1. The Past, Present and Potential
of Display Advertising
A4U Expo
Peter Gowrie-Smith Farzad Jamal
Managing Director Commercial Director
Magnetise Group EMEA, OpenX

2. Agenda
1. Introduction
2. Where we were / where we are
3. Reasons for resurgence:
I. Major players
II. New formats
III. Retargeting
IV. Ways to buy
V. Rise of data
VI. New pricing models
VII. Ways to measure
4. Where it’s heading next
I. Challenges
II. Opportunities
III. Close and questions

3. Who We Are - Magnetise
Marketing technology company delivering solutions for the creation and
management of advertising, marketing and lead generation campaigns.
tbc
Portfolio of bespoke, highly scalable performance Lead management and analytics consultancy and
advertising and engagement solutions. technology for multi-channel campaigns.

4. Who We Are - OpenX
Yield All buyers complete in
Optimizer
the ad server to max yields
Ad RTB increases non-guaranteed
Exchange CPMs with full controls
Sell direct across all formats
Ad
Server (Display, mobile, email, video)

5. From Old World to New World

6. Are You Feeling Lucky?!

7. The $200 Billion Dollar Gorilla
• 2012 global display market is forecast at $33
billion , share of online ad spend will be 41% by
2014 (ZenithOptimedia)
• Display is now growing 20% annually (Forrester)
• Display is growing faster than search (IAB
Europe) & will overtake search by 2015
(eMarketer)

8. The Display Ecosystem

9. The Major Players
• Microsoft - Bought aQuantive in 2007…plus Skype in 2011
• Has 4.5% of 2012 US display ad market
• Facebook - Bought Rel8tion in 2011, Instagram and Face.com in 2012
• 14.4% of 2012 US display ad market
• AOL - Bought advertising.com in 2004, Pictela in 2010 …plus
TechCrunch in 2010, HuffPo in 2011
• 3.6% of 2012 US display ad market
• Yahoo! - Bought Right Media in 2007, Dapper in 2010
• 9.3% of US 2012 display ad market
• Google - Bought DoubleClick 2007, AdMob 2009, AdMeld in 2011 …and
YouTube in 2006
• 15.4% of the 2012 US display ad market
• WPP Group… Bought 24/7 Real Media in 2007

10. Global Agency Network Map

11. Digital Advertising Industry Ecosystem

12. New Formats

13. The Evolution of Ads

14. New Engagements

15. Growth of Display Formats
Source: IAB / PwC Online Adspend 2011

16. Targeting to Retargeting….
Image credit: Search Engine Land

17. Ways to Buy
ADVERTISER DIRECT PUBLISHER

18. Ways to Buy
NETWORK
ADVERTISER DIRECT PUBLISHER

19. Ways to Buy
NETWORK
ADVERTISER DIRECT PUBLISHER
OPENX EXCHANGE

20. Ways to Buy
NETWORK
ATD SSP
ADVERTISER DIRECT PUBLISHER
DSP OXL
OPENX EXCHANGE

21. Why There is Rapid Growth in RTB

22. The Rise of Data
Data will grow by a factor of 44 between 2009 to 2020 (IDC)
Image credit: Krux

23. New Pricing Model
The Billion-Dollar Challenge: Monetizing the Digital Opportunity

24. New Ways to Measure

25. New Ways to Measure

26. Challenges Ahead
• Complexity
• Consolidation
• Effectiveness
• Accountability
• Privacy
• Legislation
• New platforms

27. Opportunities Ahead
• Billboards / OOH
• Infrastructure – spending doubles to $5.2 billion from 2011-2016 (MagnaGlobal)
• Appetite - by 2020 90% of OOH will be digital
• Targeting
• Interactive mirrors – ‘try before you buy’
• Facial recognition – tailoring display to the physical audience
• Search retargeting
• Mobile
• Mobile media accounts for 23% of consumer time, but 1% of ad spend (Flurry)
• NFC – in 20% of smartphones by 2014 (Juniper Research)
• Integration & Innovation
• Social channels
• Real-time rich media

28. More Facts on Trends Coming Up….

29. Conclusion
• Display is a completely different beast to 18 years ago
• New formats, engagement options, pricing
models, measurement metrics, ways to buy and the
rise of data all play their part
• The future is looking rosy, but the industry must be
mindful of growing privacy issues
• Mobile, billboards and innovations in display will
deliver a $200 billion industry within the next 10
years.

30. Thank you!
Any questions?
Peter Gowrie-Smith Farzad Jamal
Managing Director, Magnetise Commercial Director
Group EMEA, OpenX
petergs@magnetisegroup.com farzad.khorsandjamal@openx.com
020 7078 8298 020 7855 0202