1.
Microsoft Publisher Solutions
5 Ways to Increase Your Return on Audience
/ Analytics and Ad Management
Berlin, Wednesday, March 4.th , 2009
Axel Hoehnke

2.
Microsoft Advertising crafts solutions to increase
revenue for advertisers and publishers
Increased Revenue for Top Tier Publishers
• Maximize yield: Forecasting, pricing, and sales
Microsoft is committed to building the
• Optimize ad delivery: Prioritization, effectiveness platform for the advertising industry,
• Improve efficiency across the board allowing its customers to focus on their
core competencies.
PUBLISHERS ADVERTISERS
Solutions
Media
Tools
Services
2 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

3.
Publishers: In an ideal world, you could monetize every
impression at your premium rates
Maximum Revenue
CPM
Max CPM x Max Impressions
Volume of Impressions
3 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

4.
The industry has developed two classes of
inventory to price discriminate
CPM
Premium Sales Revenue
Discretionary Sales Revenue
Volume of Impressions
4 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

5.
More sophisticated publishers have more ways
of increasing revenue
1. Maximize Value of
Premium Inventory
5. Increase Overall
Efficiency in Ad
Sales & Delivery
2. Increase Sell-through of
Premium Inventory
CPM
Premium Sales Revenue
4. Expand Total
Impressions
3. Optimize Yield on Available to Sell
Discretionary Inventory
Discretionary Sales Revenue
Volume of Impressions
5 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

6.
Why is this so difficult?
© 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

7.
Yield management is a core function of the airline industry;
Publishers use similar concepts to maximize revenue
Airlines
Yield Management
Demand
Airlines will adjust prices to maximize revenue for limited seat
availability. This role is fulfilled by their yield management Capacity
groups, who control pricing
Online Publishers Prices
Revenue Maximization
Publishers need to understand the scarcity of their inventory
and use yield management concepts to manage their sites
7
© 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

8.
So what’s different about online advertising?
AIRLINES ONLINE ADVERTISING
 Firmly established in the  Has only been talked about in online
HISTORY airline industry for 20 media for 3 years (no data standards,
years common product specs)
 There are few consumer  If publishers don’t respect and partner
SCARCITY alternatives to flying with advertisers, they will take their
business elsewhere
 There are only so many  The number of packages and products
COMPLEXITY
ways the seats can be laid that can be created from better
out in a plane targeting is almost infinite
 The least price sensitive  The most price sensitive customers
PRICE customer (e.g. business (direct marketers) book last
RESPONSE travelers) book last
© 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

9.
How can we help?
9 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

10.
Microsoft Advertising has several products to help
you with these hard problems
1. Maximize Value of AdManager
Price Director
Premium Inventory
5. Increase Overall
Efficiency in Ad
Sales & Delivery
2. Increase Sell-through of
Premium Inventory Deal Manager
Business Advisor
Inventory Manager
CPM
Premium Sales Revenue
Network Control Panel 4. Expand Total
Impressions
3. Optimize Yield on Available to Sell
Discretionary Inventory
Audience Extension
Discretionary Sales Revenue
Volume of Impressions
10 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

11.
Bring It All Together
Realize greater returns from your audience, and achieve operational excellence
through a unique blend of media, technology and consulting solutions.
The Most Comprehensive Set of Solutions In the Industry…
Audience
Technology Solutions Media Solutions Consulting Solutions
Price Director Microsoft Network Advisory Services
Inventory Manager Ad Syndication Information Services
Efficiency Audience Extension Custom Analytics
Business Advisor
Implementation
Deal Manager
AdManager
… and the most effective.
© 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com