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GOOGLE PPC & OTHER ONLINE ADVERTISING using the new media as an advertising platform Jon Shallcross Director Sophia Amin Director of marketing & communications “the future of advertising is digital” £5B £4B £3B £2B £1B £0B 2006 2007 2008 2009 2010 2011 will digital replace traditional advertising? no - it’s a false dichotomy 2011 online adspend (UK) 75% sought out by reader 25% seeks to create demand Display £1.13B Classified £0.90B Paid search £2.77B Online display ads Social media display ads creating demand Emails, newsletters buyer natural search adwords true classified fulfilling demand Ad CTR Blank ad 0.08% 8/10,000 Brand ads 0.04% 4/10,000 Average FB ad 0.05% 5/10,000 Average banner ad 0.09% 9/10,000 "We created six blank ads in three IAB standard sizes, and two colors, white and orange.We trafficked the ads via a demand-side platform (DSP) with a low bid.We started with run of exchange, and in another phase trafficked to "named publishers" that would accept unaudited copy." Click through rates 1.00% 0.80% 0.60% 0.40% 0.08 Blank ad 0.04 Brand ads (no offer) 0.05 Average FB ad 0.09 0.20% 0% Average banner ad WHY ARE ONLINE ADS SUCH POOR PERFORMERS? TARGETING Linkedin’s best guess Facebook’s claimed targeting Total Facebook audience potential buyers Facebook’s actual targeting CONTEXT INTERACTIVITY & AD BLOCKERS online ads are too small we hate ads that shout precision targeting is a myth few good relevant B2B sites which is why ad prices are crashing consumer CPM with behavioural targeting: was £15, now £1.50-£1.60 When has it worked? solus on emails & industry newsletters ads with very careful behavioural targeting & appropriate creative GOOGLE PPC classified advertising for when SEO doesn’t work Only Google wins Google is a classified advertising monopoly keyword keyword==£x+4 £x+3 keyword = £x+2 keyword = £x+1 keyword = £x 2012 2001 32% 60% ads So... demand and awareness? product branding existing customers public relations, online & off database marketing: email & paper industry-specific sites traditional advertising (where media survive) SEO + your website your own website is your most important advertisement website