The past, present and potential of display advertising - Peter Gowrie-Smith

The Past, Present and Potential of Display

Advertising

A4U Expo

Peter Gowrie-Smith Managing Director Magnetise Group

Farzad JamalCommercial Director EMEA, OpenX

1. Introduction

2. Where we were / where we are

3. Reasons for resurgence:I. Major players

II. New formats

III. Retargeting

IV. Ways to buy

V. Rise of data

VI. New pricing models

VII. Ways to measure

4. Where it’s heading next I. Challenges

II. Opportunities

III. Close and questions

Agenda

Who We Are - Magnetise

Portfolio of bespoke, highly scalable performance advertising and engagement solutions.

tbc

Marketing technology company delivering solutions for the creation and management of advertising, marketing and lead generation campaigns.

Lead management and analytics consultancy and technology for multi-channel campaigns.

AdExchange

RTB increases non-guaranteed

CPMs with full controls

Sell direct across all formats

(Display, mobile, email, video) Ad

Server

YieldOptimizer

All buyers complete in

the ad server to max yields

Who We Are - OpenX

From Old World to New World

Are You Feeling Lucky?!

• 2012 global display market is forecast at $33 billion , share of online ad spend will be 41% by 2014 (ZenithOptimedia)

• Display is now growing 20% annually (Forrester)

• Display is growing faster than search (IAB Europe) & will overtake search by 2015 (eMarketer)

The $200 Billion Dollar Gorilla

The Display Ecosystem

• Microsoft - Bought aQuantive in 2007…plus Skype in 2011• Has 4.5% of 2012 US display ad market

• Facebook - Bought Rel8tion in 2011, Instagram and Face.com in 2012• 14.4% of 2012 US display ad market

• AOL - Bought advertising.com in 2004, Pictela in 2010 …plus TechCrunch in 2010, HuffPo in 2011 • 3.6% of 2012 US display ad market

• Yahoo! - Bought Right Media in 2007, Dapper in 2010• 9.3% of US 2012 display ad market

• Google - Bought DoubleClick 2007, AdMob 2009, AdMeld in 2011 …and YouTube in 2006• 15.4% of the 2012 US display ad market

• WPP Group… Bought 24/7 Real Media in 2007

The Major Players

Global Agency Network Map

Digital Advertising Industry Ecosystem

New Formats

The Evolution of Ads

FUNCTIONALITY & ENGAGEMENT

CONTENT PERSONALISATION

New Engagements

Source: IAB / PwC Online Adspend 2011

Growth of Display Formats

Image credit: Search Engine Land

Targeting to Retargeting….

ADVERTISER PUBLISHERDIRECT

Ways to Buy

ADVERTISER PUBLISHERDIRECT

NETWORK

Ways to Buy

ADVERTISER PUBLISHERDIRECT

NETWORK

OPENX EXCHANGE

Ways to Buy

ADVERTISER PUBLISHERDIRECT

NETWORK

OPENX EXCHANGE

ATD

DSP

SSP

Ways to Buy

OXL

Why There is Rapid Growth in RTB

Data will grow by a factor of 44 between 2009 to 2020 (IDC)

Image credit: Krux

The Rise of Data

The Billion-Dollar Challenge: Monetizing the Digital Opportunity

New Pricing Model

New Ways to Measure

New Ways to Measure

• Complexity• Consolidation• Effectiveness• Accountability• Privacy• Legislation• New platforms

Challenges Ahead

• Billboards / OOH• Infrastructure – spending doubles to $5.2 billion from 2011-2016 (MagnaGlobal)

• Appetite - by 2020 90% of OOH will be digital

• Targeting• Interactive mirrors – ‘try before you buy’

• Facial recognition – tailoring display to the physical audience

• Search retargeting

• Mobile• Mobile media accounts for 23% of consumer time, but 1% of ad spend (Flurry)

• NFC – in 20% of smartphones by 2014 (Juniper Research)

• Integration & Innovation• Social channels

• Real-time rich media

Opportunities Ahead

More Facts on Trends Coming Up….

• Display is a completely different beast to 18 years ago

• New formats, engagement options, pricing models, measurement metrics, ways to buy and the rise of data all play their part

• The future is looking rosy, but the industry must be mindful of growing privacy issues

• Mobile, billboards and innovations in display will deliver a $200 billion industry within the next 10 years.

Conclusion

Thank you!

Any questions?

Peter Gowrie-SmithManaging Director, Magnetise [email protected] 7078 8298

Farzad JamalCommercial Director EMEA, [email protected] 7855 0202