The Eclipse of Online Advertising Why marketers must optimize their efforts by prioritizing content within the digital mix Rebecca Lieb Analyst | Author | Advisor @lieblink

Agenda 1. Change Drivers 2. Content Engagement Opportunities 3. Recommendations

Agenda 1.Change Drivers 2. Content Engagement Opportunities 3. Recommendations

Image  by  Mark  Garbowski used  with  Attribution  as  directed  by  Creative  Commons  http://toomuchglass.net/2010/12/02/la-­la-­la-­la/

We’re  Tuning  Out  the  Noise

Banner  Advertising  Is  In  Eclipse

Digital  Adverting  Statistics • Average  click  through  rate:  0.06%

Digital  Adverting  Statistics • Average  click  through  rate:  0.06% • 94%  skip  video  pre-­rolls  ads  before  5  seconds   elapse

Digital  Adverting  Statistics • Average  click  through  rate:  0.06% • 94%  skip  video  pre-­rolls  ads  before  5  seconds   elapse • 28%  of  users  admits  to  hiding  online  activities

Digital  Adverting  Statistics • Average  click  through  rate:  0.06% • 94%  skip  video  pre-­rolls  ads  before  5  seconds   elapse • 28%  of  users  admits  to  hiding  online  activities • 2.8%  think  online  ads  are  relevant

Digital  Adverting  Statistics • Average  click  through  rate:  0.06% • 94%  skip  video  pre-­rolls  ads  before  5  seconds   elapse • 28%  of  users  admits  to  hiding  online  activities • 2.8%  think  online  ads  are  relevant • Millennials  ignore  digital  ads  more  than  ads  in   any  other  channel

Digital  Adverting  Statistics • Average  click  through  rate:  0.06% • 94%  skip  video  pre-­rolls  ads  before  5  seconds   elapse • 28%  of  users  admits  to  hiding  online  activities • 2.8%  think  online  ads  are  relevant • Millennials  ignore  digital  ads  more  than  ads  in  any   other  channel • 50%  of  mobile  ad  clicks  are  accidental

Digital  Adverting  Statistics • Average  click  through  rate:  0.06% • 94%  skip  video  pre-­rolls  ads  before  5  seconds   elapse • 28%  of  users  admits  to  hiding  online  activities • 2.8%  think  online  ads  are  relevant • Millennials  ignore  digital  ads  more  than  ads  in  any   other  channel • 50%  of  mobile  ad  clicks  are  accidental • 54%  don’t  click  banner  ads  because  they  don’t   trust  them

Digital  Adverting  Statistics • Average  click  through  rate:  0.06% • 94%  skip  video  pre-­rolls  ads  before  5  seconds   elapse • 28%  of  users  admits  to  hiding  online  activities • 2.8%  think  online  ads  are  relevant • Millennials  ignore  digital  ads  more  than  ads  in  any   other  channel • 50%  of  mobile  ad  clicks  are  accidental • 54%  don’t  click  banner  ads  because  they  don’t  trust   them • 33%  find  display  ads  “completely  intolerable”

• Ad  blocking  growth:  41%  in  last  12  months

• Ad  blocking  growth:  41%  in  last  12  months • 198M  active ad  block  users  worldwide

• Ad  blocking  growth:  41%  in  last  12  months • 198M  active  ad  block  users  worldwide • Kraft  rejected  85%  of  ad  impressions  last   year

• Ad  blocking  growth:  41%  in  last  12  months • 198M  active  ad  block  users  worldwide • Kraft  rejected  85%  of  ad  impressions  last   year • The  US  Association  of  National   Advertisers  engaged  the  FBI  to   investigate  fraudulent  ad  agency   practices

Ad  Frau • 12%  of  digital  ads  are   never  seen  by   humans  (that  means   $18.5B  in  wasted  ad   spend  last  year)

Ad  Frau • 12%  of  digital  ads  are   never  seen  by  humans   (that  means  $18.5B  in   wasted  ad  spend  last   year) • 25%  of  video  ad   views  are  fraudulent

“Ads  on  the  Internet  are  not  fit  for   purpose,  and  never  have  been.” -­ Media  Chief  of  one  of  the  world’s   largest  CPG  companies

Fewer  ads,  more  content -­ Linda  Boff

“Unequivocally,  we  don’t   believe  in  advertising.” -­ Jeremiah  Glodoveza

1  in  4  consumers  worry  about:   • Safety,  privacy  &  security  of   their  mobile  data. • Malware  attacks • Location-­specific   surveillance  data

Privacy  &  Safety

Channel Complexity 1. It’s  more  challenging  (and,  complex)   to  manufacture  content  that  fits   paid,  owned,  earned,  and   converged  media  than  to  focus   solely  on  advertising.  

Channel Complexity 1.  It’s  more  challenging  (and,  complex)   to  manufacture  content  that  fits  paid,   owned,  earned,  and  converged  media   than  to  focus  solely  on  advertising.   2.  Marketers  find  it  increasingly   necessary  to  invest  in  multiple  channels   to  avoid  risk,  as  efficacy  waxes  and   wanes  between  channels  and   platforms.

Less “real estate” on smaller screens More personal technology means ads are perceived as more interruptive Mobile ads cost consumers, money by eating into data plan allocation iOS has built-in ad-blocking

Mobile  Proliferation

Retailers and brands are expanding content beyond the screen, from phones and desktop computers into customer experiences. "A consumer seeing 10 sequential pieces of content is more valuable to us than seeing the same banner ad 10 times.” Becky Brown, VP Global Marketing & Communications & Director, Digital Marketing and Media Group, Intel

Omnichannel

Agenda 1. Change Drivers

2.Content Engagement Opportunities 3. Recommendations

Customer  Journey  Prioritization “Who, What, Where, When and Why?” The critical factors for consideration, from awareness through advocacy. Attention is scarce and fragile throughout every step.

Real-­Time  Measurement  of  Always-­On  Consumers “Real-time messaging is about to be the primary interface for everything we do.” – Shiv Singh, SVP Marketing, Visa

Content metrics can be examined at each phase of the customer journey, assuming the correct technologies are in place to track behaviors (i.e. CRM, loyalty program, social sign-in, app profiles, etc. Performance metrics: consumption, retention, sharing, engagement, marketing pipeline impact, sales pipeline impact Operations metrics: tied to production and cost.

"Knowing the data side means more job security.” - A CMO

Better Content Analytics

Agenda 1. Change Drivers 2. Content Engagement Opportunities

3.Recommendations

Build a Customer-Centric Content Marketing Strategy

70% of B2B marketers are producing more content this year than last, but a corresponding number of organizations do so without a documented content strategy

Invest  Across  the  Customer  Journey Content marketers create an engaging brand experience during all phases of decision-making: purchase, and postpurchase. Customer retention and advocacy strategies require customizable content that serves consumers and build favorable brand reputation far after purchase is made. Focus on customer behaviors and the needs during each phase of the journey.

Teams,  Tools,  Reso Were  teams  hired  for  advertising  and   media-­related  skillsets? Consider  editors,    journalists,  bloggers,   storytellers,  developers,  videographers,   content  strategists,  analysts.   Educate  and  train  them  continuously.   Ensure  they  have  access  to  the  tools  they   need  to  get  the  job  done.

Vielen Dank! Rebecca Lieb [email protected] @lieblink Help yourself to my research: rebeccalieb.com/research