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How Display Advertising Has Evolved and What Smart Marketers Need to Know

January 24, 2013

Agenda Welcome & Housekeeping (IAB)

Overview on Display Ad Revenue

Speakers● Jonathan Schwartz, Vice President East Coast Sales at Netmining

● Introduction on how media has evolved, and where we currently are with an intro to the RTB environment, and a “non-Luma” chart on the display ecosystem.

● Dax Hamman, Chief Revenue Officer at Chango Inc● Explanation on how Big Data, Programmatic Buying, and FBX all play a role in this new

world of buying & selling.

● Amy King, VP, Product Marketing at Evidon● The Value of Revealing the Invisible Web.

● Todd Ruback, Chief Privacy Officer at Evidon● U.S. Self-Regulatory Program (AdChoices) and what Privacy Online means for publishers.

Q&A

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NetminingJonathan Schwartz, Vice President East Coast Sales

How Display Advertising Has Evolved and What Smart Marketers Need to Know

Thank You

Q & AThis webinar will be made available on iab.net/events_training/

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Please contact nicole@iab.net with questions.

HOW DID WE GET HERE?

HOW DID WE GET HERE?

HOW DID WE GET HERE?

HOW DID WE GET HERE?

HOW RTB WORKS

WHY RTB MATTERS

DECODING MYTHS

RTB DOES NOT EQUAL REMNANT

RTB DOES NOT EQUAL EXCHANGE INVENTORY

RTB DOES NOT EQUAL LOW QUALITY

THE ECOSYSTEM

AUDIENCE TARGETING VIA RTB

AUDIENCE TARGETING FOR BRANDING

Marketer’s Challenge

On-demand consumer

Multiple devicesFragmented

content consumption habits

Solution

RTB – valuing individual users and minimizing waste

Ability to predict users mindset with a combo of data + context

Rich creative canvas

Offline/Online Measurement

Entertainment tune-ins

In-store consumer behavior

Auto registrations

ChangoDax Hamman, Chief Revenue Officer

How Display Advertising Has Evolved and What Smart Marketers Need to Know

The new paradigm

Media (where)Data (who)

Big Data simply means ‘more data’, lots of it to be precise. And it’s unstructured and somewhat scattered.

So the promise of ‘Programmatic Marketing’ is to make big data actionable, and make our marketing programs more efficient.

Data is everywhere!

300m profiles

Search data3rd party

dataConversions

CRMSite visits

Conversions

Yoursite data

It’s only getting more important

When is an ad network, not an ad

network?

When it’s an ad network!

What do I buy?

Speaker Logo Here

And now there is FBX

FBX is more than another

media exchange.

✔ Lower CPMs

✔ Requires less impressions

✔ Quicker to convert

✔ Search data + FBX = highest ROI

Campaign data is showing positive results for buyers, a very attractive time to try.

Opinion is that this will not cause a sustainable decline in CPM.

EvidonAmy King, VP, Product Marketing

Todd Ruback, Chief Privacy Officer

How Display Advertising Has Evolved and What Smart Marketers Need to Know

Over $500 Billion At Stake In Online Marketing by 2015

2015 Market Size Estimates: Sources: Forrester Research, eMarketer – eCommerce US only, comScore, IDC

eCommerce$469+ billion

Online Display Advertising

$30+ billion

Web Measurement& Analytics

$3 billion

Big Data$16+ billion

• Billions of Venture Capital dollars invested

• Crowded and chaotic space

• Significant growth in each market segment

A lot of opportunity in “the invisible web”…

…and a lot of ramifications…

Not fully transparent with consumers

Takes long to load

Has no opt-out

Unknown to half the sites where it collects data

Privacy

People not only care about transparency, they reward it

* Survey conducted by Toluna, published in “Cookies Outlook Begins to Clear,” Marketing Week, 13 June 2012.

48%

of consumers say they’re more likely to purchase from companies that give them transparency and control*

U.S. Self-Regulatory Program (AdChoices)

=

Think: Nutritional label for ads

The DAA Principles

• Education

• Transparency

• Consumer Control

• Data Security

• Material Change to Existing OBA Policy/Practices

• Sensitive Data

• Accountability

DAA Program Timeline

2009 2010 2011 2012

J U L Y

DAA publishes

OBA Practice Principles

O C T O B E R

Icon program launches

N O V E M B E R

DAA publishes

Multi-Site Data Principles

M A R C H

Global licensing programs

(Europe, Canada)

N O V E M B E R

COOP page live to Web

J U N E

DAA announces100 programparticipants

O C T O B E R

11 million+ monthly visits to

www.YourAdChoices.com

N E X T U P

•Mobile•Browser-based Control Mechanisms •Continued Global Expansion

F E B R U A R Y

White House Event & Support

Time to Get with the Program

Active enforcement now

Investigation can cost $100k or worse

What You Need to Do

1. Audit/monitor tracking on sites

2. License icon from DAA• Advertiser ($5,500/year

at aboutads.info)

3. Disclose everything clearly to consumers on sites/in ads

4. Give consumers control, including opt-out

US AdChoices Program

Disclose on Websites…

 

Easy opt-out from each; reporting proves that the request has been sent

Rich detail on each collector available

1 2

All vendors contributing targeting to ad

…and in Ads

New COPPA Rule• Effective July 1, 2013

• PI now includes use of “persistent identifiers” like cookies, geo-location, photos, screen names and more

• Applies to website operators and third parties (eg, networks) who have actual knowledge that site is directed at children under 13

• Site operators “strictly liable” for third parties on their site

• Must inform parents and obtain parental consent (new mechanisms coming)

More privacy protection with

• 17 million downloads

• Consumers learn abouttracking and/or block it

• 7 million active monthly GhostRank panel

• Tracks 2,800 different types of objects from over 1,200 companies on over 150mm URLs worldwide

• Sees data web scanners alone miss

…that helps business too…

Not fully transparent with consumers

Takes long to load

Has no opt-out

Unknown to half the sites where it collects data

Performance and data security

Transparency means revenue

• 50+ trackers

• Take 2+ seconds to load

Faster Pages Drive Better Results—Walmart

http://www.webperformancetoday.com/2012/02/28/4-awesome-slides-showing-how-page-speed-correlates-to-business-metrics-at-walmart-com/

• Factoid 1: Extensively A/B tested page performance and published a study showing 100 millisecond delay = 1% drop in revenue

• Factoid 2: Search Engines A/B tested performance and found that a 500 millisecond delay caused a 20% drop in traffic.

• Factoid 3: In an experiment across multiple retailers, a 1 second delay caused a 7% decline in conversion

Transparency means revenue

• One tracker leads to another

• Need full visibility and data control

• Means higher cpm

spawns

spawns

Not Authorized!

What You Need to Do

1. Audit/monitor tracking on sites, know who is brought in by whom

2. Confirm what vendors on your site are allowed to collect and share

3. Regularly check performance of tags on your site

4. Give consumers control, including opt-out

Website Control to Protect Revenue