WHY the world stopped clicking… The rise of interaction metrics and the importance of pre-click...

WHYthe world stopped clicking…

The rise of interaction metrics and the importance of pre-click activity

Dean Donaldson

2nd November 2006

www.eyeblaster.com [index]

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

TIMELINE OF RICH MEDIA ADVERTSING

Rise of the ‘Smart Ads’

Behavioural & Sequential ads

Broadband Penetration

% of ads using video

In-game video ads

Mobile & IPTV

Eyeblasterlaunches the‘Floating Ad’

Video now standard across all formats

‘Pre-Roll’ ads before online video content

First 2MB Video Ad

Cross Channel Advertising

Floating ads achieve over 5% CTR


OVERALL: FORMAT COMPOSITION

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H1 '04 H2 '04 H1 '05 H2 '05 H1 '06

Standard Banner

Polite Banner

Floating Ad

Expandable Banner

Other

Intrusive Advertising

User Initiated


CTR: OVERALL vs VIDEO ADS

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H1 '04 H2 '04 H1 '05 H2 '05 H1 '06

CTR

CTR (video)

Dropped from 5% to less than 1% in 5 years


REASONS FOR CHANGE

Change of user habits– More habitualised in the way they consume and engage with content – More resilient to be enticed to leave their comfort zones by clicking away– The threat of spyware and viruses and the trend towards pop-up blockers

Novelty value– Over use of intrusive advertising created saturation– Slow down on new formats as publishers standardise all inventory– Increased regulation of frequency capping and close buttons

Personalised experience– Users now more likely to choose how to receive relevant content– More inclined to be entertained in their chosen environment

The online audience has matured


MEDIA FIRSTSstandard industry question

“What new format or latest trick can you recommend that will get me the best click-thru rates?”


FROM PULL – “Traffic Drivers”

WEBSITE

YAHOO! MSN

AOL ORANGE

Trying to pull the users to your website

– Average CTR is below 0.3%– Clicks are not pre-qualified


TO PUSH – “Smart Ads”

YAHOO! MSN

AOL ORANGE

WEBSITE

Pushing content to the user, exactly where they are

– Average dwell time is

about one minute


PRE-CLICK INTERACTIVITY TRACKING

BEST PRACTICE: Track all elements in an ad

Get a full view of your campaign success

Test Drive

Brochure Request

More Information

Main Click

Rotate



JUSTIFY YOUR CAMPAIGN SUCCESS


MUD SLINGING

A. Don’t own a Honda but have seen the TV ads

C. Recently downloaded a Honda brochure

B. Already own a Honda and actively looking to replace

D. Has just had a test drive…


PLAN YOUR NEXT MOVE


KEY FACT: Data Capture regularly achieves higher uptake on Mail Portals

11% of initial respondents went on to give further details in subsequent screens

1% started process – same as clicked thru

Higher rates could have been achieved if the data request fields were higher


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 Push the brand experience and expect shortened conversion cycles 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 YOUyour time is appreciated

A copy of this CD is available upon request



MEDIA: CONSUMPTION TRENDS

TV USE: 4.5 hrs per day (or 135 hrs mth) WEB USE: 2 hrs per day (or 60 hrs mth) – 40%

– 2hrs per month of web use is now spent watching online video – 1 Day– 27% of Internet Users view online video weekly– 51% view online video monthly

Web usage is evenly spread across the day– Second only to TV which is slightly higher in evening– Dominates TV in at-work media use

20% crossover of people consume TV and web media simultaneously Web users tend to have higher spending power over TV users

Source: OPA Media Consumption, Q2 / 2006; eMarketer 10 / 2005 & 06 / 2006

Consumer’s use of media is changing


VIDEO: A POWERFUL BRANDING TOOLOnline video has shown to uplift branding by up to 5x

Source: Dynamic Logic Marketnorms, Q4 / 2005, CNET 06 / 2006

Online brand advertising predictedto surpass search in 2007

– Up 25% in 2006 to $11.7 billion


BROADBAND: PENETRATION STATISTICS

UK: 28.4M Internet users – 60% are currently broadband users

WEST EUROPE: 188.1M Internet users– 38% are currently broadband users

NORTH AMERICA: 193.9M Internet users – 62% are currently broadband users

ASIA-PACIFIC: 315.4M Internet users– 25% are currently broadband users

WORLDWIDE: 845.4M Internet users – 23% are currently broadband users

Penetration will rise by further 20% in 2007

Source: eMarketer, 05 / 2006

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% OF BROADBAND HOUSEHOLDS


VIDEO: SPENDING IS ON THE RISE

Source: eMarketer, 11 / 2005

Predicted to be more than $1.5 Billion in US by 2009

Eyeblaster delivered more than 12,000 video ads in 2005

Video made up 40% of total ad delivery– Up from 9% in 2004


VIDEO: THE POWER OF RICH MEDIA

On average 70% of all video ads are viewed Average length of time video is viewed is 21 seconds Of consumers who have seen a product advertised in an online video ad:

31%Checked out a related website

14%Requested more information

14%Went to a store to see the product

10%Forwarded an ad

8%Made a purchase

Video prompts user’s into action

Source: OPA Video Study, Q1 / 2006


PUSHING USER APPLICATIONSViral

mechanismVoting, user participation

Before & AfterBiosUnique content

– Serving the content in user-initiated layers allows a rich brand experience as well as the means to measure those interactions in multiple ways

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