Starving at the feast
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Starving at the feast

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    Starving at the feast Starving at the feast Presentation Transcript

    • Starving at the feast
      Why big media is struggling to be part of the advertising boom
    • Media industry is brand new
      radio
      TV
      intenet
      storytellng
      outdoor
      books
      pamphlets
      newspaper
      Print press
    • More media is being produced, for cheaper, than ever before
    • More money is being spent on advertising than ever before
    • Technological change creates media growth across all mediums
      More demand for advertising from new products and services
      Unless technlogy is a replacement for old technologies
      Printing press versus scribes
      CD vstape
      DVD vs CD
    • Economies of scale
      Big media businesses are formed
      Newscorp
      Disney
      Time Warner
      etc
    • Control access to media
      Restrict access to competitors
      Control legislated channels (airwaves)
      Create scales of economy that thwart new entrants (printing presses, distribution, shelf space)
      Distribution = market power
    • Imperfect information for advertisers
      Measurement models drive behavior
      Circulation vs readership
      Bundling of content vs actual reads
      Bulking up advertising per user (actual share of voice is not on the page)
      Creates and grows from market inefficiences
    • Imperfect information for audience
      Hard for new media options/competitors to launch
      Cost to launch (advertising on existing media)
      Access to airwaves or shelfspace
      Audience options are limited due to lack of knowledge of alternatives
    • Scarcity drive profits
      Limited choice enables greater audience on a platform
      Requires lowest common denominator content vs highest quality content
      Cheaper to produce content
      More audience and limited ad breaks equals more profits
    • Welcome the internet
      Distribution From control to anarchy.
      Imperfect information From lack of data to in-depth data.
      Scarcity From limited ad space an audience to unlimited adspaceand audience.
      From limited content to unlimited content.
    • Distribution
      Internet erodes government power to create monopolies
      Reduces switching cost between media to zero
      Allows anyone to be a media company
      Glut of choice becomes the challenge (disovery) vs scarcity
    • scarcity
      Audience utilises multiple media platforms per day due to low switching costs
      Harder to sell audience specifically as can be reached on other mediums (high substitution)
    • Near perfect information
      Advertising was sold on wastage
      Targeting and event based advertising (CPM, CPC, etc) reduce cost of advertising reach
      Only pay for actual benefit received
      Advertising spend (in theory) more effective
      Total reach
      wastage
      price
      target
    • Choice requires better content
      Better = more relevant for you right now
      Butterfly enthusiast can publish blog in butterflies
      Other butterfly lovers love the content but not relevant to most
      Butterfly lovers also buy BMWs – so BMW can advertise there too OR employ CPC OR employ affiliates
    • Reach vs Relevance
      Google model based on relevance of ad based on what user is looking for
      Relevance is better indicator of success than reach
      CPC is best indicator of relevance
    • Throwing away the rate card
      Google give advertising away for free!
      Other media charge you to show your brand
      Google only charges you if user clicks on your advert (CPC)
      There is no google rate card
      Auction based
      Keywords can be over R100 per click (and still more effective than traditional media)
      Law of large numbers ensures google make a LOT of money
    • Targeting
      User tracking is now consistent
      Cookies
      Sessions
      Etc
      You can use data to target
      Demographic
      Behavioral
      Targeting audience can happen on any site and across sites
      Retargeting
      Targeting makes ads more effective
    • Ad Networks and low cost of sales
      Cost of sales is dropping to zero
      Makes it easier to buy and sell advertising
      No more “unsold” media
      Revenue maximization versus yield management
    • Deal
      Buyers
      Sellers
      Advertiser
      External “Sales House”
      Deal
      Direct Sales
      Agency/ Ad Network / Affiliate Network
      AdWords (+ access to GCN)
      AdSense
      Workflow (DSM, freewheel does as well)
      Billing systems (eg SAP)
      CRM (egSalesforce)
      Dart Search
      Google AdX
      Buyer info
      Seller info
      Adsense Backfill
      MSN
      Email
      DFA /
      other
      Planning tools
      (Aprimo, Unica)
      Publisher Website
      Adservers DFP / other
      Private Network
      eCPM
      (optimize)
      Other Ad Exchanges
      AdECN
      RighMedia
      OpenX
      Advertising.com
      Adapt (optimize)
      SSP: Seller Optimizing
      (Rubicon, Admeld, Pubmatic)
      DNB,
      Adify, etc)
      Media Buyers
      (vivaki, Atom, cadreon)
      Ad Networks
      Vertical, Horizontal,
      targeted , performance
      Google CN
      Video serving with DRM, etc(egInstream, Freewheel
      Creative Optimization
      (Teracent, Adready)
      Demand Side Platforms
      (DataXu, Turn, InviteMedia)
      Video players
      Freewheel, Brightcove
      Verification Attribution
      (DoubleVerify, mPire)
      Analytics(Omniture, GA, etc)
      Mobile Ad serving
      Data optimization
      (Bizo, Quantcast, adchemy)
      Data Exchanges
      (Bluekai, eXelate, Rapleaf)
      Behavioural Targeting
      Ad Planners (eg Google Ad Planner, Comscore, Akamai)
      Data suppliers and consolidators (eBay, Expedia) (Business Objects, SAS, Claritas)
      Implementation, migration & Integration
      Marketer Services
      Exchange Brokering
    • DATA
      Key next battlefront for media owners
      War may be lost before its even begun
      Google
      Microsoft
      Opportunity to match targeted audience to premium advertiser and command superior yield per ad spot
      CPC?
      CPM