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. The Infamous Ecosystem
Luma Partners 2010 www.lumapartners.com
3. The most common sentence I hear
We’re planning on
monetizing our apps thru
4. First: Where do I start?
Join an ad network
Hire a rep ﬁrm
Sell inventory directly
Amount $$ you
Note: Not mutually exclusive
5. The amount of $$ you keep
* example publisher
6. The amount of $$ you keep
7. The cost of friction
8. Second: Does your size matter?
Ron would say yes.
Darren says no; opportunities are limited.
9. While we’re on size...
There are standard ad sizes:
10. Third: Evolution of the paid [digital]
DSP Direct Integration
Note: Just a portion of the companies in each sector
11. Your media is good; w/data better
Image from Demdex
12. Remember, w/o Data: Your Traditional
Inventory Is a Commodity
13. Fourth: Thoughts on an ad supported
Unless your advertisement options are non-traditional, a fully ad-
supported business has a very slim chance of surviving without signiﬁcant
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. Fifth: The biggest mistake
Pricing too low to get a deal can actually hurt your chances of receiving
an insertion order (IO)