Why online advertising is not a dirty word - Echelon 2014

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Online advertising as a business model is typically shunned in Southeast Asia, mainly due to investor’s lack of faith in its potential as a serious revenue opportunity. Joe is here to share with you that the notion of startups not being able to monetise via online advertising might not hold true, especially looking at data from Southeast Asia’s online trends. Joe will compare similar mid sized markets like the Nordics, Latin America, Brazil, India and Russia and do a deep dive into the online trends from Singapore, Malaysia, Indonesia, Thailand, Philippines and Vietnam. Delegates can expect to get a better understanding on why online advertising is not a dirty word and where is Southeast Asia in terms of online advertising as a serious potential business model, and where are we headed towards.

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Why online advertising is not a dirty word - Echelon 2014

  1. 1. Why 0nl1n3 @dv3rt1sing… is not a DIRTY word. !#@*!%$@$!! Joe Nguyen, SVP, APAC, comScore, Inc. jnguyen@comscore.com @jnguyen
  2. 2. Why 0nl1n3 @dv3rt1sing… is not a DIRTY word. Joe Nguyen, SVP, APAC, comScore, Inc. jnguyen@comscore.com @jnguyen
  3. 3. Let’s take a look at some online Business Models
  4. 4. Business Model: eCommerce Wholesalers and retailers of goods and services. Sales may be made based on list prices or through auction.
  5. 5. Business Model: Content Publishers Businesses that create their own content, which could be news articles, factorials, or videos.
  6. 6. Business Model: Search A software system that categorises and filters the World Wide Web in order to provide users with relevant information that they are searching for.
  7. 7. Business Model: Services Providing online services like music, email, telephony and applications; for consumers, SMEs or businesses.
  8. 8. Business Model: Content Aggregators Aggregate content from other sources to provide users with a “one stop shop”.
  9. 9. Business Model: Social Media Platform that allows for social interaction among people in which they create, share or exchange information and ideas in virtual communities and networks.
  10. 10. Business Model: Gaming • First-person shooter games • Real-time strategy games • MUDs • Massively multiplayer online games (MMOG) • Mobile Games!!!!
  11. 11. Is Advertising really that EVIL?
  12. 12. Well, just how much EVIL is in it? Source: ZenithOptimedia Advertising Expenditure Forecasts – April 2014
  13. 13. Is it getting more EVIL? Source: ZenithOptimedia Advertising Expenditure Forecasts – April 2014
  14. 14. What are the countries accelerating to HELL? Source: ZenithOptimedia Advertising Expenditure Forecasts – April 2014
  15. 15. EVIL is not limited to just the offline world, is it? Source: ZenithOptimedia Advertising Expenditure Forecasts – April 2014
  16. 16. Why is this EVIL growing online?
  17. 17. How much EVIL is on the Internet? Source: ZenithOptimedia Advertising Expenditure Forecasts – April 2014 US$ 104.2 billion in 2013
  18. 18. $100 $65 $104 bn $67.6 bn$36.4 bn
  19. 19. How do Content Publishers make money? Businesses that create their own content, which could be news articles, factorials, or videos. Advertising Subscriptions Pay as you go
  20. 20. How do Search Engines make money? A software system that categorises and filters the World Wide Web in order to provide users with relevant information that they are searching for. Advertising
  21. 21. How do eServices make money? Providing online services like music, email, telephony and applications; for consumers, SMEs or businesses. Advertising Subscriptions Pay as you go
  22. 22. How do Content Aggregators make money? Aggregate content from other sources to provide users with a “one stop shop”. Advertising Affiliate Model Commission
  23. 23. How do Social Media make money? Platform that allows for social interaction among people in which they create, share or exchange information and ideas in virtual communities and networks. Advertising
  24. 24. How does Online Gaming make money? • First-person shooter games • Real-time strategy games • MUDs • Massively multiplayer online games (MMOG) • Mobile Games!!!! Micro Payment Advertising Subscriptions
  25. 25. Fairly consistent revenue models: Advertising Subscriptions But that is not why startups should look into advertising…
  26. 26. What’s the most important thing to a startup? $$$ CASH FLOW $$$
  27. 27. Why Online Advertising… is not a DIRTY word. !#@*!%$@$!! Joe Nguyen, SVP, APAC, comScore, Inc. jnguyen@comscore.com @jnguyen
  28. 28. Why Online Advertising… is not a DIRTY word. Joe Nguyen, SVP, APAC, comScore, Inc. jnguyen@comscore.com @jnguyen

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