Solutions for Managing Media Fragmentation What’s Next In Marketing? December 2, 2008 Joe Kutchera Director of Spanish-Language Markets ContextWeb, Inc. [email_address]

What’s Next in Marketing? Media Fragmentation Reaching Consumers in the Long Tail New targeting technologies Ad exchanges Opportunities: Spanish-language markets

Media Fragmentation

Reaching Consumers in the Long Tail

New targeting technologies

Ad exchanges

Opportunities: Spanish-language markets

Today, media is fragmented 13,500 radio stations (4,400 in 1960) 17,300 magazine titles (8,400 in 1960) 82.4 TV channels per home (5.7 in 1960) And the Web… Millions of sites Billions of pages More media choices for consumers Fragmentation Today

Today, media is fragmented

13,500 radio stations (4,400 in 1960)

17,300 magazine titles (8,400 in 1960)

82.4 TV channels per home (5.7 in 1960)

And the Web…

Millions of sites

Billions of pages

For The Advertiser – Where’s The Audience? Your Audience is Fragmenting

Audiences leaving portals… Page views on the top 3 portals declined 21% from 2004 to 2008 Internet page views grew by 21% during the same period

Page views on the top 3 portals declined 21% from 2004 to 2008

Internet page views grew by 21% during the same period

Long-Tail Sites Garner Greater Share Source: (1) Compete, Inc, Jan 2007. Top 20 domains by unique users. (2) comScore Media Metrix. Top 100 domains by unique users. 38% Top Domains 62% Outside Top Domains 61% Outside Top Domains 39% Top Domains Time Spent Page Views

Fat Tail vs. Passion Tail 77% of online ad dollars Size of Sites # of Sites Pages of Passion Property 2007(est) 1 Google 26% 2 Yahoo! 15% 3 eBay 8% 4 MSN 7% 5 AOL 7% 6 Monster 4% 7 IAC 3% 8 Fox Interactive 2% 9 Gannett 2% 10 CareerBuilder 2%

The Long Tail is The Passion Tail Consumers use the “Long Tail” to pursue their passions. Brands want passionate users. Passionate users are in the right mindset for a brand message. Consumers live their “passion” across sites of all sizes

Consumers use the “Long Tail” to pursue their passions.

Brands want passionate users.

Passionate users are in the right mindset for a brand message.

Marketplace Response Ad Networks – Over 300 But now in decline Inefficiency Biased Category specialty Approximately 75 niche networks e.g. Travel Ad Network Technology specialty Behavioral, contextual

Ad Networks – Over 300

But now in decline

Inefficiency

Biased

Category specialty

Approximately 75 niche networks e.g. Travel Ad Network

Technology specialty

Behavioral, contextual

Marketplace Response: Ad Exchanges

New Ways to Target Consumers Contextual Targeting Autos Finance Entertainment Sports Behavioral Targeting Outdoor sportsman Family planner BDM: Business Decision Maker Geo-targeting: Country, State, City, etc

Contextual Targeting

Autos

Finance

Entertainment

Sports

Behavioral Targeting

Outdoor sportsman

Family planner

BDM: Business Decision Maker

Geo-targeting: Country, State, City, etc

New Ways to Target Consumers Content category targeting Search / Keyword Search engines Content pages Creative re-targeting Follow-up offers Language Targeting

Content category targeting

Search / Keyword

Search engines

Content pages

Creative re-targeting

Follow-up offers

Language Targeting

Benefits to Ad Exchanges Still friction in buying media Paper IOs, faxes, phone calls Lack of control, lack of transparency Ad Exchanges can automate and provide control and transparency. Where is the Long Tail in these solutions? Portals have no “tail” Consumers spend a majority of their time on long tail sites Ad Exchanges allow publishers to participate and control pricing. Where is brand-safe media that can scale for the advertiser? Advertisers that use portals and site specific buys need more reach More brand dollars are coming onto the web Ad Exchanges can allow the advertiser various placement controls.

Still friction in buying media

Paper IOs, faxes, phone calls

Lack of control, lack of transparency

Ad Exchanges can automate and provide control and transparency.

Where is the Long Tail in these solutions?

Portals have no “tail”

Consumers spend a majority of their time on long tail sites

Ad Exchanges allow publishers to participate and control pricing.

Where is brand-safe media that can scale for the advertiser?

Advertisers that use portals and site specific buys need more reach

More brand dollars are coming onto the web

Ad Exchanges can allow the advertiser various placement controls.

Top 10 Languages on the Internet

Most Spoken Languages in World Mandarin: 873,000,000 Hindi: 366,000,000 Spanish: 322,300,000 English: 309,350,000 Arabic: 206,000,000 Portuguese: 177,500,000 Bengali: 171,000,000 Russian: 145,000,000 Japanese: 122,400,000 German: 95,400,000

Mandarin: 873,000,000

Hindi: 366,000,000

Spanish: 322,300,000

English: 309,350,000

Arabic: 206,000,000

Portuguese: 177,500,000

Bengali: 171,000,000

Russian: 145,000,000

Japanese: 122,400,000

German: 95,400,000

U.S. Hispanics: A Fragmented Audience

Media Planning Check List Are changes in media consumption fragmenting your target audience? Are you reaching consumers in the long tail? Are you reaching out to new, fast-growing markets among Hispanics or globally to grow your business?

Are changes in media consumption fragmenting your target audience?

Are you reaching consumers in the long tail?

Are you reaching out to new, fast-growing markets among Hispanics or globally to grow your business?

Thank you! ContextWeb: http://www.ContextWeb.com Join ADSDAQ: http://www.ADSDAQ.com Visit our Blog: http://blog.contextweb.com Joe Kutchera Director of Spanish-Language Markets ContextWeb, Inc. [email_address]

Questions for Your Ad Exchange Inventory Remnant or premium inventory? Spot market (bided) vs. futures market (reserved inventory)? Safe for brands or direct only? Designed for agency and/or SEM workflow? Self service or full service? Pricing Control of pricing for buyer and seller? Pricing models: CPM, CPC, CPA? Centralized billing? Targeting available Contextual, behavioral, other? Graphical, rich media, text formats? Publisher types Long Tail and/or large site and/or ad network inventory? Inventory from content sites and/or social media? Actionable Insight Insights you can use across a campaign, brand or client?

Inventory

Remnant or premium inventory?

Spot market (bided) vs. futures market (reserved inventory)?

Safe for brands or direct only?

Designed for agency and/or SEM workflow?

Self service or full service?

Pricing

Control of pricing for buyer and seller?

Pricing models: CPM, CPC, CPA?

Centralized billing?

Targeting available

Contextual, behavioral, other?

Graphical, rich media, text formats?

Publisher types

Long Tail and/or large site and/or ad network inventory?

Inventory from content sites and/or social media?

Actionable Insight

Insights you can use across a campaign, brand or client?