Starving at the feast<br />Why big media is struggling to be part of the advertising boom<br />
Media industry is brand new<br />radio<br />TV<br />intenet<br />storytellng<br />outdoor<br />books<br />pamphlets<br />n...
More media is being produced, for cheaper, than ever before<br />
More money is being spent on advertising than ever before<br />
Technological change creates media growth across all mediums<br />More demand for advertising from new products and servic...
Economies of scale<br />Big media businesses are formed<br />Newscorp<br />Disney<br />Time Warner<br />etc<br />
Control access to media <br />Restrict access to competitors<br />Control legislated channels (airwaves)<br />Create scale...
Imperfect information for advertisers<br />Measurement models drive behavior<br />Circulation vs readership<br />Bundling ...
Imperfect information for audience<br />Hard for new media options/competitors to launch<br />Cost to launch (advertising ...
Scarcity drive profits<br />Limited choice enables greater audience on a platform<br />Requires lowest common denominator ...
Welcome the internet<br />Distribution                                         From control to anarchy.<br />Imperfect inf...
Distribution<br />Internet erodes government power to create monopolies<br />Reduces switching cost between media to zero<...
scarcity<br />Audience utilises multiple media platforms per day due to low switching costs<br />Harder to sell audience s...
Near perfect information<br />Advertising was sold on wastage<br />Targeting and event based advertising (CPM, CPC, etc) r...
Choice requires better content<br />Better = more relevant for you right now<br />Butterfly enthusiast can publish blog in...
Reach vs Relevance<br />Google model based on relevance of ad based on what user is looking for<br />Relevance is better i...
Throwing away the rate card<br />Google give advertising away for free!<br />Other media charge you to show your brand<br ...
Targeting<br />User tracking is now consistent<br />Cookies<br />Sessions<br />Etc<br />You can use data to target<br />De...
Ad Networks and low cost of sales<br />Cost of sales is dropping to zero<br />Makes it easier to buy and sell advertising<...
Deal<br />Buyers<br />Sellers<br />Advertiser<br />External “Sales House”<br />Deal<br />Direct Sales<br />Agency/ Ad Netw...
DATA<br />Key next battlefront for media owners<br />War may be lost before its even begun<br />Google<br />Microsoft<br /...
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Starving at the feast

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Starving at the feast

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