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eMarketer
The Changing BT LandscapeTrends & Traps
ValueClick MediaMedia Lounge
Chicago, March 27, 2008
David HallermanSenior [email protected]
Internet & BT SpendingInternet & BT Spending
Source: eMarketer, March 2008
$16.9$21.1
$25.9$30.0
$35.0
$41.0
$51.0
$10
$20
$30
$40
$50
2006 2007 2008 2009 2010 2011 2012
US Internet Advertising Spending, 2006 - 2012 (billions)
$4,800
$2,900
$1,850
$1,250$875
$575$350
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2006 2007 2008 2009 2010 2011 2012
US Behavioral Targeting Ad Spending, 2006 - 2012 (millions & % of Internet total)
Source: eMarketer, March 2008
2.1%
2.7%
3.4%
4.2%
5.3%
7.1%
9.4%
BT ad spending growth will be far stronger than for total Internet advertising…
56.8%
65.5%
48.0%
59.4%64.3%
52.2%
42.9%
24.4%
17.1%16.7%15.8%22.7%25.0%
34.6%
0%
20%
40%
60%
2006 2007 2008 2009 2010 2011 2012
BT Total Internet Source: eMarketer, March 2008
32%27%
26%
20%18%
0%
10%
20%
30%
Per Per Click BehavioralTargeting
Rich Media ContextualTargeting
Banner Ads
Tactics marketers say will get budget increases of more than 5% in 2008
Source: MarketingSherpa, ad:tech, February 2008
% respondents, Dec. 2007
Perspective…Perspective…
US Digital Spending, Revenues, Sales, 2008 (millions)
Retail e-commerce sales $161,000 Search engine optimization (SEO)
$2,625
Travel sales (leisure, unmanaged business)
$109,700 User-generated content sites ad revenues
$1,748
Internet advertising (total) $25,900 Social network sites ad revenues
$1,560
Paid search advertising $10,360 E-mail marketing $1,550
Google net revenues $7,917 Video advertising $1,100
B2B Internet advertising $4,400 CPG Internet ad spending $1,190
Classified advertising $4,287 Behavioral targeted advertising $875
Local online advertising $3,700 Podcast ad spending $240
Newspaper sites ad revenues $3,300 Mobile search ad revenues $107
Source: eMarketer, 2007-2008
US Digital Spending, Revenues, Sales, 2011 (millions)
Retail e-commerce sales $245,100 Search engine optimization (SEO)
$4,900
Travel sales (leisure, unmanaged business)
$166,212 User-generated content sites ad revenues
$4,303
Internet advertising (total) $41,000 Video advertising $3,900
Paid search advertising $15,990 Behavioral targeted advertising $2,900
Google net revenues ???? Social network sites ad revenues
$2,700
B2B Internet advertising $8,000 CPG Internet ad spending $1,810
Classified advertising $6,500 E-mail marketing $1,650
Local online advertising $6,400 Mobile search ad revenues $910
Newspaper sites ad revenues $6,100 Podcast ad spending $400
Source: eMarketer, 2007-2008
Viewing the BT landscape…
Marketers want the relevance
Publishers want further revenues
But…tracking data is still evolving
But…biggest advertisers conservative
Privacy ???s: individuals & government
39%
43%
49%
59%
60%
66%
71%
80%
82%
0% 20% 40% 60% 80%
Consumer insights
Behavioral targeting
Brand strategy
Customer marketing
Partnerships
PR
In-house digitalproduction
Field marketing
Entertainment marketing
US marketers say, “BT among most important tactics (online or offline)”
% respondents, 2007
Source: IAB, ANA, Booz Allen Hamilton, October 2007
Neutral8%
Agree79%
Disagree9%
Don't Know4%
Most ad execs agree: “Long tail always existed, technology makes it easier…”
Source: MediaPost, Dynamic Logic, March 2007
% respondents,Mar. 2007
40%
59%
61%
72%
74%
80%
0% 20% 40% 60% 80%
Data accuracy
Term definitions (eg pageviews, visits, visitors)
Expanding reportingfunctionality
Integrating data other thanWeb traffic or clickstream
Dedicating additionalresources
Validity of cookie-basedmeasurement
Problems with Web analytics make ad tracking somewhat problematical
% respondents, Apr. 2007
Source: WebAnalyticsDemystified, June 2007
27%
28%
29%
29%
32%
36%
42%
60%
0% 20% 40% 60%
Marketing basics
SEO
Personalization
Green marketing
Multicultural issues
Breakdown of old media
Innovative branding
Viral/word of mouth
US marketers say, “Personalization top marketing trend, but basics rule!”
% respondents, Oct. 2007
Source: Anderson Analytics, November 2007
21% to 40%12%
41% to 60%3%
61% to 100%1%
None10%
1% to 20%74%
Budget share that ad execs reserve for new media properties and experimentation
Source: AAF, February 2007
% respondents, Jan. 2007
Source: Advertising Age, TNS, June 2007
1.1%
5.1%
3.6%2.9%
4.4%3.8%
0.6%
5.7%
1.5% 1.3%
0%
1%
2%
3%
4%
5%
6%
7%
1. Pro
cter &
Gam
ble
2. AT&T
3. Genera
l Moto
rs
4. Tim
e Warn
er
5. Veriz
on
6. Ford
Moto
r Co.
7. Gla
xoSmith
Kline
8. Wal
t Dis
ney Co.
9. Johnson &
Johnso
n
10. Unile
ver
Largest US advertisers still (mainly) put small share of spending online*
*display advertising,
2006
3.1% share among top 100
Sir Tim Berners-LeeCreatorWorld Wide Web
“If you want to use it [my Web history] for something, then you
have to negotiate with me. I have to agree, I have to
understand what I’m getting in return.”
40%
54%
57%
71%
72%
0% 20% 40% 60%
Online advertising intrusivewhen not relevant
Aware that browsing infomay be collected for
advertising
Not comfortable withbrowsing history being
used to serve relevant ads
Delete cookies at least 2-3times a month
Familiar with term"behavioral targeting"
US consumers say, “Not comfortable with being tracked online”
% respondents, Feb. 2008
Source: TNS, TRUSTe, March 2008
Jon LeibowitzCommissionerFederal Trade Commission
“When you’re surfing the Internet, you never know who is peering over your
shoulder or how many marketers are watching.”
“Thank You!”
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