Presentation on theme: "Publicidad y Nuevos Medios"— Presentation transcript:
1Publicidad y Nuevos Medios Wally SwainSVP, América Latina27 de febrero de 2008
2Agenda Yankee Group Vision and Advertising On-line Advertising Mobile AdvertisingConclusionsQ&A
3Agenda Yankee Group Vision and Advertising On-line Advertising Mobile AdvertisingConclusionsQ&A
4A global communications revolution is underway Three network technologies are unleashing the next wave of the network effect:IP as a de facto standardbroadbandwirelessBarriers protecting traditional networks are fallingBusiness models, laws and social norms are all under attack as wellWe are accelerating towards ubiquitous connectivity, when all people and will be connected anywhere
5Revolution will lead to the Anywhere Network The Anywhere Network is Yankee Group’s vision of a seamless and always-accessible intelligent infrastructure that provides a connection for everyone to everything from anywhereWhere is the Anywhere Network developing?What are the sustainable business models?How will technology and regulation effect change?How will devices evolve in concert with the network?
6Consumers Will Connect to Everything from Anywhere Regardless of their physical location, consumers' access to content and applications will affect all service sectors.Image source: Flickr
7Content Delivery Value Chain Who pays for TV content and how? DisneyChanelCableCoThis simple flow of money does not pay for television content production.And would not apply to Internet where Consumers will only pay subscriptions for very specialized content.ProductionProgramDeliverConsumeSubscriptionRightsPurchase
8Content Delivery Value Chain Who pays for TV content and how? DisneyChanelCableCoMost of the value chain is paid for by Consumers buying the goods Advertisers need to sell.This is the New Media model content providers hope to exploit.ProductionProgramDeliverConsumePurchaseRightsSubscriptionProductPlacementTV AdsAdInsertionBuyGoodsAdvertisers
9Content Delivery Value Chain Implications for Intenet UGCYouTubeCarrierThe great benefit of User-Generated Content is that Internet brands like YouTube get content for FREE.carriers have no equivalent of ad-insertion.ProductionProgramDeliverConsumeDisplayAdsBuyGoodsAdvertisers
10Digital Advertising & Marketing: Perspective ObjectiveType of MarketingDigital ToolsAdvertising is a tool that marketers use to:Build brand awarenessEngage customers and prospectsAnd ultimately increase sales.The marketing funnel describes these different types of marketing objectivesThere are different types of media choices:PrintRadioTelevisionOut of homeOnlineSite sponsorshipsAwarenessBrand AdvertisingVideo advertisingmarketingDirect marketingRich mediaDirect responseText/Search adsThe goal of this slide is to level set the audiences. Marketers know these things implicitly. Technology people who are interested in marketing, especially some form of digital advertising, can always use a refresher.The primary difference between awareness and intent is that we know that we need to be marketing to people to make them aware of a brand well before they buy. In digital media, intent is best described as “I’m interested in learning more about…” which is when most people do internet searches.Key notes:Intent advertising is worth less on a cost per thousand (CPM) basis than brand/awareness advertising. Prime time television shows earn CPMs of ~$35-40, whereas the average online CPM is closer to $2.To understand the role of awareness. Just remember that the day that someone decides to buy a $50,000 car is the wrong time to start advertising Mercedes to that person. It’s way too late.In the digital tools:Site sponsorships = main page (e.g. portal) takeoversVideo advertising = TV ads delivered as pre-, mid- or post-roll in online video clipRich media = popup windows, other forms of video windows, casual games, etc.marketing = this should need no explanationSEO = Search Engine Optimization for websitesSEM = Search Engine MarketingText/search = the types of ads that Google sells…Intent
11Digital Advertising Landscape Buy SideSell SideAd NetworkBrandsandAdvertisersConsumersAgenciesDirectAudienceTargetingPublishersWebsitesPortalsOnline publicationsVideo contentGamingMobile operatorsSocial NetworksWeb 2.0 appsTelecommunicationsDigital televisionDistribution (CATV, DBS, IPTV, etc.)Syndication & other secondary distAd exchangeAd ServerTargeting PlatformEnabling TechBrands use advertising to reach a group of customers described by a demographic or psychographic profileThere are many types of enablers, including networks, exchanges and technologiesPublishers create and own content. Historically, individual types of content have had clearly defined audiences relevant to advertisers. Interactive targeting is a way to re-define online audiences for advertisersThe target. The goal. Advertisers need to get in front of consumers a minimum of three times with a message in order for consumers to retain it.Large advertisers work with ad agencies, though smaller advertisers may purchase directly. Interactive makes this easy.Source: The Yankee Group
12Advertisers spend significant dollars on traditional media TV Gets 41% of SpendSpending shifts from Newspapers to InternetInternet gets 9% -- More than Magazines or BillboardsSource: TVB, NAA, RAB, IAB, Yankee Group
13Colombian Advertising Spend Internet not even tracked by IBOPE
14Agenda Yankee Group Vision and Advertising On-line Advertising Mobile AdvertisingConclusionsQ&A
15In the US, Consumers spend less time focused on television.
16Internet delivered video represents both a threat and an opportunity Q. What types of video do you watch online?n = 517Source: Yankee Group Anywhere Consumer: 2007 U.S. Entertainment Survey
17Online Advertising as a percent of total will triple
18Advertisers will pay equivalent amounts for Internet “viewers”
19Internet video transforms the viewing landscape Source: Yankee Group, 2007mike
20Where do advertisers spend their online dollars? Source: Internet Advertising Bureau, 2007
21Search provides context and permits targeting ?Google or Yahoo show me FREE how to get the information I want.Ski resorts and ski manufactures pay them to get access to someone who is interested in skiing.
22Targeting The carrier opportunity is to support targeting DaypartingGeographicalDemographicContextDayparting is the well-established practice of selling advertising based upon time of day when different products have greater appeal, such as coffee in the morning and pizza at night.Geographical targeting is the practice of correlating an IP address to a particular postal code or demographic market area (DMA).Demographic targeting combines IP network information with addresses and credit reports to determine the age, gender and income of online households and users.Contextual targeting relates to content on specific web pages. Large publishers and advertising networks use software to scan web site text and apply classification schema to individual pages, links, s and other content. Ads are then served according to network or publisher taxonomies. In the future, developments in software are expected to enable publishers to apply similar taxonomies to video and audio content, including telephone calls and interactive video.Behavioral targeting (BT) is a well-understood targeting product that relies on user behavior, advertising networks and third-party browser cookies to serve ads based upon advertiser-defined preferences. The behavior in question can be clicking on specific parts of a web site or browsing to other types of sites.Psychographic profiling places social networking users into groups based upon contextual analysis of their published user profiles, including overlays of behavioral, demographic, dayparts and geographic information. Fox Interactive Media recently launched a psychographic program on MySpace, classifying users by one of a dozen enthusiast areas.BehavioralPsychographic
23How does the carrier support targeting? DaypartingTime of day context for userGeographicCross-reference IP address and physical locationDemographicCross-reference IP address, carrier CRM and recent activityContextConsolidate recent activities across multiple sitesBehavioralClick sequence capture across multiple websitesPsychographicPortals and multiple website profilingThe challenge is that many users would view this as intrusive or – worse – as a violation of privacy
24Where is online advertising going? NarrowbandBroadbandNoveltyEssentialTextVideo, audio, multimediaPC CentricMultiple devicesProductivity and publishingEntertainmentAnonymousAwareWork and homeAnywhereAdvertising separated from contentContextual IntegratedResponse advertisingResponse and brandingPush / publish advertisingParticipatoryA place to goEverywhere you go
25Recommendations for Advertising Networks, Operators and Enabling Technology Vendors Help publishers develop their business. Publishers will be challenged to cobble together various technologies and services into a cohesive technology plan and product road map. Think “sell through” and not “sell to.”Innovate with marketer segments. Clarify marketing expectations and how they relate to new interactive products and technologies.Solve workflow and automation challenges for advertisers. What technologies can ad networks and technology vendors build into services so that agencies can benefit? And this means more than a web interface. The last thing anyone needs is another username and password.Plan on video standards from the beginning. Digital media is disruptive, and we’ve already seen the fragmentation that comes with different forms of distribution for video. Although the ad formats may vary from the internet to broadcast television, there will be standards. So plan for them.
26Agenda Yankee Group Vision and Advertising On-line Advertising Mobile AdvertisingConclusionsQ&A
27POWER SHIFTS IN VALUE CHAIN Carriers are the most powerful stakeholders in the mobile advertising industryADVERTISERSAGENCIESENABLERSPUBLISHERSCARRIERSReebokAdidasAnheuser BushP&GFordDaimler-ChryslerBudweiserCarat InteractiveWPPOmnicomMindshareOgilvyipshAdmobEnpocket/NokiaThird Screen MediaMillennialMSFTJumpTapMedio SystemsMediaFLOMobiTVUSA TodayTWCTurnerDisney (ESPN, ABC)CBSNBCViacom (MTV,Comedy Central)100s of sites…TelefonicaAmerica MovilAT&TVerizon WirelessSprint NextelT-MobileOrangeVodafone3EXAMPLE COMPANIESCONSUMERSINFLUENCE ON CHAINHighMediumLowMediumHighPOWER SHIFTS IN VALUE CHAINCarriers have eyeballs, and are just starting to sell inventory and exert influence down chainOff deck publishers are acting independently, but are developing two prong strategy (on deck and off deck). Their power stems from the appeal of their content and internet relationshipsEnablers have bifurcated strategy – appealing directly to publishers and working with carriersAgencies and advertisers hold the purse strings. Mobile comprises tiny portion of ad buy.Source: The Yankee Group
28Carriers’ bread and butter is about core (voice) transactional revenues and data’s future promise US Revenue Forecast2006Voice $121.8BData $16.2B (12%)$53$52Blended ARPU$512011Voice $136.3BData $39.4B (22%)Source: Yankee Group, 1Q07
29FURTHER REQUIREMENTS FOR GROWTH Mobile advertising: drivers, inhibitors, and further requirements for growthDRIVERSINHIBITORSHuge TAM. Volume of Handsets, time spent on mobile platform, growth trajectory of mobile for Internet, Video and other entertainmentUntapped mediumAdvertisers, publishers and carriers need to replace declining revenues traditional channelsAppeal and promise of targeting and proximity to commerceNetwork and device advancementsMobile carriers need for controlUnproven business modelsLack of standardsInherent display and form factor limitationsFractured ad buying/selling ecosystemLack of real metricsPrivacy and personalization concernsUncertain consumer toleranceFURTHER REQUIREMENTS FOR GROWTHMore success stories with measurability of effectivenessMore cohesive carrier participationConsumer value creation – through better content, easier access, and (for some segments and experiences) subsidiesScale. Advertisers require breadth as well as targeting
30Motivations differ but agree on priorities – Grow mobile advertising! MOTIVATIONS WITHIN THE VALUE CHAINAdvertisers and AgenciesEnablersPublishersService providersLosing eyeballs in traditional forms of media (Television, print)Need reach and breadth of audienceWant early mover advantageNeed metrics of efficiency – ROIAppeal of localized personalized targetingAnother touch point for integrated experienceStake early claim in marketTake risk for early position and hope for outrageous rewardPure play vendors want to create market for their technologyIntegrators looking to position in growth categoryAnother revenue streamTake control of business modelsPosition for growth as extension of Internet business modelsGrow advertising revenues across platformsBalance between going alone and cooperating with behemoth carriers that possess and control customersGrow data revenues and data service appealButtress declining ARPU from basic connectivityTake bounty on any traffic on networkDifferentiate service plans from competitorsLeverage “three screen appeal” to advertisersProtecting consumer privacy while leveraging consumer contextSource: The Yankee Group
31Carrier and non-carrier channels (participation) Mobile is confusing for advertisers – with multiple, fragmented platforms/technologies and channels to marketMobile platformsMessaging (SMS, MMS, A2P, P2P) – largely used for marketing/promotional campaignsMobile Internet/Web – like the web, largely used for banner/display or text ads, with various click through mechanics optionsE.g., Click-to-Call, Click-to-Coupon, Click-to-Locate, Click-to-URL, Click-to-Data Capture (SMS or address), Click-to-Survey, Click-to-Contest, etc.)Mobile Search – sponsored, click-to-callMobile Video/TV – pre- and post-roll, within broadcast channelsDownloadable applications (games, etc.)On-device portalsIdle ScreenOther (Bluetooth, RFID, NFC, etc.)Carrier and non-carrier channels (participation)On-deck/portal – within the walled gardenOff-deck/portal – outside the walled garden (D2C)
32Where are mobile operators’ opportunities in advertising?
33Mobile advertising by platform/channels – who’s got the power in the value-chain
34Messaging and mobile web: where today’s reach is in mobile Active Usage of Mobile Features/Capabilities (Use Once a Month or More)MessagingPersonalizationIn 2007, nearly 13% of consumers wereactive mobile web browsers, and19% of consumers hadattempted to use the Mobile web(up from 6% and 18% respectivelyfrom 2006).EntertainmentWebSource: Yankee Group US Mobile User Surveys, Anywhere Consumer: 2007 US Web/Data Survey.
35Disintermediation/Google-ization is happening already When you browse the mobile web, what types of sites do you access?About 40% of rank web browsing among the top five mobile apps they are interested in.About 20% of regularly browse the mobile web.Despite carriers’ tries to close the door on Google, its PC web dominance has easily transferred to the mobile web.Source: Yankee Group Anywhere Consumer: 2007 US Web/Data Survey, Teens and Technology Survey
36Consumers still uncertain about ad-supported mobile experiences How Would You Like to Pay for these Mobile phone services (select one answer for each service shown)?Variable bases, and represents includes those respondents who listed the above services/applications among the top five for future use.Source: Yankee Group Anywhere Consumer: 2007 US Web/Data Survey
37Preferred Payment Model Mobile Application Included Consumers most open to ad-supported models within mobile entertainment experiencesPreferred Payment ModelMobile Application IncludedPay FeeView AdsDon’t KnowCommunication ToolsText MessagingPhoto MessagingVideo MessagingMobile IMPush-To-Talk52.40%19.70%27.87%Entertainment ServicesGame DownloadsAdult ContentListen to Music or RadioWatch TV or Video39.60%27.30%33.11%Web Access & ProductivityInformation/DirectionsPost/upload photosAccess Social Networks / Online communitiesInternet BrowsingReceive Text Alert46.70%20.90%32.45%PersonalizationGraphics/wallpapersRingtonesRingback tones46.40%23.70%29.90%Consumers express mixed feelings towards mobile service payment models, but are clearly willing to pay directly for core Communication Tools like SMS, IM andConsumers are open to advertising supported Entertainment Services, like gaming or multimedia downloadsThis may prove to be a viable model, given higher reported click-through rates for mobile advertisingOf the 30% of respondents interested in using the mobile internet, 6% reportedly clicked through (3X traditional rates)n = varies, % are aggregate – weighted averageSource: Yankee Group Anywhere Consumer: 2007 US Web/Data Survey (online survey of 1,500 adult US mobile consumers)
38Gap between what adults say they will pay for multimedia services and what it currently costs Percent of Respondents Interested in Spending Monthly and Amount Willing to Spend per Monthn=variable bases among top 5 applications interested in using and willing to pay monthly feeSource: Yankee Group Anywhere Consumer: 2007 US Web/Data Survey
39US carrier approach to ad enablement Attitudes on AdvertisingCurrent Activity and Early InitiativesAssessmentVerizonOutpacing all competitors in churn management – with primary focus on retention and share grabTaking tempered, controlled approachMost vocal about consumer privacy concerns relating to mobile advertisingQuietly launched on deck mobile web advertising on secondary pages using TSMUsing Medio Systems for searchAdvertising served in Media FLO mobile TV services; targeted/mobile-specific advertising will be served in the futureMost expressed concern about use of personal data to targetVerizon Wireless not integrated strategically with wireline, which may affect cross-channel opportunitiesSprint NextelFirst mover in mobile dataHighest data ARPULosing share and more in need of supplemental revenueLaunched on deck mobile web advertising initiative using Enpocket / NokiaWorking with Microsoft for on deck search and MobiTV for video/TVView local search as critical component of advertising strategyRisk of under-funding behind strategyWiMAX play could provide some level of differentiationAT&TLargest nationwide carrier, with number 2 carriers (VZW) nipping its heelsMass market push around 3-screen visionMost open to new business modelsExpressed concern over not affecting transactional data revenue and consumer experience in advertisingTrials of WAP banner and text ads launched in June to gauge consumer acceptanceYahoo! Go enabled on some handsetsUsing Infospace for on-deck searchAdvertising will be served in Media FLO mobile TV services; targeted/mobile-specific advertising will be served in future3 screen vision way ahead of 3 screen capabilities, but most likely to look for cross channel opportunitiesT - MobileValue playCustomer base most attractive to deploy advertising againstLimited data offers3G spectrum now availableUsing Medio for on-deck searchPotential to be most disruptive with advertising play (e.g., 100% ad-supported business models)
40What carriers need to do to move the market forward Prove the appeal of mobile to advertisers by building the inventoryTest user acceptanceEnsure standardization and reportingLook to monetize across on- and off-deck environmentsBuild more sophisticated targeting, including location-based elementsPartner where you lack skillsTake a tempered approach
41Agenda Yankee Group Vision and Advertising On-line Advertising Mobile AdvertisingConclusionsQ&A
42Conclusions In the US, Internet advertising is 10% of total. Growth has come at the expense of Newspapers.LA advertisers speed less on Newspapers today so direct analogies may not applyConsumers live with ad-supported models in TV and Internet Search but don’t know what it means in MobileCarrier opportunity is supporting TargettingSpeed is of the essenceGood Luck!New costumer demands will require carriers to re-think their strategy to focus more on an open application layer of their network and partner with third parties to innovate new servicesIMS allows carriers to promptly meet the demands of a new communications scenario by consolidating services across a single platform, transforming dumb into intelligent network.