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THE PAST, PRESENT, AND FUTURE OF ADVERTISING [ Follow me!: linkedin.com/in/benfox, @benfoxgo ]
THE PAST, PRESENT, ANDFUTURE OF ADVERTISING
[ Follow me!: linkedin.com/in/benfox, @benfoxgo ]
4 KEY DRIVERS OF THE FUTURE BRAND ADVERTISER
Simultaneous Consumer Behavior
+MOBILE SOCIAL
+TV EMAIL
+SEARCH DISPLAY
Old and New Ad Marketplace
TV UPFRONTS
DIGITAL
Ad Exchanges and RTB required
The Nth screen is here now!
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$700 MM
2011 ADVERTISING SPEND IN THE US
BROADCAST
$36 BBCABLE
$28 BB
SOURCE: Emarketer 2011, Forrester 2011
ADVERTISING REVENUE MARKET SHARE BY MEDIA, IN BILLIONS
SOURCE: IAB Internet Advertising Revenue Report; PwC
* Broadcast television includes Network, Syndicated, and Spot television advertising revenue. ** Cable Television includes
National Cable Networks and Local Cable television advertising. *** Magazine includes Consumer and Trade magazines
2011
2012
ADVERTISING REVENUE MARKET SHARE BY MEDIA, IN BILLIONS
SOURCE: IAB Internet Advertising Revenue Report; PwC
* Broadcast television includes Network, Syndicated, and Spot television advertising revenue. ** Cable Television includes
National Cable Networks and Local Cable television advertising. *** Magazine includes Consumer and Trade magazines
$40?
ADVERTISING MARKETPLACES
Broadcast Television
Digital Cable Television
Newspaper Magazines Radio
Out of Home Video Games Cinema
BUYERS SELLERS
THE OPPORTUNITY TO INFLUENCE A CONSUMER
A D M A R K E T P L A C E S
EACH AD MARKETPLACE HAS ITS OWN BENEFITS, DRAWBACKS, METHODOLOGIES, AND METRICS.
ADVERTISING MARKETPLACES
Broadcast Television
Digital Cable Television
Newspaper Magazines Radio
Out of Home Video Games Cinema
BUYERS SELLERS
THE OPPORTUNITY TO INFLUENCE A CONSUMER
A D M A R K E T P L A C E S
EACH AD MARKETPLACE HAS ITS OWN BENEFITS, DRAWBACKS, METHODOLOGIES, AND METRICS.
SOME MARKETPLACES ARE CONTRACTING
SOURCE: Business Intelligence, Sept 2012; Newspaper Association of America; Carpe Diem Blog
NEWSPAPER ADVERTISING REVENUE IN MILLIONS OF 2012 DOLLARS, 1950-2012
INCLUDING
ONLINE
PRINT ONLY
?
SOME MARKETPLACES ARE CONTRACTING
SOURCE: Business Intelligence, Sept 2012; Newspaper Association of America; Carpe Diem Blog
NEWSPAPER ADVERTISING REVENUE IN MILLIONS OF 2012 DOLLARS, 1950-2012
INCLUDING
ONLINE
PRINT ONLY
?
OTHER MARKETPLACES HAVE BEEN GETTING MORE EXPENSIVE
SOURCE: Nielsen, Coady Diemar Partners, June 2012, Horizon Media estimates
BROADCAST NETWORK SHARE OF TV VIEWING (PRIME TIME)
YEAR
AVG. BIG
FOUR
RATING
(18-49)
COST
($MM) TO
BUY 400
GRPs
COST
PER
RATING
POINT
HISTORICAL UPFRONT COSTS TO ADVERTISERS
1991-92
2001-02
2011-12
7.0
4.0
2.5
$5.4
$10.9
$20.5
$13,586
$27,295
$51,304
OTHER MARKETPLACES HAVE BEEN GETTING MORE EXPENSIVE
SOURCE: Nielsen, Coady Diemar Partners, June 2012, Horizon Media estimates
$ Cost per rating point has
increased by almost 4x – but you
get almost 50% fewer viewers!
So are Brand advertisers getting
4x the value of someone
watching network TV?
BROADCAST NETWORK SHARE OF TV VIEWING (PRIME TIME)
YEAR
AVG. BIG
FOUR
RATING
(18-49)
COST
($MM) TO
BUY 400
GRPs
COST
PER
RATING
POINT
HISTORICAL UPFRONT COSTS TO ADVERTISERS
1991-92
2001-02
2011-12
7.0
4.0
2.5
$5.4
$10.9
$20.5
$13,586
$27,295
$51,304
THE DIGITAL MARKETPLACE IS TAKING OFF!
SOURCE: IAB PwC 2011 Annual Report
“In every year since 2005, the annual growth rates of Internet advertising exceeded those of other advertising media”
DIGITAL MARKETPLACEAnnual Revenue, in Billions
THE DIGITAL MARKETPLACE IS TAKING OFF!
SOURCE: IAB PwC 2011 Annual Report
DIGITAL MARKETPLACEAnnual Revenue, in Billions
Forbes
Emarketer
$50B
$200B
$60B
WHAT IS SO DIFFERENT ABOUT THE DIGITAL MARKETPLACE?
Millions of
publishers and
advertisers!
BUT THERE IS A CATCH… THERE’S ALWAYS A CATCH!
DIGITAL EXCHANGES NEED TO CONSOLIDATE
DIGITAL EXCHANGES NEED TO CONSOLIDATE
DIGITAL EXCHANGES NEED TO CONSOLIDATE
DIGITAL EXCHANGES NEED TO CONSOLIDATE
DIGITAL EXCHANGES NEED TO CONSOLIDATE
DIGITAL EXCHANGES NEED TO CONSOLIDATE
DIGITAL EXCHANGES NEED TO CONSOLIDATE
DIGITAL EXCHANGES NEED TO CONSOLIDATE
THE DAY OF THE SINGLE SCREEN COUCH POTATO IS OVER
THE DAY OF THE SINGLE SCREEN COUCH POTATO IS OVER
Consumer activity is simultaneous… are we thinking this way?
TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE
SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012
TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE
SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012
EMAIL IS THE #1 ACTIVITY FOR USERS ON MULTI-SCREEN!
TV BUDGETS AND MULTI-SCREEN ACTIVITY
SHOULDN’T ADVERTISER TV BUDGETSACCOUNT FOR THIS?
WHEN USERS ARE
ON MOBILE DEVICES,WHAT IS
THE PRIMARYCONSUMER ACTIVITY?
SOURCE: Edwin Wong, Senior Director, B2B of Strategic Insights, Yahoo!SOURCE: ExactTarget channel study 2012
EMAIL DOMINATES MOBILE ACTIVITYIN MULTIPLE STUDIES
TECHNOLOGY IS EXPANDING CHOICE FASTER THAN CREATIVE
FUTURE CONSUMER: THE NTH SCREEN IS HERE TODAY
FUTURE CONSUMER: THE NTH SCREEN IS HERE TODAY
FUTURE CONSUMER: THE NTH SCREEN IS HERE TODAY
CONSUMERS ARE LIVING IN A REAL TIME WORLD!
CONSUMERS ARE LIVING IN A REAL TIME WORLD!
CONSUMERS ARE LIVING IN A REAL TIME WORLD!
CONSUMERS ARE LIVING IN A REAL TIME WORLD!
CONSUMERS ARE LIVING IN A REAL TIME WORLD!
CONSUMERS ARE LIVING IN A REAL TIME WORLD!
CONSUMERS ARE LIVING IN A REAL TIME WORLD!
CONSUMERS ARE LIVING IN A REAL TIME WORLD!
MEDIA PLANS REFLECT TECHNOLOGY AVAILABLE YESTERDAY
LAST CLICK / LAST VIEW:
Rudimentary Attribution Capability
ECONOMETRIC MODELS
“50% of my TV budget is wasted, I just
don’t know which 50%”
MEDIA PLANS REFLECT TECHNOLOGY AVAILABLE YESTERDAY
NEAR TERM TECHNOLOGY REQUIREMENTS
Direct to exchange bidding
Access to all exchanges
Profile Server
Global Datawarehouse
Email/Consumer 1:1
Integrated CRM
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ADVERTISING TECHNOLOGY ECOSYSTEM IN 2020
4 KEY DRIVERS OF THE FUTURE BRAND ADVERTISER
Simultaneous Consumer Behavior
+MOBILE SOCIAL
+TV EMAIL
+SEARCH DISPLAY
Old and New Ad Marketplace
TV UPFRONTS
DIGITAL
Ad Exchanges and RTB required
The Nth screen is here now!
1 2 3 4
FOLLOW ME!:linkedin.com/in/benfox
@benfoxgo
C ON TAC T AD C ON ION D IR EC T AT:s a l e s @ a d c o n i o n d i r e c t . c o m
