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

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