Ad network4 roadshow_industry


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  • An ad network is a company that connects web sites that want to host ads with advertisers who want to run ads. Increasingly Ad Networks pay money to software developers as well as web sites for allowing their ads to be shown when people use their software or visit their sites.Three types of online advertising networks:Representative (or Rep) Networks: Represent the publications in their portfolio, with full transparency for the advertiser about where their ads will run. They typically promote high quality traffic at market prices and are heavily used by brand marketers. Economic model is generally revenue share.Blind Networks: These companies offer good pricing to direct marketers in exchange for those marketers relinquishing control over where their ads will run. Blind networks achieve their low pricing through large bulk buys of typically remnant inventory combined with campaign optimization and ad targeting technology. The financial model is arbitrage.Targeted Networks: These focus on specific targeting technologies such as behavioural or contextual. Targeted networks specialize in using data to enhance the value of the inventory they buy.Mix of the Above
  • What we think the new generation of Ad Networks should encompass all these areas…….*Organisation*Smart supply acquisition*Integrated technology*Advanced technology*Data management*Insights*Safe environments
  • The Ad Exchange is predicted by many as the final destination in terms of the ecosystem where inventory will be bought and sold. Somewhat behind in the UK in terms of adoption, 2010 will be a significant year in the establishment of Ad Exchanges as sources of inventory. The auction based model offers the ability to buy inventory at its ‘real’ value.Right Media Exchange – RMX (Yahoo)The original Ad Exchange and currently the biggest in terms of impressionsSupply is dominated by Ad Networks and brokers Adversely affected by ad misplacement stories and reputation for poor quality inventoryRMX are looking to exclude the ‘brokers’ and promote the exchange as a premium offering to help attract better quality demand and supplyAdEx (Google)A project started by Doubleclick and continued by Google following acquisition. The arrival of Google into the Exchange space adds legitimacy that will help attract the premium buyers and sellers Makes the UK ’tail’ of publishers easily accessibleADECN (MSN)- What is their strategy? Buy Yahoo!
  • Supply Optimisers: H2 2009 saw the arrival in earnest of the Supply Optimisers to the UK - Rubicon, Admeld and Pubmatic (Improve Digital) Publishers: Efficient mechanism to monetise remnant inventoryAd Network: Efficient route to accessing aggregated supply 2010 Data offeringReal-time bidding (RTB) Audience segmentationFor many, questions remain as to their role and longer term strategyWill they start selling direct to agencies? If yes what does this mean?Will their tools/methods actually increase yield for publishers?How do they compete with Ad ExchangesDoes the UK have the volume of remnant inventory to support all these ‘middlemen’
  • Recent discussion on the arrival of the DSP’s (e.g Invite Media) and importantly the plans by the holding companies of the major media agencies to develop their own or use a white labelled product What is a Demand Side Platform (DSP)?A single system that connects to multiple ad exchanges and other media suppliers, accessed by a single user interface.Campaign management toolsAutomated bid management capabilities, often including RTBPotential impactTool to exclude Ad NetworksBoost to Ad Exchanges and Supply OptimisersImpact on torso/tail publishers?
  • The data exchange landscape is dominated by companies such as Exelate and Blukai, essentially their offer is exactly what is says on the tin.Buyers can buy and use data from an exchangeData source: smaller sites and data heavy sites e.g comparison sitesRTB enabledA useful tool for agencies and Networks who have not got access to dataUK status – Only Exelate are offering volume UK data, Blukai to launch in 2010?EU policy of privacy seen as a potential threat?
  • Another widely heard term in 2009, used when buying inventory to determine the true value of the impression that is made available to that buyer.Availability or accuracy of the data the buyer using, could they be under-bidding or over-paying?Impact on yield is yet to be seen – why should publishers accept the risk?
  • The likes of Ad Safe, Double Verify etc have emerged in the last 6-8 months offering the ability to offer safeguards to advertisers in terms of appropriate environments.Attract offline spend to online?How reliable is it? 100% coverage and assurance is not guaranteedWho pays for it? Agencies, Advertisers or Networks?Is it a threat to Publishers? Publishers will need to engage to ensure they are correctly categorised and not discriminated against
  • How the industry used to look….
  • Not unusual for an industry at this stage of its evolution to be so fragmented. That is good for innovation and as we all look for solutions that work. People from other industries and the VC community tell us that they expect the winners in this ecosystem to be players that can push vertical integration and partner widely
  • What we think the new generation of Ad Networks should encompass all these areas…….*Organisation*Smart supply acquisition*Integrated technology*Advanced technology*Data management*Insights*Safe environments
  • Ad network4 roadshow_industry

    1. 1. February 2010<br />From the roadshow... changes in the online display industry<br />
    2. 2. The evolving landscape of Ad Networks<br />Ad Network 3.0<br />2005 - 2009<br />Ag<br />Ag<br />Ag<br />Ad Network 1.0<br />< 2001<br />Ad Network 2.0<br />2001 - 2005<br />Ag<br />Ag<br />Ag<br />Ag<br />Ag<br />Ag<br />N<br />N<br />N<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />Publisher<br />Audiences<br />P<br />Agency<br />Network<br />Ag<br />N<br />
    3. 3. Organisation<br />Smart Supply Acquisition <br /> Safe <br />Environments<br />Integrated Technology<br />Insights<br />Advanced Targeting<br />Data Management<br />
    4. 4. The Landscape in 2010 |Ad Exchanges<br />Ad Exchange<br />Ag<br />Ag<br />Ag<br />Ag<br />Ag<br />Ag<br />N<br />N<br />N<br />P<br />P<br />P<br />P<br />P<br />P<br />Publisher<br />P<br />Agency<br />Ag<br />Network<br />N<br />
    5. 5. The Landscape in 2010|Supply Optimisers<br />Ag<br />Ag<br />Ag<br />Ag<br />Ag<br />Ag<br />N<br />N<br />N<br />S<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />Publisher<br />P<br />Agency<br />Supply Optimiser<br />Ag<br />S<br />Network<br />N<br />
    6. 6. The Landscape in 2010 |Demand Side Platforms<br />Ag<br />Ag<br />Ag<br />Ag<br />N<br />N<br />P<br />P<br />P<br />P<br />DSP<br />P<br />P<br />P<br />P<br />S<br />S<br />Publisher<br />Supply Optimiser<br />S<br />P<br />Agency<br />Display Side Platform<br />Ag<br />DSP<br />Network<br />N<br />
    7. 7. The Landscape in 2010|Data Exchanges<br />Ag<br />Ag<br />Ag<br />S<br />DSP<br />Ag<br />DX<br />N<br />Offline Data<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />P<br />Publisher<br />Supply Optimiser<br />S<br />P<br />Agency<br />Display Side Platform<br />Ag<br />DSP<br />Network<br />Data Exchange<br />N<br />DX<br />
    8. 8. The Landscape in 2010|Real Time Bidding (RTB)<br />Marketing Objectives<br />DSP<br />∫<br />Audience Data<br />Impression Data<br />Real Time Bid < 150ms<br />
    9. 9. The Landscape in 2010|Content Verification Technology<br />N<br />Ag<br />∫<br /><br /><br /><br />P<br />P<br /><br />P<br /><br />P<br />P<br />
    12. 12. Organisation<br />Smart Supply Acquisition <br /> Safe <br />Environments<br />Integrated Technology<br />Insights<br />Advanced Targeting<br />Data Management<br />
    13. 13. Any questions?<br />