New dynamics in digital advertising

Content

• Executive summary
• In a nutshell
• Key messages
• Online advertising is a glimmer of hope in the recession
• The digital advertising value chain is in a period of disruption
• Other areas of digital advertising will not fare so well
• Targeting based on deep packet investigation (DPI) is driving concerns over privacy into the regulatory arena
• Social media fosters new models of engagement but should not be seen as an advertising nirvana
• Do not underestimate how difficult it is to get application-based advertising right
• Twitter has potential as a marketing and advertising channel
• Rich media is good but sympathetic execution is better
• New metrics identify the media really doing the work
• Digital advertising value chain analysis
• The changing shape of the digital advertising value chain
• Advertisers
• Advertisers take more direct control of agency functions
• Advertising and media buying agencies
• Digital performance metrics are becoming more granular
• Advertisers are bringing more online ad functions in-house
• Ad exchanges and auctions are disrupting media buying
• Conversational marketing is changing the nature of advertising inventory
• Advertising networks and exchanges
• The rise of the horizontal players
• Competition kicks in, forcing differentiation
• Targeting: behavioural and contextual ad networks
• Premium ad networks
• Platform/media specialists
• The vertical ad network explosion
• The role of the advertising exchange
• Ad serving and targeting
• Ad serving in a nutshell
• The importance of targeting
• Contextual targeting
• The rise of behavioural targeting
• Deep packet data inspection: kicking up controversy
• Media owners
• The changing nature of digital advertising inventory and those who own it
• The rise of social media
• Digital media metrics: models for measuring value and performance
• Cost per thousand impressions (CPM)
• Cost per click (CPC)
• Cost per acquisition (CPA) model
• Key trends and future developments
• Social networks: a new model for engagement
• Getting the rules of engagement right is critical
• Engagement also carries risk
• Picking the right network for your brand/campaign
• Do not treat social networks as the new online gold rush
• Application-based advertising
• The challenge of branded applications
• Twitter: a rising advertising channel?
• The case for mobile advertising
• Mobile has a lot to offer
• But the market is still very modest
• Building a stronger commercial framework
• The iPhone effect: will it work its magic on mobile advertising?
• Cross-platform advertising
• The three-screen dream has not come true
• Mass search starts to fragment
• Semantics support the spread of category search
• Digital advertising formats get richer
• Online video is the most commonly viewed of the rich media
• Rich media driving higher consumer engagement
• Where next for digital advertising metrics?
• Targeting and privacy issues are coming to a head
• Deep packet inspection in context
• An ongoing debate rising to a head
• Opt-out is not really putting the user in control
• But attention profiling might do
• Regulatory bodies are circling behavioural targeting
• The prospects for digital advertising in the recession
• Online advertising: a glimmer in the recession gloom
• No surprises on the revenue drivers
• Mobile advertising will struggle but not die
• List of Tables
  • Table 1: Internet advertising market shares
  • Table 2: Total advertising expenditure by medium ($ millions)
• List of Figures
  • Figure 1: Digital advertising value chain before reconfiguration
  • Figure 2: Digital advertising value chain reconfiguration
  • Figure 3: The ad exchange relationship web
  • Figure 4: The changing face of web content and consumption
  • Figure 5: Social network segmentation
  • Figure 6: Potential mobile advertising channels
  • Figure 7: Digital advertising formats by richness
  • Figure 8: Last ad wins 100% CPA credit