Interactive advertising trends. How it will affect Baltic markets

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Transcript of Interactive advertising trends. How it will affect Baltic markets

Interactive advertising trends. How it will affect Baltic markets

Deividas TalijūnasAdnet, Lithuania

Riga, September 25-26

social

Googleblog/weblog

RSSAdWords

mobileWEB 2.0

advertisingsearch contextual iPhone

engagement

media

video

budget

display

digital

network

websharing

html

java

trust

banner

localXML

http://flickr.com/photos/tracy_olson/61056391/sizes/l/

Global Spending by Medium, 2006 - 2010 ($ Millions)

2008 - to overtake radio advertising; 2009 - to attain a double-digit share of global advertising (10,4%); 2010 to overtake magazine advertising, with 11.5% of total ad spend;

Suorce:ZenithOptimedia

0

150.000

300.000

450.000

600.000

2006 2007 2008 2009 2010

Newspapers Magazines TV RadioCinema Outdoor Internet

Advertising budgets UK (%)‏

Group M forecasts that the UK will be on the brink of passing the milestone at the end of 2008, when the internet will account for 24.8% of UK media spend, just behind the 26% share held by the TV ad sector

Advertising budgets Baltic's

3%6%

7%

13%

25%

46%

LT

TV NewspapersMagazines RadioOutdor Internet

1%6%

9%

10%

17%

22%

35%

LV

TV NewspapersMagazines RadioOutdor InternetCinema

8%

7%

7%

11%

40%

27%

EE

TV NewspapersMagazines RadioOutdor Internet

I don’t know anybody under 30 who has ever looked at a classified advertisment in a newspaper. With broadband they do more and more transactions online

Rupert Murdoch

Smart guys know :)

The internet is not one medium, its growth rate is a blend of three distinct businesses growing at different speeds: search, display and classified

Where do money go? UK 2007

Google

Google is becoming the “operating system” for marketing

Google - Media company

Google - the biggest internet advertising network

&

Google

Google Trends – research company?

Google Ad Planner? Some are calling it the ‘ad agency killer’.

Google

Google

Search advertising in Baltics?

1%1%1%

38%58%

EE

NetiGoogleDelfiWWWOthers

2%3%3%3%

89%

LV

GoogleDelfiSietsMSNOthers

1%0%1%1%

97%

LT

GoogleMSNDelfiYahooOthers

Mobile internet

Photo: http://www.crunchgear.com/wp-content/uploads/2008/01/iphone-google.jpg

Speaking on US TV, Schmidt said, “We can make more money in mobile than desktop eventually because the mobile computer is more targeted. You carry your phone everywhere, it knows all about you, it knows what you’re up to. We can do a very, very targeted ad. Over time, we’ll make more money from mobile advertising.”

Mobile internet

IPhone initiate 50 times more searches than other handsets

Says Google

Mobile internet

Mobile internet. Why now?

1) handsets becoming small functional computers; 2) cheaper / faster / more data; 3) more content

- 450MM (48%) of new handsets shipped Mobile Internet ready (can run Java applications...), 2006- 2,9B subscribers with <2.5G (~50kbps) network access; 311MM 3G subscribers have broadband-like services (browsing, full track music), 2007E - Mobile content improving steadily - consumers are spending billions on it

Source: Informa, Morgan Stanley Research

Mobile internet. Japan

Source: http://www.videoi.co.jp/release/20070417.htmlhttp://www.flickr.com/photos/manganite/2088599558/

Mobile internet

Mobile internet. Portal reach LT

250 000. unique users per month. More than 4 mln.

pageviews

180 000 unique users per month. More than 2 mln.

pageviews

250 000 unique users per month. More

than 8 mln. pageviews (SurfPort

+ SurfOpen)

Source: portal’s data

Mobile inernet

wap.one.lt >100 000 000

Lithuanian websites ranked according page views. Gemius Audience 2008 August.Admobi.lt data

In ad we trust!

We do!

What about consumers?

In ad we trust?

76%

of consumers don’t belive that companies tell truth in advertisements

Yankelowich

person like me

68%

“a person like me” is considered the most credible source of information about a company

Edelman. Trust barometer 2006

http://www.flickr.com/photos/luc/1824234195/

What is - WEB 2.0

http://www.flickr.com/photos/catspyjamasnz/2287072287/

•The term “WEB 2.0” defines an era, like “DOT COM”

•Read/Write - anyone can be a publisher (Blogas.lt, Blogger.com, Wordpress.com...)

•Search (Google.com, Alternative Search Engines)

•Social Networks (Draugiem.lv, One.lv, My Space, Facebook...)

•Online media (YouTube, Last.fm...)

•Content Aggregation/Sindication (Bloglines, Google Reader, Netvibes...)

•Mashups (Google Maps, Flcker, You Tube)

Source: Read/Write Web

Social internet (WEB 2.0)‏

Source: Universal McCann Social Media Tracker – Power to the People

Text

This shows massive growth in a very short period of time and users have gradually moved from passive consumers to active creators

Social internet. The sources of information I trust

Graph shows the extent to which global web users trust different sources of information on products, brands and services

0 2,5 5,0 7,5 10,0

3,23,3

3,73,83,83,94,04,14,14,24,24,3

4,64,9

5,65,75,8

6,26,8 Personal recommendations from friends/family

Personal recommendations from professionalsEmails from a friend/colleagueInstant Messenger conversation with a friend/colleagueConsumers reviews on retail sites e.g Amazon.comBlogs/Weblogs - personal blog written by people you knowMagazine/Newspaper articleCompany/Brand websiteShelf information and product displays in storeBlogs/Weblogs - professional blogComments on social network sites e.g Facebook.comRecommendation in a television programmeBlogs/Weblogs - written by people you do not knowOutdoor advertisingOnline chat rooms/message boardsTV advertsMagazine/Newspaper advertisingEmails from companiesCelebrity recomendation

Source: Universal McCann Social Media Tracker – Power to the People

Social internet (WEB 2.0)‏

Paid advertising

independent website

e-shop

corporate

e-shop

wikipedia

e-shop

e-shop

website

price comparison engine

652 searches per month

Social internet (WEB 2.0)‏

Paid advertisingforum

forum

forum

blog

blog

classified

website 310 searches per month

...and only user generated content!

Reklamos biudžetai

•Openness•Users decide how to use content•Widget’isation

Cut & Paste web

TRENDS:Information, entertainment and all web content is becoming portable

SOLUTION:Make sure that every digital program allows information to be consumed/engage with wherever the individual wants to engage with it

Reklamos biudžetaiCut & Paste web

A Web widget can be best described as a mini application tat an add functionality to your web page, blog, social profile, etc. If you find a widget that you like, you simply copy and paste some code and add it to the HTML of your web page. Photo galleries, news, videos, advertising, mp3 players and prgnancy countdown tickers! You name it, there is probably a widget that does it.

Yahoo finance for iPhone

Weather channel forecast for

iGoogle

Amazon.com “giver” for Facebook

Twiter.com for desktop

Reklamos biudžetaiCut & Paste web

•Baiba (female/urban/high incomes/25-30 years old)?

•Contextual targeting

•Behavioral targeting

25

29

Challenge for advertisers: new targeting models

Reklamos biudžetaiChallenge for advertisers: new metrics

TRENDS:The new Marketing needs not only to attract, but also engage & excite

Reach & Frequency are not catering to measure the quality of Engagement & Exitement

SOLUTION:The new metric is - Brand Expose Duration - BXD

BXD is the lenght of time an individual is exposed to a given advertisment, branded website, branded game, online video...

Suorce: Atlas DMT

Challenge for advertisers: new staff

TRENDS:Some companies are hiring in-house experts who guide the company toward becoming more digitalThese professionals are “cross-trained” in talking technology and marketing, which often don’t mix

SOLUTION:Consider hiring a geek marketer/digital proffesional

Localization

The world is becoming more local and location-aware. The next internet and mobile wave of innovation are going to come from location based services able to provide locally relevant information to anyone anywhere in the world.

3D/virtual worlds

Digital dominance Internet versus TV

Source: Microsoft

Thank you!

deividas@adnet.lt