..Effective? Digital Media – is it.. ..Economic? ..Efficient? 1 1
Is it Efficient? Can it deliver large audiences? Does it make the investment work hard? 2
Huge number of intermediaries makes programmatic expensive or inefficient… 3
…Resulting in a significant loss of working media spend Client AOR ATD DSP Tech/Data fees Exchange Publisher 5% 100% 15% 10% “Agencies are fighting a war on two fronts. Digital is the battleground and 25% programmatic is the fault line. Management consultants have the 5% strategic and technologic expertise - no doubt. Agencies need to re-invent their business models - the woods are 40% burning.” Yvonne O’brien , Data & Insight consultant, *WFA member survey: Oct 2014 formerly Head of global Insight @ Havas 4
Dumping of inventory in low quality environments is common place and often goes un-noticed As the campaign progresses, the amount of inventory served at night increases Source: MediaSense DiPA Evaluation – Daypart Targeting Analysis 5
For all it’s charms, social media also struggles to reach significant numbers of people For brands with over 1m fans, just 0.06% of them interact with the average Facebook post (like, share, or comment) To say I want to make a viral movie, is like a musician saying I want to make a hit song. - Casey Neistat, YouTube star with 2.7m subscribers 6
7 Customer penetration? CUSTOMER CUSTOMERS PENETRATION 10,000,000 66,000 0.6% 11,000,000 187,000 1.7% 19,500,000 201,000 1% 7
TV is still king: 3 times as efficient as other media channels Ebiquity Benchmarks: Average ROI Index 3x 1,00 0,38 0,32 0,29 0,24 TV RADIO PRESS OOH DIGITAL Source: Ebiquity database 2008-2016 8
Why is digital ROI low? High cost of digital video relative to TV and wide range of creative quality Range within Ebiquity Benchmarks: Average ROI Index DIGITAL ROI Index Max 1.68 1,00 Avg 0.24 0,38 0,32 0,29 0,24 Min 0.00 TV RADIO PRESS OOH DIGITAL 9
Is it Effective? Can it engage audiences? Can it drive a direct response? Can it build brands? Can it deliver creative? Can it target audiences? 10
Trust is an important environment for communications 100% Percentage of EU Population: 2016 59% 59% 50% 48% 48% 46% 46% 50% 36% 34% 21% 0% Radio Television The Press Internet Social Networks Tend to Trust Tend not to Trust 80% 68% 66% 62% 60% 42% 38% 40% 30% 22% 19% 19% 17% 16% 16% 14% 14% 20% 13% 13% 12% 12% 12% 11% 10% 8% 7% 7% 6% 3% 3% 0% Personal experience Friends, family Social media Traditional opinion Opinin leaders online Experts in traditional Experts online Communication from Communication from leaders media traditional media online Millenials Generation X Baby boomers Source: European Commission, Eurobarometer 11
…but the trend locally is encouraging Tend to Trust: Internet 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2006 2007 2008 2010 2011 2012 2013 2014 2015 2016 UK Germany Turkey Source: European Commission, Eurobarometer 12
Users who choose to complete view a skippable are more engaged than those who view pre-roll Users who complete view a skippable ad are +75% engaged vs. seeing the pre-roll Sources: https://storage.googleapis.com/think-emea/docs/old/rise-of-viewer-choice_research-studies.pdf . http://www.slideshare.net/antonovn/youtube-trueview-skippable-prerolls-study 13
Evidence that the ‘sit - forward’ nature of digital gives it an edge over TV ▪ The majority (62%) of all YouTube mobile advertising, paid and non- paid, receives viewers’ attention compared to only 45% of TV ▪ Paid YouTube mobile advertising is 84% more likely to receive attention than TV advertising (83% for Paid YouTube mobile ads and 45% for TV ads) * Paid Mobile Advertising Time includes YouTube video ads that are played for at least :30, or in full if the ad is less than :30 14
The trend toward personalisation IT’S NOT AS EASY AS WE THINK There are things that drive personalisation… ▪ The fact that we can: registration data, cookies, fingerprinting, mobile device=person ▪ The promise of zero wastage ▪ The benefits of increased resonance …and there are things that prevent it… ▪ Increasing privacy regulation ▪ Devices people ▪ Browser blocking Rejection of 3 rd party cookies/pixels/tags ▪ ▪ Algorithms & models are not a replacement for deterministic data ▪ Growing academic evidence on the limits of precision marketing ▪ Reputation management concerns 15
Precision Targeting: Could we? Should we? 16
Is it Economic? Are the investments reflective of it’s performance? Are CPMs in line with other media? Is Earned Media really free? Are the absolute costs low? Does it still work with low investment levels? 17
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The low CPM for Online advertising is so appealing 43 CPM – COST PER MILLE (THOUSAND) VIEWS 28 25 22,3 21,3 13 7,8 19
But there are warning signs…. …digital Media price inflation is far ….targeting and Video are fuelling the rises in excess of inflation 2 Questions: ▪ for how long will it be acceptable to burn through inventory to identify the best creative? ▪ Are these prices being fuelled by performance…or by scarcity? Source: Adobe Digital Advertising report 2017, Ebiquity 20
So what might we conclude? Be aware of the limits of Precision Marketing: the question is surely Effective? should we , rather than could we? Economic? Inventory price inflation is becoming a threat, driven through scarcity But digital does seem to deliver complimentary audiences and can Efficient? efficiently deliver on some younger audiences. A small number of registration-based platforms can deliver TV levels of cover 21
Some thoughts on why digital performance is lagging potential SMALL AUDIENCES LOSS OF WORKING CAPITAL POOR TARGETING POOR QUALITY CREATIVE FOCUS ON THE HIGH ADVERTISING YIELDS IMPRESSION FRAUD SHORT TERM EFFECTS DON’T WRONG METRICS BUILD LONG TERM EFFECTS 22
What can Brands do? Ensure you only have above- Implement campaign controls to ensure even delivery 1 7 average creative Make Viewability-based trading deals work harder 8 Consider pre-testing 2 video formats Optimise to context 9 Ensure the big idea is appropriately 3 The Media communicated in the medium The Creative Optimise to device 10 Imperative Imperative Clearly distinguish between 4 diagnostics and outcomes Ensure a fully integrated media plan 11 Integrate Attention to compliment 5 Balance the long and short term objectives by audience delivery 12 selecting the appropriate metrics for evaluation Make sure your creative succeeds in it’s 6 Apply the same rigour to digital data as 13 purpose – to convey a brand message you would with disciplined media 23
THE CREATIVE IMPERATIVE 1. Ensure you only have above-average creative MEDIA With strong creative, your ROI will be 5 to 7 times higher than weak-to-average creative 75% Creative Quality Source: Ipsos 24
THE CREATIVE IMPERATIVE 2. Consider pre-testing video formats Digital allows clients to run This is based on Digital providing For how long will this be different creatives and large quantities of cheap possible with increasing optimise inflight. inventory inventory pricing? A B Outstream C Skip Ad Non-skippable Skippable How long my ad must be Which of my executions have the Which ad format best fits my viewed to deliver its message. greatest brand impact. execution. Source: Ipsos 25
THE CREATIVE IMPERATIVE 3. Ensure the big idea is appropriately communicated in the medium 26
THE CREATIVE IMPERATIVE 4. Clearly distinguish between diagnostics and outcomes 27
THE CREATIVE IMPERATIVE 5. Make sure your creative succeeds in it’s fundamental purpose – to convey a brand message 28
Not surprisingly, a lot of people watched the video … liked what they saw and felt inspired to share it with friends and family … …. unfortunately no-one recalled the brand or understood the product message “ 29
THE CREATIVE IMPERATIVE 30
THE CREATIVE IMPERATIVE 6. Testing, learning and adapting: Coffee-Mate Natural Bliss 2016 2015 80% 53% earned earned 4.1 million video views, media impression 5.9 million video views, media impression +3% brand awareness +23% brand awareness 31
THE MEDIA IMPERATIVE 7. Implementing campaign controls to ensure even delivery and weighting of activity is critical Source: MediaSense DiPA Evaluation – Daypart Targeting Analysis 32
THE MEDIA IMPERATIVE 8. Make those trading deals work better for you Example: Client plans 40m Viewability Test Client switches from to Client saves $120k and impressions video 20m impressions delivers campaign with Connect:Digital shows the campaign at cost of viewed for 5 secs at more brand impact ad needs to be viewed for $8 cpm* $10cpm at least 5 seconds to deliver a brand impact *Note: cpm is cost per 1000 viewable impressions based on MRC/IAB standard of considering an ad viewable after 2 secs 33
THE MEDIA IMPERATIVE 9. Optimise to context… Digital video ads are placed in The brand must appear a different context. Ads that work early and avoid slow builds well on TV may fail as skippable video, and vice versa. because viewers won’t wait. 34
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