Digital sales 101 hd 2

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Digital sales 101 hd 2

  1. 1. Digital Ad Sales 101<br />
  2. 2. Overview<br />US Internet Advertising Marketplace<br />Selling Digital Media – Some Key Facts<br />Marketplace Challenges<br />How Do We Sell and What Are We Selling?<br />Ad Placement Examples<br />How is Digital Media Measured?<br />Appendix<br />2<br />
  3. 3. US Internet Advertising Market<br />Note: Figures are net advertising revenues<br />Sources: IAB, Barclays (Feb 09), MAGNA (Jan 10), Jack Myers (Jan 10), Morgan Stanley (Feb 10), UBS (Mar 10), eMarketer (Dec 09), PWC (Jun 09)<br />3<br />
  4. 4. 4<br />Total Internet Marketing Estimates <br />DMN Estimates<br />Analyst Estimates<br />Note: Jack Myers numbers adjusted to be aligned with IAB numbers in order to incorporate growth rates<br />Sources: IAB, Barclays (Feb 09), MAGNA (Jan 10), Jack Myers (Jan 10), Morgan Stanley (Feb 10), UBS (Mar 10), eMarketer (Dec 09), PWC (Jun 09). MAGNA (Jan 10), eMarketer (Dec 09) and Forrester (Jul 09) numbers were used to calculated the breakdown across internet subcategories<br />
  5. 5. 5<br />Online Video Estimates<br />DMN Estimates<br />Analysts Estimates<br />Sources: Barclays (Feb 09), MAGNA (Apr 09), Jack Myers (Jan 10) eMarketer (Dec 09)<br />Note: DMN Estimates for 2009-201 are an average of estimates; 2011-2013 calculated using projected growth rates<br />
  6. 6. 6<br />Large scale is very rare commodity on the internet<br />Google, Yahoo, MSN, AOL are nearly the only ones<br />As a result, revenue is very concentrated among a few companies<br />Selling Digital Media – Some Key Facts<br />
  7. 7. 7<br />Over 70% of Ad Revenue Derived from Top 10 Sites<br />INDUSTRY CONCENTRATION – LEADING AD SALES COMPANIES<br />Source: US Online Advertising – IAB/ PricewaterhouseCoopers April 2010<br />
  8. 8. 8<br />Selling Digital Media – Some Key Facts<br />Inventory is essentially infinite<br />TV is constrained by time – there are only 24 hours in a day, specific number of units in an hour<br />Online is not limited by time<br />New websites can explode quickly creating large amounts of new inventory that didn’t exist<br />YouTube, MySpace, Hulu, Facebook, Twitter<br />This elastic supply creates constant pricing pressure<br />There is always a way a marketer can get “their money down”<br />
  9. 9. 9<br />Selling Digital Media – Some Key Facts<br />Internet media is uniquely amenable to quantitative analysis and ROI calculation<br />Advertisers track users directly through their own ad servers<br />Creative is interactive, potentially allowing tracking from exposure to purchase<br />CPM is not the only basis for measuring efficiency and optimizing a campaign<br />Click through, cost per action, cost per lead, etc. are also planned for<br />
  10. 10. 10<br />Selling Digital Media – Some Key Facts<br />Types of Online Media Sales Outlets<br />Websites: <br />Publisher sites<br />ABC.com ESPN.com, MTV.com, <br />Social Networks<br />MySpace.com, Facebook.com, <br />User Generated sites and blogs<br />TMZ, PerezHilton, Gawker, <br />Portals- aggregators of content, email and instant messenger:<br /> Yahoo, MSN, AOL<br />Affiliate Networks/Syndication - A network of sites that share content and traffic with one another. <br />Glam, CBS Audience Network<br />Ad Networks-Media companies that serve ads across thousands of sites: <br />Value Click, Fastclick, Contextweb, Tremor, YouMe, and Advertising.com<br />
  11. 11. Marketplace Challenges<br />Growth of Syndicated Content and Ad Networks<br />Flooding the marketplace with impressions<br />Driving down pricing<br />“An impression is an impression”<br />Digital buyers interested in targeting specific demo regardless of context<br />Brand association less relevant in digital<br />Explosion of video ad networks offering targeted demos across multiple content providers<br />Premium CPM’s more difficult to achieve<br />Syndicated Measurement Not Consistent<br />
  12. 12. 12<br />How Do We Sell?<br />We don’t have the scale to play in the tonnage marketplace<br />Strictly premium players<br />Unique content<br />Strong brands<br />Packaged with sponsorships<br />More and more video centric packages<br />Cross media programs – digital extensions of TV sponsorships<br />
  13. 13. 13<br />What Are We Selling?<br />Display advertising (includes Rich Media)<br />Video advertising<br />Sponsorships<br />
  14. 14. Web Page Ad Placements<br />728x90 Leaderboard<br />Synched Video Logo<br />:15/:30 Streaming <br />Video Pre-roll<br />300x250 Rectangle<br />14<br />
  15. 15. 15<br />Ad PlacementsDisplay Ads<br />Leaderboard<br />Skyscraper <br />Rectangle <br />
  16. 16. 16<br />Ad PlacementRich Media<br />
  17. 17. 17<br />Ad Placements Online Video<br />Synched Video Rectangle<br />:15/:30 Pre-roll Video<br />
  18. 18. Ad Placements Sponsorship<br />GMA Concert Series Article<br />GMA Concert Series Index<br />18<br />
  19. 19. 19<br />How Are Digital Sponsorships Sold?<br />Focus on contextual relevancy<br />Sponsorship opportunities<br />“out of the box” components<br />Heavier skew towards video opportunities<br />Am I the first?<br />
  20. 20. How Are Digital Sponsorships Evaluated?<br />What % of cost is sponsorship vs. other<br />Video vs. Non-Video<br />On-air support?<br />How is the sponsorship going to be promoted?<br />Historical performance<br />
  21. 21. 21<br />Note the Differences Between TV and Online<br />Planning/Pricing<br />Impression Vs. Unit Cost<br />Placement impressions Vs. Rating points<br />Contextual placement Vs. Buying demo<br />Execution/Stewardship<br />Optimizing Vs. ADU<br />Individual delivery Vs. Mass delivery<br />Placement performance Vs. Daypart/demo performance<br />Measurement/Payment<br />AD Server Vs. Nielsen<br />
  22. 22. 22<br />How is Digital Media Measured?<br />3rd Party Ad Serving used as Currency<br />DoubleClick (DART), Atlas<br />Syndicated Research/Audience Measurement<br />comScore<br />MediaMetrix<br />VideoMetrix<br />Nielsen/Net Ratings<br />@Plan – equivalent to MRI for TV<br />Netview<br />Site Serving Data<br />Omniture, Hitbox<br />Brand Metrics<br />Dynamic Logic Research/Millward Brown/IAG/Frank Magid<br />
  23. 23. 23<br />Core Site Metrics<br />Unique User/Viewer: Unique individual/browser that has accessed a site within 30 days. <br />Time Spent: Amount of time a user(s) spends on a specific site in an average visit<br />Page Views:A page view or page impression is a request to load a single page of a website<br />Total Visits: The amount of visits a site has received in a given period of time including the same user multiple times<br />
  24. 24. 24<br />Core Video Metrics<br />Episode Start/Video Start: Occurs when a user clicks to launch an online video.<br />Unique Viewer: Unique individual/browser that has accessed a video within 30 days. <br />Time Spent: Amount of time a user(s) spends watching video at normal speed.<br />Ad Start:A video ad which starts to play.<br />Ad Complete/% Complete: When a video ad has been played out fully from beginning to end, or the percentage of the ad the ad that was played out.<br />
  25. 25. APPENDIX<br />25<br />
  26. 26. 26<br />Appendix<br />Online Glossary:<br />Actualization: When a online campaign is stopped and billed on actual delivery<br />Banner: A graphic advertising image displayed on a web page<br />Bandwidth: The transmission rate of a communications line or system. This is the amount of data that can be communicated through a communications line at a certain time<br />Beta: A test version of a product<br />Bit Rate: A measurement of bandwidth which indicates how fast data is traveling from one place to another. Expressed in in kilobits per second (KBPS) or megabits per second<br />Blog: Generic name for a website featuring regular posts arranged chronologically, typically inviting public comments from readers<br />Video Blog: A blog that comprises video. Regular entries are typically presented in reverse chronological order and often combine embedded video or a video link with supporting text or images.<br />Broadband: An internet connection that delivers high bit-rate-any bit above 266 kbps. Cable modems and DSL offer broadband connections<br />
  27. 27. 27<br />Appendix<br />Broadband Video Commercial: TV like advertisements that may appear as in page video commercials before, during and/or after a variety of content<br />Click: Metric which measures the reaction of a user to an internet ad<br />Click Rate: Ratio of ad clicks to ad impressions served<br />Click Through: The action of following a link within an advertisement or editorial content to another site or webpage<br />CPA: Cost Per Action; cost of advertising based on a visitor taking a specific action in response to an ad<br />CPC: Cost per click; cost of advertising based on the number of clicks received<br />Page View: A page view (PV) or page impression is a request to load a single page of an Internet site. On the World Wide Web a page request would result from a web surfer clicking on a link on another HTML page pointing to the page in question<br />Streaming: An internet data transfer technique that allows the user to see and hear audio and video files. The host or source compresses, then “streams” small packets of information over the internet to the user, who can access the content as is received.<br />
  28. 28. 28<br />Appendix<br />Time Spent: The amount of time a user spends on a specific site in a un a unique session<br />Total Visits: The amount of visits a site has received in a given period of time, this can include return visits from unique users<br />Unique User: Unique individual or browser which has either accessed a site or unique content and/or ads within 30 days<br />Unique Viewer: Unique individual or browser that specifically viewed video content on a site within 30 days<br />

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