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The Ad Supported Ecosystem
5 Thoughts, 15 Slides
Darren Herman / @dherman76
Chief Digital Media Officer, The Media Kitchen ...
The Infamous Ecosystem
2
Luma Partners 2010 www.lumapartners.com
The most common sentence I hear
3
We’re planning on
monetizing our apps thru
advertising.
First: Where do I start?
4
Join an ad network
Hire a rep firm
Sell inventory directly
Amount $$ you
keep
Note: Not mutually...
The amount of $$ you keep
5
Frictionless
* example publisher
The amount of $$ you keep
6
Friction
%
The cost of friction
7
Second: Does your size matter?
Ron would say yes.
Darren says no; opportunities are limited.
8
While we’re on size...
There are standard ad sizes:
IAB (http://www.iab.net/iab_products_and_industry_services/1421/1443/1...
Third: Evolution of the paid [digital]
ecosystem
10
Ad Networks
Google
Ad Exchanges
DSP Direct Integration
Sell Side
Optim...
Your media is good; w/data better
11
Image from Demdex
Remember, w/o Data: Your Traditional
Inventory Is a Commodity
12
Fourth: Thoughts on an ad supported
business
13
Unless your advertisement options are non-traditional, a fully ad-
support...
Fifth: The biggest mistake
Pricing too low to get a deal can actually hurt your chances of receiving
an insertion order (I...
Evolution of an advertisement
15
Thank you // @dherman76
16
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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.

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Transcript of "Advertising Ecosystem for Startups Looking for Ad Dollars"

  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 1
  2. 2. The Infamous Ecosystem 2 Luma Partners 2010 www.lumapartners.com
  3. 3. The most common sentence I hear 3 We’re planning on monetizing our apps thru advertising.
  4. 4. First: Where do I start? 4 Join an ad network Hire a rep firm Sell inventory directly Amount $$ you keep Note: Not mutually exclusive Simplicity
  5. 5. The amount of $$ you keep 5 Frictionless * example publisher
  6. 6. The amount of $$ you keep 6 Friction %
  7. 7. The cost of friction 7
  8. 8. Second: Does your size matter? Ron would say yes. Darren says no; opportunities are limited. 8
  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) 9
  10. 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. 11. Your media is good; w/data better 11 Image from Demdex
  12. 12. Remember, w/o Data: Your Traditional Inventory Is a Commodity 12
  13. 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. 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. 15. Evolution of an advertisement 15
  16. 16. Thank you // @dherman76 16

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