We are seeing an unprecedented rise in skippable ad formats that will drastically shift our approach to digital marketing over the next five years. Join Chris Ferrel, digital strategy group head at The Richards Group, as he unpacks the skippable world of digital and how brands like Snapple, Mott’s, Sub-Zero, Wolf, and the Southeastern Conference future-proof their digital marketing strategies. SXSW 2017 Our Skip Button Love Affair Speaker: Christopher Ferrel Digital Strategy Director The Richards Group Hyatt Regency Austin Zilker Ballroom 1 March 14, 2017 11:00 AM Primary Access: Platinum Badge, Interactive Badge Secondary Access: Film Badge, Music Badge, Artist Wristband Format: Solo Event Type: Sessions Track: Brands & Marketing Level: Intermediate

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Our Skip Button Love Affair | SXSW 2017
SXSW 2017
Our Skip Button Love Affair
Christopher Ferrel
Digital Strategy Director
The Richards Group
Hyatt Regency Austin
Zilker Ballroom 1
March 14, 2017
11:00 AM
“I .”Skip Ads ►|
#skipbuttonlove
I’m an ad
#skipbuttonlove
#skipbuttonlove
Does the ability to skip ads matter?
#skipbuttonlove

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Our Skip Button Love Affair | SXSW 2017

  • 2. SXSW 2017 Our Skip Button Love Affair Christopher Ferrel Digital Strategy Director The Richards Group Hyatt Regency Austin Zilker Ballroom 1 March 14, 2017 11:00 AM
  • 3. “I .”Skip Ads ►| #skipbuttonlove
  • 6. Does the ability to skip ads matter? #skipbuttonlove
  • 7. We are entering a new era of digital ads Mobile Social Video User choice #skipbuttonlove
  • 8. Welcome to the skippable era #skipbuttonlove
  • 9. The questions you should be asking Should your ad be skippable or non-skippable? Can you measure the value of a skipped ad? Does your creative work in the skippable era? #skipbuttonlove
  • 10. Should your ads be skippable or non-skippable? #skipbuttonlove
  • 11. Non-skippable ad revenue levels off Digital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021) $0 $10 $20 $30 $40 2008 2010 2012 2014 2016 2018 2020 2021 #skipbuttonlove Non-skippable
  • 12. Skippable ads surpassed non-skippable Digital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021) $0 $10 $20 $30 $40 2008 2010 2012 2014 2016 2018 2020 2021 #skipbuttonlove Non-skippable Skippable
  • 13. Skippable ads will dominate by 2021 Digital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021) $0 $10 $20 $30 $40 2008 2010 2012 2014 2016 2018 2020 2021 #skipbuttonlove Non-skippable Skippable
  • 14. Our skip button love affair #skipbuttonlove
  • 15. #skipbuttonlove Emotion analysis 9% joy, 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Joy Anger
  • 16. #skipbuttonlove Emotion analysis 9% joy Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Joy
  • 17. #skipbuttonlove Emotion analysis 9% joy Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Joy
  • 18. #skipbuttonlove Emotion analysis 9% joy Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Joy
  • 19. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 20. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 21. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 22. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 24. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 25. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 26. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 28. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 29. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 30. #skipbuttonlove Emotion analysis 82% anger Source: Crimson Hexagon, 83k most recent posts 0% 25% 50% 75% 100% Feb 2016 Apr 2016 Jun 2016 Aug 2016 Oct 2016 Dec 2016 Jan 2017 Skip Ad ►| Anger
  • 32. 2/23/2017 Print - Study: Pre-Roll Ads Dramatically Increasing Ad-Block Installs - Advertising Age     Study: Pre-Roll Ads Dramatically Increasing Ad-Block Installs Study Surveys 9,000 People Who Either Have or Are Aware of Ad-Blocking Tech By George Slefo Published: January 26, 2016 Video ad tech company Teads released a study Tuesday that aims to provide insight as to what motivates people to use ad blockers. Research Now conducted the study and surveyed 9,000 people. Active users of ad blockers, including mobile, and those who are aware of ad blockers but have not yet installed them, were surveyed for the study. The research said pre-roll ads were among the most intrusive, with 41% of respondents saying they installed the ad-blocking software due to the ad format. Additionally, Hispanics are 78% more likely to use a mobile ad blocker while men are 22% more likely overall to use the software on mobile devices, the study said. Teads makes video technology that autoplays when you're reading a story, for example. Its clients include Mashable and Forbes, among others. It claims its tech is not intrusive because its ads can be closed by a user as soon as they appear.   Related Stories IAB to Advertisers and Content Providers: 'We Messed Up' IAB CEO Delivers Fire-and-Brimstone Speech Against For-Profit Ad Blockers Google's Ad Boss on Ad Blocking, AMP Ad Viewability and Enhanced Campaigns As IAB Bars One Ad Blocker From Its Summit, It Welcomes Another One on Stage For IGN, a Tech-Savvy Audience Means a Big Hit From Ad Blockers #skipbuttonlove Aware of Ad-Blocking Tech By George Slefo Published: January 26, 2016 Video ad tech company Teads released a study Tuesda aims to provide insight as to what motivates people to u blockers. Research Now conducted the study and surveyed 9,00 people. Active users of ad blockers, including mobile, a those who are aware of ad blockers but have not yet in them, were surveyed for the study. Related Stories IAB to Advertisers and Content Providers: 'We Messed Up' IAB CEO Delivers Fire-and-Brimstone Speech Against For-Profit Ad Blockers
  • 34. #skipbuttonlove Can you measure the value of a skipped ad?
  • 35. Non-skippable Skippable Are all seconds created equal? Forced time-spent Optimize to completions Voluntary time-spent Optimize to ??? #skipbuttonlove
  • 36. Ad value vs audience retention Source: Facebook, YouTube 0% 25% 50% 75% 100% 0 25% complete 50% complete 75% complete 100% Measurement in the skippable era #skipbuttonlove Audience retention Brand lift
  • 37. THE VALUE OF THE AD VARIES BASED ON HOW MUCH IS COMPLETED Value of Impression based on Unaided Brand Recall 100% 75% BRANDRECALL AN AD THAT WAS ABOUT 40% COMPLETED IS WORTH inc cou e #skipbuttonlove
  • 38. Ad value vs audience retention Source: Facebook, YouTube 0% 25% 50% 75% 100% 0 25% complete 50% complete 75% complete 100% Measurement in the skippable era #skipbuttonlove Audience retention Brand lift $ $$ $$$ $$
  • 40. The currency of the skippable era is time-spent #skipbuttonlove
  • 41. Does your creative work in the skippable era? #skipbuttonlove
  • 44. Changes in the Amount and Methods of Travel During the past fifteen years, people have been "going places and doing things," farther and faster than ever before in our history. This "modern tempo" was the result of fundamental changes in American transportation brought about by the creation of numerous small-payment, install ment-buying plans. By means of this process, it became possible for any person to become the operator of a self- propelled vehicle the automobile. These changes may be best illustrated by comparative statistics. In 1920, the passenger mileage of steam railways rose to a peak of nearly fifty billion miles and declined to eighteen billion five hundred million miles in 1935. Pas Changes in the Amount and Methods of Travel During the past fifteen years, people have been "going places and doing things," farther and faster than ever before in our history. This "modern tempo" was the result of fundamental changes in American transportation brought about by the creation of numerous small-payment, install ment-buying plans. By means of this process, it became possible for any person to become the operator of a self- propelled vehicle the automobile. These changes may be best illustrated by comparative statistics. In 1920, the passenger mileage of steam railways#skipbuttonlove
  • 45. Lessons from 1938 1938 “Modern Tempo” Disruptive tech = cars for all #skipbuttonlove 2017 “Busy” badge of honor Disruptive tech = smartphones
  • 46. Lessons from 1938 1938 “Modern Tempo” Disruptive tech = cars for all Physical destinations #skipbuttonlove 2017 “Busy” badge of honor Disruptive tech = smartphones Digital destinations
  • 47. Lessons from 1938 1938 “Modern Tempo” Disruptive tech = cars for all Physical destinations Stand out in 7 words #skipbuttonlove 2017 “Busy” badge of honor Disruptive tech = smartphones Digital destinations Stand out in 5 seconds
  • 48. itself. One may not know what the boy looked like who brought the telegram, however well he remembers the message. It is not the postman who makes an impression, but the message he brings. The Medium Cannot Deliver Readers After delivering the message in its specified form and size, the medium is in no way responsible for securing reading or other attention to the message. That is the responsibility of the one who writes the message the advertiser. If a man is too indifferent, too excited, or too much engrossed other wise to read a telegram which he receives, it is not the fault of the telegraph company. They performed their duty when they delivered the message to him. So with the paid space in a newspaper or magazine, the message may not interest the one who buys the newspaper or magazine, but the function of each of these media has been fulfilled when it is delivered to the buyer. With the broadcasting #skipbuttonlove
  • 49. Lessons from 1938 1938 “Modern Tempo” Disruptive tech = cars for all Physical destinations Stand out in 7 words Power of pictures #skipbuttonlove 2017 “Busy” badge of honor Disruptive tech = smartphones Digital destinations Stand out in 5 seconds Power of video
  • 50. Lessons from 1938 1938 “Modern Tempo” Disruptive tech = cars for all Physical destinations Stand out in 7 words Power of pictures Few opportunities to linger #skipbuttonlove 2017 “Busy” badge of honor Disruptive tech = smartphones Digital destinations Stand out in 5 seconds Power of video Always an opportunity to linger
  • 51. Creative in the skippable era Make me care in < :05 #skipbuttonlove
  • 52. Creative in the skippable era Make me care in < :05 Give me a reason to stay #skipbuttonlove
  • 57. 1.8M views 1 min 19 sec avg #skipbuttonlove
  • 59. 28M views 3 min 15 sec avg #skipbuttonlove
  • 61. 224M views 24 sec avg #skipbuttonlove
  • 63. 1.1M views 1 min 49 sec avg #skipbuttonlove
  • 64. Non-skippable Skippable What’s the role for non-skippable in the skippable era? Forced time-spent Voluntary time-spent #skipbuttonlove
  • 65. If ad is non-skippable, just get to the point #skipbuttonlove
  • 67. Impact of the skippable era #skipbuttonlove
  • 68. 2017 Consistency in search ads 2000 AdAd #skipbuttonlove
  • 69. Inconsistency in non-search ads Non-skippable Skippable #skipbuttonlove
  • 79. Who’s winning? Non-skippable Skippable Auto expand Adhesive Interstitials Skippable video Outstream video Native Non-skippable video Social Standard banner Advertiser preferred User preferred #skipbuttonlove
  • 80. Skippable ads win users and revenue Digital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021) $0 $10 $20 $30 $40 2008 2010 2012 2014 2016 2018 2020 2021 #skipbuttonlove Non-skippable Skippable
  • 81. Five forces of the skippable era +98% from titans of skippable, Google and Facebook +9% from companies who only sell skippable ads -7% from non-skippable ad networks #skipbuttonlove
  • 83. Five forces of the skippable era +98% from titans of skippable, Google and Facebook +9% from companies who only sell skippable ads -7% from non-skippable ad networks Rise of ad blockers #skipbuttonlove
  • 84. Ad blockers primarily impact non-skippable Digital ad revenue, non-search ($ billions) Source: IAB / eMarketer (2008-2016), BI Intelligence (2017-2021) $0 $10 $20 $30 $40 2008 2010 2012 2014 2016 2018 2020 2021 #skipbuttonlove Non-skippable with ad blocker impact Skippable
  • 85. Five forces of the skippable era +98% from titans of skippable, Google and Facebook +9% from companies who only sell skippable ads -7% from non-skippable ad networks Rise of ad blockers Overhaul of IAB’s ad portfolio #skipbuttonlove
  • 89. https://www.iab.com/news/lean-principles-criteria-scoring/ selected for delivery through the use of an online behavioral adve Advertising system must bear the AdChoices Icon – which means publishers must be members of the Digital Advertising Alliance. Skippable Preliminary research implies strong consumer demand for skip – t that unskippable video ads are a primary driver for installing ad b to skip would cause some ad blocking users to reconsider. #skipbuttonlove
  • 90. Non-skippable Skippable Auto expand Adhesive Interstitials Skippable video Outstream video Native Non-skippable video Social Standard banner Impact of IAB’s new ad portfolio #skipbuttonlove X w/ close button <:15 only Non-invasive only w/ close button
  • 91. Ask the right questions. Win the skippable era. Should your ad be skippable or non-skippable? Can you measure the value of a skipped ad? Does your creative work in the skippable era? #skipbuttonlove
  • 92. Go forth and .Skip Ads ►| #skipbuttonlove