Ben Fox Discusses the Future of Display Advertising

THE PAST, PRESENT, ANDFUTURE OF ADVERTISING

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

47 BCAdvertising for a

Gladiator in Pompeii

First large-scale advertising

1890s

Major global agencies created

1950s-1980s

IAB first measures internet advertising

1990s

ANALYTICS

MOBILEDEVICES

AD SERVERS

AD NETWORKS HORIZONTAL

DATA SUPPLIERS

VERTICALCUSTOM

ADOPERATORS

DMPs &DATA

AGGREGATORS

AD EXCHANGES

TARGETEDAD

NETWORKS

CREATIVEOPTIMIZATION

YIELD OPTIMIZERS

TRADINGDESKS

RETARGETING

VIDEO

VERIFICATION

DSP

MEDIAPLANNING

SHARING DATA

SOCIAL TOOLS

TABLETS

CONNECTED DEVICES

2011 ADVERTISING SPEND IN THE U.S.

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

Source:

VALUE ADDED RESELLERS

Source:

LET ME WORK FOR YOU ANDI WILL HIT YOUR GOAL!

VALUE ADDED RESELLERS

PAY MY FEE AND I WILL GET YOU HIGHER CTR,

CONVERSIONS, OR RPM[SAFELY]

VALUE ADDED SERVICE PROVIDERS

PAY TO PLAY IN THIS SPACE

TECHNOLOGY SERVICE PROVIDERS

WHO BOUGHT WHOM?

WHO BOUGHT WHOM?

GOOGLE’S ACQUISITIONS

GOOGLE’S ACQUISITIONS

THE ECONOMICS OF IT ALL


25¢ 12¢ 3¢

35¢

25¢ 12¢ 3¢ 20¢

12¢ 3¢12¢

45¢

5¢

5¢

5¢

5¢

5¢

10¢

Channel

$5 BBAgency

$1 BB

AdNetwork

$5 BB

AdvertiserDirect Buys

= ~$0.38

= ~$0.55

= ~$0.58

= ~$0.60

= ~$0.55

= ~$0.85

Advertiser

Buying Power[VALUE PER 1$]


25¢ 12¢ 3¢

35¢

25¢ 12¢ 3¢ 20¢

12¢ 3¢12¢

45¢

5¢

5¢

5¢

5¢

5¢

10¢

Channel

$5 BBAgency

$1 BB

AdNetwork

$5 BB

AdvertiserDirect Buys

= ~$0.38

= ~$0.55

= ~$0.58

= ~$0.60

= ~$0.55

= ~$0.85

Advertiser

Buying Power[VALUE PER 1$]

TOP 5 COMPANIES HAVE 63% OF REVENUE

Are you profitable?

Are you acquiring in the space?

Are you in the top three marketsharein your category?

Source: [Darren Proman, eMarketer ]

APPLY THOSE FILTERS TO THE SPACE




NAVIGATING THE FUTURE(Broken up)

Trading desks try and beat up networks

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NAVIGATING THE FUTURE


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DSPs:2

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

Bought by trading desks (Accuen? Xaxis?)

Go out of business


DSPs:2



Go out of business


DSPs:2



Go out of business


DSPs:2



Go out of business


DSPs:2

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


DSPs:2



DSPs:2



DSPs:2



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

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Ad exchanges buy up or obsolete all the feature based companies

Some advertisers start to go direct to the exchanges


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AdX / Facebook war heats up6













Facebook and AOL create exchanges aligned on pub side

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Verification remains 3rd party and small business

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Analytics and ad serving are free9



IBM Integrates data stack into ERP

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

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DISPLAY ADVERTISING IN 2015

ADVERTISING ECOSYSTEM IN 2020

FOLLOW ME!:linkedin.com/in/benfox

@benfoxgo

C ON TAC T AD C ON ION D IR EC T AT:s a l e s @ a d c o n i o n d i r e c t . c o m

Marketing

Ben Fox Discusses the Future of Display Advertising