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Ahmad Anvari: Latest Developments and Trends in Online Advertising Business

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A talk by Ahmad Anvari on "Latest Developments and Trends in Online Advertising Business" organized by the Knowledge Diffusion Network

A talk by Ahmad Anvari on "Latest Developments and Trends in Online Advertising Business" organized by the Knowledge Diffusion Network

Published in: Business, Technology

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  • @Danny1979 I would be interested to know more about behavioral targeting ads and your product
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  • Great article.

    The latest trend might move towards multiplatform advertising such as MultiplAds. Publish Once , Advertise On Different Platforms is their strongest arribute.

    www.multiplads.com
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  • Online advertisements are trending.
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  • Great post - I would like to suggest a tool we are using to do behavioral targeting to our site users - personyze.com its very cool
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  • Good Summary.. Thanx Dan
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  • 1. Online Advertising Latest Developments and Trends Ahmad Anvari I-AIM Visiting Lecturer Sharif University of Technology October 2007
  • 2. Agenda History and Background Online Advertising Type and Pricing Models Major Players Recent M&A Future and Trends Online Advertising ٢
  • 3. History and Background 90s Early 2000 2005 •Banner Ads •Text Ads •Display •Classifieds (Contextual) •Search •Email •Multimedia (rich) Marketing •Text ads Online Advertising ٣
  • 4. Value Web is becoming hot again… Online Advertising is primarily responsible Online Advertising ٤
  • 5. Online Advertising Revenue and Growth Source: PwC/IAB Internet Advertising Revenue Report (www.iab.net) Online Advertising ٥
  • 6. Online Advertising Revenue and Growth $10BN in first FH 2006 FH 2007 Search 40% ($3,164) 41% ($4,097) half of 2007 Classifieds 20% ($1,582) 17% ($1,699) – Iran’s GDP is Referrals/Lead Generation 7%($592) 8% ($799) $212BN E-mail 2% ($158) 2% ($200) Display Related: 31% ($2,413) 32%($3,198) 27% increase – Rich Media (Includes Video) 6% ($475) 8%($799) comparing to – Ad Banners / Display Ads 21% ($1,622) 21%($2,099) 2006 – Sponsorships 4% ($316) 3% ($300) – Slotting Fees <1% (<1$) <1% (<$1) More than $5BN in the 2nd quarter Source: The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) Online Advertising ٦
  • 7. Types of Online Advertising Text (contextual) – Search – Web – Inline Display – Static – Rich Media – Pop-up/Pop-under Online Advertising ٧
  • 8. Behavioral Advertising Knowledge of each user’s behavior and demographic information Targets users based on their browsing history and other attributes Location, Age, Gender, Salary, etc. Online Advertising ٨
  • 9. Pricing Models CPM – Advertiser pays when an ad is shown to a user Performance – CPC Advertiser pays when users click on an ad – CPA Advertiser pays when a click leads to an action Sometimes even a click is not needed Online Advertising ٩
  • 10. Pricing Models Revenue Breakdown Model FH 2006 FH 2007 CPM 48% ($3,797) 45%($4,497) Performance Deals 47% ($3,717) 50%($4,997) Hybrid 5% ($395) 5% ($499) Online Advertising ١٠
  • 11. Contextual Advertising Web pages crawled by the Advertising Network Intelligent algorithms parse and understand the content Ads that are relevant to the content are chosen real-time by the ad servers Google AdSense, Kanoodle, IntelliText (Inline) Online Advertising ١١
  • 12. Contextual Advertising Example Online Advertising ١٢
  • 13. Contextual Advertising Gone Wrong Online Advertising ١٣
  • 14. Contextual Advertising Gone Wrong Online Advertising ١٤
  • 15. Contextual Advertising Gone Wrong Online Advertising ١٥
  • 16. Major Players Google Yahoo! Network America Online Microsoft Network Turn TribalFusion AdBrite Online Advertising ١٦
  • 17. Major Players - Google Contextual Advertising – Text, Display, Rich Media Products – AdSense – Publisher Network – AdWords – Advertiser Network Recent Acquisitions – DoubleClick: $3BN Online Advertising ١٧
  • 18. Major Players – Yahoo! New Platform: Panama Has demographic information of a large network of Yahoo! Users Has started building verticals: finance, travel, women, college, sports, auto Recent Acquisitions – RightMedia: $680MM Online Advertising ١٨
  • 19. Major Players – AOL Led by Advertising.com – Largest reach (90% US Internet Users) Recent Acquisitions – LighteningCast: Video Advertising – 3rd Screen Media: Mobile Advertising – ADTECH: Ad Serving Technology – Tacoda: Behavioral Targeting Online Advertising ١٩
  • 20. Major Players – MSN Microsoft AdCenter Recent Acquisitions – aQuantive: $6BN Microsoft’s biggest acquisition by a large margin – A 1.6% stake in facebook for $240MM Online Advertising ٢٠
  • 21. Recent M&A aQuantive (MSN): $6BN DoubleClick (Google): $3BN RightMedia (Yahoo!): $680BN AdTech, TSM, LighteningCast (AOL) Online Advertising ٢١
  • 22. Future and Trends Mobile Advertising is hot Video (pre-roll, post-roll, and in-video) advertising is next Contextual Advertising will continue to grow New technologies allow behavioral targeting Blog Advertising (small networks) Online Advertising ٢٢
  • 23. Questions? anvari@yahoo.com Online Advertising ٢٣