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Digital Advertising
Opportunities & Overview
       June 2011
Overview
• Digital Media Model
  – Paid Media
  – Social Media
  – Owned Media
• Digital Trends




                        2
The Digital Media Model – Not “New Media”



                     Earned media 
                      “the result”



              Owned 
              media              Paid media
           “the portable        “the catalyst”
              brand”




                            3
Digital Media Model

PAID MEDIA


                      4
Generic Online Ad Spending
                      Search

                      Portals

                   Top Publishers

                    Specialty
                    Websites
                    Networks
                    Social Media,
                   Widgets, Mobile,
                    Virtual Worlds


            5
Pricing
                                                         High
                                             Branding   Quality
CPM – cost per thousand impressions
  – 100,000 impressions @ $10 CPM = $1,000

CPC – cost per click
  – 200 clicks @ $5 CPC = $1,000

CPL – cost per lead
  – 25 leads @ $40 CPL = $1,000

CPA – cost per acquisition
                                              Direct     Low
  – 10 sales @ $100 CPA = $1,000                        Quality
                                             Response




                              6
Paid Search
• Ads that appear
  contextually via search
  queries on the main
  search engines

• Pay per click (PPC) –
  historically efficient use
  of media dollars


                        7
Text Display
• Contextual Facebook /
  YouTube text ads /
  LinkedIn

• Contextual mobile app
  ads

• Best-performing non-
  ”paid
   search” media

                         8
Display Media
• Static and rich-media banner ads

• Direct Response + Branding

• Banners work best within the context of a
  display + paid search campaign



                      9
Online Video
• Video Pre-Roll yields a
  significant CTR
   – Editing of pre-existing video
     content
   – Animation using display
     display assets

• :15 and :30 spots can run in
  front of YouTube, Hulu and
  other video heavy sites (i.e.
  CNN.com, ABC.com, etc.)


                             10
Offline Digital
• Digital Out-of-Home
   – Display creative (banners)
     would be leveraged across
     DOOH platforms
• Digital Billboards
• Digital Display
   – Coffee shops, supermarket
     check-outs, gas stations
• In-store Video Advertising
   – In-Store, Closed-Circuit
     Television (Walmart TV,
     Home Depot)




                            11
Email Drops
• Publisher Email Drops

• Email re-contact for up-selling program
  benefits (re-targeting)




                     12
Offline/Online Integration
• Incorporate interactive into traditional “offline”
  media
  – Integrate “Text for more info” call to action
     • Radio
        – Traffic updates
  – Events




                            13
Digital Media Model

EARNED MEDIA


                      14
Social Media




     15
Social Media
• Social media will
  further integrate with
  multiple types of
  organizations:
  – Increased customer
    service
  – Tightly target
    audiences based on
    social media activity
  – Help users interact
    more with the brand
    and its offerings


                        16
Online Influencer Outreach
•   Reach out to influential individuals who are more likely to write / talk
    about brands

•   Online – Influential bloggers / twitters / podcasters

•   Offline/Online – Posters sent to offline influencers with online
    interactive (text for more info)
     – Free clinics, churches, employment agencies, green organizations, etc.




                                      17
Search Engine Optimization
• Improving the volume and quality of traffic to a Web
  site from search engines via "organic" search results
  for targeted keywords

• The higher a Web site ranks, the greater the chance
  that it will be visited by users




                           18
Digital Media Model

OWNED MEDIA


                      19
Websites
• Principal home of brand messaging
  – The Website is the principal piece of customer
    interaction architecture
    • As important as physical architecture
  – Users will quickly assess their opinions of
    brands based upon their interaction with the
    Website




                          20
Social Media (again)
• Large number of users &
  pageviews
• Lots of information about
  users
• Customizable pages - apps
• Privacy concerns
• Drive users between social
  media pages and multiple
  online properties
• Further extend the brand’s
  look and feel

                    21
Mobile
•   SMS
•   MMS
•   Screensavers
•   Ringbacks
•   RFID
•   Location-based services
•   Geocaching
•   iPhones, Androids and
    Tablets (oh my)

                     22
Interactive Tools




        23
Metrics – New & Improved
• What matters most?
  –   Interaction or Engagement?
  –   Engagement or Enchantment?
  –   Enchantment or Enjoyment?
  –   Interaction with customers

• Beyond the click
  – New metrics allow us to ore accurately and
    thoroughly how customers are interacting with
    ads and social media through advanced tools.

                         24
Digital Overview

DIGITAL TRENDS


                   25
Futurecast
•   Technological leaps occur at increasingly smaller
    intervals .
     – Moore’s Law predicts that technology “doubles”
       every 18-24 months.

•   This exponential doubling will drive emerging
    technologies forward until at least 2015
    (and possibly beyond).

•   Customers’ experiences with utilities will carry
    across multiple channels as users continue to
    interact among themselves in shaping a utility’s
    image and reputation.

•   Utilities will find themselves blindsided by the
    technological advances as policy requirements
    mandate increased monitoring of and interaction
    with energy use.

                                  26
Tablets
• Top 10 tablets for 2011:
  – #1: iPad remains on top. The
    factors that keep it on top include
    it’s usability, battery life, massive
    catalog of apps, and the price.
  – #2—HP TouchPad
  – #3—The Amazon Tablet
  – #? – Motorola Xoom




      27
Cloud Computing
• Cloud computing is an increasingly broad
  topic that encompasses everything from:
   – Google Apps to data center services
   – virtualization to software
   – infrastructure- and platform-as-a service.
• Nevertheless, cloud adoption remains in
  the single digits amid security concerns.
• Key players include:
   – IBM, HP, Google, Microsoft, Amazon Web
     Services, Salesforce.com, NetSuite,
     VMware as well as dozens of others.




                               28
Popular Apps
• Popular Apps
  – Foursquare and other
    Location-based services
    (LBS)
  – Dropbox—upload photos &
    video in bulk, import files from
    Mail, Word and other apps, and
    chose folders to save them to.
  – Angry Birds/Tiny Wings—
    game with different levels,
    objective is to get rid of pigs by
    shooting different birds at them.
  – Fahrenheit—Weather and
    Temperature on your Home
    Screen. displays the current
    temperature as an icon badge.
  – Words with Friends




                                  29
RFIDs

• RFID technology will allow people to use
  their mobile phones to quickly pay for
  small transactions by swiping their phone
  near a payment base




                     30
New Realities
• Smartphone omnipresence

• End of mass reach vehicles

• Marketing = content

• Death of “digital” – digital is everywhere




                        31
Constant Change = New
            Opportunities
• User preference for online video
• Data visualization
• Interactive TV
• Tablets changing user behavior
• New ad units
• Constant Facebook changes

                       32

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Sensis Digital Advertising Overview & Opportunities - June 2011

  • 2. Overview • Digital Media Model – Paid Media – Social Media – Owned Media • Digital Trends 2
  • 3. The Digital Media Model – Not “New Media” Earned media  “the result” Owned  media Paid media “the portable  “the catalyst” brand” 3
  • 5. Generic Online Ad Spending Search Portals Top Publishers Specialty Websites Networks Social Media, Widgets, Mobile, Virtual Worlds 5
  • 6. Pricing High Branding Quality CPM – cost per thousand impressions – 100,000 impressions @ $10 CPM = $1,000 CPC – cost per click – 200 clicks @ $5 CPC = $1,000 CPL – cost per lead – 25 leads @ $40 CPL = $1,000 CPA – cost per acquisition Direct Low – 10 sales @ $100 CPA = $1,000 Quality Response 6
  • 7. Paid Search • Ads that appear contextually via search queries on the main search engines • Pay per click (PPC) – historically efficient use of media dollars 7
  • 8. Text Display • Contextual Facebook / YouTube text ads / LinkedIn • Contextual mobile app ads • Best-performing non- ”paid search” media 8
  • 9. Display Media • Static and rich-media banner ads • Direct Response + Branding • Banners work best within the context of a display + paid search campaign 9
  • 10. Online Video • Video Pre-Roll yields a significant CTR – Editing of pre-existing video content – Animation using display display assets • :15 and :30 spots can run in front of YouTube, Hulu and other video heavy sites (i.e. CNN.com, ABC.com, etc.) 10
  • 11. Offline Digital • Digital Out-of-Home – Display creative (banners) would be leveraged across DOOH platforms • Digital Billboards • Digital Display – Coffee shops, supermarket check-outs, gas stations • In-store Video Advertising – In-Store, Closed-Circuit Television (Walmart TV, Home Depot) 11
  • 12. Email Drops • Publisher Email Drops • Email re-contact for up-selling program benefits (re-targeting) 12
  • 13. Offline/Online Integration • Incorporate interactive into traditional “offline” media – Integrate “Text for more info” call to action • Radio – Traffic updates – Events 13
  • 16. Social Media • Social media will further integrate with multiple types of organizations: – Increased customer service – Tightly target audiences based on social media activity – Help users interact more with the brand and its offerings 16
  • 17. Online Influencer Outreach • Reach out to influential individuals who are more likely to write / talk about brands • Online – Influential bloggers / twitters / podcasters • Offline/Online – Posters sent to offline influencers with online interactive (text for more info) – Free clinics, churches, employment agencies, green organizations, etc. 17
  • 18. Search Engine Optimization • Improving the volume and quality of traffic to a Web site from search engines via "organic" search results for targeted keywords • The higher a Web site ranks, the greater the chance that it will be visited by users 18
  • 20. Websites • Principal home of brand messaging – The Website is the principal piece of customer interaction architecture • As important as physical architecture – Users will quickly assess their opinions of brands based upon their interaction with the Website 20
  • 21. Social Media (again) • Large number of users & pageviews • Lots of information about users • Customizable pages - apps • Privacy concerns • Drive users between social media pages and multiple online properties • Further extend the brand’s look and feel 21
  • 22. Mobile • SMS • MMS • Screensavers • Ringbacks • RFID • Location-based services • Geocaching • iPhones, Androids and Tablets (oh my) 22
  • 24. Metrics – New & Improved • What matters most? – Interaction or Engagement? – Engagement or Enchantment? – Enchantment or Enjoyment? – Interaction with customers • Beyond the click – New metrics allow us to ore accurately and thoroughly how customers are interacting with ads and social media through advanced tools. 24
  • 26. Futurecast • Technological leaps occur at increasingly smaller intervals . – Moore’s Law predicts that technology “doubles” every 18-24 months. • This exponential doubling will drive emerging technologies forward until at least 2015 (and possibly beyond). • Customers’ experiences with utilities will carry across multiple channels as users continue to interact among themselves in shaping a utility’s image and reputation. • Utilities will find themselves blindsided by the technological advances as policy requirements mandate increased monitoring of and interaction with energy use. 26
  • 27. Tablets • Top 10 tablets for 2011: – #1: iPad remains on top. The factors that keep it on top include it’s usability, battery life, massive catalog of apps, and the price. – #2—HP TouchPad – #3—The Amazon Tablet – #? – Motorola Xoom 27
  • 28. Cloud Computing • Cloud computing is an increasingly broad topic that encompasses everything from: – Google Apps to data center services – virtualization to software – infrastructure- and platform-as-a service. • Nevertheless, cloud adoption remains in the single digits amid security concerns. • Key players include: – IBM, HP, Google, Microsoft, Amazon Web Services, Salesforce.com, NetSuite, VMware as well as dozens of others. 28
  • 29. Popular Apps • Popular Apps – Foursquare and other Location-based services (LBS) – Dropbox—upload photos & video in bulk, import files from Mail, Word and other apps, and chose folders to save them to. – Angry Birds/Tiny Wings— game with different levels, objective is to get rid of pigs by shooting different birds at them. – Fahrenheit—Weather and Temperature on your Home Screen. displays the current temperature as an icon badge. – Words with Friends 29
  • 30. RFIDs • RFID technology will allow people to use their mobile phones to quickly pay for small transactions by swiping their phone near a payment base 30
  • 31. New Realities • Smartphone omnipresence • End of mass reach vehicles • Marketing = content • Death of “digital” – digital is everywhere 31
  • 32. Constant Change = New Opportunities • User preference for online video • Data visualization • Interactive TV • Tablets changing user behavior • New ad units • Constant Facebook changes 32