Latest Display Benchmarks Now Available

Evaluating the success of display campaigns can be an exercise in relativity. You gauge current campaigns against past performance or compare across multiple campaigns and advertisers within your roster of brands or clients.

But in seeking more comprehensive benchmarks that reflect trends going on in the display industry, you might find yourself falling short. Advertisers and agencies alike are looking for more data to answer the basic questions of "How do I know if my display ad campaigns are doing well?" and "Are there credible benchmarks I can use to compare the results on my current campaign?"

It’s no surprise then that our display benchmarks have met with much enthusiasm since we first started publishing the data in 2009. We’re pleased to introduce a dedicated space for display benchmarks data on the Watch This Space website. The first set of metrics you’ll see available are the latest display benchmarks which cover the breadth of data from CTR metrics to engagement metrics for rich media ads such as interaction and expansion rate, video complete rates and average interaction times -- all across a broad range of ad sizes, creative types and industry verticals.

Some interesting observations from these latest benchmarks:

• Use of rich media ad formats have doubled. We saw a two-fold increase in the proportion of impressions going to Rich Media ads. In 2010, simple flash ads accounted for 54% of all global formats served via the DoubleClick for Advertisers platform, down from 74% in 2009. Image ads, in comparison, experienced an uptick with 28% of formats served in 2010 up from 17% in 2009. That leaves rich media ad formats growing to 18% of all the impressions served in 2010 up from 9% globally in 2009.
  
  
• Response and engagement rates have been holding steady since 2009. In the past two years, the overall click-through rate has remained steady at around 0.09%.
  
  
  
  
  
  
  
  
• Interaction rates trended slightly lower when comparing Q4 2010 to Q4 2009 but in general this measure of engagement has remained relatively steady over the course of 2010 after coming down from its peak in early 2009. (Note: Due to a change in the DFA methodology for interaction rates back in April 2008, we only reflect benchmarking data for interaction rates from then onward.)
  
  
• Expansion rates have fallen considerably since early 2009 but now we are seeing rates leveling off with a slight uptick towards the end of 2010.
  
  
• Video completion rates on rich media ads have generally remained consistent except for a several month peak towards the later half of 2008.
  
  
  
  
  
  
  
  
• Larger ad sizes tend to generate greater response. Size does matter apparently. As we have seen in years past, bigger ads perform better. We observed this with the latest set of metrics in which the half-page ad unit (300x600) which had the highest CTR, interaction rate (for both in-page and expandable formats) and expansion rates of all the available creative sizes we tracked for the benchmarks.
  
  
• Although the U.S. had one of the lowest expansion rates, this market showed the highest expansion time. So Americans seem to expand ads less but when they do spend more time engaging with the ads themselves.
  
  
• In terms of industry verticals, auto advertisers performed the best in terms of CTR (0.13% for flash ads) but conversely had the lowest interaction (1.9%) and expansion rates (0.2%). For interaction rate, telecom (9.4%) and B2B (9.2%) advertisers were the highest while B2B stood out in terms of expansion rate (7.5%) benchmarks.

A couple of notes about this latest set of online advertising benchmarks. The data for these benchmarks are derived from a robust data set across DoubleClick for Advertisers, based on rigorous methodology with input from the Advertising Research Foundation. The charts cover global benchmark figures for the entirety of 2010 by ad format, ad size and industry vertical. The benchmarks are normalized across hundreds of advertisers, thousands of campaigns, and tens of billions of ad impressions.

For additional insights and access to the full set of available benchmarks, visit the benchmarks section on the Watch This Space website. More in-depth benchmarks by industry are available exclusively to DoubleClick clients so contact your account manager to discuss further.

Posted by Pamela Eng, Product Marketing Manager

Free Google White Paper Helps Buyers Benefit from Real-Time Bidding

In September 2009, the new DoubleClick Ad Exchange (ADX), built on Google technology, opened for business with support for real-time bidding (RTB). Since then, we’ve witnessed explosive growth in RTB. For example, RTB spend as a percent of spend on ADX has risen from 8% in January 2010 to 68% as of May 2011. Plus, the volume of impressions purchased via RTB for the first half of 2011 is 6.4x that of the first half of 2010.

At Google, we believe that the overall display advertising pie can get bigger and see RTB as one of the technologies that can help get us there. In February 2011, we did a “Real-Time Display Advertising State of the Industry Survey” with Digiday, which found that advertisers and agencies are reporting that they will spend more on digital advertising in 2011 because of the benefits of RTB.

To help buyers achieve the benefits they expect from RTB, we’ve published a white paper that shares our view of real-time bidding for online display advertising. Based on research and primary interviews with Google’s RTB experts across our product, sales and services organizations, this paper provides a clear definition of what real-time bidding is and how buyers can get involved with it. Whether you are a large or small advertiser, an agency or a trading desk or a media buying intermediary, Google would like to help you succeed with real-time bidding. We hope that this paper helps.

Download the free white paper (PDF)

Update posted 8/4/2011: Figure 1 in this white paper was missing the demand-side platform LucidMedia. We have now added them.

Posted by Sally Cole, Product Marketing Manager

Rich Media Grows to 10% of the Display Advertising Pie

Back in June of 2009, we highlighted the percentage of total display advertising volume going to rich media ads in the introduction of our “Brand Value of Rich Media and Video Ads” report. The headline on the first figure in the report stated, “Rich Media Only 6% of Ad Serving Volume in 2008.”

Checking back in, we find that, based on data collected by The Nielsen Company during Q3 2010, rich media volume is up -- by a lot. Today, rich media ads make up 10% of ad serving volume -- a whopping 4 percentage point increase since our report was published.

Look for rich media volume to continue to grow as more advertisers seek out the benefits of incorporating video and interactivity into their display advertising campaigns. After all, anything Flash ads can do rich media ads can do better.

Posted by Sally Cole, Product Marketing Manager

What’s new with the DoubleClick Benchmarks Report 2009 Year-in-Review

We published the DoubleClick Benchmarks Report in 2009 to give advertisers and agencies a resource to measure their display campaigns’ performance against industry norms. As a result of feedback and interest from our clients and others in the industry, we’re pleased to offer this year’s edition with a couple of updates:

• Data on impressions served through DoubleClick for Advertisers (DFA) by creative type. Simple flash is the dominant ad format accounting for close to 70% in the U.S. and 85% in the EMEA region. Static image ads was the next most common format representing 20% of the volume through DFA in the U.S. and 10% in the EMEA region.
  
• The availability of a benchmarks report with detailed EMEA region metrics. Last year we included worldwide overall click-through rates and rich media metrics in the report. Now we are pleased to introduce a separate EMEA Benchmarks Report which covers in-depth display benchmarks across a subset of countries in the EMEA region.
  
• Comparison between overall 2008 and 2009 benchmarks. You will also find in this latest report, a month-by-month comparison of benchmark data for click-through rates, interaction rates, expansion rates and interaction time for the years 2008 and 2009.

When reviewing the data we noticed some interesting trends:

• In 2009, the overall click-through rate for the U.S. did not change from 2008 (0.10%) and what’s more is in a month by month comparison of click-through rates (CTRs) from 2008 to 2009 we saw that CTRs were very consistent throughout the year with a minor spike in January -- possibly a result of the post-holiday sale season.
  
• When it comes to CTR, interaction rate, average interaction time and average display time, we did not observe a great difference between U.S. (see page 2) and EMEA (see page 2) benchmarks.
  
• Consistent with last year’s report, we continued to find a correlation between ad size and clicks and interaction rates -- that is, the larger the ad size, the higher the rate. This finding holds true for both U.S. and the EMEA region.

As with last year’s report, the data for these benchmarks are derived from a robust data set across DoubleClick for Advertisers, based on rigorous methodology with input from the Advertising Research Foundation. The report covers benchmarks for the entirety of 2009 by ad format, ad size and industry vertical. The benchmarks are normalized across hundreds of advertisers, thousands of campaigns, and tens of billions of ad impressions.

For greater detail on the benchmark data, download the U.S. report here and the EMEA region report here. More in-depth benchmarks by industry are available exclusively to DoubleClick clients so contact your account manager to discuss further.

Posted by Pamela Eng, Product Marketing Manager

New Report Highlights How to Align Ad Format Choice to Branding Goals

For every online display campaign, advertisers must decide what ad formats to use for best results. To help, DoubleClick teamed up with Dynamic Logic to study the impact of ad format selection on branding goals. In the joint report titled "The Brand Value of Rich Media and Video Ads," we compare the branding strengths of four common display advertising formats:

• Image - GIF or JPG ads
• Simple Flash - Ads with a short animation and single click-through link
• Rich Media with Video - Ads capable of responding to user interaction, such as mouseovers, keyboard inputs, or clicks without a click-through, that also contain video
• Rich Media without Video - Ads capable of responding to user interaction, such as mouseovers, keyboard inputs, or clicks without a click-through, that do not contain video

The report provides detailed information on how each of these formats impacts aided brand awareness, online ad awareness, message association, brand favorability and purchase intent. For example, study findings show that, on average:

• Rich Media formats are the most successful at driving purchase intent
• Rich Media without Video is unique among the formats in its ability to positively impact all five brand metrics
• Simple Flash is the least effective of the ad formats studied
• For brand favorability, aided brand awareness and purchase intent metrics, Rich Media with Video provides a statistically significant improvement over Simple Flash at a 90% confidence level

The report concludes with a cheat sheet to help guide your ad format decisions and suggests best practices for achieving branding goals.

Download the PDF report here for free, no registration required.

Posted by Sally Cole

Introducing DoubleClick Display Benchmarks

Advertisers and agencies who work on display ad campaigns often wonder "How do I know if my display ad campaigns are doing well?" and "What credible benchmarks can I use to compare the results on my current campaign?"

Some might rely on past campaign performance metrics while others might compare across multiple campaigns and advertisers within their client roster. All are fine means in the absence of larger, more comprehensive industry benchmarks.

This is why we're particularly pleased to make available DoubleClick benchmarks so that marketers, agencies, and publishers have a reference by which to evaluate the performance of online display advertising campaigns in the U.S., relative to industry norms.

These benchmarks are derived from a robust data set across DART for Advertisers, based on rigorous methodology with input from the Advertising Research Foundation. Benchmarks in this report cover those for 2008 and transect ad format, ad size, and industry vertical. The benchmarks are normalized across hundreds of advertisers, thousands of campaigns, and tens of billions of ad impressions.

You can download the report here. More in-depth benchmarks by industry are available exclusively to DoubleClick clients so contact your account manager to discuss further.

If you're interested in learning more you can attend our webinar, "Benchmarking Ahead: IAB Reveals the DoubleClick Benchmarks Report," co-hosted with the Internet Advertising Bureau (IAB) on June 24th at 12pm EST.

Posted by Pamela Eng

ClickZ's "Rich Media Research Roundup"

Today, Tessa Wegert contributed an article to The ClickZ Network that perfectly sums up our new "Creative Insights on Rich Media" report. Check out her article here, then download the report.

Among the report's main takeaways:

• Consider using video within rich media units when performance goals include click-through rate, expansion rate or expanding time
• More specifically, consider using in-page video when performance goals include interaction rate or video complete rate
• Additionally, consider larger creative sizes when performance goals include click-through rate or interaction rate

Thanks for the mention, Tessa!

Posted by Sally Cole

My Interview for MarketingVoices about Influencers and Vertical Networks

I've been glad to dust off my blogging chops with this new DoubleClick blog lately, and furthering my Web 2.0 street cred, I was just interviewed for a podcast by MarketingVoices, which just went live here. The host, Jennifer Jones, focused the interview on how marketers can effectively reach word-of-mouth influencers, and in my reply I discussed three ways marketers can use blogs to do so: 1) set up a company blog (like this one) themselves, which admittedly is easier said than done well; 2) use next-generation PR tactics to reach out to bloggers in a manner that does more good than harm (again, often still a challenge to traditional-minded PR specialists), and 3) advertising on blogs.

That last point is only still just catching on among marketers, capitalizing on the benefit of the so-called "long tail" of content and ad inventory online, but in fact it may be the most effective of all three strategies, both in terms of reach and influence. For evidence on that point, I cited our research paper "Influencing the Influencers: How Online Advertising and Media Impact Word of Mouth," which concluded that influencers pay considerably more attention to web ads than non-influencers when in the purchase decision process.

As to how marketers can reach influencers through blog advertising, I talked a bit about the emerging trend of publishers forming what are known as "vertical networks" – that is, large web publishers such as Martha Stewart and Food Network reaching out to large numbers of bloggers to form niche networks of content with high-quality small publishers. This trend is really a win-win-win: the publishers extend their reach of relevant content and advertising inventory to keep pace with the rapid growth of industry spending without a huge investment in new editorial resources; marketers can effectively reach influencers in contextually targeted content areas via existing trusted partners, and bloggers can cash in on the value they are creating with their passionate content creation without having to develop expertise in ad sales. Have a listen, you might enjoy it!

Posted by Rick Bruner