{{ searchResult.published_at | date:'d MMMM yyyy' }}

Loading ...
Loading ...

Enter a search term such as “mobile analytics” or browse our content using the filters above.

No_results

That’s not only a poor Scrabble score but we also couldn’t find any results matching “”.
Check your spelling or try broadening your search.

Logo_distressed

Sorry about this, there is a problem with our search at the moment.
Please try again later.

Many advertisers, agencies, and technology providers face their biggest challenge in 2011: how to innovate and keep pace with the dynamic and every changing digital landscape.

Going into 2011 advertisers and agencies will need to adapt, embrace innovation, new technologies and structure for changes in the way that display is purchased and managed. Data, inventory, demographics, audience segmentation and behavioural retargeting are all vital components in the rise of demand side platforms (DSPs).

Market Shifts and Growth

Real time networks and audience data sources are changing the display buying landscape with many demand side platforms (DSPs) and exchanges engaging in auction based bidding for performance display purchases.

Going into 2011, performance-based digital buying (search and display) will start to be managed alongside a multitude of other digital disciplines. Display growth and potential auction based buying is due to gain lots of traction over the next few years. The US currently has larger growth opportunities due to the availability of more inventory with the UK still showing potential for rapid growth.

USA

EMarketer predicts that the display advertising market is showing continued intense growth, with a projected 14% increase in 2011. Much of this is fuelled by the growth of demand side platforms (DSP) and real-time bidding (RTB).

• Forrester predicts that 30% of online ad spend will be done via DSPs and RTB next year.
• Google predicts that 50% of online advertising will be done via DSPs and RTB over the next few years.

UK

ComScore Ad Metrix showed that display grew 34% in the UK this year.

• It found total UK display ad impressions grew from 164bn in Q3 2009 to 221bn in Q3 2010.
• Facebook being a primary driver (over a third) of display growth in the UK.
• Experts predict that the use of RTB is estimated to account for 3% of display ad spend this year and 15-20% in 2011.
A new era of biddable display presents amazing opportunity. However, the quality and quantity of data and inventory is key to its success.

(Click image for a larger version)

2011 Display small

Data

In 2011 data, its source, and what you do with it is going to be pivotal to the success and growth of display through DSPs and RTB. The reality is that a DSP is nothing without valuable data behind it.

Anyone can build a DSP. Just like anyone can build a platform. It’s the data and inventory, audience segmentation, and the value you attribute to that data that defines a true DSP. How you use your data and target is crucial to real-time bidding success.

Going into the New Year real time bidding (RTB), used in conjunction with remarketing data, will enable real insight into consumer behaviour and allow value based retargeting of users across a multitude of platforms.

Do not be surprised to see battles between web publishers and advertising networks about who owns data. The quality of third party data and proprietary data is going to be fundamental for RTB, behavioural scoring and retargeting based on consumer data (demographic, web site data, propensity to consume). If data does not have a value then why would you use an auction based platform?

Debate over privacy and legislation regarding data and behavioural targeting is only just starting in the UK and Europe. However it’s a hot topic in the US with the recent ‘Do Not Track’ proposals coming from the FTC.

The Office of Fair Trading in the UK, is also keeping a close eye on the revenue from online behavioural advertising which is currently valued at between £64m and £95m.

In 2011 the UK industry needs to become more involved in this debate. The IAB has been taking huge strides towards self regulation. Steve Sullivan, vice president, digital supply chain solutions, of the Interactive Advertising Bureau states “Consumers who participate in a Do Not Track solution could soon find themselves the targets of cheap and irrelevant advertising.

To borrow a SEO analogy, we may see a ‘white v black hat’ approach to data targeting in 2011.

Inventory

The data in the US market is large. The UK data market is growing but lags behind that of the US with less premium inventory. One thing is for certain, the market is fragmented and a less fragmented marketplace in 2011 allows for greater efficiency for display purchases via RTB. Unlike the US - In the UK publishers have been slower to make their Inventory available to DSPs. An issue that needs to be addressed in 2011 in the UK.

DSPs can provide massive reach but, it's important to note that high quality premium inventory can also be guaranteed by non auction based systems. 2011 will see more display purchases through DSPs but also, with the rise of ad networks, direct purchases of premium inventory through, non auction based, digital exchanges will also occur.

Control

As across all digital advertising, and especially display, agencies are becoming more creative with their ad formats. Marketers are able to monitor ad sizes and format and report on insightful data on effectiveness and delivery.

The display industry growth is fuelled by the growth of video and social display advertising. What’s more, search-centric RTB allows display marketers more control. Google predicts that display advertising will be be a $50bn industry by 2015 with 50% of all targeted display advertising being controlled and relying on real-time bidding.

The most successful demand side platforms for purchasing display in 2011, will combine remarketing data and insight to add even more information that can be used to influence real-time bidding.

Advertisers and agencies will have better transparency, efficiency, accountability, and greater control over targeting and managing their display campaigns. Producing a balanced approach to purchasing display through DSPs and non auction based systems/networks is going to be very important.

(Click image for a larger version)

2011 ad exchanges small

Efficiency and Profit

DSPs and ad exchange platforms in 2011 will allow efficient buying and selling data-driven audiences, offering enhanced scale, behavioural targeting, audience segmentation and improved transparency. CPMs for many for advertisers will be lower.

Research from Pubmatic (US) on RTB revealed a 64% lift in revenue for publishers and a 749% performance increase for advertisers using real time bidding with RTB campaigns showing an ROI 101% higher than non RTB campaigns

Real-time bidding can increase the ROI of display ads by increasing click rate. However, as real-time bidding depends on the quality of data and inventory (as explained above) clicks and amount of bidders it needs to be managed careful and in balance with mature data and quality inventory.

The agency and innovation

With every evolution in digital media, agencies need to adapt rapidly.

Optimising people is just as important as optimising performance media. Search marketers can help display and exchange specialists with auction-based media. Display people can help search specialists with dynamic creative and understanding of networks and exchanges. Hence, we may more ‘biddable media’ departments in 2011.

One thing is certain. Agencies will need to adapt and structure their business for some holistic ‘biddable media’ growth in 2011, ensure that they stay ahead of the curve with attribution modelling, and ensure cross channel exchanges of information and human capital happen across their organisation.

The modern agency of 2011 must have control and access to audience data. As a side note, it will also be interesting to see how networks and agencies adapt and structure also.

Some agencies will acquire technology companies.  Maybe advertisers will acquire ad networks. The important thing to remember, in 2011, is to try and keep an eye on the bigger picture and plan accordingly. For every agency, the approach will be different depending upon your core domains of specialisms, talent in the organization, and departmental flexibility.

(Click image for a larger version)

2011 small

It would be interesting to hear how you think the display market will evolve and how this may affect the way agencies may operate and how they are structured. Please leave your comments below...

Avatar-blank-50x50

Published 9 December, 2010 by Andy Betts

Andy Betts is a digital marketing strategist working with agencies and direct advertisers. He blogs here, and can be found on Twitter and LinkedIn

16 more posts from this author

Comments (18)

Comment
No-profile-pic
Save or Cancel
Avatar-blank-50x50

Adam Palczewski

Hello Andy, really good article, thanks.

Completely agree about a need for restructure and "people optimisation" on the agency side in the world of social media taking over big chunk of organic results and display using similar skills to paid search.

On the side note, in a similar way the marketplace changes impose some very interesting skill and know-how challenges on the client side, those with multi-agency models where you have specialist agencies responsible for different channels.

almost 6 years ago

Justin Hayward

Justin Hayward, CEO at Make It Rain

Nice Article Andy. The changing face of display has been a long time coming and much needed to a relatively outdated part of the online mix. Utilsing more intense data driven campaigns that tie-in more closely with other highly targeted and lucrative channels such as PPC to enable smarter re-targeting seems like a logical progression.

However, with any technology it's still the people behind the data and what they do with the messaging that counts. I just hope we don't see a lazy approach from media agencies to this new way of approaching display that kills it for client understanding and improved conversions.

In the meantime this is the prime opportunity for traditional search marketers to take advantage of their skillsets in a new way.

almost 6 years ago

Niranjan Sridharan

Niranjan Sridharan, Digital Auditor at ABC

One Tech to rule them all,

One Tech to find them,

One Tech to bring them all and in the darkness bind them

In the Land(scape) of change where the players lie

--

(thanks T.Kawaja -faulty as it may be, extremely useful)

--

On a more serious note.I think a change of business model is needed to aggregate services- cannot wait to see how this will turn out!!

almost 6 years ago

Avatar-blank-50x50

Andy Betts, Managing Consultant, Business and Digital Strategist at Bett-zi

Thanks for the comments so far

Adam - Great point. Just like SEO and PPC, more many client side marketers, moved from a 2 agency to 1 agency approach - maybe we will see the same with search and social, search and display. Will be interesting, esp as a large part of display is social.

Jonathan - thanks for the note - great video. Shocking and funny :). Attribution and ongoing optimisation is a key at all stages of the consumer journey. A key challenge for any marketer and any product

Justin - Spot on - Technology is only good as people. Innovation in talent management is something, i feel, many agencies struggle with

Niranjan - Yep - it's going to be interesting to see how aggregation happens

almost 6 years ago

Avatar-blank-50x50

Mark Fagan, Media Director at GSD

Great article Andy - really clear overview of the opportunities in this space. Its going to be a very interesting 2011 to see what agencies have adapted quickest / in the best way and if this translates into significant growth for them.

John hits the nail on the head with regards to concept of using one platform for all media and using this holistic approach to maximise our clients revenues.

almost 6 years ago

Avatar-blank-50x50

Andy Betts, Managing Consultant, Business and Digital Strategist at Bett-zi

Thx Mark - I think one platform management is the right way to go. However, its just as important to ensure people know how to use these platforms and ensuring that purchasing of 'non biddable' digital media is used in tandem. Hence, education, training and talent managment will be big growth areas next year also, i think!. A platforms a platform - it's the data and the people behind, running, and utilising the platform that will be key factors

almost 6 years ago

Daniel Bryan Hopwood

Daniel Bryan Hopwood, Digital Media Planner/Buyer at MEC Manchester

Andy,

Bravo on distilling the market to such a concise explanation. Agree with many comments on here that the Display market absolutely needs this positive step forward.

Agree with John - centralised reporting on all media is going to be fantastic to experience, moving away from the silo school of thought!

Although the video on Clients awareness of DSP's is hilarious, in my eyes and a couple of others in the industry - "clients invariably don’t really care as long as campaign results are meeting agreed KPIs and their ads are appearing against brand safe content. Fact" - not my words but I don't think it can be put any better.

2011 is going to be exciting.... undoubtedly.

almost 6 years ago

Avatar-blank-50x50

Volker

Hi Andy,

As always a good article. Although I am not agreeing with everything. As you know, technology is great but the people using it are the ones that drive the performance. And, RTB is not the "holy grail" of display, e.g. ad exchange buying and display performance has a lot of other factors to consider.

Then, I absolutely agree on the data integration, having more and better data available. 

My biggest question to date is why so many agencies rely on "one" DSP, e.g. not differentiating themselves from others....

2011 will be an interesting year.

Volker

almost 6 years ago

Avatar-blank-50x50

Andy Betts, Managing Consultant, Business and Digital Strategist at Bett-zi

Hi Danny - you are correct with the KPI's - it's all about performance :)

almost 6 years ago

Avatar-blank-50x50

Andy Betts, Managing Consultant, Business and Digital Strategist at Bett-zi

Hi Volker - you dont agree with everything - theres a surprise ! :)

Agree - DSPs are not the be all and end all. Hence a balanced approach with non RTB and Digital Exchange managment are just as important. I touched upon that briefly in my post - maybe i should have given it a little more credit that it deserves. I did however make some points on people - I am am a big believer that people drive performance and display marketers have much better insight as to how the networks and exchanges work. In 2011 they key differenciator for DSPs is data and inventory. In terms of people -its sharing of peoples skills set and, in some cases, holisitc management (tech and people) of biddable media.

almost 6 years ago

Avatar-blank-50x50

Matt Martin

@ Volker - If you're simultaneously using more than one DSP, you're bidding against yourself for the same inventory.

almost 6 years ago

Avatar-blank-50x50

Andy Pharro

Great insight and balanced overview. Not sure it grow fast as expected though

almost 6 years ago

No-profile-pic

Anonymous

Hi Andy -Attribution is going to be a key component also

almost 6 years ago

Avatar-blank-50x50

Andy Betts, Managing Consultant, Business and Digital Strategist at Bett-zi

Interesting point Matt 

Thx Andy 

Agree on attribution

almost 6 years ago

No-profile-pic

Anonymous

The one platform approach is something that is interesting. Blending search and display brings great efficiency. Will be good to see how people blend in terms of teams and skills in display v search

almost 6 years ago

Avatar-blank-50x50

Andy Betts, Managing Consultant, Business and Digital Strategist at Bett-zi

Thanks Richard - There are some parallels that can be drawn between when search first started (old timers :) ). Many large agencies like WPP have their own already but will be interesting to see how other tiers respond

almost 6 years ago

Avatar-blank-50x50

Oliver Bath, Client services at Searchignite

Another step closer to the age of all encompassing cross channel biddable media buys- Folk who have their roots in paid search will no doubt have the upper hand as we move towards this trend.

Thansk for the insightful article Andy.

almost 6 years ago

Avatar-blank-50x50

Andy Betts, Managing Consultant, Business and Digital Strategist at Bett-zi

Thanks Ollie

Vice versa - display people will teach their search peers also

almost 6 years ago

Comment
No-profile-pic
Save or Cancel
Daily_pulse_signup_wide

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Daily Pulse newsletter. Each weekday, you ll receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.