Ad Networks Final

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Ad Networks are the backbone of online advertising industry

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Ad Networks Final

  1. 2. Agenda: <ul><li>Ad Networks: Introduction </li></ul><ul><li>Elements of Ad Networks </li></ul><ul><li>Types of Ad Networks </li></ul><ul><li>Case Study 1 </li></ul><ul><li>Ad Networks: Insight </li></ul><ul><li>Ad Servers: Introduction </li></ul><ul><li>Ad Packages </li></ul><ul><li>Industry Statistics </li></ul><ul><li>Backfilling: Introduction </li></ul><ul><li>Ideal Ad Network: Elements </li></ul><ul><li>Industry Overview </li></ul><ul><li>Contextual Targeting: Overview </li></ul><ul><li>Behavioral Targeting: Overview </li></ul><ul><li>Case Study 2 </li></ul>
  2. 3. <ul><li>Ad networks serve advertisement on website and share advertiser revenue for qualified clicks each time a site visitors clicks on ad. </li></ul><ul><li>An advertising network (also called an online advertising network or ad network ) is a collection of (often unrelated) online advertising inventory. </li></ul>
  3. 4. <ul><li>Large/Tier1 Ad Networks </li></ul><ul><li>Google </li></ul><ul><li>Yahoo Panama </li></ul><ul><li>Microsoft Adcenter </li></ul><ul><li>Small/Tier2 Ad Networks </li></ul><ul><li>Adbrite </li></ul><ul><li>Casale Media </li></ul><ul><li>Enhance Interactive </li></ul><ul><li>aQuantive </li></ul>
  4. 6. <ul><li>There are three types of online advertising networks: </li></ul><ul><li>Representative Networks </li></ul><ul><li>Blind Networks </li></ul><ul><li>Targeted Networks </li></ul>
  5. 7. <ul><li>They represent the publications in their portfolio, with full transparency for the advertiser about where their ads will run. </li></ul><ul><li>They typically promote high quality traffic at market prices and are heavily used by brand marketers. The economic model is generally revenue share. </li></ul><ul><li>Example: Quigo </li></ul>
  6. 8. <ul><li>These companies offer low pricing to direct marketers in exchange for those marketers relinquishing control over where their ads will run </li></ul><ul><li>Blind networks achieve their low pricing through large bulk buys of typically remnant inventory combined with campaign optimization and ad targeting technology. </li></ul><ul><li>The financial model is arbitrage. </li></ul>
  7. 9. <ul><li>Sometimes called “next generation” or “2.0” ad networks, these focus on specific targeting technologies such as behavioral or contextual </li></ul><ul><li>Targeted networks specialize in using consumer click stream data to enhance the value of the inventory they purchase </li></ul>
  8. 11. <ul><li>Poker Ad Network is a growing advertising network of over 60 poker-related websites, each of which attracts a specific niche of poker enthusiasts. </li></ul><ul><li>Poker Ad Network Serves Ad keeping with the poker media buyer in mind. </li></ul>
  9. 12. <ul><li>Cost to advertiser : $14/cpm </li></ul><ul><li>Ad model : CPM </li></ul><ul><li>Available Publisher Channel : </li></ul><ul><li>The poker channel ( Over 100 website ) to advertise on The Casino Channel ( Under dev) The sports channel ( Under Dev ) </li></ul><ul><li>Minimum Buy : The minimum insertion order is $5,000 </li></ul><ul><li>Ad formats used : </li></ul><ul><li>Leader board Banner 728 x 90 Skyscraper Banner 120 x 600 Wide Skyscraper Banner- External 160 x 600 Full Banner 468 x 60 </li></ul><ul><li>Publisher Information : Confidential ( Advertiser can view the referral url in the admin panel ) </li></ul>
  10. 13. <ul><li>Publisher Commitment : Not required, can terminate the program anytime. </li></ul><ul><li>  </li></ul><ul><li>Can use services of the PAN along with their existing ad program. </li></ul><ul><li>  </li></ul><ul><li>Option to Choose the advertisers for appearing on the website. </li></ul><ul><li>Revenue Share Will Be 50/50 based on the impression generated. </li></ul><ul><li>Multiple Use of the advertising code is allowed on different websites </li></ul>
  11. 14. <ul><li>The top ad networks offer a complete brand marketing solution and are fast becoming an essential component of brand advertising budgets. </li></ul><ul><li>Complement Your Reach </li></ul><ul><li>Reduce frequency waste </li></ul><ul><li>Optimize to brand metrics </li></ul><ul><li>Scale your custom solutions </li></ul><ul><li>Leverage efficiencies </li></ul>
  12. 16. <ul><li>Tier 1 Ad Network </li></ul><ul><li>Large number of Advertiser & publisher Base. </li></ul><ul><li>High Quality Traffic </li></ul><ul><li>Have Premium Brand of Customers </li></ul><ul><li>Better Revenue Share </li></ul><ul><li>Require millions of impressions per month </li></ul><ul><li>Tier 2 Ad Network </li></ul><ul><li>Small Advertiser & publisher Base. </li></ul><ul><li>Amount of Traffic will be less </li></ul><ul><li>Unbranded Customer Can Join the Ad program as well </li></ul><ul><li>Thousand Impression per month website are allowed </li></ul><ul><li>Source of revenue comes from syndicating ads from other advertising network. </li></ul>
  13. 17. <ul><li>Websites </li></ul><ul><li>Domains </li></ul><ul><li>Rss Feeds </li></ul><ul><li>Blogs, forums </li></ul><ul><li>IM Application : Msn messenger </li></ul><ul><li>Emails Clients </li></ul>
  14. 18. <ul><li>Banner Ads: </li></ul><ul><li>Rich Media </li></ul><ul><li>Text links </li></ul>
  15. 19. <ul><li>The advertising network serves advertisements from its ad server, which responds to a site once a page is called. </li></ul><ul><li>A snippet of code is called from the ad server, that represents the advertising banner. </li></ul><ul><li>In most cases, ad networks deliver their content through the use of a central ad server </li></ul>
  16. 22. <ul><li>The typical common functionality of ad servers includes: </li></ul><ul><li>Uploading advertisements and rich media . </li></ul><ul><li>Trafficking ads according to differing business rules. </li></ul><ul><li>Targeting ads to different users, or content. </li></ul><ul><li>Tuning and optimization based on results. </li></ul><ul><li>Reporting impressions, clicks, post-click activities, and interaction metrics. </li></ul><ul><li>Advanced functionality may include: </li></ul><ul><li>Frequency capping so users only see messages a limited amount of time. </li></ul><ul><li>Sequencing ads so users see messages in a specific order (sometimes known as surround sessions ). </li></ul><ul><li>Excluding competition so users do not see competitors' ads directly next to one another. </li></ul><ul><li>Displaying ads so an advertiser can own 100% of the inventory on a page (sometimes known as roadblocks ). </li></ul><ul><li>Targeting ads to users based on their previous behavior ( behavioral marketing or behavioral targeting ). </li></ul>
  17. 23. <ul><li>What is Run of network ? </li></ul><ul><li>Ad buying option in which ad placements may appear on any pages on sites within an ad network </li></ul><ul><li>In run-of-network advertising, advertisers generally give up say over placement in return for low rates and broad reach. </li></ul><ul><li>What is Run of site ? </li></ul><ul><li>Run-of-site is similar to run to network, except the ads appear on an individual site instead of many sites. </li></ul>
  18. 25. <ul><li>Backfilling is a process when an Ad network partners With another Ad Network so that if they do not have advertisements for a certain vertical, they can use the inventory of another Adnetwork to fill the space. </li></ul><ul><li>If an Adnetwork does not have advertisement for Online Gambling or Adult, then it can partner with another Ad network for these categories. </li></ul><ul><li>This process is really useful if an Adnetwork is receiving traffic from a certain geographical region or for a certain concept (Adult, Gambling) </li></ul><ul><li>This also ensures that Ad network are not losing out on monetization of traffic coming on to their network </li></ul>
  19. 29. <ul><li>Contextual Targeting </li></ul><ul><li>Inferring the optimum ad placement from information contained on the page where the ad is being served. For example, placing Mountain Bike ads automatically on a page with a mountain biking article. </li></ul><ul><li>Example : Google </li></ul>
  20. 31. Contextual Geo Targeting
  21. 32. <ul><li>Behavioral Targeting </li></ul><ul><li>Using a profile of prior behavior on the part of the viewer to determine which ad to show during a given visit. For example, targeting car ads on a portal to a viewer that was known to have visited the automotive section of a general media site. </li></ul><ul><li>Example : Tacoda & BlueLithium </li></ul>
  22. 34. <ul><li>Privacy concerns </li></ul><ul><li>IP masking </li></ul><ul><li>Identity protection Application </li></ul><ul><li>Dummy person </li></ul>
  23. 35. <ul><li>In one sense, behavioral targeting is really only targeting based on search streams, and that's not really behavior, but rather just a more detailed search. </li></ul><ul><li>Behavioral Targeting may be just a better way to detect micro-search versus macro-search activities. </li></ul><ul><li>Some Video’s : Behavioral Advertising </li></ul>
  24. 36. Bluelithium – Yahoo’s New Buy
  25. 37. COMPANY BACKGROUND: <ul><li>ONE OF THE EARLY PIONEERS OF BEHAVORIAL TARGETTING </li></ul><ul><li>FOUNDED BY GURBAKSH CHAHAL IN 2004 </li></ul><ul><li>HEADQUATER IN SAN JOSE,CALIFORNIA </li></ul><ul><li>CLIENTS INCLUDE GENERAL MOTORS,FORD,T-MOBILE,PFIZER </li></ul><ul><li>NAMED INNOVATOR OF THE YEAR IN 2006 BY ALWAYSON </li></ul><ul><li>REACHED 145MILLION UNIQUE USERS WORLDWIDE ACROSS A NETWORK OF 1000 PUBLISHERS </li></ul>
  26. 38. Company Standings
  27. 39. PRODUCTS <ul><li>ADPATH BEHAVORIAL TARGETTING </li></ul><ul><li>The idea is to observe a user’s online behaviour anonymously and then serve the most relevant advertisement based on their behaviour </li></ul><ul><li>Based on t customers behaviour different segments are created for eg:online poker players, lonely hearts…and depending upon which segment the customer fits in relevant ads are displayed </li></ul><ul><li>Additional identifiers such as registration data or users search query is also taken into consideration </li></ul>
  28. 40. Different Ads are served while two user surfing the same page
  29. 41. Selective Inventory Partnership <ul><li>With Selective Inventory Partnerships (SIP), Blue Lithium buys audiences from publishers rather than bulk inventory. SIP pays significantly higher CPMs than standard ad network rates, without impacting any of your current relationships. </li></ul>
  30. 42. Ad program – Publisher side <ul><ul><ul><li>98% PUBLISHER RETENTION RATE </li></ul></ul></ul><ul><ul><ul><li>SIP </li></ul></ul></ul><ul><ul><ul><li>BEHAVORIAL TARGETING </li></ul></ul></ul><ul><ul><ul><li>HIGH QUALITY ADVERTISEMENTS </li></ul></ul></ul><ul><ul><ul><li>ALL REVENUE MODELS…CPM,CPA,CPC,CPL </li></ul></ul></ul><ul><ul><ul><li>AD UNITS IN GIF,ANIMATED Gif,JPEG,HTML,STREAMING VIDEO AND OTHER RICH MEDIA FORMATS </li></ul></ul></ul><ul><ul><ul><li>Ability to control what messages run on your site. </li></ul></ul></ul>
  31. 43. Ad Program – Advertiser Side <ul><li>Publishers are selected from a carefully screened universe of ~1000 sites including most of the comScore top 250. In fact, >70 of the comScore top 100 highest trafficked websites in the U.S. are part of the Blue Lithium network. </li></ul><ul><li>Has various ad targeting tools such as </li></ul>
  32. 44. Targeting Tools Used. <ul><li>BEHAVORIAL TARGETING </li></ul><ul><li>DEMOGRAPHIC TARGETING </li></ul><ul><li>CONTEXTUAL TARGETING </li></ul><ul><li>GEOTARGETING </li></ul><ul><li>ZIPCODE </li></ul><ul><li>DAYPARTING </li></ul>
  33. 45. User Targeting Frequency <ul><li>Higher response rates </li></ul><ul><li>High quality ads </li></ul><ul><li>Able to serve far fewer ads per user leading to less burnout for advertisers and more efficient use of inventory for publishers. </li></ul><ul><li>User privacy is guaranteed </li></ul>
  34. 46. Ad Frequency per user
  35. 56. <ul><li>Doubleclick is a company that develops & provides internet ad serving services. </li></ul><ul><li>Its clients include agencies, marketers (Universal McCann interactive, AKQA etc) and publishers </li></ul><ul><li>These clients serve customers like Microsoft, General Motors, Coca-Cola, Motorola, L'Oreal, palm Inc., Visa USA, Nike and others. </li></ul>
  36. 57. <ul><li>Doubleclick offers technology products and services which are sold primarily to Advertising agencies and media companies to allow clients to traffic, target, deliver and report on their interactive advertising campaigns. </li></ul><ul><li>The company's main product line is known as DART, which is designed for advertisers and publishers. </li></ul>
  37. 58. <ul><li>Mediavisor </li></ul><ul><li>DART for Advertisers (DFA) </li></ul><ul><li>DART for Publishers (DFP) </li></ul><ul><li>DART Sales Manager </li></ul><ul><li>DART Enterprise </li></ul><ul><li>DART Adapt </li></ul><ul><li>DART Search </li></ul><ul><li>DART Motif </li></ul><ul><li>DART Motif for Flash-in-flash </li></ul><ul><li>DART Motif for In-stream </li></ul><ul><li>Doubleclick Advertising Exchange </li></ul><ul><li>Strategic services </li></ul>
  38. 59. <ul><li>Doubleclick targets along various criteria. Targeting can be accomplished using </li></ul><ul><li>IP addresses. </li></ul><ul><li>Business rules set by clients. </li></ul><ul><li>By reference to information about users stored within cookies on the machine. </li></ul>
  39. 60. <ul><li>Some of the types of information collected are : </li></ul><ul><li>IP address </li></ul><ul><li>Browser </li></ul><ul><li>Operating system </li></ul><ul><li>ISP </li></ul><ul><li>Bandwidth </li></ul><ul><li>Time of the day </li></ul><ul><li>In addition, the cookie information may be used to target ads based on the number of times the user has been exposed to any given message. This is known as “Frequency capping” </li></ul>
  40. 61. <ul><li>Pros </li></ul><ul><li>Advance Technology </li></ul><ul><li>Various Targeting tactics </li></ul><ul><li>Product line across all verticals </li></ul><ul><li>Quality Advertisers & publishers </li></ul><ul><li>Cons </li></ul><ul><li>No pricing flexibility </li></ul><ul><li>Privacy has been a big issue </li></ul><ul><li>Difficult to arrange non-standard ad buys </li></ul>

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