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Online Advertising Overview Growth in Rich Media and Video Usage Mick O’Brien Copyright items.

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1 Online Advertising Overview Growth in Rich Media and Video Usage Mick O’Brien Copyright items

2 Size of the Online Market? $1,346 million in 2007 Increase of $345 million (or 34.5%) over 2006 General/Display Advertising: 27% Classifieds Advertising: 27% Search & Directories: 46% Source: Commercial Economic Advisory Service of Australia.

3 Who? 54.9% Source:PricewaterhouseCoopers – IAB Online Advertising Expenditure Report – December 2007

4 Why?

5 Other Reasons? 70% of Australian’s have internet access 84% have broadband access 18-24yrs are spending up to 3hrs a day accessing information such as social networks Accountability – Return On Investment New Technologies such as online video

6 I see therefore I click ?

7

8 The End of the Click? 0.5% CTR 2005 0.3% CTR 2006 Below 0.2% CTR 2007

9 From pull – “traffic drivers” WEBSITE YAHOO! MSN AOL Average CTR is below 0.2%

10 To push – “smart ads” WEBSITE YAHOO! MSN AOL Average dwell time is about one minute

11 Source: HR Magazine ‘07 / Design Council ‘07 is the key driver of success

12 Homepage Sponsorships VRAW Homepage take over on MySpace Promoting ‘jobs’ at MySpace sponsored by VRAW Using multiple formats + video High impact format Coca-Cola Homepage take over on Ninemsn Using multiple videos (up to 30secs) High impact format

13 Interacting with Expandable Video Banners British Heart Foundation Create awareness about junk food for kids 36% Interaction Rate Average Video Duration: 59.21 seconds –Over 20 seconds more than 2006 48% Full Video Play –Almost double from last year

14 Purpose shot video Jumper Created for the launch of The Jumper movie Video created specifically for online use –Created in front of green screen Can be cheap to produce Delivers the message with high Impact

15 Where do we go from here…

16 Adding Further Interactivity Synchronized Banners NBA Promoting NBA Finals Synchronized ad format Allows interaction through playing game

17 Adding Further Interactivity Retail Concept Format ADVERTISER: CONCEPT Show TVC Find local store (store locator) + map Print map or send mms to mobile Download coupon options

18 Behavioural Sequencing User interactions determine which ad is shown next in sequence Encourage user through the decision making cycle Unlimited creative ‘paths’ help improve conversion rates 1 st 2 nd 3 rd

19 EU Tobacco – Behavioural  93% of interactors saw second sequenced advert  Those who saw second advert were positively inclined towards click thru

20 Source: Dynamic Logic MarketNorms Q4 2006 Standard Banners Rich Media Rich/Video % Lift Aided Brand Awareness Online Ad Awareness Message Association Brand Favorability Purchase Intent Rich Media Builds Brand Add video for enhanced results

21 Pre-click Interactivity Tracking Test Drive Brochure Request More Information Best Practice Track all elements in an ad Rotate Direct Response Main Click “Dwell-time” = Brand Awareness

22 Dummy Data Only “In-depth post campaign analysis changes your relationship with the client forever, one minute you are a just a agency guy the next you actually know something about their business. Everything gets easier after they come to that realisation” Media Agency “Quote”

23 Summary: Challenging Perceptions Deliver content to the user without the need to leave the publisher’s site Work with publisher’s in-page units to draw user’s eye from content to ad Adopt more interactive functionality e.g. behavioural to complement video Does not cost more on media purchase –Know how to work the technology to meet objectives Don’t trust click-thru as a way of justifying campaign success Find metrics to measure campaign success from Branding to Response Be prepared to justify a 0% CTR! The changing face of online advertising

24 Thank you Mick O’Brien Managing Director Eyeblaster


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