Online Advertising Overview Growth in Rich Media and Video Usage Mick O’Brien Copyright items.

Online Advertising Overview

Growth in Rich Media and Video Usage

Mick O’BrienCopyright items

Size of the Online Market?

• $1,346 million in 2007

• Increase of $345 million (or 34.5%) over 2006

• General/Display Advertising: 27%

• Classifieds Advertising: 27%

• Search & Directories: 46%

Source: Commercial Economic Advisory Service of Australia.

Who?

54.9%

Source:PricewaterhouseCoopers – IAB Online Advertising Expenditure Report – December 2007

Why?

Other Reasons?

• 70% of Australian’s have internet access

• 84% have broadband access

• 18-24yrs are spending up to 3hrs a day accessing information such as social networks

• Accountability – Return On Investment

• New Technologies such as online video

I see thereforeI click?

The End of the Click?

0.5%CTR 2005

0.3%CTR 2006

Below 0.2%CTR 2007

From pull – “traffic drivers”

WEBSITE

YAHOO! MSN

AOL

Average CTR is below 0.2%

To push – “smart ads”

WEBSITE

YAHOO! MSN

AOL Average dwell time is

about one minute

Source: HR Magazine ‘07 / Design Council ‘07

Homepage Sponsorships

• VRAW• Homepage take over on MySpace

• Promoting ‘jobs’ at MySpace sponsored by VRAW

• Using multiple formats + video • High impact format

• Coca-Cola• Homepage take over on Ninemsn• Using multiple videos (up to 30secs) • High impact format

Interacting with Expandable Video Banners

• British Heart Foundation• Create awareness about junk food for kids • 36% Interaction Rate• Average Video Duration:

59.21 seconds– Over 20 seconds more than 2006

• 48% Full Video Play– Almost double from last year

Purpose shot video

• Jumper• Created for the launch of The Jumper

movie• Video created specifically for online

use – Created in front of green screen

• Can be cheap to produce • Delivers the message with high Impact

Where do we go from here…

Adding Further Interactivity Synchronized Banners

• NBA• Promoting NBA Finals• Synchronized ad format• Allows interaction through

playing game

Adding Further Interactivity Retail Concept Format

• ADVERTISER: CONCEPT • Show TVC• Find local store (store locator) +

map• Print map or send mms to

mobile• Download coupon options

Behavioural Sequencing

• User interactions determine which ad is shown next in sequence

• Encourage user through the decision making cycle

• Unlimited creative ‘paths’ help improve conversion rates

1st 2nd 3rd

EU Tobacco – Behavioural

93% of interactors saw second sequenced advert

Those who saw second advert were positively inclined towards click thru

Source: Dynamic Logic MarketNorms Q4 2006

5.15.9

15.4

30.4

37.5

83.7

18.423.6

60.0

4.6 5.6

14.8

4.5 5.1

12.8

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Standard Banners

Rich Media

Rich/Video

% Lift

Aided Brand Awareness

Online Ad Awareness

Message Association

Brand Favorability

Purchase Intent

Rich Media Builds BrandAdd video for enhanced results

Pre-click Interactivity Tracking

Test Drive

Brochure Request

More Information

Best Practice

Track all elements in an ad

Rotate

Direct Response

Main Click

“Dwell-time” =

Brand Awareness

Dummy Data Only

“In-depth post campaign analysis changes your relationship with the client forever, one minute you are a just a agency guy the next you actually know something

about their business. Everything gets easier after they come to that realisation”

Media Agency

“Quote”

Summary: Challenging Perceptions

• Deliver content to the user without the need to leave the publisher’s site • Work with publisher’s in-page units to draw user’s eye from content to

ad • Adopt more interactive functionality e.g. behavioural to complement

video • Does not cost more on media purchase

– Know how to work the technology to meet objectives• Don’t trust click-thru as a way of justifying campaign success• Find metrics to measure campaign success from Branding to Response

• Be prepared to justify a 0% CTR!

The changing face of online advertising

Thank you

Mick O’Brien

Managing Director

Eyeblaster