Chinwag Live: Advertising Woes?
Shrinking markets and shrinking budgets - just how big will be the blow for online advertising?
From year-on-year double digit growth come the predictions for 2009, from modest growth of 4% (Group M, UK) to 12% (Zenith Optimedia, W. Europe) through to Nick Denton's warnings of a 40% plunge (US).
Could the depths of this new downturn bring a collapse to the online ad sector and the ecosystem of publishers, agencies and start-ups that rely on it? Or can certain ad formats weather the storm?
Paid search has long since remained prominent, capturing around 58% of all spend. But with high inflation, eroding ROI, and increasing need to focus on the bottom line of hard sales - does paid search make sense anymore? Will the focus for targeting and measurability now move to display with the growth of CPA over CPM? And as the fastest growth area of online spend, how will in-video advertising develop?
Join us on 10th February as we discuss the challenges and implications now facing the online advertising industry. Come quiz our panel on where limited ad budgets should now be directed, and how can agencies and brands adapt and survive in 2009.
What will be driving digital advertising forward this year? Will data analytics and micro targeting win over creative and innovation? Will advertising spend be instead directed to crunching numbers and enhancing ROI, and can conversion improvement tools really make a difference?
Photographic evidence from the event, if you've got photos you'd like to add, let us know.
More on Advertising Woes
Paid-for search continues to lead the way, growing by 28% year-on-year and was worth £981 million in the first half of 2008, with its market share marginally up to 58.3% of total online advertising (57.8% in first half of 2007). Search has become a staple on the media schedule and is increasingly integrated into traditional and online advertising campaigns.
Total internet display advertising spend rose 16.3% year-on-year to £333.8 million. This was boosted by a 36.6% increase in spending on 'embedded' formats such as banners, rich media and video. Internet display ads are still the only major display medium to be growing so this increase reflects confidence in its ability to engage consumers, build brands and drive sales.
The majority of online display ad spend is still via major portals and online publishers, but sales networks - representing thousands of smaller sites - have increased their volumes and accounted for 41% of all display expenditure. Sales houses and networks are growing the 'long tail' of internet advertising - smaller and niche websites – and offer advertisers a streamlined ‘quick sell’ for direct response campaigns.
(arrive early for complimentary drinks and snacks)
Brown - Client Service Director,
Wayne began his career at the advertising agency Bates Dorland in 1994, working on brands including Compaq Computers, Castrol GTX and Safeway. After joining Lowe Howard-Spink in 1997, becoming Associate Board Director he moved to the high profile creative agency TBWA in 2003 to run the agency’s John Smiths, Apple Computers and McCain assignments. Wayne left TBWA for the challenge of FMCG marketing, as Marketing Manager for the £18m Brylcreem brand at Sara Lee. After a successful stint re-launching the brand and communications strategy, the lure of agency life, tempted him away from hair gel and into glue in 2006. Wayne runs the glue’s Account Management department of 20, as well as overseeing the agency’s Toyota and News Group Accounts.
CHAIR: Philip Buxton - Digital Strategy Consultant
Philip is a digital strategy consultant, researcher and copywriter and has covered the internet industry since 1998 when he became the first correspondent at Marketing Week magazine to get ‘New Media’ as a beat. He joined the dotcom revolution himself in 2000 as senior reporter at Netimperative before re-launching the service as editor in April 2002. He then joined Revolution magazine as deputy editor, becoming editor in 2005. He made the leap to consultancy in 2007, joining Circus Street where he helped companies including Transport for London, Starcom, IPC, and Dennis Publishing develop their digital strategies. Philip is also a respected industry commentator and blogger contributing regularly in national media and trade press.
Demajo - Head of Marketing,
Time Out Group
Catherine is the Head of Marketing for Time Out Group the international publisher of magazines, websites and guide books for the hip, urban adventurer. She originally joined Time Out in 2006 as the Head of Magazine Marketing. Since then she has increased her remit to lead the newly centralised, convergent marketing and logistics department for the flagship magazine, Time Out Guides and timeout.com as well as working with the over 25 licensed publishers of Time Out worldwide. Prior to joining Time Out, Catherine spent eight years working agency side as an account director and planner in both a traditional and digital capacity with FMCG, Media, Telecommunications and Financial Service clients in Canada and Europe.
Reeve - CEO / Co-founder,
Damon has over 10 years experience in the internet and advertising industries across Europe, the US and Australia. Before launching The Company, Reeve ran his own brand and interactive marketing consultancy after being Head of Marketing for Excite UK, where he was responsible for developing, and implementing a 7-figure marketing strategy. He is also a co-founder of OpenX and sits on the board of Directors. (Open X is a free ad server for web publishers).
David McMurtrie - Head of Product Specialists,
David has worked extensively in the media and advertising industry. His background combines both traditional and digital media where he was involved in running 24/7 Real Media in the UK and setting up digital sales company, AD2ONE. Previously, David was also International Media Director at Europe's largest media network, MediaCom, managing clients including Nokia, Emirates, BP and P&G. As Head of Product Specialists for DoubleClick David launched the optimisation solution, DART Adapt, internationally, and is responsible for developing publisher and agency business opportunities. Outside of work he has run nine marathons and is planning a tenth, following a trek to Everest base camp this year.
Phillipson - CEO, Internet
Advertising Bureau UK
Guy Phillipson took over as CEO of Internet Advertising Bureau (IAB) in January 2005. Following his 100 day review, the IAB was repositioned as a valuable resource for marketers to help them make the most of all online advertising disciplines, including search, display, e-commerce and sponsorships. In March 2006, Revolution magazine named Guy Phillipson as Digital Business person of the year. Before the IAB, Guy was Head of Advertising at Vodafone UK.
Event produced by Julia Eilon.