TRENDS IN PAID DIGITAL MEDIA
AGENDA DIGITAL AD SPENDING TRENDS CROSS-PLATFORM POSSIBILITIES GETTING TARGETED PRICING MODELS 2
TRENDS IN PAID DIGITAL MEDIA
DIGITAL AD SPENDING: TRAVEL THE STEADY RISE IN DIGITAL AD SPENDING WILL CONTINUE DUE TO A HEALTHY US ECONOMY THAT ENCOURAGES CONSUMER TRAVEL SPENDING, AND A STRONG COMPETITION FOR CONSUMER AWARENESS AND DIGITAL BOOKINGS. Restaurant spending dropped 4.9% in just the first quarter of 2015. In 2014, ovevrall spending hit $6.463 billion. 2014 restaurant spending declines included: Sunday Magazine: 32.3% TV: 9..2% Digital 8.7% Magazine: 7.3% Source: emarketer 2015 Travel Industry Category Report 4
SPENDING BY OBJECTIVE TRAVEL DEDICATES A HIGHER PROPORTION TO DR THAN ANY OTHER INDUSTRY. The focus on DR is lead by the driving force of digital purchases; as the most effective at creating bookings. However there is increasing interest in more impactful brand-focused digital advertising that can drive engagement. Source: emarketer 2015 Travel Industry Category Report 5
SPENDING BY DEVICE AS TIME SPENT CONTINUES TO INCREASE FOR MOBILE, SO DOES TRAVEL PURCHASES THROUGH MOBILE DEVICES; CONTRIBUTING A SHIFT IN AD SPENDING. emarketer estimates that US consumers that book with a mobile device at least once will represent 37% of all digital travel bookers. Bookings via smartphone: Hotel: 21% Event Tickets: 21% Air: 13% Car Rental: 8% Car Service: 7% Cruise: 3% Source: emarketer 2015 Travel Industry Category Report 6
SPENDING BY FORMAT PAID SEARCH REMAINS THE LARGEST PORTION OF MOST TRAVEL BUDGETS WHICH REFLECTS THE MULTIWEEK RESEARCH PROCESSTRAVELERS UNDERTAKE. Yet this format is increasing being used as a complement to content distributed through other channels like social media, video, and display. Source: emarketer 2015 Travel Industry Category Report 7
SPENDING BY FORMAT BREAKDOWN OF TRENDS BY FORMAT DISPLAY As the 2 nd most popular format, activity is trending towards rich media and display purchased programmatically. Rich media ads outperform all other industries. It s predicted 68% of display ads will be purchased programmatically. Programmatic buying allows for advertisers to be more specific in targeting and creative. VIDEO This is known as the best format to share highly visual and the emotional appeal of travel content. Account for 10% of all travel ad spending. Completion rates for video ads rank higher than average (80%+). Spending levels still remain low due to costs of inventory and production, as engaging video is more of an art than science. SOCIAL Social media is particularly important when marketing to younger travelers (18-35). Internet users between 26-35 were more likely to share travel content than other kinds of content. Paid social s ROI results is dependent on media goals; where engagement leads. Frequency and quality of content shared impacts performance. Source: emarketer 2015 Travel Industry Category Report 8
IMPACTS OF LOCAL SEARCH THE TOP REASON FOR LOCAL SEARCH IS TO FIND A SPECIFIC BUSINESS. However, the 2 nd most common reason is based on a category search, to find a business with the product or service desired. Nearly 50% of all restaurant and travel searchers were looking for a business they had never been to before. Almost 80% of local searches on mobile devices turned into purchases, with 73% in store. Restaurants remained the single largest or most common local search category except on tablets. Source: comscore, Neustar Localeze, 15 Miles 9
TRENDS FOR 2015 MOBILE USAGE IS GROWING RAPIDLY Digital ad travel spending is allocating more and more to mobile Marketers are adapting their sites and tools to be more mobile friendly Location-based targeting increases to reach the on-the-go users DIGITAL VIDEO THAT S UNDER-REPRESENTED WILL SEE GROWTH Ranks higher than other industries for consumer engagement Allows for creative opportunities PROGRAMMATIC DOMINATES DISPLAY Increased scale means further reach, with active optimization Source: emarketer 2015 10
CROSS-PLATFORM POSSIBILITIES 11
IT S ALL ABOUT BALANCE FINDING THE RIGHT INVENTORY AND THE RIGHT SALES CHANNEL TO DELIVER ON YOUR GOALS IS A DELICATE BALANCE. Creating the perfect equilibrium of quality, quantity, and cost that performs.
CROSS-PLATFORM CAMPAIGNS DISPLAY, MOBILE/TABLET, VIDEO, NATIVE OR SOCIAL? All available within the same platform. DISPLAY Engage the right audience, at the right time, piquing interest and putting your brand topof-mind. MOBILE/TABLET Access inventory on every major mobile exchange and marketplace to reach any audience on the go. VIDEO Pre-, mid-, and post-roll video placements are sure to increase engagement with your brand. NATIVE Native ad units are fully integrated, branded, and consumed as editorial content. SOCIAL Social ads reach your audience on the platforms they spend time on.
GOING DEEPER: MOBILE & TABLET MOBILE IS THE BIGGEST GROWTH DRIVER IN THE PROGRAMMATIC SPACE, ACCOUNTING FOR 70% OF PROGRAMMATIC SPENDING BY 2016. MOBILE APPS & GAMES Reach connected consumers on apps downloaded to their devices. Embedded ads in games, social applications, and tools are the prime environment to reach precise audiences. MOBILE OPTIMIZED SITES Run across mobile optimized web pages from trusted and popular publishers in news, weather, sports, social media, entertainment, lifestyle, and other verticals. MOBILE WEB Reach your audience across inventory that has not been optimized for mobile, but is visited by mobile users via banner ads.
GOING DEEPER: VIDEO EXTENSIVE VIDEO INVENTORY ALLOWS FOR CUSTOM CREATIVE EXECUTIONS THAT ARE LIMITED ONLY BY YOUR IMAGINATION. Advanced targeting zeros-in on your niche audience and creative extends engagement. CREATIVE & FEATURES Pre-, mid-, and post-roll Companion banners Custom skinned players In-banner Cost-per-completion Click-to-play
VIDEO YOUTUBE TARGETING REACH YOUR AUDIENCE THROUGH THE RELEVANT YOUTUBE CONTENT THEY ENGAGE WITH EVERY DAY. How it Works: Smart software analyzes your business, your audience, and your competitors. It determines the best ad formats, videos, and channels to engage your target audience. Your ad is served via pre-roll, keyword search, or display. You are only charged per engaged video view, not per click or impression. 16
GOING DEEPER: NATIVE NATIVE ADVERTISING SEAMLESSLY INTEGRATES YOUR MESSAGE INTO THE CONTENT STREAM OF PREMIUM WEBSITES. It s less intrusive to the users online or mobile experience, promoting deep engagement with the brand. Your content is made native in real-time in a brand safe environment. Enter content once and it will be distributed across hundreds of publications, in their look and feel, instantly. Target by context, geography, or device. Auto-optimizations are based on response rates. Advanced reporting provides detailed analytics around consumption and social media sharing. Track your content with any third-party tags. Gracefully transparent reporting means your content is clearly labeled as sponsored or promoted. 17
NATIVE ENGAGEMENT TRACKED 18
GOING DEEPER: SOCIAL SOCIAL REACHES CONSUMERS ON THE SITES AND PLATFORMS THEY ENGAGE WITH EVERY DAY. From increasing brand awareness to retargeting campaigns, social delivers high-touch engagement and unprecedented viral opportunities.
GETTING TARGETED
LOCATION-BASED TARGETING PROXIMITY IS AT THE HEART OF LOCATION- BASED CAMPAIGNS: 85% targeted users based on vicinity Geo-conquesting was the second most common approach (48%) Restaurants dominate this sector, as business is reliant on foot traffic Source: emarketer 2015 21
LOCATION-BASED TARGETING GEO-FENCING DELIVER A HIGHLY RELEVANT MESSAGE TO CONSUMERS WHEN THEY ENTER A PRE-DEFINED RADIUS. How it Works: Select the area where you want your message delivered. A circle is drawn around the area to deliver targeted ads to your consumers. Perfect to drive consumers to a specific location or to encourage an action with time and location sensitive offers. 22
LOCATION-BASED TARGETING HYPER LOCAL MOBILE USE LOCATION-GRID TECHNOLOGY TO REACH YOUR AUDIENCE ON THEIR MOBILE PHONES. How it Works: Select your point of interest and audience. A precise location grid is overlaid to coordinate your campaign based on specific locations and time of day. Locations are identified and serve the appropriate creative at the appropriate time to ensure delivery to client locations and the surrounding market area. Your campaign is enhanced using both first- and third- party data from leading providers such as Polk, ESIR, Acxiom, and Experian. Perfect to conquest competitor locations or zoom in on several streets, like a shopping center or sports stadium. 23
SEARCH RETARGETING FIND CONSUMERS BASED ON PREVIOUS SEARCHES THEY VE CONDUCTED IN LEADING SEARCH ENGINES. How it Works: You provide a keyword list. Don t have one? One can be recommended by your vendor. When a consumer enters a specific keyword or phrase from that list into a search engine, they become part of a qualified keyword cookie pool. They are served an ad at a later time across 24
DAYPART TARGETING REACH YOUR AUDIENCE AT SPECIFIC TIMES OF THE DAY, WHEN THEY ARE MOST LIKELY TO ENGAGE WITH YOUR MESSAGE. How it Works: Your audience is analyzed, their media consumption habits, and device usage, to identify their peak online and device time. Your ads run when your audience is most likely to be online. Great to promote time sensitive offers and events to create a sense of urgency. 25
WEATHER TARGETING ENGAGE YOUR TARGET AUDIENCE WITH RELEVANT ADS BASED ON SURROUNDING WEATHER CONDITIONS. How it works: Ads are determined by real-time weather conditions. Ads served can be triggered by: Temperature Weather Conditions: Cloudy, Humid, Icy, Rain, Snow, Sun, Thunderstorm, Windy, etc. Alerts: Extreme cold, Flood, Fire Danger, Heat Wave, Hurricane, Tornado, etc. Flu Activity: Weak, Mild, Severe Layer on additional audience targeting tactics like geography, demographics, or interest for truly granular custom targeting. ENTERTAINMENT PARKS CAN REACH MOMS ON SUNNY DAYS. REACH MOVIE ENTHUSIASTS ON RAINY OR SNOWY EVENINGS. ADVERTISE ALL WHEEL DRIVE VEHICLES WHEN THERE IS A BLIZZARD. 26
IP ZONE TARGETING THE PRECISION OF DIRECT MAIL WITH ONLINE SCALE WITH 3X THE AUDIENCE REACH OF COOKIE-BASED STRATEGIES. How it Works: Offline data is compiled from hundreds of public sources. Data is scrubbed through military grade databases. Correlations are drawn to millions of known online users via their IP addresses. Tight IP Audience Zones are created and targeted. 27
LOOK-ALIKE TARGETING EXPAND YOUR POTENTIAL CUSTOMER POOL BY TARGETING CONSUMERS WHO BEHAVE LIKE YOUR BEST CUSTOMERS. How it Works: A pixel is placed on your website, allowing us to identify your best customers. Profiles are then built of these users based on 60+ characteristics. Run across robust inventory to target consumers who move your bottom line. 28
PRICING MODELS 29
THERE S A MODEL FOR EVERYONE Flexible pricing options are available so you can effectively leverage our cross-channel, targeted digital executions, while staying in budget. CPM Cost per mille (cost per 1,000 impressions) Calculates cost based on the number of times (per 1,000) an ad is displayed. CPCV Cost per completed view Calculates cost based on the number of completed video views. vcpm Viewable cost per mille (viewable cost per 1,000 impressions) Calculates cost based on the number of times (per 1,000) an ad is viewed by a user. CPA Cost per acquisition Calculates cost based on the number of times a user takes action based on an ad (e.g. the number of conversions). CPC Cost per click Calculates cost based on the number of times a user clicks on an ad CPL Cost per lead Calculates cost based on the sign-ups from users interested in the advertiser s offer.
VIEWABILITY & vcpm Viewability is the current hot topic in the world of online advertising metrics. In truth, however, while the term seems to refer to an ad s ability to be viewed, it s actually a post-campaign look back metric that allows advertisers to pay only for those ads that were actually viewed. The Consensus on Viewability by the IAB Ad must be fully loaded onto a screen. At least 50% of the banner must be in view. The ad must be displayed for at least one second. The movement towards this metric has paved the way for the vcpm, a metric that allows you to only pay for the ads that were deemed viewed by your audience by a verification partner. PARTNERS INCLUDE:
THE CPA SOLUTION LEVERAGE RTB THROUGH MULTIPLE MEDIA SOURCES, TO PURCHASE INVENTORY ON YOUR BEHALF AND OPTIMIZE IT THROUGH OUR PLATFORM. A CPA solution can offer Cross-platform inventory across both open and private exchanges. The data and targeting you ve grown accustomed to, delivering your niche audience. Full-funnel CPA tactics and lower-funnel approaches proven to drive an action. Social opportunities across the Facebook Exchange. A team that quickly reacts to trends to keep your numbers growing.
WHAT WE DO FOR YOU Our proprietary approach, powerful partnerships, and agile team of industry experts mean we can do the most important things you need from your media partner: 1. We identify and understand your audience. 2. We deliver your message to them like no one else can. We have smart solutions, next-generation technologies, and a team of targeting experts who have unmatched access to industry-leading research and multi-platform solutions. Combined with our unrivaled media expertise? It changes everything. 34
WHO WE ARE YOUR ONE-STOP TARGETED MEDIA SOLUTION. We re nimble, we re responsive, and we re smart. We re also backed by Time Inc., one of the largest global media entities in the world, so you know we ve got staying power. Our 40+ years of targeting expertise including a decade in digital ensures that we precisely reach your target audience, without waste. TARGETING We find the right audience, in the right environment, and then deliver unparalleled coverage in the right markets, every single time. VOLUME Each year we serve billions of digital advertising impressions across multiple media platforms and deliver more magazine ad pages than any single publisher in the world, for over 1,200 clients. PARTNERS We have thousands of premier media partners and are dedicated to finding the right new ones each week. 35
THANK YOU Brendan Kennedy MNI Account Executive 804.272.5918 brendan.kennedy@mni.com