Ad Networks Study

Pros & Cons of Each Platform

By The Center for Media Research
Conducted with InsightExpress

Materials in this document are CONFIDENTIAL and cannot be distributed or shared with other parties without the explicit permission of The Center for Media Research

Contents
Introduction Background, Objectives Research Methodology Executive Summary Research Summary Study Respondents First Choice of Ad Networks Best Uses of Ad Networks Ad Network Spending Ad Networks Requested by Clients Best Things Learned Have Not Bought Digital Where They Would Buy Budget for Next 12 Months
Page 3 4 5 6 9 11 17 20 22 23 24 29 31 34
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Ad Networks Study Copyright 2010 Center for Media Research

Introduction
The Center for Media Research MediaPost 15 East 32 Street, 7th Floor New York, NY 10016 Contact: Chuck Martin, Director chuck@mediapost.com 603-750-3020

Ad Networks Study Copyright 2010 Center for Media Research

Background, Objectives
To identify the reasons for buying advertising on Ad Networks, DSPs, and Premium Publishers to help media planners, buyers, and brands : See how budgets for each platform are being allocated in the next 12 months Compare results of those involved with ad networks to the expectations of those not yet involved Determine the pros and cons of each platform Determine preferred ad network type by product category Determine what each ad network is best used for

Ad Networks Study Copyright 2010 Center for Media Research

Research Methodology
Study conducted with MediaPosts subscriber base* from Sept. 17 to Sept. 29. A total of 275 respondents completed the survey, with 208 having planning, buying, approving responsibility.

*This MediaPost subscriber base is probably weighted toward online-involved companies and executives, so it might not necessarily comprise a representative sample of the entire marketplace.

Ad Networks Study Copyright 2010 Center for Media Research

Executive Summary
The majority of those who plan, buy, approve media would buy Behavioral Targeted Ad Networks Second choice would be Premium Publishers Demand Side Platforms would not be first choice of ad networks by any who buy, plan, approve media General Ad Networks are best used for maximizing frequency of exposure Behavioral Targeted Ad Networks are best used for making most of budget and maximizing frequency of exposure Social Media Networks are best used for fostering engagement
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Executive Summary
Spending in General Ad Networks is going to decrease Spending in Behavioral Targeted Ad Networks is going to increase Spending on Premium Publishers is going to remain the same Spending on Demand Side Platforms will remain the same, at five percent Almost half of clients are requesting to buy social media networks More than a third of clients are asking to buy Premium Publishers and Behavioral Targeted Ad Networks

Ad Networks Study Copyright 2010 Center for Media Research

Executive Summary
The biggest things learned about each of the digital media buying options are in the categories of targeting, value, and expectations Of those who have not bought digital ad networks, a majority are familiar with General Ad Networks Of those who have not bought digital ad networks, most are not familiar with Demand Side Platforms. The top choice of those who have not bought digital ad networks would be Behavioral Targeted Ad Network

Ad Networks Study Copyright 2010 Center for Media Research

Research Summary

Ad Networks Study Copyright 2010 Center for Media Research

Ad Networks vs Premium Networks

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Study Respondents
Respondents come from categories of agency, brand, publisher, technology company, ad server, and research supplier. Other includes consultant, producer, nonprofit.
MediaPost Respondents
Other 21%

Agency 35%

Research supplier 5%

Technology company 11%

Ad server 3% Publisher 14%

Brand 11%

N=275

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Study Respondents
Of those who plan, buy, or approve media, most are involved in the planning process and more than half buy or approve media.
All Respondents

As part of your job, do you personally plan, buy, or approve media?

100%

80%
62%

60%
51%

51%

40% 24%
20%

0%

Plan

Buy

Approve

None of the above

N=275

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Involved vs. Not Involved in in Digital Campaigns

Sixty-four percent of respondents have been involved in one or more digital campaigns, with 44 percent involved in four or more campaigns. Thirty-six percent have not been involved in digital campaigns.
How many digital campaigns have you been personally responsible for purchasing media?

None 36% 4 or more 44%

One 4% 2-3 16%

N=275

Ad Networks Study Copyright 2010 Center for Media Research

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Study Respondents
Respondents hold a range of titles, with almost a third (31%) holding the titles of chairman/president, CEO, CMO, COO, CFO, EVP, or VP. Fourteen percent have the title of media buyer, planner, or supervisor and 8 percent brand/marketing manager.
MediaPost Respondents
Other 10% Account Management 4% Research 5% Consultant 5%

Director 16%

Sales 7%

Chairman/President, CEO, CMO, COO, CFO 16%

Brand/Marketing Manager 8%

Media Buyer, Planner or Supervisor 14%

EVP, VP 15%

N=275

Ad Networks Study Copyright 2010 Center for Media Research

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HAVE BOUGHT DIGITAL

Ad Networks Study Copyright 2010 Center for Media Research

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Thinking about the digital media campaigns where you were responsible for purchasing the media, which have you have purchased media on?
Total Advertising Alcohol Apparel Automotive B2B Business Services Childrens Nonprofit Military CPG Education Electronics Entertainment Financial HealthCare Home Improvement Luxury Media Pharmaceutical Restaurant Retail Technology Telecom Travel Utility 41 8 17 33 40 22 15 26 6 25 32 23 46 34 37 19 20 29 16 25 34 37 16 41 9 Behavioral General Ad Targeted Ad Networks Networks 68% 37% 13% 25% 47% 35% 76% 58% 35% 33% 64% 18% 40% 20% 42% 31% 17% 50% 64% 56% 41% 41% 43% 35% 70% 39% 68% 62% 57% 46% 53% 47% 40% 30% 69% 48% 50% 63% 48% 36% 59% 35% 59% 41% 44% 69% 59% 56% 78% 33% Premium Publishers 41% 50% 59% 48% 58% 36% 60% 42% 67% 56% 47% 61% 41% 47% 49% 63% 60% 41% 63% 28% 41% 32% 50% 56% 67% Demand Side Platforms Social Media (DSPs) Networks 10% 41% 0% 25% 18% 24% 6% 27% 5% 33% 14% 36% 13% 40% 0% 50% 17% 17% 16% 60% 9% 66% 26% 30% 7% 57% 9% 29% 5% 35% 0% 21% 5% 35% 10% 41% 13% 25% 8% 32% 9% 44% 11% 24% 13% 25% 22% 44% 33% 56% Other 20% 25% 6% 6% 15% 9% 0% 8% 0% 16% 13% 22% 9% 12% 22% 11% 15% 14% 31% 20% 9% 8% 6% 15% 11% None of these 5% 0% 0% 0% 0% 0% 0% 4% 0% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0% 4% 0% 3% 0% 2% 0%
N=177

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First Choice of Ad Networks If you had to pick just one of the following places to buy media, which would it be?

Across categories, the majority would buy Behavioral Targeted Ad Networks, followed by Premium Publishers, and General Ad Networks. Demand Side Platforms (DSPs) were not selected as first choice by any respondents. Social Media Networks were not selected as first choice by any respondents except a one-time tie with General Ad Networks

Ad Networks Study Copyright 2010 Center for Media Research

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First Choice of Ad Networks

By Category
Advertising: Alcohol: Apparel Automotive B2B Business Services Childrens Nonprofit Military CPG Education Electronics Entertainment Financial Healthcare Home Improvement Luxury Media Pharmaceutical Restaurant Retail Technology Telecom Travel Utility General Ad Network Premium Publishers Premium Publishers Behavioral Targeted Ad Network Behavioral Targeted Ad Network Behavioral Targeted Ad Network Premium Publishers Behavioral Targeted Ad Network Premium Publishers Behavioral Targeted Ad Network Behavioral Targeted Ad Network Behavioral Targeted Ad Network Behavioral Targeted Ad Network Behavioral Targeted Ad Network Behavioral Targeted Ad Network Behavioral Targeted Ad Network Premium Publishers Behavioral Targeted Ad Network Premium Publishers Behavioral Targeted Ad Network General Ad Network Premium Publishers Behavioral Targeted Ad Network Behavioral Targeted Ad Network General Ad Networks

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First Choice of Ad Networks

If you had to pick just one of the following places to buy media, which would it be?
Total Advertising Alcohol Apparel Automotive B2B Business Services Childrens Nonprofit Military CPG Education Electronics Entertainment Financial HealthCare Home Improvement Luxury Media Pharmaceutical Restaurant Retail Technology Telecom Travel Utility 41 8 17 33 40 22 15 26 6 25 32 23 46 34 37 19 20 29 16 25 34 37 16 41 9 General Ad Networks 27% 13% 29% 18% 20% 23% 27% 23% 17% 20% 13% 13% 26% 12% 11% 16% 20% 28% 6% 20% 29% 19% 19% 20% 33% Behavioral Targeted Ad Networks 24% 25% 24% 48% 28% 27% 13% 31% 17% 32% 34% 39% 30% 59% 49% 47% 10% 34% 25% 32% 18% 24% 44% 37% 22% Premium Publishers 22% 50% 35% 21% 25% 27% 40% 19% 33% 28% 19% 26% 22% 26% 30% 32% 40% 21% 50% 20% 21% 32% 13% 27% 33% Demand Side Platforms (DSPs) 2% 0% 0% 6% 10% 9% 7% 4% 0% 12% 3% 9% 0% 3% 5% 0% 5% 3% 13% 12% 9% 16% 19% 5% 0% Social Media Networks 20% 0% 12% 3% 13% 9% 13% 23% 33% 8% 31% 4% 17% 0% 5% 0% 15% 10% 6% 12% 18% 5% 6% 5% 11% Other 5% 13% 0% 3% 5% 5% 0% 0% 0% 0% 0% 4% 2% 0% 0% 5% 10% 3% 0% 4% 6% 3% 0% 7% 0%
N=177

None of these 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 4% 2% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

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Best Uses of Each Type of Ad Network What Each is Best Used For

General Ad Network Maximizing Frequency of Exposure Behavioral Targeted Ad Network Reaching Target Premium Publishers Reaching Target, Generating Awareness Demand Side Platforms (DSPs) Making Most of Budget, Maximizing Frequency of Exposure Social Media Networks Fostering Engagement
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Best Uses of Each Type of Ad Network

For each of the below, what they are best used for?
General Ad Networks Making the most of my budget Reaching my target Reaching purchasers Generating awareness Fostering engagement Maximizing frequency of exposure Driving searches 48% 19% 24% 53% 12% 55% 36% Behavioral Targeted Ad Networks 37% 64% 50% 20% 30% 31% 29% Premium Demand Side Social Media Publishers Platforms (DSPs) Networks 5% 26% 25% 26% 25% 15% 20% 10% 6% 6% 8% 4% 10% 7% 22% 21% 17% 34% 54% 24% 21% Other None of these 1% 1% 4% 1% 1% 1% 6%

3% 2% 4% 2% 1% 3% 10%

N=177

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Ad Network Spending Next 12 Months Spending in General Ad Networks to Decrease Spending in Behavioral Targeted Ad Networks to Increase
What percentage of your total digital budget is going to each of these advertising areas now and what do you expect in 12 months?
35 31 30 27 24 25 22 20 14 12 22
Now
In 12 months

25

15

10
5

0
General Ad Networks Behavioral Targeted Premium Publishers Ad Networks Demand Side Platforms (DSPs) Social Media Networks Other

N=177

Ad Networks Study Copyright 2010 Center for Media Research

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Ad Networks Requested by Clients More Clients Requesting Social Media Networks, Premium Publishers, and Behavioral Targeted Ad Networks
Which of these do you have clients asking you to specifically buy?
100%
Total

80%

60% 45% 40% 27%

20% 37%

38% 28%

9% 0%
General Ad Networks Behavioral Targeted Ad Networks Premium Publishers Demand Side Platforms Social Media Networks (DSPs)

11%

Other

My clients dont ask me to buy anything specifically

N=177

Ad Networks Study Copyright 2010 Center for Media Research

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What are the best things youve learned about each of the digital media buying options?
Targeting
Its getting more precise and targeted Behavioral is so targeted but can backfire with content. Behavioral Targeting technology allows me to reach my audience where they are. I feel most secure with demographic and affinity targeting when I buy social media networks They all still have some way to go - better targeting and deeper level of transparency - reporting is good and ROI tends to be better than most traditional marketing channels General ad networks give you the flexibility to target in a number of different manners and many ad networks now offer social network placements and behavioral targeting technology. How different options provide me with different ways to reach my target consumers. Additionally I've learned a lot about my target consumers based on their behavior and online usage. Buying through a network which can split my buy on both a geo-targeted and a behaviorally-targeted basis saves me the trouble of contacting multiple publishers. That behavioral targeting can be extremely effective paired with the correct message. Targeting and ROI Measurement Targeting Premium, targeted ad networks can reach my audience at scale Flexibility & targeting ROI options. Customer profiling options. Retargeting They can be used to target specific users in a variety of ways Behavioral targeting is a great way to reach the right audience

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What are the best things youve learned about each of the digital media buying options?
Value
Everything has a price, technology, efficiency and impact- some more measurable than others DSPs offer the most reach, efficiency & flexibility Premium Publishers are the most effective. Premium allows for more engagement Easy to manage, pretty effective and easy to track ROI. The way to continually change the way you buy to be more efficient with your budgets. Each has a value proposition setting it apart from the others. Premium publishers are great for aligning a brand with to create a strong image. General ad networks are ideal for efficiency and to a degree DSP are good for both efficiency and targeting. Nothing compares to the combination of efficiency and effectiveness of behavioral targeting though. Each has a particular reach Coordinate creative with mass media flavor and identity You get what you pay for, this is why we work with reputable (only) networks that do not buy exchange inventory, ala the Specific Media's of the space. Remarketing technology is the biggest breakthrough for me this year Social Media works The difference between engagements and simple branding options - tangible versus intangible results Behavioral and profile targeting are fantastic for quantifying results to brands. General ad networks, demand-side options, and premium publishers are great for generating brand awareness. Both are important depending on the brand and specific brand objectives. Lead gen networks allow can be used for both dm and branding

Ad Networks Study Copyright 2010 Center for Media Research

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What are the best things youve learned about each of the digital media buying options?
Expectations
General Ad networks are so generic and hard to manage expectations and clients also want to know what sites they were on" Reporting Contextual ad networks are the best e.g. contextweb Premium publishers, esp newspaper websites, offer the best reach to targeted audiences. The ability to provide both massive reach and various targeting (demo, contextual, psychographic, geo, behavioral, etc.) best meet advertiser needs. Contextual---where the ads relate to the CONTENT. e.g Contextweb and others. Ad networks provide effective reach and have been honed as of recent to insure that impressions are getting in front of eyeballs with a reasonable chance to click through and convert. Which has best reach; which is most targeted, and which allows the consumer to opt in Transparency allows both parties to learn and grow business. Each serves a distinct purpose for a specific audience.

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What are the best things youve learned about each of the digital media buying options?
Issues/Downsides
DSPs are ridiculous. They want to replace media agencies by buying remnant inventory. Uh...not good. We're not a fan here. ad networks include too much waste - for specific targeting - buy a site or two that you know will reach your target advertise with a property that you want to be associated with. It's a mess. Too many different interfaces. Too many black boxes - especially in DSPs. Lots of data, virtually no real accountability. Make sure you get what you bought Stuff keeps changing Negotiate To redesign my budget Using BT and social media allow more control and transparency than ad networks. My experience working with ad networks has not been ideal. Social media has great numbers and constantly new options. Everything else is static by comparison. paid search profitability is way underestimated Most are too broad of an audience for our needs, which are very niche B2B. Im very wary and skeptical of ad exchanges. Always use a third party ad server. It is a work in progress. Fast progress.

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What are the best things youve learned about each of the digital media buying options?
Issues/Downsides
They are generally overpromised and under-delivered. I rely on my own metrics and business analysis to make my decisions. Social Media wastes consumer time, but does not drive purchases of products Engagement is great - but it doesn't always monetize It's always about awareness How each are appropriate for different/specific reactions or results Too fragmented, not good analytics to measure things across different mechanisms. Lack of buyer's intent is an increasing concern. More effective is to build the marketing tools inside the product itself, so we are doing more and more marketing through our engineering team and less reliance on ad networks. That for some specific target markets - B2B and B2C, there are digital options that are perform very well for each markets. Social networking is clearly ascendant. You have to make sure you are clear on the spend and ask all the questions as to how much and when your ad dollars are being spend. All have specific areas of strength but there is significant overlap as well Measure success Always new options

Ad Networks Study Copyright 2010 Center for Media Research

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HAVE NOT BOUGHT DIGITAL

Ad Networks Study Copyright 2010 Center for Media Research

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Those Who Have Not Bought Digital Ad Networks Most familiar with General Ad Networks Most not familiar with Demand Side Platforms (DSPs)
How familiar are you with each of these digital ad platforms?
100% 10% 19% 80%
24%
Not at all Familiar Somewhat Familiar
Very Familiar

22% 38% 46% 58% 29% 17% 35%

60%

40% 56%
20%

32% 25% 49% 46% 18% 21% 55%

0%
General Ad Networks Behavioral Targeted Ad Networks Premium Publishers Demand Side Platforms (DSPs) Social Media Networks Other

N=98

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Those Who Have Not Bought Digital Ad Networks Top selection would be Behavioral Targeted Ad Network Least selected would be Demand Side Platforms
If you had to pick just one place to buy media, based on what you know about each of these right now, which would it be?
100%
Total

80%

60%

40% 30% 21%

20%

21% 8%

14%
5%

0%
General Ad Networks Behavioral Targeted Ad Networks Premium Publishers Demand Side Platforms (DSPs) Social Media Networks Other

N=98

Ad Networks Study Copyright 2010 Center for Media Research

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Those Who Have Not Bought Digital Ad Networks What Each is Best Used For

General Ad Network Generating Awareness Behavioral Targeted Ad Network Reaching Target Premium Publishers Reaching Target Demand Side Platforms (DSPs) Driving Searches, Reaching Purchasers Social Media Networks Fostering Engagement

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Those Who Have Not Bought Digital Ad Networks For each of the below, tell us what they are best used for:
General Ad Networks Making the most of my budget Reaching my target Reaching purchasers Generating awareness Fostering engagement Maximizing frequency of exposure Driving searches 41% 17% 16% 47% 10% 44% 24% Behavioral Targeted Ad Networks 23% 53% 45% 13% 18% 17% 20% Premium Publishers 11% 24% 17% 31% 23% 15% 11% Demand Side Social Media Platforms (DSPs) Networks 12% 12% 14% 10% 8% 12% 14% 15% 23% 13% 35% 42% 17% 29% Other 4% 3% 5% 3% 3% 4% 7% None of these 16% 13% 15% 10% 14% 13% 26%

N=98

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Those Who Have Not Bought Digital Ad Networks Spending in General Ad Networks to Slightly Decrease Spending in Behavioral Targeted Ad Networks to Stay Same
What percentage of your total digital budget is going to each of these advertising areas now and what do you expect in 12 months?
30
25
Now
In 12 months

25

24

20 16 15 16 17 17 16 18

19

20

10 6 5 7

0
General Ad Networks Behavioral Targeted Premium Publishers Ad Networks Demand Side Platforms (DSPs) Social Media Networks Other

N=98

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Those Who Have Not Bought Digital Ad Networks What are the questions you need answered in order to become more educated about the different digital ad platforms?
General Knowledge
Other than social networks, what they are - I'm not familiar with the terminology (and maybe not the actual platforms if I knew what the names represent). What exactly does a DSP do? What do each of the "others" do? Where can we find reliable, documentable proof of performance? How well are they integrated? What are the points of difference and parity among the available platforms? What is demand side network What is the role of DSPs Who is the audience and how and what do they buy? Would like to understand which networks actually have proprietary technology. What is a DSP and why would/do folks use them? Its grown and I have not kept up to date. I need to learn all the areas and types. Where should I start? What are they? Any information Overview, strategy and applications 35 Are personal privacy issues being safeguarded?

Those Who Have Not Bought Digital Ad Networks What are the questions you need answered in order to become more educated about the different digital ad platforms?
ROI

What is the ROI on each? Is the ROI metric different for each platform? ROI, price, interaction ROI Comparative ROI VS other media vehicles What platforms are most effective for different types of goals. What are their markets and what kind of hit rate do they have Show me how direct response works...Impressions doesn't impress me with the limited time and engagement that digital provides.

Ad Networks Study Copyright 2010 Center for Media Research

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Those Who Have Not Bought Digital Ad Networks What are the questions you need answered in order to become more educated about the different digital ad platforms?
Transparency
What levels of transparency in video are available among ad networks? More transparency into campaign effectiveness based on goals I have to see that they work. Endorsements from other clients who receive no remuneration for their Testimonials. I have to see that they work. Endorsements from other clients who receive no remuneration for their Testimonials. "Research on usage and consumption of these platforms as well as granularity based on our clients products and services.

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Ad Networks Study
Pros & Cons of Each Platform
By The Center for Media Research
Conducted with InsightExpress

Materials in this document are CONFIDENTIAL and cannot be distributed or shared with other parties without the explicit permission of The Center for Media Research