Future of Online Marketing

The Future of Online Marketing Visionaries Lay the Cards on the Table

By DQ&A

With

Alain Heureux, Nuria Gimenez, Fernando Taralli, Jacqueline Smit, Babs Rangaiah, Alison Fennah, Michael Read, Benjamin Faes,

Heleen Dura van Oord and Rick van Boekel

© 2011 DQ&AFirst printed: May 2011 – 6000 copiesISBN Number: 978-90-817446-0-7

Copyright noticeThe Future of Online Marketing: Visionaries Lay the Cards on the Table

Is published by DQ&A® and copyrighted ©2011. All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means without permission in writing from the publisher, except for reading and browsing via the World Wide Web.

These pages contain articles and information about DQ&A and that is protected by copyright laws, including illustrations, interviews, articles and information. Any rights not expressly granted herein are reserved.

About DQ&A DQ&A Media Group is an international digital marketing company with over a hundred experts working in offices in Europe (The Hague, Madrid, Hamburg, Zurich), United States (Los Angeles area), Latin America (São Paulo) and Africa (Cape Town). We listen to advertisers, publishers & agencies in the dynamic and rapidly changing online media landscape and deliver performance based media buying solutions, innovative technologies and campaign management services that are trusted and valued in the area of online advertising.

More informationwww.futureofonlinemarketing.net - www.dqna.com

DQ&A Headquarters Westeinde 3a, 2275 AA Voorburg, The Netherlands +31 (0)70 300 19 50DQ&A Brazil | DQ&A Germany | DQ&A Spain | DQ&A The NetherlandsDQ&A South Africa | Admazing | Adsimilis Twitter: @dqna - facebook.com/pages/DQA - Linkedin.com/company/dq&a

Copyright ©2011 DQ&A. All rights reserved.Published by DQ&A in The Hague, the Netherlands

EditorsHeleen Dura - van Oord, Daniel Muñoz Sheridan

InterviewersHeleen Dura - van Oord, Rick van Boekel, Daniel Muñoz Sheridan, Gabriel Camargo

Editorial ConsultingRoger S. Peterson, Sacramento Writers, California

Editorial SupportTessa van de Graaf, Rafael Klijnlindt

Editorial DesignDavid de Beun, Marco Remmerswaal

IllustrationsEvalien Lang

Printed byDrukkerij G.B. ’t Hooft bv, Rotterdam

Website DesignNon-Verbaal , Rotterdam

To all of you who have been part of the DQ&A world in this wonderful decade…

8 9The Future of Online Marketing by DQ&A Table of Contents

Contents

Preface by Heleen Dura - van Oord - Founder of DQ&A 11

Chapter 1: Mr. Alain HeureuxPresident and CEO at IAB Europe 15

Chapter 2: Ms. Nuria GimenezHead of Digital Services at Group M 24

Chapter 3: Mr. Fernando TaralliPresident at Energy BR Young & Rubicam 33

Chapter 4: Ms. Jacqueline SmitGeneral Manager Consumer & Online at Microsoft 43

Chapter 5: Mr. Babs RangaiahVice President of Global Media Innovation at Unilever 53

Chapter 6: Mrs. Alison FennahExecutive Director at The European Interactive Advertising Association 60

Chapter 7: Mr. Michael Read Managing Director at comScore 69 Chapter 8: Mr. Benjamin FaesHead of YouTube and Display EMEA at Google Europe 77

Epilogue by Rick van Boekel - CEO at DQ&A 85

The DQ&A Decade by Heleen Dura - van Oord - Founder of DQ&A 86

Future Directions by Rick van Boekel - CEO at DQ&A 88

About DQ&A Media Group 94

Acknowledgements 96

Table of contents

10 11Preface by Heleen Dura - van OordThe Future of Online Marketing by DQ&A

In the ten years since we founded DQ&A, change has been the only constant. New technology. New devices. New ways to maintain friendships. New ways to meet new colleagues. New ways to bring expertise to the industry.

As we at DQ&A faced our tenth year, we naturally asked the big question: Where will we be in the next five years? What will 2016 look like?

At first, it was a casual conversation at the café down the street. Then we realized the seriousness of the question. In a shifting, effervescent industry, we see changes by the quarter, sometimes by the month. It is hard to predict how 2016 will look … but we still had to plan for it.

The intrigue was too itchy.

As part of our 10-year anniversary we thought it was a great time to offer a gift to the industry. The gift is this book. The journey of creating this book took us to London, Madrid, Amsterdam, São Paulo, Brussels, and Paris.

We called upon the top leaders in online marketing, visionary experts from all sides. We asked publishers, agencies, and advertisers to predict the state-of-the-art of online in 2016. In essence, what will online marketing 3.0 look like?

Why five years? Just look at the changes during the last five years. Tablets, Facebook, and Twitter, to name a few. Are we all prepared for the next five years? This book is our source of inspiration to the industry.

PrefaceBy Heleen Dura - van Oord - Founder of DQ&A

12 Preface by Heleen van Oord 13The Future of Online Marketing by DQ&A

The chapter authors were asked to think boldly, to liberate their thinking. We asked them to use their sixth sense about 2016. What new technology must be invented to make your forecasted 2016 a reality?

What vendors, suppliers, providers, or governments must change what they do or how they operate to reach that 2016 state of the future? Does anyone have to “get out of the way” or begin cooperating? What provocative thought – what Big Idea -- do they have that would change everything … We hope you enjoy reading their provocative answers and predictions. At DQ&A, we are looking forward to the future with impatience and curiosity. As we wait we will follow these visionaries to see if their predictions became reality.

The Future of Online Marketing by DQ&A14 Chapter 1 - Mr. Alain Heureux 15

Mr. Alain HeureuxPresident/CEO, IAB Europe

Mr. Alain Heureux is the President/CEO of the Interactive Advertising Bureau (IAB), Europe. IAB Europe is the trade association for the digital and interactive marketing industry representing 30 national IABs and partners across Europe and more than 5,500 companies. Membership is open to all media, agencies, advertisers, publishers, and broadcasters interested in digital marketing. The purpose of IAB is to share, learn, network, and educate each other, and to standardize the digital interactive industry in Europe. As Mr. Heureux states, “It is important to combine the words interactive and digital marketing, because that is the industry we represent.”

Heureux’s key predictions:

• Televisionwillceasetobethespokeoftheconsumeradvertisingwheelby 2016.• Regulatorswillsealourlegalfateinthenextseveralyears.• EuropeandigitalmarketingwillsurpassAmericanspendingbytheendof 2011.

16 17The Future of Online Marketing by DQ&A Chapter 1 - Mr. Alain Heureux

Our world of digital and interactive marketing will quickly grow by 2016, in revenue, in geography, and in strategy. IAB will be influential in that role. The IAB is larger than EU27. We have Russia, and foresee more participation from the Middle East and Africa. Our IAB team is centered in Brussels, the headquarters for the European Union and many other trade associations, where we meet and mingle in a fascinating ecosystem that will shape the marketing of the future.

Our biggest challenge between now and 2016Five years ago we had few legal concerns. IAB was not as needed then as it is now. In the next five years, regulations will be created. IAB’s challenge is to make sure we carefully educate our industry and its regulators. For example, what is private information and what is not? We need to educate the regulators and NGOs so that our growth does not suffer from misunderstanding.

Digitally centered marketing will soon surpass televisionOur digital world has had its starts and stops, so prediction can be difficult. Nonetheless, I suspect that many in our ecosystem agree we will move away from television-centric marketing practices by 2016.

We are not anti-television; television will continue to be part of the marketing mix. Television has been the center of consumer marketing and communication plans. Every consumer in the world has spent considerable time watching

television. Advertisers started their campaigns with a TV spot, then added direct marketing, street marketing, newspapers, and radio. Recently they began adding the Internet. By 2016, the big shift will happen. Advertisers will be driven by a marketing and media strategy that places digital interactivity

at the center. Other media will be added to supplement the digitally-centric strategy. Digital was an add-on in 2000 and an important element in 2010, but it will be foremost in 2016.

It is easy to see why. Younger consumers spend nearly every minute on interactive platforms – iPads, PDAs, smart phones. They organize their lives and communicate their whereabouts on portables. They are already digitally centric. Marketing in 2016 will focus on the digital and interactive or these consumers will not be reached.

The rising role of dataDigital interactive marketing must deliver two things: the technology and the data. IAB is urging EU regulators to understand they cannot think about digital marketing without considering data. How is data defined? What data is personalized and what is not personalized? What data is identifiable and what is not? The regulators and we are seeking agreement on what data are important and what data can be used without permission from consumers and target groups. With that issue settled, we can focus on the right technologies. What I find fabulous about future marketing compared to the past is mass customization. We can address a specific consumer with a personalized message. Such one-to-one marketing immediately engages the consumer to the website and to the brand. It creates that emotional response so important to branding. Equally fabulous is the affordable cost of mass customization.

Educating different generationsWe have two generational challenges. We must educate the older generation, the consumers used to television advertising, to become digitally savvy. Otherwise, our digitally centric strategy will miss them. Think of all the consumer products tied to aging and health? The digitally savvy younger generation must now become digital marketing savvy. They chat, tweet, and blog, but that does not make them marketing savvy.

“the bigshift willhappen”


Measurement and monetization,ending the chaos in mobile advertisingAnother big challenge in the next five years, after the legal aspects have been defined, is measurement and monetization.

Mobile advertising is a critical medium, but we are confusing advertisers and everyone else. DQ&A is a leader in performance-based activities. We need that in our entire ecosystem. However, we need to explain mobile advertising better to advertisers and media buyers. What are they buying, what will they get in return, and why should they pay a specific amount? We are confusing people with terminology – brand awareness, brand activation, CPM, CPC, CPL, and others. Many people are selling the same things but at different prices. We need to settle this chaos quickly. The business consequences are profound.

Imagine you are a big player in mobile advertising. Once the regulation dust settles, you will have to reorganize your team and re-monetize your media. Imagine the consequences for publishers and advertisers. It is a huge task and I fear it will take until 2016 to reach agreement. I don’t know if IAB Europe will play a role in defining mobile advertising, but we must agree on what we are measuring and how we charge for it.

Consider this story. Recently I met with one of the largest brewers in the world. He assured me we no longer have to sell him on advertising reach. Reach exists for a huge number of people in the developed countries. He admitted it is a well-connected reach using video to raise emotions for fast moving consumer goods. Then he cited the problem: “What you are missing is the right measurement system and the right pricing structure.”

If we solve these issues, we will win the budgets of the growing consumer goods. That is where the big money is. Until now, banks, autos, travel industries, and some others have funded digital and interactive marketing. When we win large consumer accounts, the picture will change. In 2009, digital marketing – from display to search to all others – was valued at 15 billion Euros. With consumer goods, multiply that by three or four times.

Europe versus Asia and AmericaIn 2009, US online marketing revenue was about 16.7 billion Euros. Europe’s total was 14 billion. America will always be a major player. We are still driven by American innovation as seen in Google, Facebook, Microsoft, Groupons and as yet unknown startups. However, by 2012 Europe will surpass America.Right now 50% of European expenditure goes into American brands and 50% to European brands. American advertisers will likely focus more on Europe than they did in the past when we represented 20% of their revenues.

Even for Google, Europe is now becoming bigger than the States. We are likely to have a bigger voice in global challenges like standardization. The States will have to listen to us and collaborate, equalizing the balance between the US and Europe. That may be a challenge for Americans not used to collaborating.

Russia is on the move. Its Mail.ru was listed on the London exchange at one of the biggest market caps in Europe. However, by 2015 the biggest market will be Asia. India will grow, but certainly China will be bigger. China is working with us, but will Chinese ISPs such as Tensent and SINA become international? Will China go to the States or align with Europe?

“the businessconsequences are profound”

“we have to changesomething in theeuropean mindset”


The next five years are important for Europe. We have the multicultural talent and the brains to put European creativity back on the map, but we have to change something in the European mindset – the entrepreneurial spirit.

Innovations in the next five yearsRadio-frequency identification (RFID) technology and location-based services (LBS) offer much promise to make our lives easier. But the privacy issue remains.

LBS and RFID will have an influence on our digital connections, but it is difficult to predict the marketing aspects right now. We must leave that to the creative folks at firms such as DQ&A. DQ&A are developing new services for communities wanting to buy together.

Expect innovations from Groupon, Twitter, and the social media. Interesting new social kind of activities, perhaps using LBS or RFIS, will prompt the need to create new marketing connections. As we look at the ecosystem, media owners may need to reinvent their businesses to distribute their content. However, their challenge in the next five years is how to monetize their content and play their new reinvented role.

The reality is we must all invent new business models. It will be painful. Some companies will die. Some new players will appear. Unfortunately, some people will say, “We have Google and Facebook. We have a couple of European brands, some Chinese brands. We have the likes of DQ&A to help us, so everything is complete.”

But it is not complete. It is not finished. 2016 will not look like 2011.

Managing the disappointments and moving aheadMay publishers listened to IAB. We urged them to digitize their content. They did so; everything is digital. IAB urged them to create a digital division and hire new people with digital expertise. They all did what they had to do.

Today they are disappointed. Content monetization is still a problem. Revenue from digital content is small. Publishers must further rethink their industry or business model. They established the digital side of their businesses but they still have enormous assets, properties, and activities tied to the traditional side. Learning from other industries will be helpful, such as the travel industry or banking. Doing so is worthwhile. These publishers have a vested place in consumer minds and hearts. They have a place in the ecosystem.

I urge advertisers not yet invested in digital to initiate digital campaigns and digital marketing. It is not about devoting 10% of your budget to banners or Ad Words or links. That is not the definition of digital and interactive marketing in 2011, let alone 2016. Rather, such advertisers and their digital partners should place digital in the center of their thinking. Dare to build a great idea with digital interactive marketing at the core for one of your brands – or all of your brands. Advertisers cannot survive to 2016 by saying, “Well, we are buying a little bit of digital.”

The brewer cited above described their shift in thinking for the World Cup South Africa 2010. In 2006, their budget was 95% in television. In 2010, it was 70% digital. TV was only 25%, and the 70% was not about banners, display, and Ad Words. Instead, they created community websites where fans could connect with David Beckham and all the Dutch stars. They could chat and exchange ideas. They were engaging consumers with the content and the World Cup. They created a central digital strategy. Starting today, advertisers must start doing this. Perhaps this DQ&A book will jolt them into action.

Today, we do not talk about just ten big brands. We have potentially 2,000 locations instead of 20 locations. Our ecosystem is an enormously fragmented environment.

“it will be painful”


Media agencies have a special challenge to create strategies that connect consumers with brands and locations. Media agency expertise will be increasingly important by 2016. Ad exchanges will help advertisers buy directly, but they will still need outside expertise to guide them.

Media agencies and groups will need to expand their expertise to determine what besides buying power can be offered to advertisers. Understanding the data is very difficult now. By 2016, it will be much more complex if we do not come to an agreement about the issues mentioned earlier. Advertisers will need objective experts such as DQ&A.

25Chapter 2 - Ms. Nuria Gimenez24 The Future of Online Marketing by DQ&A

Ms. Gimenez is Head of Digital Services for GroupM Spain. Gimenez’s experience in digital marketing is broad and it dates back to 1990. Her first project assignment was to digitize the entire curriculum of Complutense University of Madrid (UCM).

After leaving UCM, she joined the launch of StarMedia in Europe. The largest telecom operator in Spain later hired her and others to launch its digital platform, then called EresMás. Later it would became Wanadoo Broadband, then France Telecom and finally, following much rebranding, Orange Broadband.

At GroupM, she developed the digital operations for all the WPP agencies in Spain.

Gimenez’s key predictions:

• Newlegislationwillinitiallybemorefrustratingforconsumersthanfor marketers.• SpainwillbeoneofEurope’sleadersinonlinemarketingby2016.• Brandsandbrandaccountswilllookquitedifferentby2016.• By2016,wewillnolongerbebuyingspace.Wewillbebuyingaudiences.

Ms. Nuria GimenezHead of Digital Services, GroupM

Five major changes in SpainExpect to see five main changes in online marketing in Spain by 2016. The first will be an obvious increase in digital media investment in Spain. This year the percentage was reported at 13% compared to 3% only five years ago. The jump has been quantitative, but also qualitative, and we are seeing that our local and international customers are growing their digital sector.

Second, digital investment will be made in a completely different way in the years ahead. We are at the dawn of demand-side platforms (DSPs), ad exchanges, and others such tools. GroupM is deeply involved in this transition, not only regarding digital marketing, but also the whole marketing and advertising concept, be it digital, print, or broadcast.

A change of perspective is called for. We are moving from buying space, in a sense, to buying audiences. By that I mean we will be buying the consumer’s time. We are going to buy this exposure time and we will decide internally what the best message is and the best way of conveying it to the consumer.

This leads to a third change, which is how we use technology, specifically, new capabilities and new decision-making layers for buying audiences. This change involves how we process data, analyze it, and offer it to our clients in accordance with the media strategies used by the creative agencies.

Fourth, creative agencies will see great changes in what they have to do in this new process. No longer can they come out of a client meeting saying, “Oh! We forgot about digital…but it doesn’t matter, those other guys will think of something to do.” No, digital marketing will be part of the discussion from the beginning to the end. It must be. To make a good media investment, we all

“we will bebuying the consumer’s time”

26 27Chapter 2 - Ms. Nuria GimenezThe Future of Online Marketing by DQ&A

must consider how we will use technology to provide maximum payback to the client.

And finally, the fifth change. Brands will need to have greater involvement in the digital marketplace. Brands will need to provide value-added content for users so they can be fully involved in the life-cycle of a brand’s changes.

Brands will need to create their own spaces where the user is shown the qualities of a product.

Spain is a country whose people watch a lot of television. Perhaps it is difficult given our population profile to get people to stop watching television and to change their consumption habits. However, the new generation – our teenagers who are in the street right now consuming Internet from a mobile phone – will pull the Internet ahead of television.

So right now, the Internet in Spain is the third medium in terms of investment. By next year it will be the second after television. By 2016, depending on this penetration, online marketing in Spain will surpass television.

The Internet as we know it today, the Internet of the desktop screen and keyboard, will continue to be behind television. The big difference: mobility. Eventually, we will view traditional television at home via the Internet.

By 2016, Spain will probably be one of the leaders together with Eastern countries. We will take the lead in many online applications that we are really good at. Agency/client relationsThe role of the agencies, including the WPP agencies in Spain, will change. We are all trying to move with the market. For all of us to become fully integrated in the digital market, our customers must also make the same journey. Some customers are thinking ahead, yet we are still pushing others to do so.

Nonetheless, our fundamental role will remain the same – providing information and managing our customers’ media investments. We will continue being strategists and consultants on how to invest an advertising budget in this changing market, whether it be in one medium or another. We are value-added service companies in a changing area of marketing for which clients will have greater and greater need for advice in managing their advertising and – more so – the data they get from it.

Education is more important than ever before. All sectors of marketing – clients, media, publishers – need to be educated. Each manager along the chain of the advertising investment and each account executive focused on day-to-day brand management must come to understand the digital implications and the digital advantages relative to older, more familiar media.

Budgeting must changeTechnology has a price, as does obtaining and processing data. It can be scary if technology becomes 5-10% of your media budget, but you have to look at what benefits will be gained from online marketing, including the data mining and its subsequent processing. It is also essential to budget for the necessary people to execute a successful digital campaign.

Many clients do not have the budget for the creative and its adaptation to various geographies. However, their competitors may be budgeting for online.

Here is the reality all brand managers should grasp: The landscape for consumer goods – and consumer product accounts – may look quite different by 2016.

“education is more important than ever”


What is last must be firstTo get to 2016, the most important change must be in attitude. Some creative agencies and media buying agencies think the television commercial is first, then radio, then the strips … and afterwards digital can done quickly. After developing a whole focused campaign and knowing what will go to television or to radio or to print, the last element in the process cannot be what will go to online marketing.

Some brands are already thinking about digital first and then seeing how this concept transfers to the media. That may not be the answer for everyone, but clients are advised that digital should not be an after-thought. It must be front-and-center with other media. Consequently, everything that is needed to successfully execute a digital strategy will be included from the beginning.

If everyone were aware of digital’s potential, it would be given the same priority as television and agencies could devote the same effort to get digital done correctly. Not all players see it that way, but they may be forced to by 2016.

The online production cycle deficiencyWe are still in the infancy of digital marketing and adapting it to customer needs. Typically, it is the customer or the agency that looks to technology solutions and decides on one. But no general technology can answer all a customer’s needs.

Oddly, in spite of all the technology available to us, we still need many people just to launch a single online campaign, and many more to launch several campaigns. At present the campaign personnel can work with one another depending on the technology they have. What is needed is some technology synergy, an umbrella of sorts to cover campaign management so the many technologies speak to one another and share common metrics.

More speed is needed when launching campaigns. We all see the Internet as quick. It is, but for three years we have carried on with the same production process for digital advertising and it is still slow.

For television, an old medium, we shoot commercials and send them by courier. But with digital, the process is much longer. It can take up to two days for the launch process. Why? We need a better production and traffic process. Online marketing, in this regard, is conspicuously slow and surely must be made more efficient. We have technologies, but we are not exploiting them.

Engaging the individual consumerWe must remember one reality: The consumer will never ask for advertising. Future marketers and advertisers will know an online advertisement adapted to the needs of a specific consumer’s behaviors, learned from data, will be more relevant to that consumer. Such advertising will be far more engaging

to consumers than what they are used to on television or other classic media. Such advertising will have greater influence and, more importantly, greater engagement potential with the user. That is the essence of brand loyalty.

For example, at midday I usually feel a need for coffee. Because of my previous Internet behavior, this coffee urge becomes integrated into the content that I am browsing. So I receive advertising adapted to this urge because I once clicked on something on an advertiser’s site or because of Déjàvu Technologies, which is Internet memory technology. The advertisement is not annoying to me; it is a welcome reminder.

“that is the essence of brand loyalty”


The owner’s device and the owner’s lifestyleEvery user, although anonymous, is unique. Whatever device you are using, at any one moment you are receiving a targeted and relevant brand message wherever you are and whatever you are doing.

This is why I am not one who thinks there will be a boom of investment in mobiles, per se, because it is really an investment in screen type. It could be smart phones or it could be tablets. Maybe a new device will appear by 2016 offering the user even more options. The issue is window type and consumption type.

Legislation and the privacy issueAny new legislation on how data is stored, processed, and shared will greatly affect the consumer or customer in front of a computer, a mobile phone, or iPad. At first, they will feel overwhelmed by the number of things for which they will be asked to give consent. “Do I accept that my ad server shows me advertising messages? Do I accept the software conditions? Do I accept each and every one of the applications that I have been installing?”

All this will make it difficult for a user to have an initially positive impression of online marketing. When this stage ends, however, clients will be able to enrich their marketing thanks to the fully anonymous processing of data for each of their brands.

Until now the possibilities of this data and how it could be processed had not been seen. We had resigned ourselves to finding, say, men and not women of a set age, more or less related to a particular salary bracket, and with a certain type of lifestyle.

Many brand managers are aware that by taking the data from each campaign and by understanding the anonymous behavior of users, brands will be making a greater investment with greater return. Why? They will gain the power to reach the user in a given moment with an appropriate relevant message.

These ads will not be mass messages, but rather messages with much higher added-value for users at just the moment when they are most interested in such a message – just like my mid-day coffee urge. Anything that is not of high-value interest to the consumer at that moment will be deleted as junk, and the data on such deletions further improve the client’s customized messaging capability.

32 33Chapter 3 - Mr. Fernando TaralliThe Future of Online Marketing by DQ&A

Mr. Fernando Taralli, President, Energy by Young & Rubicam and Brazil. Mr. Taralli started his career in the 1990s as a banking/finance client in Brazil where he became a strong advocate of CRM. In 1996 he moved to the agency side as direct marketing agencies started operations. By 2000, he and colleagues began investing in digital marketing. They launched the first portal of a large telecommunications operator. By 2000 he returned to the client side as Marketing Director for Sony Electronics/Latin America based in Miami. He signed Sony’s first contract with DoubleClick and launched Sony’s first e-commerce direct marketing site. In 2004 he returned to Brazil, joining Young & Rubicam/Brazil as their Director of Digital Strategy.

He is now President of Energy BR, an online ad agency in Brazil whose clients include Groupon, Expedia, and some of Latin America’s largest advertisers.

Taralli’s key predictions:

• Allprint-basedmediawillvanishby2016,replacedbyiPad-based journalism.• TheBraziliangovernmentwillpushnationwidebroadband,making Brazil the digital giant of Latin America.• Facebookwillbecometheinfrastructureofbrandingby2016.• Journalists’storydecisionswillbedrivenbythedigitaldialogueonsocial networks.

Mr. Fernando TaralliPresident, Energy BR by Young & Rubicam


All this will happen when broadband expands in Brazil. When that happens, everything we know that works perfectly on digital will work perfectly for TV. We will be able to use tags to identify what a user is watching on television. Print media will vanish. Print media will be iPad driven. All media groups will move to IP.

What will happen with the new middle class? It is likely the Brazilian government will subsidize broadband nationwide as Korea has done, giving Internet access to the bottom half of the social pyramid. Such a development would greatly enhance online marketing and business here. But that must be balanced with cutting taxes in Brazil so that businesses can lower costs and become price-competitive for these new consumers.

Handling change as power changes handsBrazil will see big changes in content ownership and content distribution. Current media groups here will move aggressively toward content ownership and not be focused solely on distribution. But compensation for the content will remain an issue – how to make money on content as we move to a totally online marketing environment. Content publishers, agencies, and technology providers need to work closely because Brazilian agencies still control media buying.

Agencies will need to change. They must stop thinking mass media communication. They must stop the old technique of barking and gaining consumer attention by interruption. That will be the biggest change in advertising by 2016. We will no longer be able to control the audience. We will need to focus more on the quality of the message, how segmented we make that message, and how relevant that message is to an individual consumer.

In essence, no more “one size fits all.” However, all these segmented solutions may incur additional development costs. Nonetheless, I foresee a great future. The consumer will perceive advertising more favorably because it will have more personalized content. No longer will a consumer who just bought a car

Brazil – The digital giant on the horizonThe future of online marketing will bring many changes in Brazil. We are a fast-growing economy. In 2011, we are on the cutting edge for Latin America but still almost three to four years behind the United States.

Often I meet with the management of companies planning to enter the Brazilian market to review how their communication plans looks like. They are surprised to learn how dominant Open TV’s share of media still is: 65%. Of the 65%, 55% is with Global Networks, which is likely to be the second largest TV network in the world. Unfortunately, in 2011, digital is around 4.5% of the media budget with Google earning another 1.5 %. One reason for the small percentage is the lack of understanding both agencies and clients have about the greatness of digital marketing.

The quality and reach of Open TV is immense here, and thus has an influence on an important changing demographic inside Brazil – the development of a middle class. Many people are moving up from poverty to the middle of society. During the last eight years, the Brazilian government’s economic actions have created new segments of consumers. Consumers moving up from the bottom do not have sophisticated media habits, so Open TV is their default medium. Digital is becoming their second entertainment medium but, during the next five years, habits will change.

By 2016, broadcast television content will move from open air to Internet Protocol (IP). We will be watching the television that we love today through our Internet connection. This transformation will be the largest change in Brazilian advertising media.

“all mediagroups will move to ip”


As we move toward 2016, media and other marketing vehicles will change. One reason is technology providers will develop new tools. They will push both agencies and clients with new capabilities and connections. More collaboration is needed between the U.S. online marketing industry and Brazilian industry to push change even higher. Brazil cannot remain behind.

Look at what has happened with Brazil and The Cannes Lions International Festival of Creativity. Brazil used to dominate The Cannes Festival when it was focused on off-line media. But now Cannes is focused on online media, and I predict Brazil will not win any Titanium awards for the next four years. That is because Brazil is still treating online marketing as a segment or part of a media strategy instead of online being the center of a strategy. To win the Titanium, Brazil must think digital and then push it to all media.

Clients and agencies in Brazil are not getting this point right now. But by 2016, I predict Brazil will be winning all The Cannes awards because we will all see digital as the center of strategy and other activities will be collateral to digital.

Facebook – branding by dialogueSocial media will be central to online marketing, particularly Facebook and Twitter. Facebook is a great platform. We used to think about hot sites and banner ads and links to hot sites. But people are not clicking anymore, so banners need to have richer content aimed at the right target at the right time. If users later want to visit you, it is because we are successfully targeting them and they choose to click.

The value of Facebook is you can build an entire hot site with everything you need inside Facebook.

From the user’s perspective, Facebook is much simpler. He or she does not have to leave the Facebook environment. But the challenge of Facebook is its core – interaction. The user wants to share or wants to offer an opinion, a like or a dislike. So Facebook is a tremendous opportunity for brands.

be forced to see an ad for the same car, perhaps even at a reduced price. The future will be “It’s for me” and no longer “I don’t want to see this,” as is currently happening.

All this will force the entire industry -- clients, agencies, publishers, and technology providers -- to rethink their strategies and work cooperatively. We need to figure out a way to do all this and maintain our profits over new development costs.

The beauty of all this interactivity for the digital consumer will be the user’s ability to engage what he or she likes and multiply messages to friends. It is the future of communications. A great idea, well segmented, can be multiplied many times, unlike the current media environment based on blocking consumer attention.

It all must start with clientsWhere will the totally online marketing revolution start? Clients. They need to be well prepared. They need to analyze and question. Brand messages will need to be really targeted by 2016, and clients must push the whole industry. That does not mean agencies will have no responsibilities, but clients must preserve their brands or see their brands die. It will be social networks that carry the brand message, and those networks are digital.

Unfortunately, this is out of many clients’ comfort zone. I tell our clients in Brazil to be attentive to the best practices in America, encouraging them to travel and learn. Agencies need to be pushing the same mantra to their clients.

“in essence, no more one size fits all”


Facebook may become the infrastructure behind how content is produced or evaluated. You need to have Facebook inside your website. As you read an article, perhaps from you iPad, you might also see which friends have already read the article and offered their opinions. Such content should be more interactive and rich in quality by introducing video, introducing comments, participation -- everything that we have learned from the social networks.

In the future, publishers can rely on user comments as the inspiration for new content. Users are telling you what is hot and what to follow. Users will be in control and users’ opinions about content will guide what future journalists write about.

Social commerce and the future of retailSocial commerce is the new frontier for retailers. Friends buy things and comment positively on their purchases. Other friends read the personal endorsements. Social commerce will be the biggest change for consumers because they will never be alone in future purchases. You will have no doubts because others have bought that item and their comments are available to you. As a consumer, I don’t buy anything without reading product reviews. Consumers will increasingly use such reviews as they uncover them.

Clients and agencies need to see Facebook as the new revolution where the brands are open to dialogue. We should have no fear of that dialogue. The communication strategy needs to maximize the digital presence of the brand inside these social networks.

Users are investing considerable time in these networks compared to other media, so we all need to respect how these consumers use this medium. You cannot use a mass media approach on social media; you need to be segmented. You need to be open to dialogue. You need to listen to the consumers. You need to enable them to create a crowd.

We are happy that Facebook is growing in Brazil. But by 2016, who knows? We may have new social media platforms that offer an even better branding opportunity.

Publishers and their contentFacebook is not a threat to traditional publishers, but publishers need to adapt to Facebook. They need to move their content to digital and learn how to monetize it. That is a very different kind of publishing. Facebook is all about friends sending friends content. That is why some claim Facebook represents the death of the web.

We trust our friends; they trust us. I have been reading and watching digital assets through Facebook because friends suggest I do so. Facebook is a shorter process and one built on trusted relationships. All this is a huge challenge for publishers because they have to adapt completely the way they distribute content and then monetize it inside the social networks.

“we should haveno fear of thatdialogue”

“some claimfacebookrepresents thedeath of the web”


This is all about the transparency. People will tell you about product quality and whether your brand has a problem. Social commerce is by far the biggest revolution, even bigger that e-commerce was originally.

I am happy to have discussed the future. DQ&A has been a partner and I think technology providers are a vital role for the future of our industry.

“social commerce isthe new frontier forretailers”

43Chapter 4 - Ms. Jacqueline SmitThe Future of Online Marketing by DQ&A42

Ms. Smit is General Manager Consumer & Online for Microsoft, The Netherlands.

Her career in advertising started in the early nineties with Leo Burnett where she was responsible for media and creative. She then managed the media agency Starcom.

Prior to her current role at Microsoft, she managed online services and consumer marketing for Microsoft.

Smit’s key predictions:

• Retailerswillhaveanearlyone-on-onerelationshipwithconsumers.• Agenciesmustaddgeneraliststomanagetheirspecialists.• ITwilllookoutside-inratherthaninside-out.• Everythingwillbeconnectedbutindependentofdevices.

Ms. Jacqueline SmitGeneral Manager Consumer & Online, Microsoft

44 45The Future of Online Marketing by DQ&A Chapter 4 - Ms. Jacqueline Smit

Advertisers will have to be aggressive leaders of the online marketing industry. Many are already doing so. Advertisers need to be owners of their brands and all the communication of their brands across every daily touch point with consumers.

Advertisers must be accountable for market share movements, more so than ever before. Advertisers can do so only when they are close to all the layers and all the drivers of their daily business.

By 2016, marketing will be a more complex, more time consuming profession, but it will also be a more interesting profession and more effective than it is today.

The rise of the agency generalistsMedia agencies and interactive agencies have increasingly specialized. Many people were educated in a smaller way, in a specialized way, such as in creative or media. But even within media, we find specialists in interactive media or search or online bannering or activation.

Such focus was necessary because we were all entering new territory. But as important as specialists are and will continue to be in 2016, they often answer an advertiser’s or marketer’s question with only their narrow focus.

Specialization may be reaching a turning point. All those perspectives should be brought together into one place -- a new type of agency. If we do not do so, we will be stuck in our specialist business models and that will not help the overall online marketing industry.

So what will the agency staff of the future look like? Media agencies may grow more organically. They will be handling assignments that need various talents, and agencies cannot be dependent solely on the full-time employees currently on staff. Five to ten years from now, agencies will need a variety of talent temporarily retained to help with specific projects or tasks.

Data-driven marketing: More effective, more interestingBy 2016, marketers will be able to reach customers anytime and anywhere, but they will succeed only with permission-based, relevant messages. Online marketing will be driven by peer-to-peer interaction. In the future, we will all be focused on content, not the device.

Consequently, retailing will completely change in five years. Retailers will be able to factor in geographic locations and send relevant messages within peer-to-peer groups – in other words, friends of friends. These friends live in a certain area, so retailers will be able to determine these friends’ consumer interests and offer combination discounts. The future will offer retailers a nearly one-on-one conversation with consumers in a scalable way.

But all this online marketing power requires the marketer to compose very sharp messages. It will require knowing what is driving your consumer and whether it is real passion or merely passive interest. The positioning must be precise.

Today, online marketing is not doing this well. We know a lot but it is still social demographics. What consumer insights we have are in categories owned by advertisers rather than the entire industry. Extensive research is needed to bring it all together. Marketers all need to build more in-depth data about consumers, then connect the data to the message and the medium.

“marketing will be driven by peer-to-peerinteraction”


reflecting individual reader profiles. Ad exchanges and other platforms will make it easier to reach people, whether it be MSN, Facebook or Twitter or whatever site a consumer wants to be on.

Technology will, of course, advance further by 2016 over three or four screens. Those screens will distribute content according to individual profiles of consumers. But to get there, publishers need to be open-minded. They may need to turn their business model upside down and start over again.

Microsoft is working with many publishers regarding MSN. Everyone is trying to invent a new future. We are all in the same boat. However, if we define where we can work together instead of where we compete, we probably will make considerable progress by 2016.

Microsoft and the future: Outside-inWe at Microsoft are exploring new ways of reaching consumers, whether through advertising, content, or productivity. We are looking at consumers’ new life styles, new behaviors, and new ways of adapting technology, and then we try to adapt what we have for them.

For many years, the IT industry has looked from the inside-out: “This is what we have for you, use it and you will be happy and that’s what it is.” Instead, Microsoft is taking an outside-in perspective. Our message is to make technology inclusive for a broad audience instead of just for geeks or nerds who understand everything and are always the early-adopters of everything new. Many people still don’t know what Twitter is or how they can upload a photo into their e-mail.

Agencies will move away from having a static team of permanent employees in one building.

To manage all this diversity, our industry must bring in more generalist managers, people who have several backgrounds and can look at the complexities of a marketing or interactive assignment from a broader perspective. We need more people who can see the overall forest and not just its trees -- bright people with broad perspectives managing flexible, generalist agencies.

Aside from the specialist versus generalist issue, we must be certain in the future that what we automate actually provides added value. Some automation has no brain. Not everything that can be automated is added value. What adds value is anything that is more relevant to a consumer, or enables a marketer to better understand the consumer, or captures consumer touch points during the day, or adds a geographic location.

The future for agencies is how they understand these issues and connect to the media mix while breathing strategic or creative thinking into that mix. But to accomplish all this, expect to see many consolidations and acquisitions among agencies.

Publishers’ new business modelSuccessful publishers in 2016 will be those who see that technology can offer their readers more tailor-made, more relevant permission-based content

“our industry mustbring in moregeneralist managers” “everyone is trying

to invent a newfuture”


For example, perhaps you are leasing a car. What information are you willing to offer? What cars you decided not to lease? Your income? How many times you plan to drive each week for work versus shopping? I am willing to offer such information if I am certain it is used responsibly, kept only during the lease period, and then vanishes afterwards. We all must be very careful how we use such data. We must regulate ourselves according to a common agreement.

At the moment, we the industry is experiencing a little chaos regarding privacy of data, but that may help us all to see what needs to be regulated. Of course, some parties will be opportunistic, and that will spotlight what needs regulation. At Microsoft, we make sure our brands engage only the trustworthy parties capable of helping consumers. Also, we are very active in industry bodies to make sure that everybody is conscious of the issue.

Who will lead us to 2016?The future may offer many surprises about world leadership. I have long been in international networks and I have found the leader is almost never the usual suspect.

For example, look at what is happening in Africa. They skipped a lot of development that we went through and moved straight away to mobile. That really advances their infrastructure ahead in time. In every part of the world, technology develops and adapts to usages that fit that country and culture. Scandinavia and The Netherlands have been ahead of a lot of developments. But if you look at the Asian countries, they are ahead of us in how they use and adapt technology. Services and how marketers use them are also developing quickly, so we all need to watch such developments carefully to see where things are going.

Connection will be the key word in the next five years. Everything will be connected but independent of devices. Look all the services available on the iPad or similar devices. Behavior is changing. It is not the device anymore.

We want to reach the people still struggling and finding all of this very complex.

So we do not tell consumers what is possible with our technology. Instead, we try to gain their understanding of what the technology can mean in their daily lives.

Time, for example, is very precious. We do not talk about how consumers can use their calendar more productively. Rather, we show them how their lives now look as they stretch a hundred different ways with lots of different people, and then we show them what they can do to gain back two hours in their day. Thus, they discover how they can adapt technology to their daily lives.

Privacy issueThe privacy issue will have tremendous influence on the future of online marketing by 2016, but in a good way. We must all be conscious of the vast amount of information that we leave on the Internet every day, accessible to billions of people. We must be very careful how we use that data, whether in the health industry or Internet banking or your taxes or your private information. Everything we leave on the Internet must be safe and secure so the owner of the data is conscious of what he or she is sharing.

I believe people are willing to share lots of information if they know it is secure. Privacy and security go hand-in-hand, and that requires that sharing data be permission-based.

“people are willingto share lots of information if theyknow it is secure”


It is not because you can hold the device in a different way that makes you tick. Rather, it is the things you can now do beyond what you are used to that prompts consumers to adopt new technology. It also changes the way people look at the PC or the desktops.

We are rapidly becoming used to mobility. So the things in your room or office that you cannot move now look like Jurassic Park. Mobility and a transparent connection will be the operative concepts of 2016.

“mobility anda transparentconnection willbe the operative concepts of 2016”

52 Chapter 5 - Mr. Babs Rangaiah 53The Future of Online Marketing by DQ&A

Mr. Babs RangaiahVice President of Global Media Innovation, Unilever

Mr. Babs Rangaiah is Vice President of Global Media Innovation, Unilever.

His career includes traditional marketing and media at the New York advertising agency D’Arcy Masius Benton & Bowles. In the late 1990s, Rangaiah helped start the advertising division of the Internet Company Agency.com.

His Unilever career started in 2002 as Media Director in the United States where he facilitated the transition from solely traditional media advertising to a more diverse mix of channels, including branded entertainment, cinema and digital marketing.

In 2008, Rangaiah moved to Unilever’s European operations, as Vice President of Global Communication Planning. His focus is now on the fusion of new media sensibility into the creative process by moving beyond just traditional paid advertising and by leveraging consumer engagement and interactivity, all across multiple regions.

Rangaiah’s key predictions:

• Data&thesocialgraphwillplayanintegralroleinmarketinginthenext few years.• Pushstrategieswilldecline,pullstrategieswillprevail.• Peoplewillbeabletoseecontentonanydeviceatanytime.• Moreapp-basedbehaviorwillcompletelychangeconsumermarketing.• Onlinegamingbehaviorwillbeamajoropportunityformarketers.


POEMPush is the past; pull is the future. We are shifting from a purely paid-based advertising model to a more engagement-based model. Now the conversation centers on the new acronym POEM – Paid/Owned/Earned/Media. I think it describes the trend well. In the short term, buying advertising will probably remain a prime marketing tactic to reach consumers. However, five years from now it will skew more towards earned media.

Consumer-owned assets will become more influential, whether it is a website, a Facebook page, or a media channel. Many individuals will become more like marketers or publishers on their own, providing content they will control and distribute on a regular basis.

The social graph, whether it is conversation, pass along, liking on Facebook, or following on Twitter, becomes the earned media. The potential for earned media, while it used to be primarily a public relations driven area, is to amplify an overall campaign. This potential will grow exponentially because of the pass-along power of consumers with hundreds of Facebook friends and Twitter users with millions of followers. Word of mouth has always been the most powerful form of marketing, but now it’s exponentially increased because of the Internet.

The shift is near. It is just a question of how much we move from a traditional advertising model to something that really incorporates all the power of POEM.

Branding in the futureThe future requires significant changes for organizations dependent upon branding. Branding that engages consumers will have to be part of content, whether it is web-based content, polls, or quizzes.

Consumers will have the power of content-on-demand in ways that they do not have today, whether it is books, television shows, or movies.

By 2016, the changes in consumer marketing will be substantial, across everything from video to search to social media to gaming. The change with the biggest influence on marketing will be the ability to laser target audiences more effectively based on available data.

Right now, five companies -- Apple, Google, Twitter, Facebook and Amazon -- are leaders in data mining and leveraging the social graph, not just on their own particular sites, but across the web. Just think about the “Like” button on Facebook and the “Follow Me” button on Twitter. Consider all the information Apple acquires on people’s behavior that relates content through iTunes. Look how Amazon’s book reviews and its recommendations engine have changed book buying habits. Think about how Google and search have made it easy for consumers to buy.

The other development will relate to return on investment (ROI). A famous old advertising lament describes the past: “We know half of all advertising works, but we just don’t know which half.” During the next five years, we should be able to know “which half.”

With such data developments, we will be able to offer consumers contextually relevant ads. When people are actually in the market for a specific product, they will get creative messages in creative places related to their interests.

In short, the ads will be inherently more personal and appealing to them. Marketers who can harness that data properly are going to enjoy a vast opportunity.

“push is the past; pull is the future”


The role of print media and televisionAll these trends will greatly affect traditional media such as print and television. Television’s future will be affected by consumers access to multiple, alternative screens and the on-demand control consumers already have. Great content will become more abundant and people will increasingly watch it on screens other than televisions.

An example is the American television program Saturday Night Live. Actress Tina Fey was imitating politician Sarah Palin in a comedy skit. More people viewed that skit online than those who saw the actual broadcast show on NBC that night.

Budgeting trends for online marketingDigital marketing will make up a significantly higher proportion of brand marketing mixes. We are already seeing big increases in some developed markets.

The life cycle will be longer in emerging markets. There it will depend on infrastructure, such as smart phone penetration and broadband capability, whether through 3G, 4G or PCs. Nonetheless, online budgets in emerging markets will take longer to hit critical mass.

In any event, mobile devices will be the primary medium in emerging markets. The big driver will be apps. Whereas you still see a lot of surfing and browser-based behavior, you will see far more app-based behavior by 2016. It will be much more personalized and that will help media companies. The app experience for magazines and newspapers offers a monetization scheme so those publishers can survive and thrive.

People will have multiple screens and ways to view the content -- smart phone, tablet, laptop, their television, or DVRs -- whether downloaded from the cloud or sent directly to hard drives. Consumers will be in charge.

Thus, the idea of branding through shows at particular times becomes a much rarer feat. Instead, the task is to manage content in such a way that people will be able to see communications on any device and on their own time.

Consider the iPad app Flipboard that allows you to read all the news and social media of interest to you in a fun, engaging, and interactive magazine. Consider Twitter where you are mixing and matching everything, from news streams to reading about what your friends are saying or expert commentary from strangers on topics of interest. Consumers are able to read personal blogs and what the big news companies and their reporters are blogging and tweeting.

By 2016, consumer-generated content will rival professionally-generated content for consumer viewing time. Today, people are spending an enormous amount of time just watching Facebook and reading their friends’ information, rather than watching professional content.Smart marketers will try to collaborate with consumers by making them part of the business. We might invite them to create their own ads, packaging, jingles, designs – maybe even product concepts – thus allowing a marketer to reach millions as opposed to hundreds in the past.

“smart marketers will try to collaborate with consumers by making them part of thebusiness”


with children. Gaming is popular everywhere, from India, China and Brazil to the United States and the United Kingdom. Gaming will increasingly be an important medium for marketers.

In the past, the vast majority of content that people spent time on was created either by Hollywood, Bollywood, or the major production sources. By 2016, however, you will see much more content coming from ordinary people with content ideas and the ability to create and distribute their content and reach people at a scale you have never seen before. Such creative individuals have great business potential by being brand advocates. All these channels and developments will greatly influence online marketing.

The next five years will be exciting for marketers who see what is happening.

Storage trendsConsumer demand for more content will drive the demand for increased storage to accommodate full-scale, high-definition movies and television shows. Therefore, cloud computing must keep up with broadband, being a much more valuable service for a huge piece of content. Hard drive storage must also expand.

By 2016, increases in storage power will enable almost everybody to have an entire library of books, magazines, music, TV shows, movies -- everything on any device or pull it from a cloud. It will work

both ways: Storage space increases will further drive on-demand content development.

Brand strategies in online marketingBrands strategies will focus on several key channels, including social media, smart phones, gaming, and non-professional content creation.

In social media, companies need to re-evaluate everything, from legal to corporate communications, employee behavior, marketing choices, earned media, and video. Box offices and movies are being driven by what happens on Twitter and other social media. Social media is driving search rankings, and that clearly shows how important social media is to marketers.

Companies can no longer think solely of TV ads. Rather, they must consider creating content for consumers’ multiple screens.

Smart phones and tablets will provide a huge opportunity, but people are also spending considerable time with online games and things such as Zenga and Farmville. It is not just teenage boys; it is the mainstream, including mothers

“the bigdriver will be apps” “companies need to

re-evaluate everything”

60 61The Future of Online Marketing by DQ&A Chapter 6 - Mrs. Alison Fennah

Mrs. Alison FennahExecutive Director,The European Interactive Advertising Association (EIAA)

Mrs. Alison Fennah, Executive Director, The European Interactive Advertising Association (EIAA)

Alison Fennah’s introduction to the power of the Internet began with computer game companies in the early 1990s. She and her colleagues suspected that online communications and gaming would grow dramatically. They realized in those early days the potential for brand marketing online and also how quickly word of mouth could raise or ruin a product and how a loyal group of fans could really make a product and brand successful. In the late 1990s, she joined Yahoo and survived the dot.com boom.

In 2002, she was instrumental in establishing the EIAA, based in the United Kingdom. Its purpose is to provide research that proves the advertising value of the Internet and mobile so more advertisers and agencies throughout Europe include online marketing in their media mix. Fennah’s key predictions:

• Contentpublisherswillneedtoworkwithexpertpartnerstoengage consumers.• By2016,interactivechannelswillformthemostimportantpartofthe brand/consumer relationship.• Mobilewillenableconsumersacrossallcontinents…watchAfrica.• Bigeventswillcontinuetodemonstratethepowerofsocial/onlinemedia.• Therewillbesignificantinnovationinmobileadvertisingformats.

The evolution of the consumerBy 2016, the Internet will become even more consumer centric as advertisers and agencies move more communications online. In the process, better ways will be found for managing relationships using interactive media.

We are witnessing the continued evolution of the consumer. No one typical consumer exists. We in online marketing must enable every type of consumer, from the technologically savvy to those still struggling with the basics and need to catch up. Everything must be customizable for each of these consumers. Every consumer can get out of the Internet what he or she wants to the level of Internet participation desired.

Consumers can be very fickle about what they like one minute and what they do not like the next minute. As the whole media world develops, consumers have expanding choices about what content they want to consume and how they want to access it. Some people may want a really complex involvement with certain brands and certain advertisers. Others may prefer to just dip in and dip out now and again. We have the tools to do that for consumers.

Right now, we are in an interim phase. Some advertisers are developing some great new campaigns, creative ideas and relationship management strategies, but those techniques are not always the norm.

By 2016, however, campaigns will look very different. A consumer will expect a good interactive campaign from all of his or her brands. The consumer will expect a relationship that respects him or her as a consumer and provides an easy path for purchasing….and repeat purchasing. The consumer will expect a brand relationship to be managed very effectively and in an appropriate, convenient, and personalized way.

“we are in an interim phase”


The opportunity for publishers to leadIn the future, publishers’ focus must be on delivering the right content at the right time across the right format. That is obviously very simple to say as devices proliferate. The publishers’ challenge will be to spot the winning platforms and get it right across all of those devices, bearing in mind how people use the different devices depending on their location and purpose.

Big events influence consumers’ online development and behavior. We saw it in Egypt early in 2011. People were pushed to express themselves in a different way and this enables the development of one aspect of content publishing. We saw it in late April during the royal wedding. The Royal Family went online with their wedding and more people were engaged online. If the British Royal watchers can do it, then anybody can do it. These landmark events have the power to shift our media habits substantially. Next year, the Olympics will see online technology performing as it never has before in delivering content to people all over the world. People will be able to catch up with the events they want to see and do so as quickly as possible.

People want to know the Internet is a sound and secure environment. That is good news for the publishers because they have it in their power to make it a sound and premium environment. However, a challenge remains for technology providers and other companies trying to provide safeguards for Internet users. At times, the technology still struggles with the more troubling aspects of the Internet, such as viruses and spam. Consumers can be disappointed to see such things on their computers and wonder why those problems have not been solved by now. Such problems also make some advertisers a little hesitant about where their ads will be placed.

“they will earnsolid rewards”

Publishers need to see the opportunities their content can provide.Publishers need to find the right technology tools but also the right working partners who can streamline content efficiency so consumers get what they want and when they want it. Once publishers solve that problem they will earn solid rewards.

Advertisers, agencies … and the Insight Council at EIAAAgencies have taken huge steps over the last couple of years. Many have helped advertisers become more in tune with today’s and tomorrow’s consumer experience.

In EIAA, we formed the Insight Council to encourage change. Its purpose is also to break down the silos among advertisers, agencies, and media owners. The Insight Council provides a relaxed atmosphere in which agencies, media owners, and advertisers can share information. It includes leaders from some of the global agencies as well as local agencies. We discuss their experiences, what they are doing, and what we all need to learn as the leading constituents within the industry. We work together to identify the information and actions we need as an industry to grow our business online.

Many agencies and advertisers have restructured themselves. It is not only a question of having your product development division, your communications division, and your board reoriented. It is also important that all communications related to customer relationships be viewed as a top priority across the advertiser’s organization. That priority must also be reflected in how advertisers work with their partners. Unfortunately, that is one of the slowest things to happen for many global companies. When you think about the large infrastructure of some global companies, it is really difficult to manage change on global, regional, and local level so that the firm can begin to have a new type of relationship, both with providers and consumers, from bottom up. That restructuring will be the biggest challenge for advertisers.


The future of EuropeEurope is and always will be fascinating. We are one common market and yet so many differences prevail among the different countries. Consumer habits differ. The nature of the market places among European countries differs. You need only look at the share of search versus display versus mobile to realize that the marketplace is hugely different in each country.

We cannot prejudge how any one of those markets is going to develop. Vigilant research is needed. We are very lucky in Europe because we have such a rich variety of companies across the continent. We can interact with all of those innovation hot spots to find the new and exciting ideas. Innovation can come from any place.

In Europe, the media creative agencies have contributed a significant percentage to each nation’s economy. That has been a big advantage for Europe. European governments and industry leaders know the power of the media in each country and how much it contributes both to individual economies and the overall European system.

We have flagship consumer brands and flagship media brands respected the world over. Our technology is second to none. All this enables us to do business throughout the world. Our companies can grow their businesses in an environment that is really rich with many possibilities.

Consumers and the continental drift of online marketingThe future role of technology, combined with creativity in advertising, will be to move online marketing to the point we can deliver on and anticipate the needs of consumers in a non-obtrusive way. That will mean innovation

“innovation can comefrom any place”

in technology such as search, location-based technology and display. Look how mobile has grown. The industry is continually investing substantially in the mobile platform for consumers. That is true of many different areas of online technology. We have done very well with search, e-mail marketing, and display. Massive innovations are yet to come to take the consumer forward. Mobile is one area where things will move much more quickly during the next five years to make the consumer browsing and buying experience seamless. Looking around the world, online innovation can be spread from anywhere to

anywhere with the right support and funding and the right word of mouth. Everyone knows China’s influence will be felt, but keep your eyes on Latin America for more online development. Much potential exists in Africa. The global economy will change greatly by 2016.

An international standard for privacy Privacy will continue to be a really important topic. Consumers need to be able to clearly access information regarding how their information is being used and how they can control that process The industry recognizes the issue and has come together to protect consumers’ privacy. Privacy rules exist in all the countries across Europe. Nonetheless, we need to create an umbrella system for all of Europe so that we can demonstrate at European level that there is an effective and co-ordinated system.

Some consumers are completely on top of the privacy issue. Others have very little understanding of the technical side of the Internet and how their data is used to facilitate the services they are accustomed to. We need to provide all the available information in an easy and understandable way. I am glad to say the industry is taking the steps needed to ensure such progress, but we must

“massive innovationsare yet to come”


make sure the process is well coordinated and carefully managed. All media develop and change in their interaction with the consumer and are pushed in different ways by various interest groups. It is our job as trade associations to protect and develop the media and have answers available to questions from all sorts of stakeholders. The internet enables transparency and as an industry we should be transparent. We must be very upfront, very clear, and very available.

In closingThis DQ&A book is a good start on what we all must do by 2016: communicate, encourage debate and reach consensus for the good of advertisers, agencies, publishers, and consumers. The book has provided the opportunity for leaders to speak up and speak together, to collect our perspectives and get people communicating across different media. That is what we are doing across the entire EIAA organisation. I hope we will see more of it in the future.

68 69The Future of Online Marketing by DQ&A Chapter 7 - Mr. Michael Read

Mr. Michael Read Managing Director, comScore Europe

Mr. Michael Read, Managing Director, comScore Europe.

Michael Read is the Managing Director of comScore Europe. Prior to joining comScore Europe, where he was the first European employee in 2005, Mr. Read worked for the French company Net Value. He has experience in the publishing industry and television advertising, and also audited magazine circulations for BPA International.

Read’s key predictions:

• TheboundariesbetweentheInternetandtelevisionwilldisappear.• Insomecountries,mobilewillbetheInternet.• Thefutureofonlinemarketingwillbringinteractivevideo,gaming,and social media into play such that brands truly engage with their users.


Technology is taking us to places we may not be able to visualize right now, or even in five years hence. The growth in broadband penetration and the growing acquisition of mobile phones and tablets across the world foretells the future. We will soon have a much more mobile world society than we have today, a more geo-located and on-demand society.

The boundaries between Internet and television will disappear, maybe not by 2016 but probably by 2020. There will be no difference. We will all have Internet operated television devices at home, at work, and on mobile.

Mobile access is beginning to take a real bite into the marketplace. In some countries, mobile will be the Internet. Turkey is a good example. It has 75 million people, of whom 30 million people access the Internet. But 60 million people have mobile phones. Such marketplaces are really going to adapt more to mobile technology than to fixed Internet.

Measuring an evolutionary InternetOur challenge at comScore Europe is how to measure all this. What we do is chase technological advances on a global basis to measure the online potential for each market. It is a difficult task given the cultural and structural differences in the developing marketplaces.

At comScore, we have observed the evolution of the Internet since 1999. In the past, online marketing was simply about counting clicks and “hits” and that has presented publishers with a problem. Click-through rates are declining year on year. Our data show the click-through rates declined 28% across the board in 15 or 20 countries. Such a decline indicates we need a better understanding of the value of the media, because I believe publishers are underselling the medium at the moment.

We need to track the latent effects of advertising online. Online advertising can be just as effective in building brands and we have a growing number of studies to prove it.

Additionally, not enough has been done to account for the quality of the creative ingredients. Media buyers often ask media owners to deliver campaigns based upon a direct performance metric, but if the creative is poor the publisher and not the advertiser ends up taking the risk. For example, it is well known in the television industry that the creative is about four times as valuable as the medium itself. Copy testing is very common in television advertising, but that is not the case in online marketing where no real copy testing is done. We hope to change that by bringing to Europe our recently acquired ARS business unit that is dedicated to copy testing both on and off line.

If we consider online advertising, it is clear video streams are viewed differently from their television counterpart. For example we count the video only after a three-second roll by. An online viewer might see just the first two frames and then be bored and not continue. We are learning that to make online video an effective advertising medium, the creative and the context for online must be different.

Online budgets for brandingBrand advertising online is perhaps 6 to 7% of total ad spending in the United Kingdom with search taking 15-20%. Video will take an increasingly greater percentage of the online brand advertising budget. Currently the majority of ad spending is in response but, as I explained earlier, declining click-through rates and a better understanding of the branding effect of online media will, we hope, move the medium to taking more branding budget away from tradition media. Television is actually going through a slight increase in spending, perhaps because advertisers go back to a tried and trusted medium

“we need to track the latent effects of advertising online”


during a recession. Newspapers have the biggest challenge. We are seeing a plethora of iPad look-a-likes coming to the marketplace. If newspapers do not find ways of digitally monetizing their editorial content, their futures will be difficult. I’m personally in favor of the concept of paying for quality news coverage. If the future is online, then we should expect to pay for that.

Legalities of privacy and cookiesRegulations can greatly affect the future of online marketing. For more than a year, we on the IAB Europe board of directors have spent 80% of our time helping the European commission understand the issues relating to cookies, their influence on consumer behavior, and the difference between good and bad cookies.

Our position is simple: Consumers’ lives will become irritating without cookies because the most active consumers are online. Imagine you are accessing your bank account and have to remember a twenty-digit number every time you login. A great deal more education is needed with consumers and legislators so both understand the value of tracking people’s behavior.

Cookies can help advertisers make their advertising relevant. It is advantageous to all to identify a person viewing an online ad as a male, between 16 and 35 years old, and more interested in cars than, say, Rimmel make-up. He doesn’t want to be bothered by Rimmel make-up ads.

Granted, the unscrupulous can use cookies in a bad way, such as tracking people for illegal reasons. Unfortunately for online marketing, the current legislators are inclined to ask everybody to opt-in to receive cookies.

However, the typical person’s surfing journey might include twenty websites. So we need a simpler way to log into websites and a simpler way to accept cookies. It is likely online marketing will feel some pain between now and 2016 before things settle down in terms of privacy legislation. We owe it to ourselves to continually educate the marketplace

The challenge for publishersPublishers must inform themselves of the legal hurdles ahead; ignorance is not a defense in law. The IAB Europe comprises about 24 local markets, so we are available and accessible to publishers across Europe to help them stay informed.

The reality is the Internet is a global medium. We may conform to law in the United Kingdom, but that does not mean somebody in, say, South Africa will do the same. In the global environment, not all things are created equally. That is a challenge for any local legislative body, and it is likewise a challenge for advertisers. Advertisers need to be well informed, but may have to restrict their advertising to publishers who conform to legal guidelines.

Future technology – interactive and interestingThe future will bring innovative advertising formats for digital media. All brand managers seek a connection with their consumers or prospective consumers. The future will not offer just online video ads; the future will offer interactive video, gaming, and social media applied to marketing.

“newspapers have the biggestchallenge”

“online marketing will feel some pain”


Right now, Facebook carries lots of ads, but they are not very interesting. So social media, with all of the stickiness, is not yet answering an advertiser’s needs. Thus, the online marketing industry must find technological devices to make advertising messages, not just interactive, but also more interesting and meaningful to consumers.

Media agencies and advertiser educationIn my view media agencies and ad exchanges will remain central to the online advertising ecosystem. They are examining their own delivery platforms and seeking increased efficiencies in all media buying.

The larger global media agencies will get stronger. They will utilize ad exchanges, develop content networks, and use their scale to influence the market just as they have done in the off-line media environment.

Everything comes down to the advertiser. During my television days, I ran a team that created a relationship between the media owner and the advertiser. That relationship was all about education. With online and mobile, we must educate the advertiser regarding solutions.

As stated above, media agencies will remain strong, but the problem is with media agencies that keep information to themselves and continue to be strong. Thus, the advertiser must be much more knowledgeable about what digital can do because the variety of technological options will become very important.

The industry has a responsibility to make that education happen. It is not going to happen by itself. People have limited time. If your CEO tells you, “Well, you will need to reduce your online advertising budget,” you must have the data to put a stake in the ground and assert online’s need to retain at least 8% of the budget.

Innovation – Where to look around the worldSome emerging markets, such as China, have outpaced everybody in the number of people online. China did it in three years. When you look at a Chinese webpage, it looks completely different from a western website. They consume media in a different way. They are used to very tightly packed screens with lots of small ads. Whatever changes or developments may occur will likely stay in the East because of the culture.

Some huge online businesses are in Russia. They have stayed in Russia for the most part, but I think they will in time move outside Russia.

Many markets are innovating. Much innovation is coming from places like Israel. We have huge technological strength in Europe and great technological strength in Japan. But it will be difficult to see any country overtaking the United States. They have such critical mass with businesses such as Microsoft, Google and Apple that are so far ahead in product branding and thus can dominate online technology.

It would be great if a young expert developed the technology to challenge the search market share. Competition improves the services all around us. We at comScore believe we thrive on competition. It is what makes us better, and that serves our clients better. “the larger global

media agencies will get stronger”

76 77Chapter 8 - Mr. Benjamin FaesThe Future of Online Marketing by DQ&A

Mr. Benjamin FaesHead of YouTube and Display EMEA, Google Europe

Mr. Benjamin Faes is Head of YouTube and Display EMEA at Google.

Before joining Google in 2008, Faes spent eight years with AOL, most recently as Managing Director, AOL France. His career began with L’Oreal and other marketing companies. The Media & Platforms Division manages Google’s advertising products for agencies and publishers, including YouTube, AdSense, AdX, Invite Media, DFP, DFA, and other aspects of the Google Display Network (GDN).

Faes’ key predictions:

• By2016,wewillnolongerusethetermonline,norwillweneedonline specialists.• Auctionbasedbuyswillcapturetherealvalueofamarketingimpression.• Theprivacydebatewillleadtoabalanceofgreatersensitivitytowhat data is usable.• Pre-campaignplanningwillbereplacedbyplanningduringthe campaign.

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The death of waste and priceOne of the things I dislike about advertising is talking about price. To some advertisers, advertising feels like a tax, something you have to pay, so it is often relegated to procurement people who do not understand marketing and see their job as negotiating discounts from the rate card. That is not the point of advertising.

The real point of advertising is to deliver the message of your brand attributes, your uniqueness, in a way that prompts a direct response to drive sales while establishing a relationship, an engagement, with customers. That is not a tax; it is creating and distributing content that the customer perceives as value or opportunity because the message is customized to him or her.

As we better track the results of each advertising campaign, and as we move more and more into an auction world, there will be no such thing as price discounting.

In the past, we knew we were paying too much because part of the buy was wasted, so we tried to minimize waste by negotiating a discount. In the future, we will minimize the waste by not buying the waste in the first place. The waste will be eliminated because of the intelligent data on buyer behavior we capture. That is a much better media buying strategy.

Social media at our coreSocial media will become embedded in our lives. We are still at the beginning. We have not yet explored all the possibilities to leverage the social graph and its role in our day-to-day lives. For example, I have lots of “friends” on Facebook. They range from former colleagues to close friends to family. Had I known that my Facebook friends would determine my own Google results, for example, I might think of my social graph differently. Much progress lies ahead, both in terms of educating people and in better integrating the social signal into our day-to-day lives.

We are in a revolution, not an evolutionWe launched AdX little more than a year ago in Europe. When I see the growth we are experiencing, it is just mind blowing how fast things can change. Online marketing is not an evolution of one change after another. It is fundamentally a revolution, a revolution in our work, leisure, travel, shopping, and life in general.

By 2016, we will stop using the word online. We may also no longer need online specialists. After all, we stopped having electricity specialists in the mid-1940s. What is my point? Simple. Online is everywhere…and everything.

I now read books digitally. I read magazines digitally. I watch television only through my Internet connection and that connection opens up a lot of new possibilities. Our lives have switched to online, so all media will have a lot more capabilities and offerings for interaction, targeting, and personalization.

This revolution will also bring hyper-fragmentation. If all media will be personalized, they will also become very fragmented. Selling advertising is a whole new challenge.

Secondly, if everything will be online, I would expect by 2016 we will have an intelligent system to track users rather than track media. We can then create intelligent media plans because we will better understand what will convince a consumer to buy a product. We have already started this in Germany where we created a panel to track users and measure usage between television and online. The data we are receiving are very impressive. Television is important to some part of the population but less important for another part of the population. Efficiency is multiplied if both media are used in a more intelligent way.

“it is fundamentallya revolution”


Our biggest mistakeWe are not mere participants in a gradual evolution of incremental changes. Rather, we are engulfed in a revolution that is changing everything. Yet, I do not see a lot of people actually acknowledging this is a revolution. This is a revolution in tracking and targeting customers and a revolution in how they make buying decisions. Push is dead; pull is alive.

If you agree this is a revolution, you need to create a revolution in your own company, in your own system, and in your own KPIs (key performance indicators).

The old media strategy was for the agency to tell you how your product should be interpreted and what aggregated media plan would fit the message. The agency would then negotiate that media plan. Job done. And after they did all that, a survey would be generated that nobody read anyway.

The new reality turns this around. You cannot presume everyone will respond the same to one product message. But you can understand who responds and then change the advertising message according to behavioral data that are gathered. That enables you to sell the same product to two different profiles of consumers using two different messages.

Technology and the data allow you to do that. We are moving from a world where everything was done pre-campaign to a world where everything is done during the campaign…and done more effectively with a higher return on the media investment.

Such data have not been available before, so it is a bit scary what this kind of optimization can do. But we still need the people who can understand the mix of statistics and also have good intuition. That is a key element in the future of our industry.

The impact of privacy legislationThe issue of privacy legislation reminds me of the resistance many people had to using credit cards on the Internet. Some feared if they used their credit card on the Internet they could later become bankrupt. But we built security systems around credit card payments that protected credit card data.

The current debate on data privacy is good for all of us because it gives us the opportunity to educate people, including all the players in the industry. Governments are players, too. As an industry, however, we need to agree to a set of rules so people can opt in or opt out, including rules to inform people of what kind of data is being shared with others. That is the education part of the issue of privacy.

The other issue is behavior and attitude regarding privacy. I believe a major mind shift exists with the younger generation. They absolutely do not care about privacy.

As an example, you know when you install an app on Facebook you are sharing basic information with that app. Such basics include your pictures, your social graphs, your wall …everything on your Facebook page. You might have no idea who developed that app or where it was built. Millions of people are installing millions of apps every day. But users have no problem with that. The privacy debate will continue for some time and will lead to a balance, a closer industry agreement on what should be done and what should not be done. When that agreement comes to pass, we may all experience a bit of a shift in our view of privacy, along with a greater appreciation and sensitivity to what data is private.

The basic idea behind the online system is its openness. The more potential buyers having access to your inventory, the better it is. The more data you have, the better it is. We strongly believe in the ideas of open marketing and hope more ideas will come forward and be shared so that more and more people will participate in this exchange.


The agency of the futureSome people ask why an agency is needed when search and AdWords are available. You can do it yourself, they suggest. But advertising is ten times more complex than search. With search you have three or four websites that deliver search results. With display you have thousands of potential sites.

It is fairly obvious your agency will be negotiating a better mix with little waste rather than a better price discounted due to waste. The old days are gone. Price is not a unique value anymore. Price is out of the negotiations. The only thing the agency can bring is what clients are actually looking for. It is not price religion. It is value.

An agency can add considerable value to a campaign. Tomorrow’s agency will change from a negotiator to an intelligence gathering and optimization service. Nonetheless, agencies need to face the reality -- their role is changing. Bring me more customers. Bring me more business, the clients will demand.

Agencies will need to understand a lot more about their clients and the clients’ customers.

“you cannot presumeeveryone willrespond the same to one product message”

Turn your organization upside downFire your Internet specialist. Embrace Internet throughout your company. It is not something that is relegated to your website. Rather, it is something everybody in the organization needs to understand. It needs to be a commitment and investment from top to bottom. You need to put digital interactive marketing at the heart of your strategy.

I am always amazed by how many people do not understand the significance of this technology. I have a close friend who works in a very advanced company. This person has no idea what can be done with online advertising and no idea about the targeting and retargeting capabilities. Understanding how an ad exchange works and understanding real-time bidding should be basic knowledge for anyone trying to market products.

To develop a smart strategy that leverages this revolution, you need to make your marketing more digital rather than having a digital department in your marketing.

“you need to putdigital interactivemarketing at theheart of yourstrategy”

84 85Epilogue by Rick van BoekelThe Future of Online Marketing by DQ&A

In all the predictions you just read about, the metamorphosis is rather simple: We are moving rapidly from push marketing to pull marketing, from mass media to a single targeted consumer, from consumers ignoring us to consumers engaging us and liking the credible offerings they receive.

To summarize only some of the comments:

• MobilewillbecometheInternet,especiallyindevelopingnations bedeviled by poor legacy communications lines.• Mobiledeviceswillreplaceourtraditionalworkstations.• Socialmediawillbecometheinfrastructureofonlinemarketing.• Allconsumerdatawillbeconnectedtothesocialgraph.• App-basedbehaviorwillcompletelychangeconsumerbehavior.• Everybigsocial,political,cultural,orsportingeventwilldrivemoreonline participation.• Television,aswehaveknownit,willbecomeasubsetoftheInternet.• Printmediawilllargelyvanish.

Here, we collected predictions for 2016. But what about 2020 and beyond? Where could new technology develop? By then will mobile be worn like a watch on our wrist? Will the United Nations work with the European Union, the United States, China, the African Union and other pan-national groups to control privacy, regulate data and create world-wide standards and protocols?

In 2016, we will review what actually happens against the predictions made in this book, and speculate further about what may well become online marketing 4.0

Epilogue By Rick Van Boekel CEO at DQ&A

86 87Appendix A - Heleen Dura - van OordThe Future of Online Marketing by DQ&A

The DQ&A DecadeBy Heleen Dura - van Oord - Founder of DQ&A

Heleen Dura - van Oord started her career in digital marketing in the nineties at AdValue; together with key members of her team she co-founded DQ&A in 2001. Heleen Dura - van Oord is a partner and co-founder of the TMC investment company Peak Capital and is an investor at the EVA Africa Fund. She also helped establish the Leading Online Entrepreneur of the Year (LOEY) Award and the Dutch Industry conference Online Tuesday.

Dura - van Oord is a frequent speaker on the latest advances in digital advertising technology at conferences around the world and is an active member of the Advisory Board at the IAB. She was named Online Media Woman of the Year in 2007-2008. She is Ambassador for the NGO BizWorld and Founder of KidsRights.

A rough startIt was the turn of the 21st century with scary memories of the dot.com bust. Many people in the industry told us it was much too risky to start a new company in such turbulent times. But the more people warned us, the more eager we were to make it a success. We were certain we would manage the chaos of online marketing and find the calm eye of the storm.

As it turned out, the first two years were quite tough. Many things happened that we did not expect. We had to deal with several government agencies that were unsupportive of entrepreneurs. We worked several months for customers that suddenly went bankrupt, and banks were not doing what they promised.

It was a rollercoaster of emotions and uncertainty. But then came good news. We found two investors who believed in us and the potential of our business. We were ready to move on. It’s a great feeling to see they made the right choice. In turn, now DQ&A believes and invests in other companies with great initiatives.

Specialization and going internationalEvery Internet year seems to pack more than one year’s worth of change. The reality -- change is the new norm!

At first we had a rather broad business proposition, but it was too complex. We decided to narrow our proposition to ad operations and ad serving. I believe it was the right choice. Why? Because it was a niche market in which nobody was active at the time. The market was ready for us. Change had become opportunity.

More and more customers gave us their trust. We worked around the clock to live up to their expectations. Then after four years and many air miles, our first international customers signed up. We opened offices and hired staff in Brazil, Sweden, Spain, South Africa, Germany, and soon Hamburg. Revenues tripled every year. Starting in hard times makes you appreciate the good times even better!

A good business marriageThe industry was hit hard in 2008/2009, DQ&A included. It was extremely painful to let go of staff members who worked so hard to make DQ&A a success. But the entrepreneur package includes making unpopular decisions as well as doing the fun things.

So the last ten years with the company has felt like a marriage with both good times and bad times. But boy, what a ride! I am lucky and proud to be part of the history of this company and can’t wait for the future.

88 89Appendix B - Rick van BoekelThe Future of Online Marketing by DQ&A

Future Direction By Rick Van Boekel - CEO at DQ&A

Rick van Boekel started his career in online marketing in the early 1990s being a consultant at Ogilvy & Mather Dataconsult. He was a management team member of Planet Internet (the first commercial ISP in The Netherlands) from the beginning, building it to a market leader in 1995/1996. Van Boekel was the founder and CEO of Bol.com in the Benelux, which became the top e-commerce store for books, music, videos, and games. Later he joined ECI/Bertelsmann as Commercial Director for Benelux where he worked on multi-channel sales and marketing strategies in order to grow the revenues and the member base. From 2005-2010 he worked for European Directories, one of the five leading yellow pages conglomerates in Europe, as Chief Commercial Officer for their biggest entity De Telefoongids. Eventually he established and managed Lead Generation Ventures, a new pan-European business unit responsible for acquiring and launching fast-growing, lead generation companies. During his career he has been a venture capitalist, funding small, fast growing Internet startups. Van Boekel joined DQ&A in July, 2010 as CEO and co-owner.

DQ&A Media GroupDQ&A Media Group is the new name for our expanding portfolio facilitating both the sell side and the buy side of digital media. DQ&A Media Group listens to advertisers, publishers & agencies in the dynamic and rapidly changing online media landscape and delivers innovative technologies and services that are trusted and valued in the area of online advertising. DQ&A Media Group started to offer real-time media buying via Adsimilis Performance Media late 2010. It’s our intention to become a one-stop-shop in the area of Display Engine Marketing for advertisers, agencies and publishers.

DQ&A Media Group’s display engine marketing coreBecause of the presence of several disruptive technologies and the ability to measure everything, DQ&A Media Group has split the market into a buyers and sellers market. Today, the market is all about companies that buy traffic or media and companies that sell traffic and media. Publishers can buy traffic but also sell traffic. Advertisers buy traffic and in some cases sell a part of that traffic although the focus is much different. To make this happen, they need state-of-the-art technology, campaign management and in some cases consultancy. In the end, the audience is what this is all about. Advertisers buy impressions, premium inventory at big ad networks, but in the end they are looking for an audience. Technology enables them to buy audiences right now, to buy all the profiling data and to buy traffic based upon these profiles and ad exchanges via Real Time Bidding (RTB) principles. So, going forward, RTB-based audience buying will become more important and more common. Likewise, social media is becoming much more important. In the past, search engine marketing and display and e-mail were the three main online channels. In the future, social media will become a very important channel as well and it will be one of the big four for us. We want to combine our systems with social media monitoring to increase consumer engagement and optimize ROI for advertisers and yields for publishers.

90 Appendix B - Rick van Boekel 91The Future of Online Marketing by DQ&A

We will be open for strategic partnerships or acquisitions when we see an overlap of geography, technology or even customers.

DQ&A Media Group and AdsimilisDQ&A’s goal in our acquisitions is to create synergies at group level by sharing knowledge, technologies, innovation power and customers. Adsimilis Performance Media gives our organization a flywheel that empowers advertisers and agencies with performance-based advertising. Adsimilis Performance Media is a fast-growing business unit with a global reach in performance-based marketing using their own proprietary affiliate network and their own RTB based trading desk. We can use Adsimilis Performance Media to service customers in Europe, Latin America, United States and even in the Far East. Adsimilis Performance Media developed proprietary technology to buy huge amounts of affordable traffic or even highly qualified traffic using data from data exchanges or other sources. This means DQ&A Media Group can now offer International media buying for advertisers and agencies using Adsimilis’s performance-based expertise. In this rapidly changing world of online marketing, an agency must have access to the right people and technology. With Adsimilis Performance Media, we can help advertisers and agencies to buy new media much more efficiently.

The admazing AG acquisition and its value to DQ&A Media Group clientsDQ&A Media Group acquired admazing, the number two online agent in the Swiss market. We mainly had two reasons to buy this company. One reason was to expand our geographical footprint in the right place. Presently, we are in Germany and Austria, but we lacked a presence in Switzerland.

As a company we want to create a helicopter view for our customers -- publishers, advertisers, agencies and networks -- to see what kind of acquisition channels or online advertising channels will perform best. Many companies are not optimizing the power of search versus display versus e-mail versus social media. Many companies, frankly, are very confused by this complexity. DQ&A Media Group wants to help marketers integrate the four channels so they can really turn the buttons or move the switches to create the highest ROI on their media budget. DQ&A’s other expansionsSince the founding of DQ&A in 2001, we have expanded geographically into Germany, The Nordics, South Europe, Brazil, and Southern Africa. We refer to this as DQ&A 1.0, a perfect starting position to launch new products and services. We will focus on the more emerging markets, but we will not enter markets already occupied and competitive because it is much more difficult to make a difference there. Last year we shifted our focus. DQ&A has been focusing mainly on publishers. But as we all know the real budgets and opportunities for improvement are with the advertisers and agencies and that is why we invested in companies like Adsimilis and admazing AG. The dynamic area of real time bidding based online media buying is one DQ&A’s growth areas. Many innovative technologies are being developed, including improvements in performance-based advertising. We want to be leading in these areas. We see that performance based marketing is becoming a major part of the online media budgets. Business models like CPC, CPL and CPA give advertisers less risk and more control over their budgets. Marketing cost are becoming sales cost and budgets are therefore almost unlimited when delivering the leads against an agreed pricing. We anticipate huge growth will be created there, so we are investing heavily in the right people, companies, technologies and services.

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responses in the right way. This is the core activity of the future and it will remain so. DQ&A Media Group is investing heavily to help its customers manage this complexity by offering a one-stop-shop solution. New technologies are generating more data. Data itself is useless, only the transformation to information and preferably knowledge makes sense for our customers. And that’s exactly what we are offering more and more in order to help our publishers, advertisers and agencies to make the right decisions. Enter DQ&A 2.0

The most important reason why we acquired admazing is because of their proprietary technology in high-end customer dashboards. These dashboards are connected to the ad server and share data in an interactive way. Most of the systems being used in the industry are too technically oriented, are back-office focused and are static. The AdCockpit is a huge step forward for our customers in order to manage their campaigns in a better way and increase their ROI on online media spend. Admazing absorbed seven years of customer feedback in creating this proprietary dashboard technology including a customer portal functionality for advertisers or agencies’ advertisers. Admazing also enriches the DQ&A Media Group with great entrepreneurs who built an outstanding business and admazing’s high end technology will be rolled out in our markets in Europe and Latin America by 2012.

DQ&A Media Group products and services in the next five yearsDQ&A 1.0 was all about ad management and ad serving technology. These tools, hands and brains will remain an important part of our offering because they are the foundation for the whole online advertising business. We answer an essential question: How do clients optimize their media spend given the increasing Internet complexity, the battle of the screens, the formats, rich media, video, the dynamic ads … and whatever else appears by 2016? The increase in complexity will generate dilemma’s for clients. What direction should they take for this type of consumer and this brand? The danger of confusion will be costly and could result in damaged brands and a waste of marketing budgets.

What is needed is a helicopter view of this complexity that includes the management services and the technology to track and trace consumer

94 The Future of Online Marketing by DQ&A

About DQ&A Media Group 10 years of online marketing

DQ&A Media Group is an international digital marketing company with over a hundred experts working in offices in Europe (The Hague, Madrid, Hamburg, Zurich), United States (Los Angeles), Latin America (São Paulo) and Africa (Cape Town). We listen to advertisers, publishers & agencies in the dynamic and rapidly changing online media landscape and deliver performance based media buying solutions, innovative technologies and campaign management services that are trusted and valued in the area of online advertising.

With our Adsimilis Performance Media business we offer a global performance marketing one-stop-shop solution for both the buy and the sell side. We provide effective performance-driven online marketing solutions using our flagship Adsimilis Direct Affiliate Network (which features a selection of powerhouse affiliates and a heavy focus on lead quality) and our own RTB media trading desk. Through a transparent market place we unite advertisers looking for maximum ROI with publishers and affiliates looking for the offers and campaigns resulting in the best EPC and eCPM rates.

Our Technologies & Services business exists since 2001 and offers one-stop shop solutions for publishers, agencies and advertisers in the area of advanced display advertising technologies, reporting & analytics using proprietary customer dashboard technologies, ad exchange solutions, campaign management services in eight languages and consultancy/training.

T: +31 (0) 70 300 1950F: +31 (0) 70 300 1959

www.dqna.com

DQ&A HQWesteinde 3a

2275 AA VoorburgThe Netherlands

95About DQ&A Media Group

Admazing (Zurich) is our online advertising agency in the Swiss market. With their proprietary premium performance network Adfinitiy and AdCockpit technology Admazing is offering ROI focussed audience based advertising campaigns. Admazing specializes in display, video, interaction and performance campaigns as well as the extensive use of special formats. Admazing joined the DQ&A Media Group in December 2010.

Adsimilis - Admazing - DQ&A Brazil - DQ&A Germany DQ&A The Netherlands - DQ&A South Africa - DQ&A Spain

96 97Appendix D - Acknowledgements The Future of Online Marketing by DQ&A

AcknowledgementsBy DQ&A

We would like to express our gratitude to all who contributed their ideas, time and professional collaboration in making this book possible.

Alain Heureux, Alison Fennah, Annemarie Druijven, Babs Rangaiah, Benjamin Faes, Daniel Muñoz Sheridan, David de Beun, Drukkerij G.B. ’t Hooft bv, Els Kolster, Evalien Lang, Fernando Taralli, Gabriel Camargo, Heleen Dura van Oord, Jacqueline Smit, Marco Remmerswaal, Michael Read, Natalie Mayhew, Non-Verbaal Communicatie Vormgevers, Nuria Gimenez, Rafael Klijnlindt, Rebecca Noble, Rick van Boekel, Roger S. Peterson, Sandy Lefebvre and Tessa van de Graaf.

The Future of Online Marketing Visionaries Lay the Cards on the Table

Thank You.

DQ&A – 10 years of online marketingTo all of you who have been part of the DQ&A world in this wonderful decade… Thank you!

Abdul Memon, Adri Baard, Adriana Bosman, Africa Camargo, Afshalali Sukhrie, Aisha Mujuru, Albert Noorman, Alessandro Valecic, Alex Luiz Goncalves, Alina Vlad, Allan Backhouse, Allison Cupido, Amaal Safodien, Amal Ali, Ana Carolina Pereira, Anastasia van Oostrom-Baltzi, Andrew Livesey, Andrew Wicks, Andries de Jonge, Angelique van Elteren, Angelique van Reym, Angie Weyers, Anne Giesen, Anthony Gilbert, Anthony Tom, Antonella Di Cicco, Arjan Rosswij, Bart Dura, Bart Erkelens, Bastiaan Herkens, Bea Strauss, Beate van Oort, Belen Moran, Benjamin Busch, Benjamin Lezer, Bep van Oord, Bram Heijliger, Brayan van Bronckhorst, Bruno Ferreira Monteiro, Bruno Minervino, Camiel Mulders, Carole Vincke, Caroline Badoux, Chantal Nugteren, Chantal Wasmus, Charley Schrijn, Christelle Haudebourg, Christien van Loo, Christine Schön, Christine van Rijnswou, Christophe Nau, Christopher Daal, Cigdem Cotuk, Corina Waaijer, Corinne de Vos, Daniel Mena, Daniel Muñoz Sheridan, Daran Fereira, David de Beun, David Germishuys, David Rasmusson, Dean Muller, Denise Aehnelt, Denise Forestieri, Dennis Kabbedijk, Deven Eve, Dominic Ambord, Donovan Poole, Douwe de Jonge, Désirée Stuhler, Doubleclick by Google, Eduardo Botelho, Egle de Melo, Eleah Portillo, Elio Galasso, Els den Hartog, Enrique Garcia, Erica Brons, Erwin de Groot, Estela Moran, Eva Menduapessy, Fabio Guedes de Oliveira, Felipe Grandinetti, Feroni Sluis, Ferry van Moppes, Fleur van Mil, Fleur van der Klis, Florian Fleck, Gabriel Camargo, Gabriel Mazzutti, Gabriel Stöhr, Germaine de Meza, Ghanem Awn, Grant Abrahams, Gustavo Lehmann de Oliveira, Gustavo Martins Ribeiro, Gustavo Mazzutti, Hakan Norberg, Hans Berkman, Hans Plesman, Hans Verbeke, Hany Saad, Heinrich Louis, Heleen Dura van Oord, Hester Noorman, Hubert Deitmers, Hugo van Oord, Igor Falbo, Ilze Balina, Imke Dohmen, Inge Nitsche, Irene Anders, Isabeau Sas, Ivan Luis Baroni, Jaap van Oord, Jailton Barbosa Goncalves, Janneke Niessen, Jasper Vermeulen, Jeanne van Boekel, Jeffrey Zanoni, Jelle Kloosterman, Jenna Bissel, Jennifer Kenters-Esteban, Jesse van Mil, Joey Kroon, Joost Phoelich, Jose Arocas, Jose Felippe, Jose Louiz Alves, Jose Marijke de Jonge-Visser, José van Dalen, Jude Idas, Juliana

99Appendix D - Acknowledgements 98 The Future of Online Marketing by DQ&A

Padovani, Justin Roux, Kaeli Rautenbach, Kay Schneider, Keith Magill, Kim Fredericks, Kirsten Krüger, Kristen Dennis, Kristina Gransee, Kurt Penna, Lameez Abrahams, Larasati Simatupang, Leilah Potter, Leonardo Cotsifis, Leonardo Kopp, Leonardo Pereira, Leonardo de Souza, Lesley van Rijn, Lisette Coops, Liz Dura, Loeys, Lorena Avedillo, Luca Bortolon, Luiz Eduardo Macedo, Maarten Alderlieste, Manuela Müller, Mara Zago, Marcel van Duijn, Marciano Bachnoe, Marco Dohmen, Marco Krösing, Marco Remmerswaal, Marianne de Heer, Marieke van Gameren, Marijke van Hoogenvest, Marijke van der Sanden, Marisa Paiva, Marjon Vermolen, Mark Gormley, Marlieke Wilik, Mascha Borremans, Mascha Korstanije, Masood Bawa, Matthew Aylen, Maurice van Osta, Max Becker, Melanie Zink, Menno Koeslag, Mercedes Alfaro, Micha Suarez de Koning, Michael Fros, Michael Ossendrijver, Michael Read ,Michael Rohowski, Michele Keizer, Michel van Mil, Michel van Wouw, Miguel Camargo, Milena Hage, Mionee Brouwer, Miriam Galvez, Miriam Schillemans, Murillo Silva, Natasha Teyise, Nathalie Monstrey, Nick Swart, Nickolas Bennie-Ebdon, Niels Overwijn, Nino Nelissen, Nur Saban, Olliver Kahle, Otto Santema, Patricia Aljure, Patricia Claassens, Patricia Sanchez, Patricia Tejero, Patricia Torricia, Patrick Kooreman, Patrik Brannfors, Paul Kwaaitaal, Peak Capital, Per Eklund, Petra Neilson, Philip King, Philipp Hasenfratz, Philipp Kühne, Pierre Pellenaars, Pieter Bas Vencken, Pieter Slingerland, Pilira Mwambala, Pleun Lok, Rafael Dias, Rafael Klijnlindt, Rafael Sacchi, Ramona Mueller, Rashieq Karriem, Ravennah Matser, Raymond Soerodikromo, Rebecca Noble, Rebecca Wallers, Rene Alvares, Ria-Lene Groenewald, Ria Thoms, Ricardo Braz, Ricardo Grüne, Richard Haak, Richard Tan, Rick van Boekel, Rico Gade, Robert Hamer, Robert Vis, Roger Hirano, Ron Goossen, Ron Jonker, Roos Boon, Rosane Guimaraes Franco, Ross Mason, Rutger Revoort, Santiago Moran, Sarah Braithwaite, Sascha Meijer, Sean Mulkeen, Sebastien Dubert, Selma Horstman, Shaamiel Gabier, Shamima Ahmed, Shannon de Wit, Silvia Görgen, Simon Morton, Simone Hartmann, Stefan Colijn, Stefan ten Have, Steffi Haag, Stephan Lourens, Steven van Randwijck, Stijn Smolders, Tasmin Kingma, Tessa Mulder, Tessa van de Graaf, Thadea Steinbacher, Thais Bastos Padilha, Thais Perez, Thiago da Silva, Thomas Niens, Thorsten Ostmeier, Tim Bernders-Lee, Tim Swalens, Timo Richardson, Tina Dudenhöffer, Tito Machado, Tobias Heusinger von Waldegge, Travis Kempers, Vahag Melikyan, Vahram Torosyan, Vahram Torosyan, Vanessa Valle

Barreto, Van Lanschot Bankiers, Vicky Willemsen, Vijay Koendjbiharie, Vincent Polman, Vincent van der Meer, Warren Fabricius, Wesley Henderiks, Wesley de Keijzer, Willem Govert de Jonge, Willem Jens, Willian Vargas, Winod Panchoe, Wouter de Jong, Xander Lindhout and Zaida Salie.

101Appendix D - Acknowledgements 100 The Future of Online Marketing by DQ&A

Partners and ClientsWe would also like to thank our partners and clients, with whom we are proud to be associated with.

7Pixel, 20 minutos, AB, ANS, Aca, Accomm Media, Acquire Media, Ad Communications, Ad Motion, Ad Ossendrijver, Ad Pepper, Adams, Adfab, Adfactor, Admazing, Adsimilis, Adspot, Aegis Media, Ag3, Agence Virtuelle, Agos, Agos Ducato, Alice Wonders, AllSecur, Anschutz Entertainment Group, Anwb, Aol, Ariston Media Service, Ariston Media Services, Array Publications, Atrapalo, Attention Media, Auto Scout 24, Axel Springer, BL New Media,BSMO GmbH, Banzai, Bauer Media, Beachpark, Belbios, Blackorange, Bone, Brandwebbing B.V. Brightcove, Business Compleet, Bvh Groep, Carat, Carrefour, Caval Service, Check 24, Classic FM, Clearsense Zoekmachine, ComScore, Condenet, Coorperative Unive U.A., Credit Lift S.P.A, Cubo, Culsion, DVV Media Groep, Dag, De Lotto, De Mediamaatschap, De Persgroep ,De Telefoongids, De Telegraaf, De Zaak, Deloitte Group Support Center B.V., Die Media, Digavo, Digilogue, Digital Media, Dimo, Diner voor twee, Direct Matters, Dooyoo, Dr.Banner, E-Retail Advertising, Ebay, Econa, Edgar Medien AG, Edizeta, Eisma, El Economista, Emotion, Energize, Energy, Engine, Erdee Media, Etype, Expatica, Expedia, Experian, FD Media Groep, Fantastic Zero, Fiera Milano Expopage, Financieel Dagblad, Focus Ediciones, Frmwrk, G&J Uitgevers, GJ Electronice Media Service, GQ Magazine, Game Entertainment Europe, Gay.it, Gesellschaft fur Medien & Kommunication mbH &co., Giovanni, Gjuce, Glam Media GmbH, Google, Grasundsterne, Group Interaction, GroupM, Grupo M, Gruppo Finelco, Guia da Semana, HUB Uitgevers, Habari Media, Hachette Filpacchi, Haufe Fachmedia GmbH & CO.KG, Haufe Lexware, Haymarket, Hegnar Online, Hemels van der Hart, Hot Traffic, Huss Medien, Hyves, I Amsterdam, IBS.it, IDG, IM Networks, IP, Immobilien Scout 24, In Store Media, Initiative, Intereconomia, Interwall, J3P, Jaap.nl, KPN, Kaiser Games, Kelkoo, Kelkoo Denmark, Kelkoo Norway, Kelkoo United Kingdom, Kluwer, Km77.com, Kobalt, Kontor 23, Laurens Simonse Groep, Leylines, LG, M2Media, MSN, Madaus, Mailmedia BV, Mair Dumont, Make Your Media, MarQit, MarketingFacts, Marktplaats, Mcdilo, Me Mo ,Media Contacts, Media Embassy ,Media Plus, Media Relations, Media Sales, Mediacom, Mercedes

Benz, Mergemedia, Miapuesta.com, Microsoft, Microsoft Advertising, Media Injection, MiepKniep, Mister Media, Mobili, Monsterboard, MyBusiness Media, NT Publishers, Neo Media, Net Opus, New People, Noise, Nove Nove, O2MC, O Boticario, OMD, OON, Omnicon Group, Online Marketing Group, Ordina, Oswald & Ruby, PSH Media Sales, Paratel NV, Parship.de, Planet Internet, Plano & plano, Poker Tube, Publicitas P,R.C.S., RTL Nederland, Radio Digital, Rede 106, Reed Business, Reis Revue Groep, Rolling Stone, Roularta Media Group, SBS Broadcasting, SDU Uitgevers, SMG Iberia, ST Media, Saint Paul, Sales Media Group, Sanoma Digital, Sansclub, Scholz & Volker, Scoot Media, Sinc, Sky Radio, Skynet, Slam FM, Soechit.com, Speurders.nl, Springe, Starcom MediaVest Group Ster, Stijl & Inhoud Media B.V., Stroom, Subito, Tag Advertising, Talpa, Talent Today, Telemadrid, Teleroute, Telfort, The People’s Valley, These Days, Thismobile B.V., Thumb Villa DM, Tibaco, Ticketmaster, Ticktackticket, Tim, Tiscover.com, Top Sports Group, Total G. Motorpress, Totaljobs Group, Traffic4U, Tv1, Twist, Unilever, Universal Interactive, Universal Mccann, Universia, VK Banen, VNU Exhibitions, VNU Media, Vadian Net DFP, Veronica, Videostrip, Vinden.nl, Voetbal International, Vogel Business Medoa, Vogue, Vlaams Media Maatschappij, WDV GmbH, WSL, WeblogsSL, W Squared Media, We Transfer, WebAds, Wegener, Wild FM, Wonderous Entertainment, Xite, Y & R, You-can.it, Zed Digital and Zigt.

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