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State of the Industry in Digital Advertising December 2010, DigiDay:ONMEDIA 1 © 2010 DataXu, Inc. Privileged & Confidential

State of the Industry Study: Digital Advertising

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DataXu CEO Mike Baker's keynote presentation from DigiDay: ON MEDIA. This presentation includes some of the key findings from the recent "State of the Industry in Digital Advertising" Study sponsored by DIGIDAY and DataXu.

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Page 1: State of the Industry Study: Digital Advertising

State of the Industry in Digital Advertising

December 2010, DigiDay:ONMEDIA

1© 2010 DataXu, Inc. Privileged & Confidential

Page 2: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 2

publishers,146agencies, and

advertisers took our survey

21367

Page 3: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 3

brands & agencies surveyed believe the industry is going through a seismic shift to 100% digital

92%

Photo attribution: flickr.com/photos/trochee/424850077/

Page 4: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 4

What’s the pace of the digital migration?

Page 5: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 5

50%

52%

54%

56%

58%

60%

62%

64%

2010

2011

Percent of Digital Ad Budgets

Brand and Agencies

Page 6: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 6

Is 2011 the year of convergence?

Page 7: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 7

78% of Agencies 60% of Brand say they have a holistic approach

Really?

Photo attribution: flickr.com/photos/wolfgangstaudt/2896131064

Page 8: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 8

73% of Agencies and Brands will run video

campaigns in 2011

Photo attribution: sxc.hu/photo/1189614

Page 9: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 9

80% of Agencies and

88% of Brands will run display campaigns in 2011

Photo attribution: flickr.com/photos/thetruthabout/2821726795

Page 10: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 10

78% of Agencies and

64% of Brands will run mobile campaigns in 2011

Photo attribution: flickr.com/photos/kitcowan/2103850699

Page 11: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 11

Why spend more on digital advertising?

Page 12: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 12

Performanceis most important

Photo attribution: flickr.com/photos/jordanfischer/72510316

Technology is not

Page 13: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 13

Is digital changing the funnel?

Page 14: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 14

There is a big shift in Brand usage of digital

Photo attribution: flickr.com/photos/julianbleecker/2434362687

Page 15: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 15

Branded Performanceis where it’s at

Photo attribution: flickr.com/photos/beverlyhillsporsche/5152065475

Page 16: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 16

2011 is About Branded Performance

Page 17: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 17

So where’s the heat in 2011?

Page 18: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 18

Photo attribution: flickr.com/photos/28177041@N03/3666158737/ ç

cut in general ad network spend.

41%

Page 19: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 19

Shift in Ad Spend

General Ad Networks

Demand Side Platforms

0

10

20

30

40

50

60

70

80

90

100

Agencies

General Ad Networks

Demand Side Platforms

0

5

10

15

20

25

30

Brands

Page 20: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 20

Why Use a DSP?

Page 21: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 21

Agencies are using

DSPs for direct response

Brands value DSPs

for prospecting

Photo attribution: flickr.com/photos/kevinpoh/4507945736

Page 22: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 22

What is the most important quality for selecting a media partner?

Page 23: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 23

Trust and alignment with buy side interests.

Photo attribution: flickr.com/photos/virtualfarmboy/4421793779

Page 24: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 24

What is your greatest concern in buying digital media?

Page 25: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 25

1st concern is effective targeting.2nd is measurement tools.

3rd is inventory quality.

Photo attribution: flickr.com/photos/vizzzual-dot-com/2655969483

Page 26: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 26

Which types of targeting are most effective?

Page 27: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 27

Most Effective

Psychographic

Geographic

Demographic

Social Graph Targeting

Contextual

Behavioral

Retargeting

Performance based optimization

0% 20% 40% 60% 80% 100% 120%

Agencies and Brands

Page 28: State of the Industry Study: Digital Advertising

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Why are we buying cookie lists?

Photo attribution: flickr.com/photos/thetruthabout/2763075223

Page 29: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 29

It’s all about analytics, right?

Page 30: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 30

Photo attribution: flickr.com/photos/killercyberman400/2610544345

Consumer Insight > Media fees

Page 31: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 31

How can analytics be improved?

Page 32: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 32

Photo attribution: flickr.com/photos/jordanfischer/72510316

Analytics can be improved with actionable insights

Page 33: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 33

#1 More Actionable Insights

Integration with Ad servers (reconciliation)

Better attribution models

Integration with Client's data

Clearer analysis

Cross-channel media models

Better insights about consumers

More actionable insights

0% 10% 20% 30% 40% 50% 60% 70% 80%

Agencies and Brands

Page 34: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 34

What will you still depend on your agency for in 2011?

Page 35: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 35

Photo attribution: flickr.com/photos/chelseagirlphotos/444131481

Clients look to agencies primarily for planning and buying, regardless of technology

Page 36: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 36

Chew on that, and thank youGet the whitepaper:

http://info.dataxu.com/whitepapers/digitalshiftor email [email protected]

Page 37: State of the Industry Study: Digital Advertising

© 2010 DataXu, Inc. Privileged & Confidential 37

DataXu Promise