Ben Fox Discusses the Past, Present and Future of Advertising

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WE WILL MAKE ELECTRICITY ADVERTISINGSO CHEAP THAT ONLY THE RICH

WILL BURN CANDLES

– THOMAS EDISON

FOLLOW ME! LINKEDIN.COM/IN/BENFOX, @BENFOXGO

2005

2013

19000

$70B

SOURCE: BUSINESS INSIDER, PURPLE MOTES

201220001960

( In f la t ion

unadjusted)

$30B

198019401920

US NEWSPAPERAD SPEND 1704-2012

303 YEARS

NEWSPAPER

19000

2012

( In f la t ion

unadjusted)

US RADIOAD SPEND 1922-2012

RADIO

90 YEARS

20001960 198019401920

SOURCE: BUSINESS INSIDER, PURPLE MOTES

NEWSPAPER

$70B

$30B

19000

2012

( In f la t ion

unadjusted)

US TV AD SPEND 1945-2012

RADIO

TV

68 YEARS

20001960 198019401920

SOURCE: BUSINESS INSIDER, PURPLE MOTES

NEWSPAPER

$70B

$30B

19000

SOURCE: BUSINESS INSIDER, PURPLE MOTES

20131993

( In f la t ion

unadjusted)

US DIGITALAD SPEND 1993-2013 ~36.5 B

RADIO

20 YEARS

1960 198019401920 2000

$70B

$30B

TV

NEWSPAPER

19740

2023

28

38

48

2003 2013

MY LAST 10 YEARS OF ONLINE ADVERTISING

IN 2003, WHEN YAHOO

BOUGHT OVERTURE,

WE SPENT ALL OUR

TIME EXPLAINING

“SEARCH ADVERTISING”(And don’t say “Algorithmic

Search Results”)

1993:THE FIRST BANNER AD

ATT on HOTWIRED.COM CTR 78%!

ONLINE AD MEETINGS WITH CMO’s IN 2003

“Does this mean

advertising on

those AOL Disks?”

– Automotive CMO

Objection #1:

ONLINE AD MEETINGS WITH CMO’s IN 2003

“Does this mean

advertising on

those AOL Disks?”

– Automotive CMO

Objection #1:

“Why do I need to spend money

online? I don’t even have

the internet at my house!”

– Fortune 500 CEO

Objection #2:

ONLINE AD MEETINGS WITH CMO’s IN 2003

“Does this mean

advertising on

those AOL Disks?”

– Automotive CMO

Objection #1:

“Why do I need to spend money

online? I don’t even have

the internet at my house!”

– Fortune 500 CEO

Objection #2:

Well how have you been

replying to my emails?

Follow up:

“Oh that’s my secretary reading

them to me and replying

back to you!”

ONLINE AD MEETINGS WITH CMO’s IN 2003

“Does this mean

advertising on

those AOL Disks?”

– Automotive CMO

Objection #1:

“Why do I need to spend money

online? I don’t even have

the internet at my house!”

– Fortune 500 CEO

Objection #2:

Well how have you been

replying to my emails?

Follow up:

$7B

2003 ENTIRE US ONLINE

ADVERTISING SPEND

2013 DISPLAY: $8B!

$7B

2003 ENTIRE US ONLINE

ADVERTISING SPEND

$46B

2013 ENTIRE US ONLINE

ADVERTISING SPEND

2013 DISPLAY: $8B!

$7B

2003 ENTIRE US ONLINE

ADVERTISING SPEND

IN THE NEXT 10 YEARS

HAVE ONE OF THE

BIGGEST OPPORTUNITIES

OF THE LAST 100 YEARS

AVERAGE

AGE OF AGENCY

EMPLOYEE:

28!

NEWS INVENTORY,

SOCIAL INVENTORY

SMART PHONE ADS

ON PANDORA

CTV SAMSUNG

INVENTORY

CTV EXCLUSIVE,

NETBLOCKS

EMAIL

NEWSPAPER

RADIO

TV

BILLBOARDS

DIRECT MAIL

WHAT DO

YOU DO NEXT?

HERE’S THE PLAYBOOK

FOCUS ON CONSUMER STATE

DISRUPTION DRIVES EVOLUTION

THE 1:1 MARKETING CONVERGENCE

1

2

3

FOCUS ON THE CONSUMER STATE!1

1 THE CONSUMER STATE AT HOME IS SIMULTANEOUS!

TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE

BASE: MULTI-SCREEN OCCASIONS (4486) Q: Which Activities did you do on your [DEVICE]

SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012

TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE

BASE: MULTI-SCREEN OCCASIONS (4486) Q: Which Activities did you do on your [DEVICE]

SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012

THE TOP STATES FOR USERS

ON MULTI-SCREEN ARE

EMAIL, WEB BROWSING & SOCIAL!

HOW MANY TV PLANNERS

ARE IN THE ROOM?

HOW MANY TV PLANNERS HAVE

PUT EMAIL & TVON A SINGLE IO?

MOBILE IS A TECHNOLOGY FEATURE,

NOT AN ADVERTISING SILO.

“Mobile” is actually

an at home device!

Second only to time

spent on TV

Source: Edwin Wong, Senior Director,

B2B of Strategic Insights, Yahoo!

EMAIL & SOCIAL DOMINATE THE MOBILE STATE

Source: Pew Research Center’s Project for Excellence in Journalism in collaboration with The Economist Group

Source: ExactTarget channel study 2012

DOES ANYONE KNOW WHAT THIS IS?

ADVERTISING

CHARACTERISTICS:

AFFLUENT EARLY ADOPTERS

SAFE BRAND ENVIRONMENT

HOME PAGE IS DEFAULT

HIGHLY ENGAGED AUDIENCE

ACTIVE USAGE

THIS IS A SAMSUNG SMART TV

THIS IS A SAMSUNG SMART TV

THIS IS A SAMSUNG SMART TV

THIS IS A SAMSUNG SMART TV

THE FUNDAMENTAL SHIFT TO SMART TV IS WELL UNDERWAY

18% of US Homes currently

own a Smart TV

33% of US Homes will have a

Smart TV in 2015

By 2015, 77MM Smart TV’s

will be shipped globally

– Morgan Stanley

– Forrester

– IHS

HOURS

PER DAY

AVERAGE 25-34 Y.O. CONSUMER

5 LIVE, DVR+3

$70B

WATCHING

TRADITIONAL

TV / DVR+3

SOCIALSEARCH

“TV” AD PLANNING MIGHT LOOKVERY DIFFERENT IN THE FUTURE!

EMAIL

$42B

$14B

$14B BROWSE

1

1HOUR

HOURS

HOUR

3

THE BEST AD

PLANNERS IN

THE WORLD MAPCONSUMER

STATE

THEIR ADVERTISING TO THE

DISRUPTION DRIVES

EVOLUTION2

DEVICE ADVERTISINGDEVICE ADVERTISINGCONTENT &

DISTRIBUTION

DEVICE ADVERTISINGDEVICE ADVERTISINGCONTENT &

DISTRIBUTION

CONTENT &

DISTRIBUTION ADVERTISINGDEVICE

CROSS CHANNEL PLATFORM

AN ADVERTISING ECOSYSTEM

LOCKED IN SILOS BY DISTRIBUTION IS NOW OPEN!

DISRUPTION WILL DRIVE AGENCY EVOLUTION

Monthly Planning Cycles

All Media GRP

Agency Performance Fee

Guaranteed Performance

Sales revenue share

NEXT

Fractional Attribution

Interactive, User Selected, Single user

targeted

$ +

12-24 Month Planning Cycles

No Online GRP

Agency Flat Fee

NOW

Last View/Click Attribution

22 mins Contact/8 mins ads/30

Second Interruption Spot

$

ORGANIZATION

Be an integrated agency even if your client isn’t

AGENCY EVOLUTION ROADMAP

HIRING DNA

The math major, not the marketing major, becomes the new must hire

DYNAMICALLY APPROVED CREATIVES

Let algorithms dynamically create, test, and recommend millions of creatives for you

DATA INTEGRATION

Deep integration with your clients’ sales data

TECHNOLOGY & VENDOR LEADERSHIP

Focus on data integration, analytics, reporting and optimization. Master delivery through long

term vendor partnerships

THE 1:1 MARKETING

CONVERGENCE3

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

19000

SOURCE: BUSINESS INSIDER, PURPLE MOTES

20131993

( In f la t ion

unadjusted)

ALL CURRENT USAD SPEND

$160 Billion 2012

RADIO

1960 198019401920 2000

$70B

$30B

TV

NEWSPAPER

DIGITAL

THE DEATH OF

“TV”, “RADIO”, “OUTDOOR”, ETC.

IS NOT GOING TO HAPPEN!

THEY ALL EVOLVE!

2013

$

2023

RADIO

NEWS

PAPER

TV

LAST

PRINTED

Page

AM/FM

AUDIO

FTP/ CABLE

STREAMING AUDIO

DIGITAL PRINT

LTE/FIBER

$200B

2013

$200B

2023

ADVERTISING EVOLVES INTO A DIGITAL SINGULARITY

PRAGMATIC PLANNING

THE NEAR FUTURE MEDIA PLAN:

DEVICE AGNOSTIC

CONSUMER STATE

DEVICE AGNOSTIC

CONSUMER STATEMEASURING ACROSS MEDIA TYPES

USING ALGORITHMIC CREATIVES

THROUGH CENTRALIZED DELIVERY

USING AN ALL MEDIA GRPs

WITH TRUE FRACTIONAL ATTRIBUTION

TARGETING ALL AUDIENCES OR A SINGLE PERSON

DIRECTLY INTEGRATED TO YOUR ADVERTISERS’SALES DATA WAREHOUSE AND CRM

WHILE OPTIMIZING AGAINST DAILY POINT OF SALE RESULTS

BILLIONS OF EXCHANGE BIDS

WHILE BACKING OUT AGAINST A TOTAL LIFETIME CUSTOMER VALUE METRIC

COLLECTING YOUR AGENCY FEE AS A SALES BASED REVENUE SHARE

In real time.

THE ADCONION MARKETPLACE

77OF TOP100 ADVERTISERS

1.1 BILLIONVIDEO AND

DISPLAYSTREAMS, OF

WHICH 65% AREEXCLUSIVE

REVENUE SPLIT

50%AGENCY

5,000+

TOP-TIERINVENTORYPARTNERS

INTEGRATEDTECH STACK

BIG DATA PREDICTIVEMODELING

PROPRIETARYRTB

AUDIENCE 360ANALYTICS

DEVICE MANUFACTURERSAPP DEVELOPERSCONTENT OWNERS

CROSS-CHANNEL, CROSS-DEVICE

DISPLAY MOBILE SOCIAL CTV700MM

UNIQUES PER MONTH

50%DIRECT CLIENT

40 BILLION EVENTS PER MONTH

2.7 BILLION BID REQUESTSPER DAY

3 GLOBAL

CO-LOCATION FACILITIES ON

CONTINENTS3

ADCONION TARGETING PLATFORM

OUR SUPPLY

OUR DEMAND

2005

2013

2023

2023

2023

2023

THE NEXT 10 YEARS IS YOUR TIME.

ARE YOU READY!?

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

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