Transcript EricFranchi - Personal.psu.edu

Search and Display:
Online Advertising’s Attribution
Problem
By Eric Franchi, SVP of Business
Development, Undertone Networks
2/24/09
Your Suggested Topic:
“Is Google (search) "overpaid" and banner (display)
ads and other brand building activities
"underpaid" in this economy? If so, what do you
see are ways for correcting this imbalance?”
In other words: is hyper-focus on search beneficial
for marketers?
Agenda
• Intro
• Search and Display discussion
• Thoughts on career opportunities for 2009
MBA’s
• Q&A
Intro: About Me
• 1998 – PSU Graduate; Marketing
• 1999 – began interactive career at About.com
• 2001 – founding employee: Intercept
Interactive
• 2002 – present – SVP, Undertone Networks
Search
• Search (SEO and SEM): should always be the
first dollar spent (and it is: search will be over
40% of US ad spend in 2009)
– Strong, measurable ROI
– Immediate results: leveraging intention
– Influences later sales
– Influences branding
• eMarketer projecting 14.3% growth in search
spend for 2009
The Problem
• Users are often exposed to a brand first by
“brand” (display advertising)
• Search is often the beneficiary of brand
advertising: the “last ad clicked” and the one
that results in (and receives credit for) a
conversion
• What if the user was exposed to 10 banner
ads previous to the search that resulted in a
click-based transaction?
Online Display Advertising
• 20% of US Ad Market spending (eMarketer)
• Display ads influence many key metrics: brand
awareness, association and purchase intent
• They also can drive brand searches (Organic:
display advertising can increase CTR by 2530%)
• Display can drive direct ROI, but if held to the
same metrics as search, it will always
underperform
Studies Show…
• ATLAS: in the 90 days leading up to a sale,
consumers see 18 ads for a product (5 and-a-half
in the 2 days prior to a sale)
• comScore: across 139 online campaigns: display
ads increased likelihood of offline purchase by
17% and increased website visits by 40% - even if
the ad was never clicked
Empiric evidence: advertisers who cut display
spending see their brand searches go down!
Correcting the imbalance?
• Ad-serving technology: to measure and assign
weight to all consumer touch points: ATLAS’
“engagement mapping”
• Dynamic Logic, comScore and Vizu: measuring
display ad effectiveness via online surveys
• Simpler tactics: use online coupons to print
and redeem online or in-store
Career Opportunities for 2009 MBA’s
• Digital marketing is still projected to grow in
2009 and beyond as companies continue to
shift budget
• Required skills include deep understanding of
analytics, collaborative work style, financial
acumen: all are gained by your Penn State
MBA
• Digital agencies, media companies and ad
networks are still hiring
Some tips
• Read the trades: Media Post,
imediaconnection.com, Ad Age, blogs
– Inform yourself: information moves quickly
– Excellent job boards
• Find local organizations: PHIMA, 212, etc.
• Take advantage of the alumni network
Focus on making yourself an “A” candidate
Closing
• My contact information:
– [email protected]
– 212.685.8000 x123
– www.twitter.com/ericfranchi
• Thank you!