Context is QueenThe value of media environment
24th February 2015
Context is Queen: Newsworks Shift, February 2015 2
Context is Queen: Newsworks Shift, February 2015
Context is QueenThe value of media environment
This presentation was delivered at Newsworks’ Shift conference on 24th February at the British Library
What we have done
Context is Queen: Newsworks Shift, 24th February 2015
• Newsworks commissioned Millward Brown and Enders Analysis to compare agency and brand owner views relating to automated advertising and the marketplace generally
• Millward Brown interviewed a number of senior people from various agencies and brands
• This is a summary of some of the themes and tensions from these interviews, and our overview of the challenges in the marketplace
Who we have spoken to
Context is Queen: Newsworks Shift, February 2015
Agencies Brands
Sue Unerman, MediaCom Dominic Grounsell, (MoreThan) RSA Insurance
Rob Norman, GroupM David Wheldon, Barclays
Martin Vinter, iProspect Matthew Holmes, William Hill
Simeon Adams, Goodstuff Andy Duncan, Camelot
Owain Wilson, MediaCom Keith Hendry, ATS Euromaster
Craig Mawdsley, AMV BBDO Tony Preedy, Lakeland
Jean Isvarphorncha, Liberty
Tim Male, Lloyds Banking Group
(and Albert)
Context is Queen: Newsworks Shift, February 2015
“Not everything that can be counted counts, and not everything that counts can be counted.”
– Albert Einstein
“One of those unfortunate bits of
jargon where words don’t do what they’re meant to do – and that’s to tell you
what it is” - Craig Mawdsley
AMV BBDO
“Programmatic is a sign of the times. But it’s blind buying which I
don’t like”- Matthew Holmes
William Hill
“I’m not keen on leaving stuff to the
chance of programmatic”
Agency Brand owners
Context is Queen: Newsworks Shift, February 2015
Disparate views on the current marketing marketplace
Context is Queen: Newsworks Shift, February 2015
Agencies Brand owners
Market functioning Good Poor
Market maturity Optimisation phase Development phase
Viewability and fraud Teething problems Fundamental obstacles
Gap between ‘promise’ and ‘practice’ of audience targeting
Good progressSome teething problems Fundamental obstacles
“Black box” of agency data Nature of the model Not trusted
Lack of financial transparency Great value for money Fear that they are
overpaying
Key goals and measures
Targeted consumersVolumesContext
Targeted consumersVolumes
Context is key
[Source: Enders Analysis based on Millward Brown interviews
Context is Queen: Newsworks Shift, February 2015
“There are some yawning gaps in the processes and the understanding of how programmatic
actually works – not just within clients, but also the agencies and media owners we are working
with”- Dominic Grounsell
(MoreThan) RSA Insurance
“If we don’t work it out [bots and ads on inappropriate sites] over the next to or or two or
three years, there is a significant danger of a backlash from society, politicians and certainly in
Brussels”- Brand owner
Context is Queen: Newsworks Shift, February 2015
Marketing landscape is being restructuredTotal advertising revenue (£m)
[Source: Enders Analysis forecasts based on AA/WARC and other industry data]
2000 2005 2010 2015f 2020f0
2000
4000
6000
8000
10000
12000
14000
Analogue media
Digital growth has been driven by direct response
Context is Queen: Newsworks Shift, February 2015
2000 20150
2000
4000
6000
8000
10000
12000
Display ad expenditure (£m)
Analogue Digital
2000 20150
2000
4000
6000
8000
10000
12000
Classified ad expenditure (£m)
Analogue Digital
Internet display growth is the next wave
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e0
250
500
750
1,000
1,250
US UK DR
Index 2004 = 100
Nominal internet display ad spend [Source: GroupM, IABUK/PwC, IABE/IHS, OVK, SRI/PwC, Enders Analysis]
Context is Queen: Newsworks Shift, February 2015
CMOs are under immense pressure
Context is Queen: Newsworks Shift, February 2015
Spend less
Shrinking budget
Deliver more
Improve Return on Investment
Prove it
Demonstrate greater ROI to
non-marketeers
62% of CFOs believe marketing is “critical”, but
61% are not confident CMOs
make good commercial decisions
[Source: WARC, Econsultancy, November 2014]
Pressure from the marketplace
Context is Queen: Newsworks Shift, February 2015
Marketing objectives (examples)
• Fame and stature• Positioning• Build trust
• Education and understanding
• Prompt action• Sales
Marketing outputs
Automated is moving up the value chain
Context is Queen: Newsworks Shift, February 2015
Unsold inventor
y
Automated sells the ‘bottom of
the market’
Central buying
efficiency
Automated moves up the value chain
Analytics becomes more
central
Inventory mgmt
Audience is central
Brands, agencies and media utilise a
wider range of parameters and
values
Marketing and media
Context is Queen: Newsworks Shift, February 2015
Awareness: display, video
Interest: social
Consideration: email
Conversion:
search
Marketing objective
[Source: based on blinkx, illustrative only]
Media
Retail
Automated values conversion and ignores “out-of-market”
Context is Queen: Newsworks Shift, February 2015
Visits: $0.01/visit
Audience: $0.05/profile
Signups: $0.25/lead
Purchase: $1.00/click
Awareness: display, video
Interest: social
Consideration: email
Conversion:
search
Marketing objective Ad unit
[Source: based on blinkx, illustrative only]
Media
Retail
Digital Marketin
g Economy
Context is Queen: Newsworks Shift, February 2015
“We have stringent guidelines in place which keep us away from porn, and any illegal sites where possible. But some do slip through the
net”- Matthew Holmes
William Hill
“It is more about where you don’t want to appear than where you do”
- Brand owner
Automated and unintended consequences?
Automated measures
become more important
Long term and reputational
measures diminish and
media becomes
commoditised
Automated grows in scale and
influence
Context is Queen: Newsworks Shift, February 2015
Rise of third-party data; decline of media real estate value
Context is Queen: Newsworks Shift, February 2015
Consumer Marketing Mechanics Media
Visits to a website typically generate many tracking scripts, enabling publishers and 3rd party networks to track devices
These help power interest and behaviour based advertising
The browser's cookie is analysed and advertisers bid for, and serve, impressions in a fraction of second
Is the incentive to invest in content in order to create an attractive advertising platform being undermined? Businesses that curate and aggregate are more efficient at creating traffic
Context is Queen: Newsworks Shift, February 2015
“As far as online display advertising is concerned, it always works best when there is a
relevance between the creative that is being used and the environment”
- Tony Preedy
Lakeland
Actions taken after seeing display ads
Context is Queen: Newsworks Shift, February 2015
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
19%22%
40%
9%
15%
26%
7%10%
23%
Original content sitesPortalsSocial networks
Research product online or in store, competition, watched video
Clicked link, searched online, bought productTalk about a brand or visit/follow
[Source: AOP, The Value of Trust, 2012]
Quantifying context – video example
Context is Queen: Newsworks Shift, February 2015
TV YouTube0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
Revenue per hour ($ estimates)[Enders Analysis estimates]
FT “Halo effect” research underlines the value of context
Context is Queen: Newsworks Shift, February 2015
Content provider
assessment
5 established (FT) and 5 emerging (HuffPo) content
brands
Key values – trust, quality
Product attribute evaluatio
n
6 purchase categories (tech,
airlines)
Key values – trust, quality
Implicit test
Respondents shown website and brand pairings, and some words they could associate with the brands
Only 2 seconds allowed – so “automatic”
Established brands gathered many more positive
responses, and many more rapid
positive responses
[Source: FT ‘Halo Effect study, 2014 conducted by InSites Consulting]
Brand matching
6 brands shown in rotation and asked to match which of the content sites most suitable for
advertising in
51% more placements in established
media compared with emerging
media
The UK’s demographics – gender, age, wealth
0-55-9
10-1415-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-7475-7980-84
85+
Male Female
27%
40%
31%
[Source: Enders Analysis based on ONS]
Context is Queen: Newsworks Shift, February 2015
Media transition
Or to put it another way….
Context is Queen: Newsworks Shift, February 2015
I’d rather be dead than sing Satisfaction when I’m 45
– Mick Jagger (aged 31)
45-65s are less brand loyal than younger age groupsAverage brand loyalty by age of principle buyer (% share of requirements)
Under 28 28-44 45-64 65+0%
10%
20%
30%
40%
50%
26%
17%13%
16%
38%34% 32%
38%41%
33% 33%38%
Alcohol Household goods Toiletries
Consumer survey, year ending January 2014 [Source: Kantar Worldpanel]
Context is Queen: Newsworks Shift, February 2015
Viewability and non-human traffic
Context is Queen: Newsworks Shift, February 2015
Viewability
• 56% of adverts are not seen (Google study, November 2014)
• 57% of video adverts are not seen (Vindico survey of 2 billion ads, 2014)• “Seen” is defined as “half of
its pixels visible for one second”
Non-human traffic
• Kraft believes 75% to 85% of its digital advertising (real-time ad marketplaces) is “fraudulent, unsafe or non-viewable or unknown”
• There is $9.5 billion on “non-human” traffic – according to Solve Media estimates
Human Traffic, 38.5%Search engines + Other good bots, 31%Scrapers, 5%Hacking Tools, 4.5%Spammers, 0.5%Other impersonators, 20.5%
[Source: Incapsula]
Human traf-fic, 38.5%
Non human traffic 61.5%
Web traffic breakdown
Context is Queen: Newsworks Shift, February 2015
Three questions
Context is Queen: Newsworks Shift, February 2015
1. Are brands and agencies’ views on automated trading truly aligned?
2. Does the reality of automated trading live up to the promise?
3. Is there a limit to what can be traded automatically – and if so, how do we define it?
Context is Queen: Newsworks Shift, February 2015 31
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