State of the Industry Study: Digital Advertising

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State of the Industry in Digital Advertising December 2010, DigiDay:ONMEDIA 1 © 2010 DataXu, Inc. Privileged & Confidential
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DataXu CEO Mike Baker's keynote presentation from DigiDay: ON MEDIA. This presentation includes some of the key findings from the recent "State of the Industry in Digital Advertising" Study sponsored by DIGIDAY and DataXu.

Transcript of State of the Industry Study: Digital Advertising

Page 1: State of the Industry Study: Digital Advertising

State of the Industry in Digital Advertising

December 2010, DigiDay:ONMEDIA

1© 2010 DataXu, Inc. Privileged & Confidential

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© 2010 DataXu, Inc. Privileged & Confidential 2

publishers,146agencies, and

advertisers took our survey

21367

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brands & agencies surveyed believe the industry is going through a seismic shift to 100% digital

92%

Photo attribution: flickr.com/photos/trochee/424850077/

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What’s the pace of the digital migration?

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50%

52%

54%

56%

58%

60%

62%

64%

2010

2011

Percent of Digital Ad Budgets

Brand and Agencies

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Is 2011 the year of convergence?

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78% of Agencies 60% of Brand say they have a holistic approach

Really?

Photo attribution: flickr.com/photos/wolfgangstaudt/2896131064

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73% of Agencies and Brands will run video

campaigns in 2011

Photo attribution: sxc.hu/photo/1189614

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80% of Agencies and

88% of Brands will run display campaigns in 2011

Photo attribution: flickr.com/photos/thetruthabout/2821726795

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78% of Agencies and

64% of Brands will run mobile campaigns in 2011

Photo attribution: flickr.com/photos/kitcowan/2103850699

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Why spend more on digital advertising?

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Performanceis most important

Photo attribution: flickr.com/photos/jordanfischer/72510316

Technology is not

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Is digital changing the funnel?

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There is a big shift in Brand usage of digital

Photo attribution: flickr.com/photos/julianbleecker/2434362687

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Branded Performanceis where it’s at

Photo attribution: flickr.com/photos/beverlyhillsporsche/5152065475

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2011 is About Branded Performance

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So where’s the heat in 2011?

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Photo attribution: flickr.com/photos/28177041@N03/3666158737/ ç

cut in general ad network spend.

41%

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Shift in Ad Spend

General Ad Networks

Demand Side Platforms

0

10

20

30

40

50

60

70

80

90

100

Agencies

General Ad Networks

Demand Side Platforms

0

5

10

15

20

25

30

Brands

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Why Use a DSP?

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Agencies are using

DSPs for direct response

Brands value DSPs

for prospecting

Photo attribution: flickr.com/photos/kevinpoh/4507945736

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What is the most important quality for selecting a media partner?

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Trust and alignment with buy side interests.

Photo attribution: flickr.com/photos/virtualfarmboy/4421793779

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What is your greatest concern in buying digital media?

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1st concern is effective targeting.2nd is measurement tools.

3rd is inventory quality.

Photo attribution: flickr.com/photos/vizzzual-dot-com/2655969483

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Which types of targeting are most effective?

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Most Effective

Psychographic

Geographic

Demographic

Social Graph Targeting

Contextual

Behavioral

Retargeting

Performance based optimization

0% 20% 40% 60% 80% 100% 120%

Agencies and Brands

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Why are we buying cookie lists?

Photo attribution: flickr.com/photos/thetruthabout/2763075223

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It’s all about analytics, right?

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Photo attribution: flickr.com/photos/killercyberman400/2610544345

Consumer Insight > Media fees

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How can analytics be improved?

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Photo attribution: flickr.com/photos/jordanfischer/72510316

Analytics can be improved with actionable insights

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#1 More Actionable Insights

Integration with Ad servers (reconciliation)

Better attribution models

Integration with Client's data

Clearer analysis

Cross-channel media models

Better insights about consumers

More actionable insights

0% 10% 20% 30% 40% 50% 60% 70% 80%

Agencies and Brands

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What will you still depend on your agency for in 2011?

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Photo attribution: flickr.com/photos/chelseagirlphotos/444131481

Clients look to agencies primarily for planning and buying, regardless of technology

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Chew on that, and thank youGet the whitepaper:

http://info.dataxu.com/whitepapers/digitalshiftor email [email protected]

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