ben fox discusses the future of display advertising

THE PAST, PRESENT, ANDFUTURE OF ADVERTISING

[ Follow me!: linkedin.com/in/benfox, @benfoxgo ]

47 BCAdvertising for a

Gladiator in Pompeii

First large-scale advertising

1890s

Major global agencies created

1950s-1980s

IAB first measures internet advertising

1990s

ANALYTICS

MOBILEDEVICES

AD SERVERS

AD NETWORKS HORIZONTAL

DATA SUPPLIERS

VERTICALCUSTOM

ADOPERATORS

DMPs &DATA

AGGREGATORS

AD EXCHANGES

TARGETEDAD

NETWORKS

CREATIVEOPTIMIZATION

YIELD OPTIMIZERS

TRADINGDESKS

RETARGETING

VIDEO

VERIFICATION

DSP

MEDIAPLANNING

SHARING DATA

SOCIAL TOOLS

TABLETS

CONNECTED DEVICES

2011 ADVERTISING SPEND IN THE U.S.

Source: eMarketer, US Digital Ad Spending 2011; www.emarketer.com

Source:

VALUE ADDED RESELLERS

Source:

LET ME WORK FOR YOU ANDI WILL HIT YOUR GOAL!

VALUE ADDED RESELLERS

PAY MY FEE AND I WILL GET YOU HIGHER CTR,

CONVERSIONS, OR RPM[SAFELY]

VALUE ADDED SERVICE PROVIDERS

PAY TO PLAY IN THIS SPACE

TECHNOLOGY SERVICE PROVIDERS

WHO BOUGHT WHOM?

WHO BOUGHT WHOM?

GOOGLE’S ACQUISITIONS

GOOGLE’S ACQUISITIONS

THE ECONOMICS OF IT ALL

THE ECONOMICS OF IT ALL

25¢ 12¢ 3¢

35¢

25¢ 12¢ 3¢ 20¢

12¢ 3¢12¢

45¢

5¢

5¢

5¢

5¢

5¢

10¢

Channel

$5 BBAgency

$1 BB

AdNetwork

$5 BB

AdvertiserDirect Buys

= ~$0.38

= ~$0.55

= ~$0.58

= ~$0.60

= ~$0.55

= ~$0.85

Advertiser

Buying Power[VALUE PER 1$]

THE ECONOMICS OF IT ALL

25¢ 12¢ 3¢

35¢

25¢ 12¢ 3¢ 20¢

12¢ 3¢12¢

45¢

5¢

5¢

5¢

5¢

5¢

10¢

Channel

$5 BBAgency

$1 BB

AdNetwork

$5 BB

AdvertiserDirect Buys

= ~$0.38

= ~$0.55

= ~$0.58

= ~$0.60

= ~$0.55

= ~$0.85

Advertiser

Buying Power[VALUE PER 1$]

TOP 5 COMPANIES HAVE 63% OF REVENUE

Are you profitable?

Are you acquiring in the space?

Are you in the top three marketsharein your category?

Source: [Darren Proman, eMarketer ]

APPLY THOSE FILTERS TO THE SPACE

APPLY THOSE FILTERS TO THE SPACE

APPLY THOSE FILTERS TO THE SPACE

APPLY THOSE FILTERS TO THE SPACE

NAVIGATING THE FUTURE(Broken up)

Trading desks try and beat up networks

1

NAVIGATING THE FUTURE

Trading desks try and beat up networks

1

NAVIGATING THE FUTURE

Trading desks try and beat up networks

1

NAVIGATING THE FUTURE

DSPs:2

Get bought by exchanges – Google buys (Invite) (AOL? FB?)

Bought by trading desks (Accuen? Xaxis?)

Go out of business

NAVIGATING THE FUTURE

DSPs:2

Get bought by exchanges – Google buys (Invite) (AOL? FB?)

Bought by trading desks (Accuen? Xaxis?)

Go out of business

NAVIGATING THE FUTURE

DSPs:2

Get bought by exchanges – Google buys (Invite) (AOL? FB?)

Bought by trading desks (Accuen? Xaxis?)

Go out of business

NAVIGATING THE FUTURE

DSPs:2

Get bought by exchanges – Google buys (Invite) (AOL? FB?)

Bought by trading desks (Accuen? Xaxis?)

Go out of business

NAVIGATING THE FUTURE

DSPs:2

Evolve each into and call themselves Ad Networks (Turn Media Network) (Media Math Agency Network)

NAVIGATING THE FUTURE

DSPs:2

Evolve each into and call themselves Ad Networks (Turn Media Network) (Media Math Agency Network)

NAVIGATING THE FUTURE

DSPs:2

Evolve each into and call themselves Ad Networks (Turn Media Network) (Media Math Agency Network)

NAVIGATING THE FUTURE

DSPs:2

Evolve each into and call themselves Ad Networks (Turn Media Network) (Media Math Agency Network)

NAVIGATING THE FUTURE

Trading Desks must evolve and build/buy their own tech or they go away

3

NAVIGATING THE FUTURE

Trading Desks must evolve and build/buy their own tech or they go away

3

NAVIGATING THE FUTURE

Trading Desks must evolve and build/buy their own tech or they go away

3

NAVIGATING THE FUTURE

Trading Desks must evolve and build/buy their own tech or they go away

3

NAVIGATING THE FUTURE

Trading Desks must evolve and build/buy their own tech or they go away

3

NAVIGATING THE FUTURE

Trading Desks must evolve and build/buy their own tech or they go away

3

NAVIGATING THE FUTURE

Trading Desks must evolve and build/buy their own tech or they go away

3

NAVIGATING THE FUTURE

Trading Desks must evolve and build/buy their own tech or they go away

3

NAVIGATING THE FUTURE

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges

NAVIGATING THE FUTURE

4

5

AdX / Facebook war heats up6

NAVIGATING THE FUTURE

AdX / Facebook war heats up6

NAVIGATING THE FUTURE

AdX / Facebook war heats up6

NAVIGATING THE FUTURE

AdX / Facebook war heats up6

NAVIGATING THE FUTURE

AdX / Facebook war heats up6

NAVIGATING THE FUTURE

AdX / Facebook war heats up6

NAVIGATING THE FUTURE

NAVIGATING THE FUTURE

Facebook and AOL create exchanges aligned on pub side

7

NAVIGATING THE FUTURE

Facebook and AOL create exchanges aligned on pub side

7

NAVIGATING THE FUTURE

Facebook and AOL create exchanges aligned on pub side

7

NAVIGATING THE FUTURE

Facebook and AOL create exchanges aligned on pub side

7

NAVIGATING THE FUTURE

Facebook and AOL create exchanges aligned on pub side

7

NAVIGATING THE FUTURE

Facebook and AOL create exchanges aligned on pub side

7

NAVIGATING THE FUTURE

Facebook and AOL create exchanges aligned on pub side

7

NAVIGATING THE FUTURE

Verification remains 3rd party and small business

8

Analytics and ad serving are free9

NAVIGATING THE FUTURE

NAVIGATING THE FUTURE

IBM Integrates data stack into ERP

10

NAVIGATING THE FUTURE

Ad networks survive by offering performance and new inventory sources like email and smart TV

11

NAVIGATING THE FUTURE

Ad networks survive by offering performance and new inventory sources like email and smart TV

11

NAVIGATING THE FUTURE

Ad networks survive by offering performance and new inventory sources like email and smart TV

11

NAVIGATING THE FUTURE

Ad networks survive by offering performance and new inventory sources like email and smart TV

11

NAVIGATING THE FUTURE

Ad networks survive by offering performance and new inventory sources like email and smart TV

11

NAVIGATING THE FUTURE

Ad networks survive by offering performance and new inventory sources like email and smart TV

11

DISPLAY ADVERTISING IN 2015

ADVERTISING ECOSYSTEM IN 2020

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