Download - State Of Display 5 12
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with insights from: Dynamic Logic Nielsen Online comScore Microsoft/Atlas Google Compete
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If you believe what you read…
“Demand for display ads has ebbed, particularly as the rate at which consumers click on display ads bottoms out at a fraction of a percentage point.”
5/8/09
“Online display advertising sucks.”
3/10/09
“The demise of a popular but unsustainable business model [online display advertising] now seems inevitable.”
3/19/09
What are we doing here?
“Online display-ad spending will fall in 2009, probably sharply. It will probably fall again in 2010.”
- Henry Blodget
10/20/2008
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It’s all so…“The need for innovation became more urgent in November, after Internet advertising saw its first ever quarterly dip… Faced with tight budgets and a difficult economic outlook, many marketers are opting to stick with traditional advertising outlets …because of the Internet’s abysmal click through rate.”
February 26
2001
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Sector Shift ’03 – ‘08: Financial services becomes #1, retail declines, auto gains
Source: Nielsen Online
20%
18%
3%
7%
13%
3%
2%
4%
4%
3%
5%
16%
2%
13%
12%
2%
5%
13%
3%
2%
5%
5%
4%
7%
23%
6%
0% 5% 10% 15% 20% 25%
Retail Goods and Services
Web Media
Business to Business
Travel
Telecommunications
Hardware & Electronics
Software
Public Services
Entertainment
Health
Consumer Goods
Financial Services
Automotive 2003 2008
% of Total Online Impressions 2003 vs. 2008
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Ad impressions for Automotive increase steadily year-over-year and display seasonality
Total Ad Impressions for Automotive Industry 2003 - 2008
Source: Nielsen Online
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Fi-Serve impressions rise dramatically during the period banks begin to falter
Source: Impressions from Nielsen Online vs. S & P Banking Index
Did all those loan ads work too well?
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2008 Online Advertisers: The year of Phones and Loans
Top 10 Advertisers 2008: Ad Impressions by Brand During 2008
Source: Nielsen Online
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Financial services down YOY for ‘09 – but they are still spending; insurance enters the scene
Top 10: Impressions by Brand 1-2/08 Top 10: Impressions by Brand 1-2/09
Brand Impressions
LowerMyBills.com 1,968,822,000 ConsumerInfo.com 869,059,000 Citibank, N.A. 630,858,000 TrueCredit 357,224,000 LendingTree.com 203,927,000 Travelers Insurance 166,594,000 Countrywide 149,095,000 Allstate 118,959,000 Citi Credit Cards 99,322,000 MBNA Bank 63,704,000
Brand Impressions
LendingTree.com 7,102,587,000GetSmart 3,146,130,000LowerMyBills.com 2,079,711,000ConsumerInfo.com 1,546,808,000Citibank, N.A. 1,163,221,000Orchard Bank 785,641,000WAMU 718,657,000Countrywide 571,346,000GMAC Mortgage 333,794,000Household Bank 275,064,000
Drop off the list in 2009
Insurance enters list in 2009
Source: Nielsen Online
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Source: Nielsen Online
Change in Share of Impressions by Industry Jan/Feb 2008 vs. Jan/Feb 2009
Health, B2B & Telecommunications grow strongly in ‘09
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10
Source: comScore Ad Metrix, February 2009
Clutter down over 11% 2008 – 2009; must account for some of the volume drop
Great!
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Overall trends in ad effectiveness deltas (% impacted) remain stable since ‘06
Source: Dynamic Logic MarketNorms, Last 3 Years, Q4/2008, N=2,380, n=3,889,602;
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Source: Dynamic Logic MarketNorms, Last 3 Years, Q4/2008, N=2,380, n=3,889,602; Financial Services Norms, Last 3 Years, Q4/2008, N=277, n=567,275
Trends in Purchase Intent remain stable; Fi-Serve dips in Q4 ’06 and then stabilizes
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Ken Mallon SVP Custom Solutions & Ad Effectiveness Consulting, Dynamic Logic
What really matters for brand impact?
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It’s the creative: Large variation in performance between best/worst performers
Per
cen
t Im
pac
ted
Source: Dynamic Logic MarketNorms, Last 3 Years, Q4/2008, N=2,380, n=3,889,602
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Creative Best Practices Principles
1.Show brand prominently on all frames of the ad
2.Each frame of ad should be able to stand on its own
3.“Reveal” ads are almost always ineffective In the online environment, viewers tune out quickly
You have less than 3 seconds to communicate your message
In reviewing thousands of online creative, reveal ads have consistently worked poorly*There are a few exceptions:
Video ads are much more likely to succeed in this but still risky
Ads with high entertainment or comedic value can be effective
4.Keep the messaging very simple
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Creative Best Practices Principles
5.Don’t make people work for the message
6.If your goal is persuasion rather than awareness, be careful not to annoy the site visitor
7.Integrate online creative concepts with offline Use creative elements that are consistent with offline ads
8.Avoid “border” ads – ad sizes that frame the content of a webpage They train site visitors to focus on the center of the page and tune
out ads
Rectangle ad sizes do not frame content and are therefore, more noticeable
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Jon Gibs VP Media Analytics, Nielsen Online
Why should online display be bought based on impressions?
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Online advertising is broken.
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We need to fix it.
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Why have we not achieved our goals?
To this point our focus has been on…
This has led to…
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How do we fix it?The problem is…
The solution is…
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We must recognize that Counting is not the same as Accountability
>Online Driving: CPG Purchase, Ratings, Box Office ,Telco
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We must build for Engagement and then guarantee against it
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Video Total
Campaign Duration {hrs}
% of Total Campaign Duration
Avg. Exposure
Duration per Person {sec}
Average Frequency
Time Per Impression
TOTAL 12,983 100% 9.9 0.2 0.1Site A 2,856 22% 7.4 2.5 0.6Site B 4,934 38% 10.6 4.9 2.7Site C 4,025 31% 8.9 2.8 1.8
Site D - 0%
-
-
- Site E 1,169 9% 11.3 4.6 2.3
Site F - 0%
-
-
-
Time based advertising measures.
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Lynn Bolger EVP Advertising Solutions, comScore
Does display have impact on online & offline sales – without a click?
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68%
32%
Most people do not click on Display Ads
Clickers
Non-Clickers
Source: comScore, Total US Online Population, July 2007
comScore Tacoda Study: Natural Born Clickers
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Clickers follow the 80/20 ruleSource: comScore, Total US Online Population, July 2007
Clickers are predominantly younger (25 - 44) with lower income (under $40K)
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Decline in online ad click-through rates
2.50%
0.41%
1.12%
0.20%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Rich Media Non-Rich Media
2002
2006
Sources: Doubleclick, eMarketer, Eyeblaster, IAB Research estimates
In 2008, comScore measured click rates as less than 0.1%
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Display Ads drive visits to advertiser sites
2.1%
3.1%
3.9%4.5%
3.5%
4.8%
5.8%
6.6%
Week of f irst exposure
Weeks 1-2 af ter f irst exposure
Weeks 1-3 af ter f irst exposure
Weeks 1-4 af ter f irst exposure
Advertiser Site Reach
Control Test
% Lif t: 65.0% % Lif t: 53.8% % Lif t: 49.1% % Lif t: 45.7%
Source: comScore ‘How Online Advertising Works: Whither the Click?’ White Paper, 2008
• Impact is greatest in first week following exposure, but continues over four weeks
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How Display and Search impact offline retail sales
Higher offline sales lifts are found for search advertising vs. display but when combined the synergy provides even more lift
Source: Norms from the comScore Ad Effectiveness Database, N = 137 Tests
119%
82%
16%
Search andDisplay
Search Only Display Only
Incremental Impact on Offline Sales per (000) Exposed
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Advertisers: Are you hitting your target?
Area of improvement
Likely Waste
Source: comScore Campaign Metrix
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John Chandler-Pepeljak
Director, Microsoft/Atlas
How do you appropriately attribute conversions?
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The Long Road to Conversion
60
90
30
21
14
7
2
1
16.7
18.5
13.8
12.3
10.7
8.4
5.5
2.2
Cu
mu
lativ
e F
req
uen
cy
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The Digital Purchase Funnel
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Last-Ad ROI and the Purchase Funnel
Social Media, Portals, Video, News,
Entertainment, Sports, Music, Technology, Travel,
etc…
A few Publishers Benefit While the Majority Suffer
Week 1
Week 2
Week 3
Week 4
Week 5+
Search EnginesAffiliates
Aw
aren
ess
Aw
aren
ess
Inte
rest
Inte
rest
Des
ireD
esire
Act
ion
Act
ion
Re
pea
tR
ep
eat
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Search & Display combined lift over Search only
Portals Networks Content sites
54% 56%
47%
35%
10% 7%
68%
52%
97%
AOL MSN Yahoo! 24/7 Ad.com ValueClick
CBS Digital
Trip Advisor
weather.com
Impact is especially pronounced on content sites and portals
Source: Microsoft Atlas Publisher/Advertiser data 2008
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Short windows = Shortsighted ROI
$Sale
SearchIn-StreamVideo
SocialMedia
Portal
75% of View Conversion Windows are Less than 14 Days
Month 1 Month 2 Month 3
94% more data beyond the last ad.
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Ari Paparo Group Head, Advertising Products, Google
How do size and rich media impact performance?
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Source: DoubleClick DART for Advertisers, U.S. advertisers, DoubleClick Rich Media in-page and expanding formats only, January–July 2008
Creative Size
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
Half P
age
Ad (300
x600
)
Large
Recta
ngle (3
36x2
80)
Med
ium
Rec
tangle
(300
x250
)
Wid
e Sky
scra
per (1
60x6
00)
Skysc
raper
(120
x600
)
Recta
ngle (1
80x1
50)
Leader
board (7
28x9
0)
Full Ban
ner (4
68x6
0)
Half B
anner
(234
x60)
Cli
ck-T
hro
ug
h R
ate
020000400006000080000100000120000140000160000180000200000
Are
a (i
n P
ixel
s)
CTR % Area (in Pixels)
Larger creative sizes get more clicks
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Source: DoubleClick DART for Advertisers, U.S. advertisers, DoubleClick Rich Media in-page and expanding formats only, April–July 2008
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
Creative Size
Inte
rac
tio
n R
ate
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
Are
a (
in P
ixe
ls)
Interaction Rate %
Area (in Pixels)
Larger creative sizes get more interactions
Half P
age
Ad (300
x600
)
Large
Recta
ngle (3
36x2
80)
Med
ium
Rec
tangle
(300
x250
)
Wid
e Sky
scra
per (1
60x6
00)
Skysc
raper
(120
x600
)
Recta
ngle (1
80x1
50)
Leader
board (7
28x9
0)
Full Ban
ner (4
68x6
0)
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Rich Media example: Volvo Twitter ad
Features:• 960x250 expanding unit
• Twitter feed• 360 degree view of the car Volvo XC60s
• Video game highlighting the "City Safety”
Features:• 960x250 expanding unit
• Twitter feed• 360 degree view of the car Volvo XC60s
• Video game highlighting the "City Safety”
Technology:• Produced with DoubleClick Rich Media
Technology:• Produced with DoubleClick Rich Media
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Rich Media example: McDonald’s Tandem
Features:• New tandem
mast format 960x250
• McDonald’s first rich media buy on YouTube
Features:• New tandem
mast format 960x250
• McDonald’s first rich media buy on YouTube
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Kyle Johnson Director of Media Products, Compete
Seen anything innovative lately?
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Display is alive and kicking Nonstop innovation breathes new life into the medium
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Ad innovations shape new behaviors Brand advertisers can opt for appealing trade-offs
Viewthrough0.1% 0.3%
KPI conversion24% 12%
Time ∆ on page+ 1:38 + 0:08
Time on Toyota.com7:49 14:34
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New possibilities push for new measures of success
A single metric or ratio can miss what’s important
Highly interactive units canbuild awareness / educateandadvance publisher goals
Viewthrough0.1% 0.3%
KPI conversion24% 12%
Time ∆ on page+ 1:38 + 0:08
Time on Toyota.com7:49 14:34
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So what is it…
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What do we know?
It’s a recession, ad spend online will recover Desperate times call for “innovative” measures
Let’s finally focus on the creative Let’s finally measure appropriately Let’s pay attention to media 101:
Clutter Test!
Question authority – or at least the business media
What crisis? It’s an OPPORTUNITY