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Display Advertising's New Wave

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Presentation for MediaParade

Display Advertising's New Wave

  1. Digital Advertising’s New Wave<br />
  2. Hello, I’m Jonathan Mendez, Founder & CEO of Yieldbot<br />Twitter: @jonathanmendez Company: Yieldbot (www.yieldbot.com)<br />Location: New York City Blog: Optimize & Prophesize (search “jonathan mendez”)<br />2006-2008<br />2008-2010+<br />
  3. History Lesson # 1<br />“People don’t read ads. People read what interests them. Sometimes that an ad.”<br />- Howard Gossage<br />
  4. History Lesson # 2<br />“I do not regard advertising as entertainment or an art form but as a medium of information”<br />- David Ogilvy<br />
  5. History Lesson # 3<br />“What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention<br />...and a need to allocate that attention efficiently among the overabundance of information sources that might consume it.”<br />Herb Simon: Computers, Communications and the Public Interest. 1971!!!<br />
  6. Tim Berners-Lee<br />“Information Management”<br /><ul><li>Hypertext
  7. Computer Conferencing
  8. Document Retrieval
  9. Information Management
  10. Project Control</li></li></ul><li>Services are not an ad supported biz model!<br />
  11. “This is the first mass marketing medium that isn’t supported by ads.” – Seth Godin 2008<br />
  12. But old models die hard<br />
  13. 2001-2007: Easy Money<br /><ul><li>Media $$$
  14. Free Search traffic
  15. Big Display Networks
  16. High CPM
  17. Page Views</li></li></ul><li>Google Changed Everything<br />
  18. Google Changed Everything<br />Search fractures information architecture<br />
  19. 16% of Search Terms overlapped with the NY Times Information Architecture<br />
  20. 6 months later 60% of top 50 terms the same<br />
  21. The largest value creation in web content <br />is not publishing <br />…but the tools for the discovery and distribution of it.<br />
  22. Who was focused on allocating attention efficiently among an overabundance of information?<br />
  23. <ul><li>Discovery & Recovery of Info
  24. Realtime & Historical
  25. Targeting
  26. User control/segmentation
  27. Testing & Optimization</li></ul>Search adds value to the content!<br />
  28. 2008-2009 Efficiency & Performance<br />“The gap is widening between spending on simple search ads and display ads. Search ad spending is on track to reach $10.4 billion this year, double what will be spent on display ads.”<br />- eMarketer, 2008<br />
  29. SEARCH = THE GOLDEN TRIANGLE<br />
  30. DISPLAY = THE GOLDEN SHOWER<br />
  31. “For all the new media spin it’s just old media”<br />- Advertising Age June 2008<br />
  32. A World of Old Metrics<br />
  33. … and Lazy Marketers<br />
  34. We are not advancing in our use of advertising & marketing technology at the same pace our audience becomes more advanced in their use of the web.<br />
  35. Communication technology has always made consumers smarter and amplified their diversity.<br />Marketing is getting more difficult!<br />
  36. “80% of Americans spend as much time on the web as TV”<br />“Are Big Ad Agencies so clueless that people should avoid them?”<br />
  37. It’s a User Controlled Medium!<br />
  38. Web 2.0 was the rise of new publishers<br /><ul><li>Self publishing
  39. Aggregators
  40. UGC
  41. Self-serve classified
  42. Hobbyist
  43. Curators</li></li></ul><li>“Branding is why media buyers don't care about context. But Branding only works when people can't talk to each other, and compare notes on the "images" they are being sold. The web made sure that era is over. Branding, and so "impressions", don't matter any more.<br />Marketing is about identifying markets and fulfilling needs. Marketing thrives when people can compare notes, and Marketing craves context, because needs in a market are specific.”<br />-Jim Novo (comment on my blog)<br />
  44. How do you identify markets & fulfill needs?<br />Make Display more like Search!<br />THIS IS HAPPENING…<br />
  45. 1. INTENT<br />Display OS V 1.0<br />Display “Search” OS<br /><ul><li>AWARENESS
  46. REACH & FREQ.
  47. CPM
  48. PERFORMANCE
  49. DATA
  50. CPx</li></li></ul><li>2. SEGMENTATION<br />Display OS V 1.0<br />Display “Search” OS<br /><ul><li>BULK
  51. SITE / DEMO
  52. PAST BEHAVIOR
  53. DIFFERENTIATED
  54. AUDIENCE
  55. CURRENT BEHAVIOR</li></li></ul><li>3. CREATIVE<br />Display OS V 1.0<br />Display “Search” OS<br /><ul><li>NO VERSIONING
  56. HIGH DEV COST
  57. LEAD TIME
  58. TARGETED
  59. DYNAMIC
  60. SELF SERVE</li></li></ul><li>4. BUYING<br />Display OS V 1.0<br />Display “Search” OS<br /><ul><li>RATE CARD
  61. VERBAL
  62. I/O
  63. BID & RTB
  64. DSP/EXCHANGES
  65. AUTOMATED</li></li></ul><li>5. CAMPAIGN MANAGMENT<br />Display OS V 1.0<br />Display “Search” OS<br /><ul><li>HIGH MINIMUM
  66. SWITCHING $
  67. NO OPTIMIZATION
  68. LOW MINIMUM
  69. NO SWITCH $
  70. OPTIMIZATION</li></li></ul><li>Display’s New Market Wave<br />Advertiser<br />Publisher<br />Publisher<br />Publisher<br />Network<br />Publisher<br />Advertiser<br />Exchange<br />Publisher<br />Advertiser<br />Advertiser<br />Network<br />DSP<br />Yield Opti<br />Publisher<br />Network<br />Advertiser<br />
  71. The Wave is Crashing on Pubs<br />Market Results: More inventory, lower prices<br />Strategic Result: Cookie users to serve impression in lower cost inventory<br />
  72. Data & Analytics will save publishers<br />
  73. OWN IT!<br />The value created by your audience & content is<br />DATA<br />
  74. THANK YOU!<br />

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