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

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OVERALL: FORMAT COMPOSITION

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5%

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30%

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45%

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

Standard Banner

Polite Banner

Floating Ad

Expandable Banner

Other

Intrusive Advertising

User Initiated

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CTR: OVERALL vs VIDEO ADS

0.00%

0.50%

1.00%

1.50%

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3.50%

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

CTR

CTR (video)

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

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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

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MEDIA FIRSTSstandard industry question

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

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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

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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

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BRAND RESPONSE ADVERTISING

Negates need for user to leave the publisher site

Provides greater real-estate and file size for interactivity

Publishers benefit from co-branding opportunities

Provides a fully measurable, immersive brand experience

More interactions means better ROI analysis

Can be fully integrated with client’s site back-end

Delivers content direct to the user where they are

Offers choice to the 90%+ users who don’t click-thru

Results prove interaction overrides typical ad timeout

… Enhanced Experience

For Users For Clients For Publishers

… Meaningful Metrics … Permanent Presence

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Engagement– Post Impression Activity (Sub-Conscious Acknowledgement)

Impression– No Awareness (No Conscious Acknowledgment)

Click-Thru– Post-Click Activity (Conscious Acknowledgement)

Interaction– Pre-Click Activity / Post-Interaction (Active Involvement)

RESPONSE: SHADES OF GREY

Call to Action– Required Response (Conscious Decision)– Information Request / Data Capture / Physical Purchase

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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

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JUSTIFY YOUR CAMPAIGN SUCCESS

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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…

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PLAN YOUR NEXT MOVE

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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

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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