Ad networks for Russia and Ukraine

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A short presentation to discuss the online advertising network industry and to illustrate some of the ways in which it can help a site develop its initial revenues.

A short presentation to discuss the online advertising network industry and to illustrate some of the ways in which it can help a site develop its initial revenues.

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  • 1. Growing Online Revenue:Advertising, Sales and Classifieds Moscow, Russia 27 – 28 September 2012
  • 2. Agenda Topic Presenter Online Advertising Market Overview Ross Sales Teams: Organization & Motivation Ross Advertising Networks Ross Online Classifieds: Local Opportunities Ross Social Media: Building Audience & Revenue Kevin 2
  • 3. Advertising Networks: OverviewAdvertising Networks are everywhere…there are over 300and more everyday. 3
  • 4. Advertising Networks: OverviewAdvertising networks are designed to address the uniqueissues that face advertisers in the digital media market. Digital Advertising Issues Ad Network SolutionsToo many publisher sites to choose Aggregates ad inventory fromfrom. Too much supply. multiple sites.Difficulty at identifying high quality Typical network may include manycontent: thousands of sites.- High ad performance- High quality content Divides ad inventory by quality of ad- High quality audience performance; type of ad contentChallenge to integrate advertising Provides simple consistent metrics toperformance metrics across hundreds track ads across network sitesof sites. Manages for ad efficiency (pricing,Difficulty in managing ads across distribution, …)multiple sites. 4
  • 5. Advertising Networks: OverviewSuccessful ad networks require strong sales and marketingand strong technology to compete. Ad Networks Network Sites Advertisers $ $$ Ad Database $ $$ $ $$ $ $$ Sales & Marketing Ad Server $ $$ Target Tech $ $$ •Contextual •Behavioral $ $$ •Demographic •Brand $ $$ •Geographic 5
  • 6. Advertising Networks: OverviewThe complexity and rapid evolution of online advertising has resultedin increasing specialization in ad networks. Advertising Network TypesOpen vs. Blind • Open networks allow the advertiser to select specific brands/sites within the network. Example: Gourmet Ads • Blind networks only allow the advertiser to buy specific advertising actions (views/clicks) but not know which sites will display the ads. Example: Google AdSense for ContentThematic Networks: Aggregate particular types of content to attract verytargeted advertising groups – generally by industry.Examples: Active Youth Network,Behavioral Networks: Allow advertisers to target audiences based on otheractions they have taken on the network of on the web.Examples:, Aggregate Knowledge 6
  • 7. Advertising Networks: Overview Advertising Network Types (continued)Geographical Networks: Aggregate traffic from online publishers in aparticular region or area.Example:Technology/Media Networks: Networks that aggregate/serve traffic basedon a unique media or technology type – mobile, video, audio, RSSExamples: Video (YouTube), Mobile (InMobi), Audio (TargetSpot). 7
  • 8. Advertising Networks: PricingAdvertising networks establish prices based on one of two generalmodels. Advertising Network Pricing ModelsTraditional Volume Based Pricing (CPM Prices) • Prices set on supply and demand; competition • Frequently subject to negotiation and discounts depending on the advertiser • Mostly used in Open, Branded networks and thematic networksAd Auctions (Price per Click/Per Position) • Audience behavior standardized to simple measureable unit – The Click, the mouse over • Advertisers bid per action, price per click • In text ad units, advertisers can also bid on position • Pricing is dynamic; changes by day of week or location. 8
  • 9. Advertising Networks: Evaluation and SelectionChoosing an Advertising Network, the online publishers must balancethe potential for additional revenue with the costs of implementationand the risk of cannibalization.Maximize Network Revenue: • Which network contains the most relevant advertisers to your publication? To your audience? • Which network has incentives to maximize pricing to advertisers? • If a blind network, does the network bring in new advertisers who might not buy your brand.Minimize Cannibalization Risk: • Does the network sell advertisers you would sell directly, current advertisers? If so, they should be “blind” networks. So, the advertiser cannot compare the price from your sales team and their sales team.Low Cost of Implementation: • Is advertising implementation simple and low cost? 9
  • 10. Advertising Networks: Evaluation and SelectionSpecific Ad Network evaluation criteria include:Advertiser Volume and Type: • The larger the volume of advertisers the high bid prices tend to be in an bidded network. • Are the advertisers likely to be new advertisers?Advertising Unit Controls: • How much control does the advertising network give you over which advertisements to run and where to run them? - Controls prior to campaign - Controls during campaignNetwork Metrics: • What network metrics do they offer and can you use them to improve your own sales effort? • Can you audit site and revenue performance easily from the metrics?Revenue Share/Payments: • What is the maximum revenue share from the network? • What payment methods are available for the ad network to pay? 10
  • 11. Advertising Networks: Affiliate NetworksAffiliate Networks are a special case of an ad network offered byecommerce companies like and Amazon. Affiliate NetworksAudience Action and Payment: • Affiliate Networks pay for audience actions that deliver potential qualified sales leads to online retailers. • The payment per action can be a significant % of the purchase price of the item being advertised.Affiliate Network Usage: • Affiliate networks work best when a product or product category is being reviewed or discussed. We call this the purchase funnel. Consumers research on your sites, just before they buy. Most common affiliate categories are travel, books, electronics, Amazon Affiliate Program: Affiliate Program: 11
  • 12. Advertising Networks: Creating A NetworkMany leading online media companies have come together to createtheir own online advertising networks. Creating A NetworkTechnology: Do you have access to or can you build an ad servingtechnology? • There are multiple ad serving technologies that can be used to build a private ad network – Google DoubleClick for Publishers Network Builder;Audience: Can you create a network with combined audience that is uniquein some compelling way for advertisers? • Ad network audiences require marketing to attract advertisers and their agencies. How would you sell your network’s audience?Sales and Marketing: Do you have access or can you build a network salesand marketing team?  The type of team and their backgrounds will depend on the type of network and audience you develop. 12
  • 13. Advertising Networks: The DebateShould you use online advertising networks? This is often anintensely debated topic. Online Advertising Networks: Pros and ConsPros: • Provides revenue at relatively little cost for content sites. • Can attract new advertisers from outside the market • Most are relatively easy to implement/add to your site • Creates a baseline for establishing the value of your site’s advertising inventory.Cons:  Can create confusion for other advertisers and potentially cannibalization.  Can serve ads that are inappropriate. Website Headline: “Corpse Found in Samsonite Suitcase” Ad Unit: Buy Samsonite Suitcases Here!  Can create a revenue dependence that is hard to stop. 13