How Display Advertising Has Evolved and What
       Smart Marketers Need to Know


Thank You for joining, we will
    begin momentarily.

            January 24, 2013
Agenda
 Welcome & Housekeeping (IAB)

 Overview on Display Ad Revenue

 Speakers
   ● Jonathan Schwartz, Vice President East Coast Sales at Netmining
       ● Introduction on how media has evolved, and where we currently are with an intro to the RTB
         environment, and a “non-Luma” chart on the display ecosystem.
   ● Dax Hamman, Chief Revenue Officer at Chango Inc
       ● Explanation on how Big Data, Programmatic Buying, and FBX all play a role in this new world of
         buying & selling.
   ● Amy King, VP, Product Marketing at Evidon
       ● The Value of Revealing the Invisible Web.
   ● Todd Ruback, Chief Privacy Officer at Evidon
       ● U.S. Self-Regulatory Program (AdChoices) and what Privacy Online means for publishers.



 Q&A
Questions?
Please type questions into the
 question and/or chat feature
How Display Advertising Has Evolved and What
       Smart Marketers Need to Know

                 Netmining
      Jonathan Schwartz, Vice President East Coast Sales
Thank You



             Q&A
       This webinar will be made available on
iab.net/events_training/interactive_insights_webinars



   Please contact nicole@iab.net with questions.
HOW DID WE GET HERE?
HOW DID WE GET HERE?
HOW DID WE GET HERE?
HOW DID WE GET HERE?
HOW RTB WORKS
WHY RTB MATTERS
DECODING MYTHS




   RTB DOES NOT   RTB DOES NOT     RTB DOES NOT
   EQUAL          EQUAL EXCHANGE   EQUAL
   REMNANT        INVENTORY        LOW QUALITY
THE ECOSYSTEM
AUDIENCE TARGETING VIA RTB
AUDIENCE TARGETING FOR BRANDING




 Marketer’s Challenge   Solution                  Offline/Online
                                                  Measurement
   On-demand consumer      RTB – valuing
   Multiple devices     individual users and            Entertainment tune-
   Fragmented content   minimizing waste          ins
 consumption habits        Ability to predict       In-store consumer
                        users mindset with a      behavior
                        combo of data + context     Auto registrations
                           Rich creative canvas
How Display Advertising Has Evolved and What
       Smart Marketers Need to Know

                  Chango
           Dax Hamman, Chief Revenue Officer
The new paradigm




Data (who)   Media (where)
The changing landscape of display & what smart marketers need to know
Big Data simply means „more data‟, lots of it to be
precise. And it‟s unstructured and somewhat scattered.

So the promise of „Programmatic Marketing‟ is to make
big data actionable, and make our marketing programs
more efficient.
Data is everywhere!


               300m profiles
                Search data
               3rd party data
                                  Conversions

   Your           CRM
                Site visits
site data
               Conversions
It’s only getting more important
When is an ad network,
 not an ad network?

When it’s an ad network!
The changing landscape of display & what smart marketers need to know
What do I buy?




Speaker Logo Here
The changing landscape of display & what smart marketers need to know
And now there is FBX




          FBX is more than
           another media
             exchange.
✔       Lower CPMs

    ✔       Requires less impressions

    ✔       Quicker to convert

    ✔       Search data + FBX = highest ROI

Campaign data is showing positive results for buyers, a very attractive
time to try.

Opinion is that this will not cause a sustainable decline in CPM.
The changing landscape of display & what smart marketers need to know
How Display Advertising Has Evolved and What
       Smart Marketers Need to Know

                  Evidon
            Amy King, VP, Product Marketing
           Todd Ruback, Chief Privacy Officer
Over $500 Billion At Stake
    In Online Marketing by 2015

                                                                    • Billions of Venture
Online Display
 Advertising                                                          Capital dollars
                            eCommerce                                 invested
                           $469+ billion
 $30+ billion
                                                                    • Crowded and
                                                                      chaotic space
                     Web Measurement
                       & Analytics                                  • Significant growth
  Big Data
 $16+ billion                                                         in each market
                             $3 billion                               segment




         2015 Market Size Estimates: Sources: Forrester Research,
         eMarketer – eCommerce US only, comScore, IDC
A lot of opportunity in
“the invisible web”…
…and a lot of ramifications…




                                Privacy

Not fully transparent                  Has no opt-out
with consumers



                  Takes long to load             Unknown to half the
                                                 sites where it collects
                                                 data
People not only care about
transparency, they reward it



                                            of consumers say they’re
  48%                                       more likely to purchase
                                            from companies that give
                                            them transparency and
                                            control*




 * Survey conducted by Toluna, published in “Cookies Outlook Begins to Clear,” Marketing Week, 13 June 2012.
U.S. Self-Regulatory Program (AdChoices)




                      =



       Think: Nutritional label for ads
The DAA Principles

•   Education
•   Transparency
•   Consumer Control
•   Data Security
•   Material Change to
    Existing OBA Policy/Practices
•   Sensitive Data

•   Accountability
DAA Program Timeline
              JULY              OCTOBER                  JUNE                                   OCTOBER
       DAA publishes      Icon program launches   DAA announces
                                                                                     11 million+ monthly visits to
OBA Practice Principles                             100 program
                                                                                      www.YourAdChoices.com
                                                     participants
                              NOVEMBER
                          COOP page live to Web




            2009              2010                    2011                                2012

                                                                                                                NEXT UP

                                                                                                                •Mobile
                                                                                                                •Browser-based
                                                                                                                Control Mechanisms
                                                                                                                •Continued Global
                                                                                                                Expansion
                                                        NOVEMBER                  FEBRUARY
                                                               DAA publishes           White House
                                                   Multi-Site Data Principles       Event & Support


                                                                                         MARCH
                                                                            Global licensing programs
                                                                                     (Europe, Canada)
Time to Get with the Program


Investigation can cost $100k or worse


        Active enforcement now
What You Need to Do

US AdChoices Program

                       1.   Audit/monitor tracking on sites
                       2.   License icon from DAA
                            • Advertiser ($5,500/year
                              at aboutads.info)
                       3.   Disclose everything clearly
                            to consumers on sites/in ads
                       4.   Give consumers control,
                            including opt-out
Disclose on Websites…




                        Easy opt-out from
                        each; reporting
                        proves that the
                        request has been
                        sent



                        Rich detail on
                        each collector
                        available
…and in Ads
1                        2




       All vendors
       contributing
       targeting to ad
New COPPA Rule
•   Effective July 1, 2013
•   PI now includes use of “persistent identifiers” like
    cookies, geo-location, photos, screen names and more
•   Applies to website operators and third parties (eg,
    networks) who have actual knowledge that site is
    directed at children under 13
•   Site operators “strictly liable” for third parties on their site
•   Must inform parents and obtain parental consent (new
    mechanisms coming)
More privacy protection with

•   17 million downloads
•   Consumers learn about
    tracking and/or block it
•   7 million active monthly
    GhostRank panel
•   Tracks 2,800 different
    types of objects from
    over 1,200 companies on
    over 150mm URLs
    worldwide
•   Sees data web scanners
    alone miss
…that helps business too…




                        Performance and
                          data security
Not fully transparent                  Has no opt-out
with consumers



                  Takes long to load             Unknown to half the
                                                 sites where it collects
                                                 data
Transparency means revenue



                   •   50+ trackers
                   •   Take 2+ seconds
                       to load
Faster Pages Drive Better Results—Walmart

 •   Factoid 1: Extensively A/B tested page performance and
     published a study showing 100 millisecond delay = 1% drop
     in revenue
 •   Factoid 2: Search Engines A/B tested performance and found
     that a 500 millisecond delay caused a 20% drop in traffic.
 •   Factoid 3: In an experiment across multiple retailers, a 1
     second delay caused a 7% decline in conversion



http://www.webperformancetoday.com/2012/02/28/4-awesome-slides-showing-how-page-speed-
correlates-to-business-metrics-at-walmart-com/
Transparency means revenue




                                     •   One tracker leads
                                         to another
spawns

                                     •   Need full visibility
         spawns                          and data control
                   Not Authorized!   •   Means higher cpm
What You Need to Do

Website Control to Protect Revenue

                            1.   Audit/monitor tracking on sites,
                                 know who is brought in by whom
                            2.   Confirm what vendors on your site
                                 are allowed to collect and share
                            3.   Regularly check performance of
                                 tags on your site
                            4.   Give consumers control,
                                 including opt-out

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The changing landscape of display & what smart marketers need to know

  • 1. How Display Advertising Has Evolved and What Smart Marketers Need to Know Thank You for joining, we will begin momentarily. January 24, 2013
  • 2. Agenda  Welcome & Housekeeping (IAB)  Overview on Display Ad Revenue  Speakers ● Jonathan Schwartz, Vice President East Coast Sales at Netmining ● Introduction on how media has evolved, and where we currently are with an intro to the RTB environment, and a “non-Luma” chart on the display ecosystem. ● Dax Hamman, Chief Revenue Officer at Chango Inc ● Explanation on how Big Data, Programmatic Buying, and FBX all play a role in this new world of buying & selling. ● Amy King, VP, Product Marketing at Evidon ● The Value of Revealing the Invisible Web. ● Todd Ruback, Chief Privacy Officer at Evidon ● U.S. Self-Regulatory Program (AdChoices) and what Privacy Online means for publishers.  Q&A
  • 3. Questions? Please type questions into the question and/or chat feature
  • 4. How Display Advertising Has Evolved and What Smart Marketers Need to Know Netmining Jonathan Schwartz, Vice President East Coast Sales
  • 5. Thank You Q&A This webinar will be made available on iab.net/events_training/interactive_insights_webinars Please contact [email protected] with questions.
  • 6. HOW DID WE GET HERE?
  • 7. HOW DID WE GET HERE?
  • 8. HOW DID WE GET HERE?
  • 9. HOW DID WE GET HERE?
  • 12. DECODING MYTHS RTB DOES NOT RTB DOES NOT RTB DOES NOT EQUAL EQUAL EXCHANGE EQUAL REMNANT INVENTORY LOW QUALITY
  • 15. AUDIENCE TARGETING FOR BRANDING Marketer’s Challenge Solution Offline/Online Measurement On-demand consumer RTB – valuing Multiple devices individual users and Entertainment tune- Fragmented content minimizing waste ins consumption habits Ability to predict In-store consumer users mindset with a behavior combo of data + context Auto registrations Rich creative canvas
  • 16. How Display Advertising Has Evolved and What Smart Marketers Need to Know Chango Dax Hamman, Chief Revenue Officer
  • 17. The new paradigm Data (who) Media (where)
  • 19. Big Data simply means „more data‟, lots of it to be precise. And it‟s unstructured and somewhat scattered. So the promise of „Programmatic Marketing‟ is to make big data actionable, and make our marketing programs more efficient.
  • 20. Data is everywhere! 300m profiles Search data 3rd party data Conversions Your CRM Site visits site data Conversions
  • 21. It’s only getting more important
  • 22. When is an ad network, not an ad network? When it’s an ad network!
  • 24. What do I buy? Speaker Logo Here
  • 26. And now there is FBX FBX is more than another media exchange.
  • 27. Lower CPMs ✔ Requires less impressions ✔ Quicker to convert ✔ Search data + FBX = highest ROI Campaign data is showing positive results for buyers, a very attractive time to try. Opinion is that this will not cause a sustainable decline in CPM.
  • 29. How Display Advertising Has Evolved and What Smart Marketers Need to Know Evidon Amy King, VP, Product Marketing Todd Ruback, Chief Privacy Officer
  • 30. Over $500 Billion At Stake In Online Marketing by 2015 • Billions of Venture Online Display Advertising Capital dollars eCommerce invested $469+ billion $30+ billion • Crowded and chaotic space Web Measurement & Analytics • Significant growth Big Data $16+ billion in each market $3 billion segment 2015 Market Size Estimates: Sources: Forrester Research, eMarketer – eCommerce US only, comScore, IDC
  • 31. A lot of opportunity in “the invisible web”…
  • 32. …and a lot of ramifications… Privacy Not fully transparent Has no opt-out with consumers Takes long to load Unknown to half the sites where it collects data
  • 33. People not only care about transparency, they reward it of consumers say they’re 48% more likely to purchase from companies that give them transparency and control* * Survey conducted by Toluna, published in “Cookies Outlook Begins to Clear,” Marketing Week, 13 June 2012.
  • 34. U.S. Self-Regulatory Program (AdChoices) = Think: Nutritional label for ads
  • 35. The DAA Principles • Education • Transparency • Consumer Control • Data Security • Material Change to Existing OBA Policy/Practices • Sensitive Data • Accountability
  • 36. DAA Program Timeline JULY OCTOBER JUNE OCTOBER DAA publishes Icon program launches DAA announces 11 million+ monthly visits to OBA Practice Principles 100 program www.YourAdChoices.com participants NOVEMBER COOP page live to Web 2009 2010 2011 2012 NEXT UP •Mobile •Browser-based Control Mechanisms •Continued Global Expansion NOVEMBER FEBRUARY DAA publishes White House Multi-Site Data Principles Event & Support MARCH Global licensing programs (Europe, Canada)
  • 37. Time to Get with the Program Investigation can cost $100k or worse Active enforcement now
  • 38. What You Need to Do US AdChoices Program 1. Audit/monitor tracking on sites 2. License icon from DAA • Advertiser ($5,500/year at aboutads.info) 3. Disclose everything clearly to consumers on sites/in ads 4. Give consumers control, including opt-out
  • 39. Disclose on Websites… Easy opt-out from each; reporting proves that the request has been sent Rich detail on each collector available
  • 40. …and in Ads 1 2 All vendors contributing targeting to ad
  • 41. New COPPA Rule • Effective July 1, 2013 • PI now includes use of “persistent identifiers” like cookies, geo-location, photos, screen names and more • Applies to website operators and third parties (eg, networks) who have actual knowledge that site is directed at children under 13 • Site operators “strictly liable” for third parties on their site • Must inform parents and obtain parental consent (new mechanisms coming)
  • 42. More privacy protection with • 17 million downloads • Consumers learn about tracking and/or block it • 7 million active monthly GhostRank panel • Tracks 2,800 different types of objects from over 1,200 companies on over 150mm URLs worldwide • Sees data web scanners alone miss
  • 43. …that helps business too… Performance and data security Not fully transparent Has no opt-out with consumers Takes long to load Unknown to half the sites where it collects data
  • 44. Transparency means revenue • 50+ trackers • Take 2+ seconds to load
  • 45. Faster Pages Drive Better Results—Walmart • Factoid 1: Extensively A/B tested page performance and published a study showing 100 millisecond delay = 1% drop in revenue • Factoid 2: Search Engines A/B tested performance and found that a 500 millisecond delay caused a 20% drop in traffic. • Factoid 3: In an experiment across multiple retailers, a 1 second delay caused a 7% decline in conversion http://www.webperformancetoday.com/2012/02/28/4-awesome-slides-showing-how-page-speed- correlates-to-business-metrics-at-walmart-com/
  • 46. Transparency means revenue • One tracker leads to another spawns • Need full visibility spawns and data control Not Authorized! • Means higher cpm
  • 47. What You Need to Do Website Control to Protect Revenue 1. Audit/monitor tracking on sites, know who is brought in by whom 2. Confirm what vendors on your site are allowed to collect and share 3. Regularly check performance of tags on your site 4. Give consumers control, including opt-out

Editor's Notes

  • #3: ADD WHITE HOUSE EVENT Feb