This document provides an overview of digital media trends and online advertising. It discusses how consumers are spending more time with digital media like the internet, smartphones, and tablets while TV viewership is declining. Key metrics for online advertising like page views, impressions, clicks, and unique users are defined. Different types of online media properties for advertising like search engines, ad networks, video networks, portals, and social media are described.
3. Agenda Section 1 State of Media Media Trends Why Online? Q&A Section 2 Terms/Terminology Brand vs. Direct Media Property Types Q&A Section 3 Technology Tools Tactics Reference Materials Q&A
8. Evolution of Distractions TV HD TV Interactive TV DVR/TIVO DVD Player Desktop PC Laptop Nintendo DS PlayStation 3 ipod PSP Nintendo Wii Xbox 360 ipad Mobile Phone iphone Google Droid
9. Harder to Find Scale on TV alone 1978/79: “All in the Family”; Rating 30.5 1986/87: “The Cosby Show”; Rating 25.3 1998/99: “E.R”; Rating 17.8 2010/2011: “American Idol”; Rating 9.2
10. DVR Usage Continues to Increase 35% of U.S. Households own a DVR (40MM) Source: emarketer 2010 10
11. DVR Usage Continues to Increase 41% projected to own a DVR In 2012 (48MM U.S.) Source: emarketer June 2008 11
14. Daily newspaper readership has declined -19%PERCENTAGE OF U.S. POPULATION AGE 18+ Source: Mediamark Research, Inc., US Adults 18+, Spring 2000 to Spring 2009
15. Over Half of Consumers are Simultaneously Online and Watching TV Media Consumption Level By Usage Quintile2 Minutes Watched TV (Line) Minutes Spent Online (Bars) M-F 6p-9p / Adults 25-541 57% USAGE CONTINUUM Source: 1Knowledge Networks SRI, Fall studies, 2Nielsen TV/Internet Convergence Research Panel Reporting
16. Newspapers: 30 mins Magazines: 20 mins Mobile: 50 mins Internet: 2 hrs, 35 mins TV: 4 hrs, 24 mins Internet Today: 23.5% of time 15.3% of dollars 8.2 p.p. gap
17. Interactive Marketing Budgets are Now Growing at the Expense of Traditional Media Q: Which of the following traditional marketing budgets will you decrease in order to fund increased interactive marketing? Q: How will you fund increases in your company’s interactive marketing budget? Source: Forrester Research, “US Interactive Marketing Forecast, 2009 to 2014”, July 2009 Base: 204 marketers
18. Overall U.S. Media Spending Is Down Even post recession, aggregate media dollars will fail to return to former levels. (eMarketer CEO Geoff Ramsey 2010 Predications) $191.7 US Total Media Advertising Spending, 2008-2014 (billions) $178.8 $176.5 $174.8 $168.3 $166.5 $162.8 2008 2009 2010 2011 2012 2013 2014 Source: eMarketer May 2010
19. US Online Ad Spending Growth 6/20/2011 17 Yahoo! Presentation, Confidential
20. Online Is More Than Just Advertising There are “alternative media channels” to raise awareness and drive sales online
21. Trend: Marketing Drawing Budgets Away from Advertising Advertising budgets are in competition with marketing budgets for programs such as: Social network Mobile App Development Custom videos on brand’s website E-mail Source: eMarketer US Ad Spending June 2010
22. Internet Marketing & Advertising Tactics U.S. Marketers Spent the Most on in 2009 (% respondents) E-mail marketing 50.2% E-mail newsletters 29.9% Paid search ads 26.0% Search engine optimization 24.6% Display ads on Websites 23.6% Offsite social media (Facebook, Linked in) 12.7% Webinars 10.3% Corporate blogs 6.7% Viral or word-of-mouth campaigns 6.7% Online sweepstakes or contests 5.6% Source: Chief Marketer *2010 Interactive Survey April 2010
26. Why Online? Internet is mainstream—and rising. Has the ability to reach millions in a one day! Internet delivers better targeting. Internet increases media efficiency. Online can complement TV and increase overall ad effectiveness Online has a wide creative canvas Consumers mesh media to personalize their experience and gather more relevant information Online advertising is powerful driver of search
27. Why Online? 24-Hour High Reach Interactive Impact Yahoo Homepage 33MM Unique Users/Day Google Homepage 41MM Unique Users/Day Facebook Homepage 45M Unique Users/Day Combined Reaching 178MM Unique Users Per Day Myspace Homepage 2MMUnique Users/Day MSN Homepage 2`MM Unique Users/Day AOL Homepage 14MM Unique Users/Day Source: Comscore Key Measures April 2011
28. Increase the Efficiency of TV by Adding Online Source: SRI-Knowledge Networks, Media Mentor; Fall 2009. Adults 25-54 TV CPMs based on Averages from TNS, Sep 09-May 10, Broadcast Primetime TV $32 CPM, Online $11 CPM – 4 week flight
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30. Using TV and online together results in 47% more positivity about a brand than using either in isolation.
31. The likelihood of buying or using a product increases by more than 50%when TV and online are used together.
32. Almost a third of 18-24 year olds around the world regularly talk about brands in online forums or discussion boards.Source: IAB / Thinkbox “TV & Online: Better Together” http://www.thinkbox.tv/server/show/nav.1019
34. Display Advertising is a Powerful Driver of Search After being exposed to a display ad, consumers were: 136% more likely to search the brand’s keywords 86% more likely to click on a sponsored text ad 140% more likely to click on an organic link Google/ComScore panel.
35. Nearly Half of Consumers Who Have Reacted to Online Advertising Eventually Conducted Related Searches Eventual Response to Online Display Ads Source: Commissioned Custom Research Study by Forrester Consulting on behalf of iProspect, January 2009, Base: US Online Consumers, N=1575
37. DVR Usage Continues to Increase 71% of U.S. consumers are online(221MM) Source: eMarketer, February 2010 32
38. Internet Reaches Key Demographic Segments Adults Age 18-49 Kids &Teens Age 2-17 Young Women Women Age 18-34 43MM Boomers Age 45-64 Young Men Males Age 18-34 Moms Women 25-54 with Kids 127MM 33MM Source: Comscore April 2011 30MM 36MM 52MM
45. Important Terms: Page Views Page Views(PV): The successful transmittal of the page (fully downloaded) to the users’ browser. 2ndpage view 1stpage view A user goes to Yahoo! homepage (1st page view) then once user clicks on article they go to the second page view
46. Important Terms: Impressions Ad Impression: The metric a site uses for measuring and reporting ad inventory. Ad impressions can be counted by the ad server as a result of an ad request or be counted at the delivery of an ad from the ad server to the browser. The recently established standard calls for this measurement to be the count at the latest point possible in the process of delivering the creative material to the user’s browser. 1 2 4 Ad Impressions on Page 3 3 Promotional Impressions on Page 4
47. Important Terms: Ad Frequency Ad Frequency: The number of times an ad is delivered to the same browser in a single session or time period. Assumed to be exposure to an ad. Frequency caps can be established and managed by the ad server using cookies to ensure a browser only gets the same ad delivered “X” times. The frequency for email is the intervals at which email marketing efforts are repeated: weekly, bi-weekly, monthly, bi-monthly, etc Dr. Herbert Krugman’s benchmark “three plus” theory established a commonly used rule of thumb for minimum frequency levels. It states that three exposures to a TV commercial are needed for effective communication. What is the optimal frequency for online?
48. Important Terms: Hit Outdated Metric Sometime Still Mentioned Hit : The sending of a single file, whether text, graphic, audio or another type. When a page request is made, all elements or files that comprise the page are recorded as hits on a server’s log file; therefore, number of hits is not an appropriate statistic to use for analyzing or comparing sites. Everything on the page below that clicks will get a hit. Over 60 hit opps per person per visit 10 hits if clicked 20 hits if clicked 10 hits if clicked
49. Important Terms: Unique Users Unique Users(UUs): Number of unique individuals or browsers for a given reporting period. Different methods exist for counting unique users/visitors: 1) where the user self-identifies through registration, 2) where the user is identified or marked by a cookie or other ID that is attached to his or her browser, or 3) the site counts unique IP Addresses accessing its servers. For sites that use cookies or unique IP Addresses, these methods are counting computers and browsers and not individuals. Syndicated research data will also include counts of unique users. This is the metric most planners justify sites on – unique users per month, page views and reach
50. Important Terms: Call to Action Call to Action: Words in an ad (display or email) that entice the reader to do something. A typical call to action is “click here” or “download now.” Ads with call to action will generally have higher click through rates (CTRs). “Enter to Win” Goal: Drive Traffic and Sweepstakes Entries “Click here to take the quiz & watch videos” Goal: Film Awareness and Drive Traffic “Learn More” Goal: Drive Sales “Click here now to watch” Goal: Drive Traffic
51. Important Terms: Click Through Rate Click-Through Rate/(CTR) or Click Rate: CTR’s are calculated by dividing the click-through number by the number of ad requests or ad impressions. CTR has become a major measure for Internet adcampaign effectiveness and provides a basis for comparison of sites and/or creatives. However, click rates are not a complete measure of campaign effectiveness (they do not measure user activity past the initial click or conversions). Click rates should be combined with other measures to determine the real value of a campaign. See Return on Investment (ROI).
52. Important Terms: Optimization Optimization: In ad buying, changes made to a campaign (changing ad units, placement, creative) to drive the highest click-rates or other metrics. In search engine marketing, the changes made to improve a page’s rank. Optimization may include changes to text, title tags, meta tags, body text, etc.
53. Important Terms: Post Click Activity Post Click Activity: The tracking and measurement of what users do after clicking on an ad unit, such as completing a transaction or some other activity. This means visitors who see ads and don’t click have a higher probability of purchasing products that users who click. This also means we need to taking click through rates with a grain of salt.
54. Important Terms: Cookies Cookies: A cookie is information that a Web server puts in the http header in response to a browser request. The browser stores this information, which allows the site to remember the browser in future transactions or requests. Since the Web’s protocol (http) has no way to remember requests, cookies read and record a user’s browser type and IP address and store this information on the user’s own computer. Only a server in the domain that stored it can read the cookie. Visitors can accept or deny cookies by changing a setting in their browser preferences. Cookies are what we use to track all the metrics online. Cookies not only help advertisers track user interactions, cookies help websites remember personal information such as credit card info and sign up info. More and more savvy consumers like to delete their cookies from their browsers because of the fear of “big brother” however that number is so small we don’t have to worry it about it now. However, in the future we will need to find a new tracking mechanism.
55. Brand vs. Direct Brand Awareness Direct Response Driving sales and traffic Generating buzz and interest
64. The Unique Value of Search Users Participation Passive Active High Catalog Mail Trade Magazines Opt-in E-mail Direct Mail Internet Search Level of Targeting Low Network TV Radio Billboards Yellow Pages
65. Marketing Objectives Met by Search drive awareness obtain leads drive purchases traffic reach and frequency ROI conversions registrations Paid Search helps achieve marketing goals
66. Everyone who is searching is in the purchase funnel “car” Lower Converting “used car” “used volkswagen” Higher Converting “buy a used volkswagenjetta”
67. Search Needs to be Part of the Marketing Mix/Buying Cycle Offline Non-Targeted Display Lower Converting Contextual Text Ads Social (Friend Casting) Targeted Display Email Higher Converting Search Rich Ads In Search
81. Advertising Networks Short Definition:network representing many Web sites in selling advertising, allowing advertising buyers to reach broad audiences relatively easily through run-of-category and run-of-network buysAd Networks today are more complex
82. Ad Networks’ Reach yahoo.com Advertising Networks Sites (Unique Users in millions) Uniques Specific Media Collective Display 24/7 Real Media Specific Media Vibrant Media Value Click Turn Media ValueClick Microsoft Yahoo! AdBrite AdBrite Google Google Yahoo! Turn 24/7 AOL AOL Fox Reach 92% 84% 84% 81% 80% 78% 75% 72% 70% 69% Source: comScore, Ad Networks Report, April, 2011 Data includes text and display based ads. Google Ad Network data now includes Ad Sense..
83. Targeting Options Help Engage and Drive Conversions With Advertiser Audience Geographic Personalized Retargeting Channel Targeting Search Retargeting Demographic Behavioral Targeting Site Retargeting
84. Flexible Pricing to Reach ROI Goals dCPM Dynamic Cost-per-thousand Optimized based on advertiser specific backend ROI goals such as cost-per-click or cost-per-action, and maximum bid price to dynamically generate a bid in real-time. CPM Cost-per-impression Optimized towards sites and users that match the fixed CPM, advertiser pays for impressions. CPC Cost-per-click Optimized towards sites and users that match the fixed CPC, advertiser pays for clicks. CPA Cost-per-action Optimized towards sites and users that match the fixed CPA, advertiser pays for conversions/actions.
86. Dynamic Pricing Illustrated Every impression priced to reflect the correct value to each advertiser, giving advertisers the ability to buy impressions across inventory while meeting backend ROI goals
99. Highlights: NEW OVEC 2011 Study Released at Internet Week June 2011 BIG GROWTH. Video continues significant growth, specifically full length movies and TV shows. However, the large majority watched , ~75%, remain short clips. Online video watching has increased significantly Even with major growth, across platforms, short clips still dominate PC remains the primary platform for watching online video... NIGHT TIME SHIFT IN WATCHING. There's been a marked increase, +30pts, in online video viewership between the hours of 6:00 to 8:00pm. Consumption patterns have changed since '09 MORE STREAMS SHARED, BUT LESS SHARERS. While there has been an overall increase in streams that are shared, less viewers are actually sharing videos they've just watched Fewer viewers are being referred to videos Most assume sharing is about social networks, but email and IM is critical Sharing of type of video is different by distribution channel
101. Video Marketplace PREMIUM ONLINE VIDEO Originals PREMIUM OFFLINE VIDEO UGC VIDEO NETWORKS
102. Top Video Properties Top U.S. Online Video Properties by Video Content Views Source: comScore Video Metrix Ranked by Unique Video Viewers April 2011
108. Advertisers will rarely see their ads Source: comScore Video Metrix Ranked by Unique Video Viewers April 2011
109. 32% of Time Spent on the Internet is Spent Consuming Video Time With Media Among Online Video Watchers 32% Offline Time Online Time 9% of total media time 92 Source: : OVEC Study, September 2009
110. Pre rolls and banner advertising are ads that consumers most remember seeing I remember seeing this ad format (Among those who remember seeing advertising) C21a. Please take a look at the explanations below and tell us what type of ads you remember seeing during this video experience. N=6280
111. Video Ads Increase Brand Awareness by 1.4x Compared to Standard Online Display Ads Lift in Unaided Brand Awareness Compared with Standard Online Display Ads, In-Stream Video Ads raise Unaided Brand Awareness by 1.4x overall and 1.8xamong users who see asingle impression. 23% 16% Online Display In-Stream Video 1.4x 94 Source: Dynamic Logic’s Market Norms database filtered on North America and last 3 years, “Online Ad Awareness” metric (i.e. Unaided Brand Awareness) – all results are with 99.9% confidence. Traditional=GIF/JPG. Frequency = # impressions per user
112. When Compared to TV Ads, Online Video Ads Make a BIG Brand Impact Premium Online Video vs. TV Ad Performance Message Recall Likeability Ad Recall Brand Recall SOURCE: Nielsen IAG Adults 18-49, 2008-2009 Study, Premium Ads=video ads run during online full-episode TV programs
113. Branded Entertainment Online What is BE? Branded content is not product placement. Branded content is integrating your brand with content in an organic way. Branded content is content that delivers a marketing message in a way that consumers accept rather than reject. Pros Branded Entertainment Set to Surge track to total $25.93 billion, a 5.3 percent gain. By 2014, branded entertainment will reach $38.16 billion, growing at a 9.2 percent compound annual growth rate. Building Brand Equity Driving Performance Challenges Creating resonating content content distribution Measurement Tips Quality of Content, Understand your audience, Be economical, Don't post and pray Tips Source: imedia
114. Mobile ad spending will pass $1.1 billion this year Messaging is still the strongest format, but will soon be eclipsed
115. Mobile Marketplace Portals Ad Networks Rich Media Vendors Mobile operating Systems Android Microsoft Windows 7 Apple iOS
116. Compared to a year ago, consumers say they are spending more time on their mobile... More time on... Reading a newspaper -31% Talking & Texting +49% Mobile internet +54% Listening to radio -5% … and less time on... Watching online videos on a mobile +29% Figures show net change by deducting those who claim to be doing this less often vs. a year ago from those claiming to be doing it more often Reading a magazine -24% Source: 2011 Yahoo!/Ipsos Mobile Modes Study Base: U.S. Mobile Internet Users Aged 13-54. Time
118. Mobile web use is used throughout the day Q3. Now thinking about your typical weekday and weekend, during what stages of your day, do you use the internet on your mobile device? Select all that apply for each. I use my mobile phone to online... Source: 2011 Yahoo!/Ipsos Mobile Modes Study. Base: U.S. Mobile Internet Users Aged 13-54.
120. Impact on Device Usage - Tablets Impact of New Tablet Purchase on Use of Other Devices Connected Device Owners (n=11,955) New Tablet Purchasers who also own a: eReader (n=348), Media Player (n=531), Smartphone (n=625) Netbook (277), Desktop (n=805), Laptop (n=792), Gaming Console (n=558), Portable Gaming Console (n=340), GPS (n=673), Internet-toTV (n=286), Internet Connected TV (255)
121. Types of Apps Downloaded Types of Apps Downloaded on Tablet or Smartphone Tablet and Smartphone Downloaders (n=5,562) Q73: Please indicate if you have downloaded the following types of apps, whether paid or free, on any of your connected devices.
122. Mobile Ads Are More Impactful Than Online Display Ads Mobile Advertising vs. Online Display Ads (change in exposed vs. control groups) 105 Source: Dynamic Logic MarketNorms for Online and AdIndex for Mobile Norms , Q1/2011
123. It is Easy to Interact with Consumers with Mobile Canvas. Transparent Overlay Online Extension to Mobile Click to Call
125. Social What is Social Media Connecting, reconnecting and staying updated 1 person shares with 50, that 50 share with 25 of their friends can reach up to 30,000 Pros 1 on 1 conversation with consumers Ability for viral pass along and friend recommendation Declared interests showcase more precise targeting (political views, religious views and other personal information) Relationship/CRM marketing Extends conversation/reach from other media and ads High engagement and time spent Cons Unauthentic messages are easier to detect Knowing what to measure Is it marketing or advertising Privacy and privacy controls pertaining to location eMarketer: Social Media Marketing by the Numbers: Key Stats, Trends and Indicators Feb 2010
127. 73% of US companies who are “using” social media for marketing in 2010 Source: eMarketer *Digital Brand Expressions, 2010; **Using, or “Planning to Use”
130. Social Media Site Audience & Time Spent Source: ComScore Key Measures, Social May 2011
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132. 40% of Online U.S. Consumers Maintain an Online Profile Source: Forrester, September 2010
133. DVR Usage Continues to Increase 50% of Mobile Internet Users in 2010 are mobile social network users (39 Million) Source: emarketer December 2010 116
134. Facebook Facebook reaches 698MM users worldwide Social advocacy at scale Research re: paid vs. earned media Programs include Brand Awareness through engaging landing pages and acquisition and engagement through CRM marketing techniques Source: ComScore April 2011
156. TV Sites Category yahoo.com Total Unique Visitors (000) 13.4 7.7 6.4 6.2 5.8 5.1 CBS Entertainment 4.8 3.7 National Geographic 3.5 NBC Network 2.9 Discovery Yahoo! Fox ABC TV ABC Fam Bravo Spike BET Source: Comscore Media Metrix June 2010
161. What is Rich Media? Creative Technology Rich Media is online advertising enhanced by motion, sound, video, or some interactive element The comparison can be made between a standard GIF/JPEG banner which can contain simple animation and a banner that streams a TV commercial With rich media, online ads approach television in terms of dynamism: they float above content, animate, integrate video and audio. They also go beyond television to include interactive elements like: Pull-downs for more information, micro-site in-the-banner Branded games and immersive activities Polls and Quizzes Downloadable Icons, Screensavers, Ring Tones, Documents, and more E-commerce functionality inside the ad unit Data Collection/Email Registration Viral Marketing – Send to a Friend Source: DoubleClick Whitepaper
162. Anatomy of a Rich Media Ad GAMING Banner automatically displays on publisher site (1 impression) Upon rollover, panel expands (1 interaction) Panels can contain any combination of rich media features User can click-through to site to continue experience (1 click-through) STANDARD VIDEO PRICE COMPARISON INTERACTIVE VIDEO PHOTO GALLERY Website Banner Panel Click on image in slide show mode to view demo
163. Images GIF/JPG (static image, ability to click only) Standard Flash (limited animation, ability to click only) Rich Media (increased animation, additional panel for content, endless amount of metrics) Click on image in slide show mode to view demo Seeing is Believing
164. It’s Only Getting Richer Online Ad spending will continue to grow through 2013 as users consumer more digital content and platforms become more widely accepted Rich formats and Video are increasing at a much higher rate than Standard and Flash formats while Classifieds, Sponsorships and Email marketing are declining
182. What Do Media Planners Look For? The Big Idea Cheap CPMs Research High SOV Targeting Multi-Platform Media Stunts Rich Media/ Creative Canvas Offline/ Media Extensions ROI Reporting
190. Credits and Sources Many thanks to research services whose sources are listed on each page and individuals for research, info and screenshots: Yahoo! Laredo Group Wikipedia imediaconnection DoubleClick emarketer IAB Insight Express Hitwise iMedia Google ComScore SRI/Knowledge Networks Dynamic Logic Adspender Omniture Jupiter Research Forrester TNS Nielsen NetRatings