Bowen Dwelle


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  • Bowen Dwelle

    1. 1. Bowen Dwelle October 28, 2008
    2. 7. The only professional association exclusively dedicated to online advertising operations and technology “ The most valuable career experience I've had in the last five years.” “ The benefit AdMonsters provides for the ad operations world is unparalleled.”
    3. 8. “ The most valuable educational and networking event I attend, hands down.” “ AdMonsters is the only event on my ‘must attend’ list. The information and networking benefits are invaluable to growing an Ad Operations team.”
    4. 9. A few of our members…
    5. 10. Ad Operations in 2008
    6. 12. Actually, that’s the World in 2008
    7. 14. “ display advertising, which accounted for 45% of interactive ad spend in 2007, is expected to fall over the coming years” New Media Age, July 3, 2008
    8. 17. Ad Operations in 2008
    9. 18. What you already know <ul><li>Continued evolution of ad ops towards more strategic function </li></ul><ul><li>BUT, ad ops still often seen as tactical, and in conflict with sales </li></ul><ul><li>Inventory tools still not cutting it </li></ul><ul><li>System integration still poor </li></ul><ul><li>Creative quality & timeliness continue to be a major problem </li></ul><ul><li>New ad models (video, mobile, widgets, etc) are challenging existing processes – which need work to begin with </li></ul>
    10. 21. But… is ad ops all about problems?
    11. 22. What is the “ad ops success story”? Client value (external) Business value (internal)
    12. 23. Client value Heskett, Sasser, Schlesinger: The Service Profit Chain results + quality _______________________ price + hidden costs
    13. 24. What do clients pay for? Ad space… ? Results Quality
    14. 25. From IO to results <ul><li>Inventory analysis </li></ul><ul><li>Order processing </li></ul><ul><li>Trafficking </li></ul><ul><li>Creative handling & testing </li></ul><ul><li>Targeting </li></ul><ul><li>Pacing & optimization </li></ul><ul><li>Changes & swaps </li></ul><ul><li>… only then: impressions, clicks, actions, results… </li></ul>
    15. 26. What do clients want? Booz | Allen | Hamilton – Marketing & Media Ecosystem 2010 “ publishers, to win, must compete on the basis of analytics” James Sandoval, CEO, Invizua
    16. 27. How do we get from IO to results? Operational excellence How do we deliver value for clients?
    17. 28. Business intelligence
    18. 29. Tactical Intelligence <ul><li>BEFORE </li></ul><ul><li>300M imps/month available </li></ul><ul><li>10% sold @ $1.00 eCPM </li></ul><ul><li>~$30K revenue, $0.10 yield </li></ul><ul><li>No pricing guidelines </li></ul><ul><li>Pricing based on feelings about “lower value, bulk, remnant” inventory </li></ul><ul><li>Lots of bonusing, “value-add” </li></ul>
    19. 30. Tactical Intelligence <ul><li>AFTER </li></ul><ul><li>300M imps/month available </li></ul><ul><li>85% sold @ $2.00 eCPM </li></ul><ul><li>~$525K revenue, $1.75 yield </li></ul><ul><li>Analytics delivered by operations revealed actual value </li></ul><ul><li>Clear guidelines managed by operations increased revenue 18X!! </li></ul>
    20. 31. Strategic Intelligence <ul><li>As a publisher, how do you know where to invest? </li></ul><ul><li>Invest where eCPM is high and fill rate is low , right? </li></ul><ul><li>How many of you that report at your fingertips? </li></ul>
    21. 32. Where do we get the business intelligence to make rational economic decisions and maximize profits? Operational excellence
    22. 33. What you should know now <ul><li>Operations is the core of any service business </li></ul><ul><li>Operations turns revenue into profit </li></ul><ul><li>Operations is the key to client value: results, quality, costs – and pricing </li></ul><ul><li>Growth and innovation require quality, efficiency and scalability (80/20 rule) </li></ul><ul><li>Great operations is not optional – great operations is a requirement </li></ul>
    23. 34. What can you do? <ul><li>Tap into the value of your operations group </li></ul><ul><li>Leverage operational intelligence in the sales process to maximize customer value </li></ul><ul><li>Challenge operations to find revenue opportunities </li></ul><ul><li>Leverage operational intelligence to reduce costs and maximize profitability </li></ul><ul><li>Invest the time to increase your level of “ad ops savvy” </li></ul>
    24. 35. Again, why is this important? “ We need to get our act together… we need to get more efficient” David Cohen – Universal McCann “ Gross inefficiencies in our industry are the #1 thing plaguing us…” Jonathan Adams – Digitas #1 on marketers’ wish list? “ Greater knowledge of the digital space”
    25. 36. Operations is the guts of our business Exceptional operations is everyone’s job
    26. 37. Thanks! <ul><li>Bowen Dwelle </li></ul><ul><li>[email_address] </li></ul><ul><li>415-420-1447 </li></ul>