2011 TechStars NYC Advertising Presentation
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2011 TechStars NYC Advertising Presentation






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  • Clams. Dinero. Benjamins. It’s all about the money as Nucky Thompson likes to say.
  • Not necessarily a bad thing, but plenty of web (inclusive of mobile) companies are looking to generate ad revenue without a full strategy.
  • There are a lot of marketing and advertising technology companies who would like to help you drive advertising dollars. It’s only getting worse.
  • Two ways to generate revenue from advertising: the old-school way but relationship driven (human led) and the newer friction-less programmatic way (via API’s)
  • Direct relationships are always best because it removes friction. Generate relationship + keep majority of dollars.
  • Anytime there is a middleman, the middleman is compensated in some capacity. Also, the middleman might remove the relationship between the advertiser + publisher.
  • The cost of friction is FOCUS. Friction allows you to concentrate on other things which might be right for an early stage company who needs to ship product.

2011 TechStars NYC Advertising Presentation 2011 TechStars NYC Advertising Presentation Presentation Transcript

  • 1Clams.5 Thoughts, 15 SlidesDarren Herman / @dherman76Chief Digital Media Officer, The Media Kitchen / kbs+pPresident & Managing Partner, kbs+p VenturesFounder, Varick Media Management
  • 2The most frequent sentence I hear We’re planning on We’re monetizing our apps thru advertising.
  • 3The Infamous Ecosystem Luma Partners 2010 www.lumapartners.com
  • 4Two Ways To Generate Revenue 101010101111010100010 101010101111010100010Largest amount of ad dollars. Small but increasing.
  • 5First: Where do I start? Join an ad networkSimplicity Amount $$ you keep Hire a rep firm Sell inventory directlyNote: Not mutually exclusive
  • 6The amount of $$ you keep Advertiser Publisher Frictionless * example publisher
  • 7The amount of $$ you keep Advertiser Publisher Friction %
  • 8The cost of friction
  • 9Second: Does your sizematter? Ron would say yes. Darren says mostly no; opportunities are limited which creates artificial short-term demand.
  • 10While we’re on size... There are standard ad sizes: IAB ( http://www.iab.net/iab_products_and_industry_services/1421/1443/1452) OPA (http://www.online-publishers.org)
  • 11 Third: Evolution of the paid [digital] ecosystem Ad Networks Google Sell Side Optimizers/ Platform Ad Exchanges DSP Direct IntegrationNote: Just a portion of the companies in each sector
  • 12 Image from DemdexYour media is good; w/data better
  • 13Remember, w/o Data: Your Traditional Inventory Is a Commodity
  • 14Fourth: Thoughts on an ad supportedbusiness Unless your advertisement options are non-traditional, a fully ad-supported business has a very slim chance of surviving without significant scale. If you have non-traditional units, an internal sales force will sell best. Treat ad agencies as you would venture capitalists. Your presentations should be short, to the point, and slick.
  • 15Fifth: The biggest mistake Pricing too low to get a deal can actually hurt your chances of receiving an insertion order (IO) Perception
  • 16Evolution of anadvertisement
  • 17Thank you // @dherman76