Online Advertising Overview

Growth in Rich Media and Video Usage

Mick O’BrienCopyright items

Size of the Online Market?

• $1,346 million in 2007

• Increase of $345 million (or 34.5%) over 2006

• General/Display Advertising: 27%

• Classifieds Advertising: 27%

• Search & Directories: 46%

Source: Commercial Economic Advisory Service of Australia.

Who?

54.9%

Source:PricewaterhouseCoopers – IAB Online Advertising Expenditure Report – December 2007

Why?

Other Reasons?

• 70% of Australian’s have internet access

• 84% have broadband access

• 18-24yrs are spending up to 3hrs a day accessing information such as social networks

• Accountability – Return On Investment

• New Technologies such as online video

I see thereforeI click?

The End of the Click?

0.5%CTR 2005

0.3%CTR 2006

Below 0.2%CTR 2007

From pull – “traffic drivers”

WEBSITE

YAHOO! MSN

AOL

Average CTR is below 0.2%

To push – “smart ads”

WEBSITE

YAHOO! MSN

AOL Average dwell time is

about one minute

Source: HR Magazine ‘07 / Design Council ‘07

Homepage Sponsorships

• VRAW• Homepage take over on MySpace

• Promoting ‘jobs’ at MySpace sponsored by VRAW

• Using multiple formats + video • High impact format

• Coca-Cola• Homepage take over on Ninemsn• Using multiple videos (up to 30secs) • High impact format

Interacting with Expandable Video Banners

• British Heart Foundation• Create awareness about junk food for kids • 36% Interaction Rate• Average Video Duration:

59.21 seconds– Over 20 seconds more than 2006

• 48% Full Video Play– Almost double from last year

Purpose shot video

• Jumper• Created for the launch of The Jumper

movie• Video created specifically for online

use – Created in front of green screen

• Can be cheap to produce • Delivers the message with high Impact

Where do we go from here…

Adding Further Interactivity Synchronized Banners

• NBA• Promoting NBA Finals• Synchronized ad format• Allows interaction through

playing game

Adding Further Interactivity Retail Concept Format

• ADVERTISER: CONCEPT • Show TVC• Find local store (store locator) +

map• Print map or send mms to

mobile• Download coupon options

Behavioural Sequencing

• User interactions determine which ad is shown next in sequence

• Encourage user through the decision making cycle

• Unlimited creative ‘paths’ help improve conversion rates

1st 2nd 3rd

EU Tobacco – Behavioural

93% of interactors saw second sequenced advert

Those who saw second advert were positively inclined towards click thru

Source: Dynamic Logic MarketNorms Q4 2006

5.15.9

15.4

30.4

37.5

83.7

18.423.6

60.0

4.6 5.6

14.8

4.5 5.1

12.8

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Standard Banners

Rich Media

Rich/Video

% Lift

Aided Brand Awareness

Online Ad Awareness

Message Association

Brand Favorability

Purchase Intent

Rich Media Builds BrandAdd video for enhanced results

Pre-click Interactivity Tracking

Test Drive

Brochure Request

More Information

Best Practice

Track all elements in an ad

Rotate

Direct Response

Main Click

“Dwell-time” =

Brand Awareness

Dummy Data Only

“In-depth post campaign analysis changes your relationship with the client forever, one minute you are a just a agency guy the next you actually know something

about their business. Everything gets easier after they come to that realisation”

Media Agency

“Quote”

Summary: Challenging Perceptions

• Deliver content to the user without the need to leave the publisher’s site • Work with publisher’s in-page units to draw user’s eye from content to

ad • Adopt more interactive functionality e.g. behavioural to complement

video • Does not cost more on media purchase

– Know how to work the technology to meet objectives• Don’t trust click-thru as a way of justifying campaign success• Find metrics to measure campaign success from Branding to Response

• Be prepared to justify a 0% CTR!

The changing face of online advertising

Thank you

Mick O’Brien

Managing Director

Eyeblaster