Next generation Ad Solutions

Next generation Ad Solutions Erik-Jan Gelink, CCO

Introduction

I have a background in leading teams and being a trusted advisor for mainly media & telecom companies…

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… and as of June 2014 I have joined Sanoma Media Netherlands as Chief Commercial Officer (CCO)

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Some observations

Some observations – it is getting quite complex outside

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

Some observations

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

Publishers become Agencies, Agencies become Content Creators ( even Publishers), and Brands are Content Creators

Publishers

Agencies

Brands

Lines are blurring in the traditional media value chain

Agencies

Content

Creators

Publishers

Some observations

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

New media channels have allowed marketers to connect with consumers in new ways, opening the minds of new audiences The Paid, Owned & Earned Media ecosystem

And the media channel ecosystem is expanding with innovations like Google Glass…

… Google Nest…

… smart watches…

…in-car screens…

…innovative projection solutions (Sony example), and so on..

Some observations

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

The fragmentation of media channels will confirm ‘Attention’ to be a increasingly scarce resource

Getting (or holding) the attention of target customers is on the top of the US Marketers ‘marketing got complicated’ list

Source: eMarketer

Level of challenge for marketing factors according to US marketing executives (Feb 2014, % of total)

Some observations

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

Mobile is the only media time that is growing

Media time consumption share US 2009 2013

Source: eMarketer Business Intelligence – August 2013

Google and Facebook are dominating the Global mobile Ad Revenu market with a combined share of 68,5% in 2014

Source: eMarketer

Net mobile internet Ad Revenue share (%) worldwide by Company (2012-2014)

Some observations

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

Market conditions force companies to increasingly link advertising expenditures to specific goals

Performance based advertising will extend itself outside online, where most of the Advertising spend is

Some observations

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

Programmatic buying is a computerized system for buying digital media advertising impressions automatically

Programmatic advertising increases share in the display market; figure excludes Google and Facebook Display advertising spend split into Manual and Programmatic trade

Source: IAB. Deloitte

RTB is most used as programmatic method in NL, spend shows similar seasonality as the total online display market Programmatic revenue RTB and Non-RTB (m€)

Source: IAB. Deloitte

Some observations

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

Native ads are more engaging than sponsored or banner ads, which make them an effective tool for advertisers

Some observations

1 Lines are blurring in the traditional media value chain

2 There is an ever-increasing range of media channels

3 ‘Attention’ is an increasingly scarce resource

4 Mobile is the only media time that is growing

5 Performance based: a shift from selling audience to selling behavior

6 Robots are taking over the ad-buying process

7 Native advertising is a major driver of future Advertising sales

8 Neuroscience research had important implications for traditional theories of advertising

Recent discoveries in neuroscience and psychology have important implications for traditional theories of advertising

Recent discoveries in neuroscience and psychology have important implications for traditional theories of advertising

New world view

Emotional

and

rational

Getting

noticed

Relevant

associations

Refreshing

and building

memory

structures

Reaching

Salience

(remarkable

-ness)

Rational

or

emotional

Message

compre-

hension

Unique

selling

propositions

Persuasion Teaching Positioning

Past world view

Source: How Brands Grow, Byron Sharp (2010)

1. Continuously reach all buyers of the category (communication and distribution) – avoid

being silent

2. Ensure the brand is easy to buy (communicate how the brand fits with the users life)

3. Get noticed (grab attention and focus on brand salience to prime the users mind)

4. Refresh and build memory structures (respect existing associations that make the brand

easy to notice and easy to buy)

5. Create and use distinctive brand assets (use sensory cues to get noticed and stay top of

mind)

6. Be consistent (avoid unnecessary changes, whilst keeping the brands fresh and interesting)

7. Stay competitive (keep the brand easy to buy and avoid giving excuses not to buy (i.e. by

targeting a particular group)

After several bruising rounds of marketing myth-busting, HBG outlines 7 scientifically derived rules for brand growth

Source: How Brands Grow, Byron Sharp (2010)

How can we help?

My job at Sanoma is helping our clients and partners succeed in achieving their business goals…

… by using our large portfolio of media assets…

… across all touch points along the customer journey.

For example, if your target group is Women, Sanoma SBS is the partner for you…

Consumer Profile

• Female

• Married

• Age of print audience: 20-65yrs; age of online audience: 20-

49yrs; Net 5 audience skewed to 20-35yrs old women

• MBO-HBO educated. Higher education level for Linda & Flow

• Print audience often has young children in household; online

audience is more likely to live in one or two-person households

• Medium social class

• Employed; but not breadwinner

• High newspaper & magazine readership, high TV viewership

Selection of Women’s Interest Domain brands

TV Print Digital Events

Source: NOM average reach data 2013; DDMM survey data 2013

… our assets and key brands are able to reach out to different target groups covering all age-and income groups Predominant audiences per brand

Source: NOM audience monitor 2012 – PRINT and 2013- online

INDICATIVE

There are a lot of different ways to work with us…

New developments

Let me highlight a few categories of solutions we are developing next to our core advertising products

Effectiveness

and efficiency

Owned and

earned media

services

Direct

Stakeholder in

(sales) results

advertiser

Build

infrastructure

for demand and

supply

Improved

advertising

(tools, ROI)

Content

marketing

Performance

partnerships

Domain

solutions

1 2 3 4

More information?

Visit www.adverterenbijsanoma.nl or download the iPad App

Deel je ervaring #SMM14