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Advertising Ecosystem for Startups Looking for Ad Dollars

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This presentation will be given on November 10, 2010 at the Founders Institute here in NYC.

This presentation will be given on November 10, 2010 at the Founders Institute here in NYC.

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  • 1. 1 The Ad Supported Ecosystem 5 Thoughts, 15 Slides Darren Herman / @dherman76 Chief Digital Media Officer, The Media Kitchen / kbs+p Founder, Varick Media Management
  • 2. 2 The Infamous Ecosystem Luma Partners 2010 www.lumapartners.com
  • 3. 3 The most common sentence I hear We’re planning on monetizing our apps thru advertising.
  • 4. 4 First: Where do I start? Join an ad network Simplicity Amount $$ you keep Hire a rep firm Sell inventory directly Note: Not mutually exclusive
  • 5. 5 The amount of $$ you keep Frictionless * example publisher
  • 6. 6 The amount of $$ you keep Friction %
  • 7. 7 The cost of friction
  • 8. 8 Second: Does your size matter? Ron would say yes. Darren says no; opportunities are limited.
  • 9. 9 While 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)
  • 10. 10 Third: Evolution of the paid [digital] ecosystem Ad Networks Google Sell Side Optimizers/ Platform Ad Exchanges DSP Direct Integration Note: Just a portion of the companies in each sector
  • 11. 11 Image from Demdex Your media is good; w/data better
  • 12. 12 Remember, w/o Data: Your Traditional Inventory Is a Commodity
  • 13. 13 Fourth: Thoughts on an ad supported business 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.
  • 14. 14 Fifth: The biggest mistake Pricing too low to get a deal can actually hurt your chances of receiving an insertion order (IO) Perception
  • 15. 15 Evolution of an advertisement
  • 16. 16 Thank you // @dherman76