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Maximizing Online Advertising Opportunities through Contextual Targeting

This research study explores the evolving internet landscape and its impact on media opportunities. By delving beyond time spent online, the study identifies key online occasions and their contexts, examines advertising fit across these occasions, and provides insights to optimize online media planning.

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Maximizing Online Advertising Opportunities through Contextual Targeting

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  1. Context Matters

  2. The internet evolution is widening media opportunities... More media time spent online More people as media owners The social web Source: EIAA Mediascope 2007; Comscore Nov 06-Aug 07; Forrester June 2007

  3. making online media planning more complex Is there still a role for interruptive advertising? Can I advertise around conversation rather than content? How much of online activity offers a media opportunity?

  4. Our research objectives • To delve beyond “time spent” measure • To identify and describe key online “occasions” and their contexts • To examine advertising fit across these occasions • To help our partners optimise their online media planning

  5. Countries Studied Norway Canada UK Germany France Brazil

  6. Our Research Approach Sample = 600 16-54 year olds per country. Total European sample = 2,400 respondents Research conducted by OTX 25 bloggers Advertising Questionnaire – 200 respondents per country. Diary of Online Activities – 400 respondents per country. A total of 38,000 activities recorded.

  7. People are leading their lives online “The internet ...has just become a normal part of my daily habits. It’s now at the point where it is difficult to function in life with it. It allows you to manage your time better, for example i don’t have to wait for the news to come on, i can simply log on. If i miss a TV programme and haven’t Sky + it, i can sometimes download it.” Male UK Base: European Data

  8. Core personal and social needs are being met Communication Information Entertainment Surfing Transactions Creation Base: European Data

  9. Communication is the core motivation and activity online Communication Information Entertainment Surfing Transactions Creation Base: European Data Motivation: Respondents can note more than oneActivities: 7% of online activities classified as “other”

  10. The occasions differ by level of focus Information and Transaction are most focussed Distracted Completely Focused Base: European Data

  11. Multi-tasking differs by OccasionUK and France are more likely to multi-task, in particular Ents 71% of online activity is multi-tasked, either eating, working, watching TV or listening to music being the most common Base: European Data

  12. The online journey reflects daily routines and needs MORNING: I read news, what time my bus depart. Most it’s everyday info, so I can get through the day. WORK: only for work research assignments. EVENING: I read my mail, take care of my facebook, blog, watch movies. Only do things that I appreciate. Male – Norway Base: European Data

  13. The blend of online occasions differs across the dayEntertainment replaces Information in the evening Share of all internet activity across 24 hours Share of All Internet Activity Across 24 Hours - WEEKDAY 9am – Noon is the first peak for internet activity The 2nd peak occurs between 6-10pm Entertainment replaces information in the evening Base: European Data

  14. At the weekend, the sharpest peak is the morning followed by more constant and later online activity Share of all internet activity across 24 hours Share of All Internet Activity Across 24 Hours - WEEKEND Entertainment still replaces Information in the evening Base: European Data

  15. From the well trodden path to unchartered territories If i think about it i have a standard routine. I always start with reading my mail; then it’s time for facebook; i catch up with the news for the day; read funny stories; and on my way through every point i get distracted by new pages, advertising and pages that i get recommendedFemale, Norway Base: European Data

  16. The Online NeighbourhoodMuch of Online Behaviour is Familiar, Like a Local Neighbourhood Newsagent Bank Finance News feeds, sports homepage Post Office E-mails – yahoo, hotmail etc PUB Forums and Social Networks Shops e-Bay, Amazon Base: European Data

  17. Your neighbourhood is a trusted environment The internet is like an everyday trip out of the house, in a place where i am used to living....i never lose my way....Male, France An easy place for you to navigate – it’s your territory and your space Affection for familiar places Familiar faces Safe and feel in control Base: European Data

  18. More open-minded Willing to take advice Willing to try new things, explore new places Looking to be guided by a trustworthy source Looking for ‘souvenirs’ Looking to share the experience or memories with others On the hyper-linked web, it’s easy to go off track44% of online activities are spontaneous Exploring New Places Base: European Data

  19. What does this mean for advertisers? demonstrates that online consumer behaviour is multifaceted & multivariable... highlights the growing complexities of integrated communication planning... offers insight and guidance on how to improve online brand communications...

  20. To better reflect consumer behaviour advertisers must now integrate on and offline channels • IMPLICATIONS: • Integrate offline TV ads with online video ads • Integrate offline ad activity with Paid Search • Integrate offline ad activity with online diaply activity • Integrate live event activity with online event amplification • ONLINE CONSUMERS ARE JUST CONSUMERS! FINDINGS: Online activity is rarely standalone but complimentary It combines with people working, socialising, watching TV, listening to music, eating & drinking etc. Online activity is just a part of people’s daily lives

  21. To better reflect consumer behaviour advertisers must now integrate online channels • FINDINGS: • Online activity is rarely single purpose, single event • Online activity moves randomly from communication to information to transaction to entertainment to creation • Online activity moves from planned to unplanned, from the well trodden path to uncharted territories throughout the day • IMPLICATIONS: • Integrate acquisition strategy with retention strategy • Integrate advertising strategy with content strategy • Integrate interruption strategy with engagement strategy • Integrate direct response (in some environments) with brand building (in other environments)

  22. To better respond to consumer ad receptivity advertisers must deliver contextually relevant brand communications More aware of advertising online Higher ad awareness, and open to ads Higher ad awareness, but not open to ads Web 1.0 Behaviours Surfing Information Creation Not open to ads Entertainment Open to ads Web 2.0 Behaviours Transaction Communication Lower ad awareness and not open to ads Lower ad awareness, but open to ads Less aware of advertising online

  23. Advertisers should blend ‘push’ and ‘pull’ brand communications appropriate to Web 1.0 or 2.0 activity Web 2.0 Web 1.0 Indices – if more than 100, ad type more suitable Pull Advertising 78 86 80 Co-creation with brands 103 81 112 59 89 Tool kits from brands to create content 95 59 126 84 120 53 Branded content for online personal expression & decoration 70 81 84 66 120 80 Gadgets for private use on desktop 99 88 108 107 Push Advertising 52 71 Video pre-roll embedded ads 77 66 75 131 Connecting marketing objectives to user behaviour and receptivity 103 124 Video banner ads 103 140 89 113 129 120 98 133 147 119 Static banner ads

  24. Advertisers should always consider contextual frameworks when planning online brand communications • Online activity • Consider push or pull brand communications dependent ononline activity or journey • Environmental situation • Consider online messaging that references offline activities or circumstances • Time of Day • Consider dayparting messaging by time of day and day of week • Level of Attention • Consider intrusive or integral advertising dependent on the required focus of the online activity • Mood • Consider serious or playful messaging dependent on time of day and activity

  25. Making it happen To improve online brand communication planning in the future we need: Ongoing, deeper understanding of time spent online (in relation to offline consumer behaviour) Better integration between marketing service providers Better integration between media and creative agencies More collaboration between media sellers and buyers Greater adoption of advanced online targeting tools and techniques Better data mining and ad performance analysis

  26. Communication Main motivator for going online and highest levels of activities Popular across the day – it is the “glue” More popular amongst females IM, forums and networks people are distracted, using them as time fillers; email and VOIP are more focussed “When I switch on my bundle of joy, I tend to log onto msn, then I log onto Facebook to see if any friends have left me any messages”UK, Under 25

  27. Information 2nd highest motivator for going online – it is people’s initial reason for going online, but they then move onto entertainment Strongest in the morning, and falls across the day More prevalent at work than at home Slightly higher amongst men Open-minded, inquisitive and focussed mindset “In the morning I’m usually more inclined to read the news. I’m more likely to skip the personal stuff (facebook, msn) and do more productive things – news, email, weather” Canada Motivations/Modes covered in this report

  28. Entertainment 18% of all online activities Replaces information in the evening as being 2nd highest type of activity More associated to home usage Often boredom breaking, filling time and so not highly focussed activities Higher amongst younger males, also women 45-54 “If I miss a TV programme and haven’t Sky + it, I can sometimes download it” Male UK Motivations/Modes covered in this report

  29. Surfing 9% of all online activities Constant across the day More popular amongst men 35-54 Time filler and so fairly easily distracted For some, surfing is a planned treat – a sense of a well deserved rest “Generally I know what I’m going to do online before I turn the computer on... There is always a chance that after that main work is done I stay for a while to listen to music or do some web surfing” Germany Motivations/Modes covered in this report

  30. Transaction 8% of all online activities, with UK and Germany being most active Bill paying more popular in the morning, auction sites/other shopping more associated with the evening Generally very focussed, apart from grocery shopping Planned activity for most, although young males most likely to be spontaneous shoppers “Without the internet my entire schedule would have been different. I would have to walk to my bank or go to different stores where it’s cheaper to buy” Germany Motivations/Modes covered in this report

  31. Creation 4% of all activities – be it updating blogs, profile pages or uploading photos/videos Relatively distracted and open minded Fairly spontaneous behaviour Tend to occur at peak online times – morning or evening Biased to younger audiences and most prevalent in Brazil “EVENING – I read my mail, take care of my facebook, blog, watch movies. Only do things that I appreciate” Norway

  32. In short, broadband changes everything. Broadband users are on-line 20-40 times a day usually for 2-3 minutes at a time. Since they connect so often, they do not want the PC in the backstage of the home, but rather in the “center stage.”  What really happened is that broadband allowed the Internet to be fully integrated into daily life.  Jeff Cole, Director, Center for the Digital Future, USC Annenburg School

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