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#APPNEXUSSUMMIT
WTF: Why Do Banner Ads Still Exist in Mobile?Arel Lidow, VP, Product Management, AppNexus
#APPNEXUSSUMMIT
No One Seems to Like Banner Ads These Days “…one of the most misguided and destructive technologies of the Internet age.”- FARHAD MANJOO“Fall of the Banner Ad: The Monster that Swallowed the Web”, Farhad Manjoo, NY Times, Nov 5, 2014
“Yes. Internet advertising suffering horribly by premature format standardization. Has been rolling fiasco for 2 decades.” - MARC ANDREESSEN“Marc Andreessen: Ad Tech has fueled a ‘race to the bottom’,” Brian Morrissey, Digiday, Feb 5, 2014
“We messed up when we decided banner ads would be how we make
money on the Web.”- JOHN BATTELLE
“’CHANGE OR DIE’: Why Federated Media Has to Reinvent Online Advertising All Over Again”, Alyson Shontell, Business Insider, Nov 23, 2012
"How do you reimagine things, and bring back catchy, engaging advertising?" says Peretti. "You
can't really do it in banners because there's no space. But you can do it if you give people a full
post or a bigger canvas to work with.”- JONAH PERETTI
“INSIDE BUZZFEED: The Story Of How Jonah Peretti Built The Web’s Most Beloved New Media Brand”, Alyson Shontell, Business Insider, December 11, 2012
“It’s almost like a prank that was played by the technology industry
on the media industry 20 years ago.”- CHRIS DIXON
“Fall of the Banner Ad: The Monster that Swallowed the Web”, Farhad Manjoo, NY Times, Nov 5, 2014
#APPNEXUSSUMMIT
Mobile Publishers Especially Dislike Banner Ads
“Meanwhile, STEVEN SORDELLO, CHIEF FINANCIAL OFFICER AT LINKEDIN – said their business had
witnessed a 30% year-on-year decline in traditional display-ad revenue. As a
result, they will shift away from this
offering and towards sponsored ads in a
plight to boost annual subscriptions.”
“We believe that eliminating brand advertising,
which we also refer to as our display
advertising product, will benefit the company over the long term," said YELP FOUNDER AND CEO JEREMY STOPPELMAN. "The
industry trend toward increasingly disruptive
display advertising is at odds with our focus on
the consumer experience, particularly within
[our mobile] app.”
“The mobile banner might be the
worst ad since the popup. We
killed that thing because it was awful.
The mobile banner is just as bad.”
DAVID JAKUBOWSKI, FACEBOOK
“Yelp, LinkedIn shift resources from old-fashioned display ads”, Jennifer Booton, MarketWatch, Aug 4, 2015
“Yelp: Display Advertising Will Be 'Discontinued' by End of Year”, George Slefo, AdAge, July 28, 2015
“Facebook Head of Ad Tech: Five Marketing Opportunities Not to Miss Out On”, Business Zone UK, Nov 9, 2015
#APPNEXUSSUMMIT
And Yet, Banner Ads Are STILL Everywhere
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Native is a Small Minority of the Display Ecosystem
Source: Socinetel 360 as Cited in Company Blog, Sept 1, 2014 (eMarketer)Source: eMarketer Sept 2015
18% 20% 22% 24% 27%
2014 2015 2016 2017 2018
Native Ad Spend
Other Display Ad Spend
#APPNEXUSSUMMIT
WTF? WHY ARE BANNER ADS still
FORMAT?THE DOMINANT
#APPNEXUSSUMMIT
hasn’t native advertising completely replaced banners?
WHY
4 Blame it on consumers
Blame it on XXX
Blame it on XXX
Text “PUBSUMMIT” to 22333
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Publishers have been slow to adapt sites and apps to new formats
DSPs, SSPs, and Ad Servers have been slow to support new formats.
Banner ads are still the preferred format of Marketers & Agencies
Something else…
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It’s All About Supply Chain
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The “Open Ecosystem”
TRADING DESK
PUBLISHER SALES
MARKETER
PYM
AdOps
FORECASTING
PUB AD SERVEROMS
SITE/APP
CREATIVE AGENCY
RICH MEDIA VENDOR
MEDIA AGENCY
VIEWABILITY VENDOR
AGENCY AD SERVER
VERIFICATION VENDOR
RFP PROCESS
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The Benefits of the Open Ecosystem
FAIRNESS CONTROL MODULARITY TRANSPARENCY
#APPNEXUSSUMMIT12
The Achilles Heel of the Open Ecosystem
But the Open Ecosystem Cannot Easily Adapt to New Formats
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Closed Ecosystems are More Flexible
AGENCIES
3RD PARTYPUBLISHERS
3RD PARTYPUBLISHERS
3RD PARTYPUBLISHERS
MARKETER
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So what does this mean for you?
#APPNEXUSSUMMIT
Be careful and do not put all of your eggs in one basket
PUBLISHERMARKETER
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Keep the path to Open
#APPNEXUSSUMMIT
PUBLISHERMARKETER
#APPNEXUSSUMMIT
WTF Why Do Banner Ads Still Exist In Mobile?
#APPNEXUSSUMMIT
Thank you!