New revenue models for digital publishers and the opportunity for brands

Chris Dobson, EVP and GM : BBC Advertising

Is the digital model we currently use flawed?1.

Content and brand association2.

Platform Evolution3.

Is the digital model we currently use flawed?1.

What does it do for

me?

Is it for me?

Which one?

This one This is just what I

wanted

They care about me

These are great you should get

one

Some marketing principles are constant..

SEARCH CRMDISPLAY

Purchase Funnel

Awareness Involvement Active consideration

Purchase Conversion

Consumption Usage

Relationship Building

Advocacy

Pu

bli

sher

s Ad

vertisers

Disclaimer: The above overview is an attempt to map a large part of the current display eco-system and is by no means 100% complete. The map is subject to ongoing changes. Under no circumstances shall Improve Digital be held liable for any direct, indirect damages whatsoever resulting from the above information provided through the Improve Digital website or through third parties. If you have any comments or requests for changes please mail info@improvedigital.com.

2010 -display advertising eco-system europe

0.13%

0.14%

0.14%

0.14%

0.15%

0.16%

0.17%

0.18%

0.18%

0.20%

0.20%

0.21%

0.28%

0.29%

0.07%

0.08%

0.08%

008%

0.09%

0.10%

0.10%

0.10%

0.10%

0.11%

0.11%

0.12%

0.12%

0.12%

Norway

Ireland

Luxembourg

UK

Finland

Australia

Canada

Sweden

USA

Hungary

Switzerland

Denmark

France

Italy

Germany

New Zealand

Spain

Turkey

Austria

Netherlands

Belgium

China

Greece

India

Singapore

Hong Kong

United Arab Emirates

Malaysia

Worldwide Click-Through RatesClick-through rates across Static Image, Flash, and Rich Media formats

Source: DoubleClickDART for Advertisers, a cross section of regions, January –December 2008

Heavy

Moderate

Light

Non

Ad Clickers Follow the 80/20 Rule

84%

8%

4%4%

52%

26%

22%

15%

18%

67%

% Internet Pop % of Clickers % of Clicks

84% of Internet users don’t click on ANY ads

Despite comprising only 8% of the total online population, moderate and heavy clickers account for 85% of all click-thrus

Source: comScore, Natural Born Clickers (US), March 2009

Are we fooling ourselves with this metric?

Does this one person’s click effectively reflect the branding impact of exposing the

other 999 people to the same ad?

%Lift:99% %Lift:75% %Lift:73% %Lift:80% %Lift:71%

Wk 1 Wks 1-2 Wks 1-3 Campaign Period Post campaign period

Analysis periodTime from first exposure

Campaign/Post Campaign AnalysisTime Aligned Analysis

2.01%

3.99%

3.43%

6.02%

4.45%

7.71%

4.03%

7.26%

3.53%

6.05%

Control

Test

Source: Average of 20 Studies Published in comScore’s “Whither the Click in Europe?” Feb 2010

The click misses the point?Display Ads Lift Visitation to Advertiser Site Even With Minimal Clicks

Content and brand association2.

Quality of Content

Quality of Results

“I’m in an attentive mood and glued to the screen… this energy transfers onto the brand.”

Engagement

“I don’t believe it until I read it on the

BBC.”

Trust

“A channel I specifically make time to watch.”

Loyalty

“Because the ads are not too intrusive I

don’t automatically close the ads on the

BBC site.”

Ad Environment

What Is The Value of The Environment You Advertise In?

The audience perceived different

values for the same product when

placed on different websites:

The little black dress test...

BBC.com: €1,904

Source: The BBC Dress Test, June 2009, Male + Female respondents –luxury goods consumer. Q-How much would you value the clothing which you have just seen? Average values shown

TGcom: €537

Yahoo: €435

Ge Wang: Smule co-founder and Stanford University teacher

Jimmy Wales: Founder of Wikipedia

Martha Lane-Fox: Web entrepreneur and digital inclusion champion

Evgeny Morozov: Blogger, researcher and expert in the politics of the webchampion

Sam Pritroda: Digital advisor to the prime minister of India

Joe Rospars: Digital strategist for the Obama campaign

Erik Schmidt: Google Chief Exec

Philip Emeagwali: Nigerian-born supercomputer scientist

Daniel Ek : Founder of music-streaming service Spotify

Steve Ballmer: Microsoft's chief executive officer

Digital Giants with Intel

Cross-Media Campaign Captures Canon Audience

45,500 visits to Canon’s ‘Take Stories’ microsite

109% uplift in spontaneous advertising awareness

21% increase in agreement with the statement

34 million impressions

Source: Metrixlab – Cross-media Campaign Evaluation – Canon and BBC – 2009

“Canon is a leading brand in technology”

Platform Evolution Opportunities3.

If you were going to design the TV news broadcast of the future,

USA Today on the BBC’s iPad app

The site from the British broadcaster is chock full of information.

where viewers pick the stories and watch them come to life,

this is it.

BBC.com News iPhone and iPad app

New revenue models for digital publishers and the opportunity for brands

Credit for Branding as well as DR!1.

Content and brand association benefits2.

Platform Evolution Opportunities3.

Q&Achris.dobson@bbc.com