Download to read offline
Uploaded byMediaPost
Susan bidel
The document discusses the evolution of digital advertising, including the high click-through rate of the first banner ad versus today's low rate of 0.1%. It notes that programmatic advertising is growing and allows publishers to automate ad sales. Publishers can benefit from programmatic through better pricing, control, and transparency compared to direct sales. The document advises publishers to prepare for programmatic by trimming sales teams, hiring technical experts, promoting audience segments, and building private marketplaces.
More Related Content
Susan bidel
- 2.
- 3. © 2015 ForresterResearch, Inc. Reproduction Prohibited 3 Wired/Hotwired: October 1994 Source: Mashable; Quora; Google THE FIRST BANNER AD EVER, FOR AT&T Click-through rate of 78% Today, the click-through rate hovers around .1%
- 4. Vast majority ofinnovation has benefited the buy-side
- 5. © 2015 ForresterResearch, Inc. Reproduction Prohibited 5 More specifically… Source: orco.co.nz; clickz.com; alicecallista.com;; adcracker.com DIRECT MARKETERS
- 6. © 2015 ForresterResearch, Inc. Reproduction Prohibited 6 Who is pushing programmatic??? Brand marketers
- 7. © 2015 ForresterResearch, Inc. Reproduction Prohibited 7 More specifically…
- 8. © 2015 ForresterResearch, Inc. Reproduction Prohibited 8 Ad tech tax is punishing EFFICIENCIES OF AUTOMATION STILL NOT EVIDENT
- 9. © 2015 ForresterResearch, Inc. Reproduction Prohibited 9 And fraud takes a big bite EVEN THE BIGGEST ADVERTISER BRANDS ARE VICTIMIZED › 23% of video ads › 11% of display
- 10. © 2015 ForresterResearch, Inc. Reproduction Prohibited 10 Publishers… Seize the day
- 11. © 2015 ForresterResearch, Inc. Reproduction Prohibited 11 There is money to be made DIGITAL CATCHING UP TO TV AD SPEND
- 12. © 2015 ForresterResearch, Inc. Reproduction Prohibited 12 Marketers following their customers BALANCING SPEND TO CONSUMER MEDIA CONSUMPTION
- 13. © 2015 ForresterResearch, Inc. Reproduction Prohibited 13 Investing in video BALANCING FLATLINING TEXT AND RICH MEDIA ADS
- 14. © 2015 ForresterResearch, Inc. Reproduction Prohibited 14 Growing exchanged-traded display to 40% Source: Forrester Research Online Display Advertising Forecast, 2014 to 2019 (US), Q3 2014 Update
- 15. © 2015 ForresterResearch, Inc. Reproduction Prohibited 15 Programmatic selling uses digital platforms to automate the targeting, aggregation, booking, flighting, analysis and optimization of online publishers’ advertising inventory via sell-side software and algorithms and – ultimately – has the goal to improve yield. While it includes exchanges based on real-time bidding (RTB), it also supports traditional selling methods. But that’s only one flavor of programmatic FORRESTER DEFINITION
- 16. © 2015 ForresterResearch, Inc. Reproduction Prohibited 16 Traditionally placed below direct Source: Forrester Research Online Display Advertising Forecast, 2014 to 2019 (US), Q3 2014 Update IN THE CLASSIC WATERFALL
- 17. © 2015 ForresterResearch, Inc. Reproduction Prohibited 17 Publishers benefit from programmatic "The benefits we've experienced include operational efficiencies, better pricing, control, and transparency greater than in direct-sold campaigns. It reestablishes the rate card with a new set of parameters and market efficiency driving it." Chip Schenck VP Programmatic Sales & Strategy Meredith
- 18. © 2015 ForresterResearch, Inc. Reproduction Prohibited 18 Attracting new advertisers "Some of the benefits of programmatic selling include our ability to attract and/or discover new advertisers, to use data more effectively, and to have more holistic conversations with agencies globally." Alanna Gombert Former GM Condé Nast's Catalyst Desk
- 19. © 2015 ForresterResearch, Inc. Reproduction Prohibited 19 Better monetization of audiences "Marketers realize that access to the right audience is important, and they're willing to pay top dollar for it. It's incumbent upon the publisher to understand the value of their audience and who wants access to it." Seth Demsey CTO AOL Platforms
- 20. © 2015 ForresterResearch, Inc. Reproduction Prohibited 20 Informed by enhanced first party data "When publishers derive data on every single page, they can begin to better understand the connections between their content, their audiences, and performance characteristics of both, and use that to identify different inventory or reach for their advertisers. Packaging, pricing, yield management, etc., now fall under the publisher's control and make it easier to manage from a selling standpoint." Rodney Mayers CEO Proximic
- 21. Yield management maximizesthe value of every impression Source: Interestingnewsglobal.wordpress.com
- 22.
- 23. © 2015 ForresterResearch, Inc. Reproduction Prohibited 23 Challenging conventional wisdom Source: Forrester Research Online Display Advertising Forecast, 2014 to 2019 (US), Q3 2014 Update PLACING PROGRAMMATIC AT THE TOP OF THE WATERFALL
- 24. © 2015 ForresterResearch, Inc. Reproduction Prohibited 24 Revenue is not the only consideration USER EXPERIENCE TRUMPS ALL
- 25. © 2015 ForresterResearch, Inc. Reproduction Prohibited 25 Publishers: Get ready › Trim and tone your sales teams › Recruit for technical expertise and be prepared to pay › Promote your audience segments › Build private marketplaces › And…
- 26. © 2015 ForresterResearch, Inc. Reproduction Prohibited 26 Most importantly "There is always going to be a need for premium content. It goes back to differentiation. Is there a way to extract demand from the market because of your brand? Cultivate that value and image that the marketer wants to be part of it. Content is going to matter. Brands are going to matter." Gina Kim Publisher DMP Sales Oracle Marketing Cloud
- 27. © 2015 ForresterResearch, Inc. Reproduction Prohibited 27 Make haste. The time is now. Source: flickr.com
- 28. Thank you forrester.com Susan Bidel +1212.857.0751 sbidel@forrester.com
Editor's Notes
- #22 It’s scarcity that drives classic yield management. A strategy that was pioneered by the airline industry more than 15 years ago, at its core the goal is to provide the right service to the right customer at the right time for the right price. The ideal out come is to match customers’ time and service characteristics to their willingness to pay, ensuring that the customer acquires the desired service at the desired time and at an acceptable price while the organization – or publisher – gains the maximum revenue possible for that customer and service.
- #23 Levers are geared to matching service timing and pricing to customers willingness to pay for service in relation to its timing. Management can shift the demand of those customers who are relatively price sensitive but time insensitive to off-peak times. Shifting demand clears prime times for customers who are relatively time sensitive but price insensitive.
- #25 Tableau or microstrategies