1. David Hallerman Senior Analyst J U N E 2 4 2 0 1 0 N E W Y O R K NY The Keys to Online Display Advertising

3. Clive Thompson , Wired magazine, May 2010 We often say, rightly, that literacy is crucial to public life: If you can’t write, you can’t think. The same is now true in math. Statistics is the new grammar.

4. Ad Spending Trends

5. US Internet Advertising Spending, 2009 - 2014 (billions) Source: eMarketer, May 2010

6. Wide Range : Growth of total US Internet ad spending in 2010 (% change) Source: eMarketer, May 2010; others, Nov. 2009 – May 2010

8. One-Way Street: US Internet ad spending’s share of total media…

10. Display Diversity

11. US display ad spending growth will continue to outpace total Internet gains Source: eMarketer, May 2010

12. Large part of that display growth will come from an evolving Web Source: company reports, April 2010, eMarketer, May 2010

13. While impressions do not equal dollars, they point to trend of greater diversity for display placements ( banners & rich media here )

14. Video is the prime source of display ad growth, but banners healthy, too Source: eMarketer, May 2010

16. More banner dollars over next few years, but video trend will take over Source: eMarketer, May 2010

18. Local ad spending will increasingly shift online, as both marketer need and more sophisticated geo-targeting come together

19. Perspective…

21. According to some marketers, display spending trailed e-mail and search in 2009

22. Display spending less than search and e-mail in another survey (convergence)

23. Perhaps fewer dollars for display because e-mail & search perform better

24. Even when video increases, some dollars will come from banner ads and rich media — so overall display market suppressed

25. Fears about ability to protect brand image also inhibit display ad spending

26. Over 60% said display spending would grow by 10% or more if brand safety…

27. Marketers say “We spend less on behavioral targeted ads due to privacy…” Source: Ponemon Institute, April 2010

29. The portion of marketing dollars going to nonmedia spending is rising

30. Brand Marketing Goals

31. Direct response objectives rank high for many marketers online

32. Direct response focus echoed (somewhat) by steady increase of performance pricing

33. However, change is coming: Branding’s share of the total online pie is gaining on direct response dollars

34. Buzzwords and trends indicate mindshare, and in that regard branding even more central than “hot” topics

36. Kathryn Koegel , marketing practice lead, Primary Impact In other media, there is little discussion of the size of the units, the arcana of targeting techniques or whether something is a branding or DR‐based ad. Instead, marketers and agencies focus on creating the most memorable and compelling messages and finding the appropriate audiences and context for that creative.

37. Poor creative can even negatively affect brand metrics (not just do lesser good)

39. Integrating Display

40. Conversions come from a mix of display and search, and vary by industry (goals) Source: Eyblaster, February 2010

41. Display leads to search — not always, but typically positive, incremental gains

42. Banners encourage actions — less than search or e-mail, but part of whole

43. Perspective…

44. Main metrics used are not really for branding — not useful for display ads

45. More marketers deem conversions very important than any other metric ( so where does branding fit in? )

46. Counting the sheer number of people exposed to an ad (impressions) is main way display-ad performance gets measured

47. Measuring traditional brand metrics highly useful (but costs more to do)

49. Audiences & Targeting

50. Display more appreciated when the audience trade-off is explicit

51. More than ¾ of marketers using display target their audiences or plan to target

52. Classic demographic targeting still used by more advertisers than interactive targeting such as behavioral (70% vs. 59%)

53. Far more marketers use plain display advertising than behavioral targeted display

55. Takeaways

57. “ Thank You! ”

58. About AdReady © 2009 AdReady, Inc. Confidential

59. Automated Buying System © 2009 AdReady, Inc. Confidential

60. Creative Automation © 2009 AdReady, Inc. Confidential

61. Precision Campaigning © 2009 AdReady, Inc. Confidential

63. Thank you for tuning in to the eMarketer Webinar: Keys to Online Display Advertising Presented by: David Hallerman eMarketer Senior Analyst Questions & Answers Sponsored by: Access to the playback and slideshow will be sent to all Webinar registrants via e-mail.