Ad Networks Panel Reach Vs Niche


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  • Ad Networks Panel Reach Vs Niche

    1. 1. Jefferies & Company, Inc. Jefferies 4 th Annual Internet Conference February 27, 2008 CONFIDENTIAL DRAFT Member, SIPC Ad Networks Panel: Reach vs. Niche - the Conversion Game
    2. 2. Panelists Casper Seifert CFO David Liu Managing Director Internet & Digital Media Group John Ardis VP, Corporate Strategy Don Mathis President Art Shaw CEO <ul><li>Panelists are leaders in the online advertising network and related services industry </li></ul><ul><li>CPM, CPC, CPA </li></ul><ul><li>International, Domestic </li></ul><ul><li>Owned vs. represented </li></ul>1
    3. 3. Sector Snapshot 2
    4. 4. What is the Online Advertising Opportunity? Global Online Advertising Revenue, 2005-2010E 1 US Online Advertising Expenditure, 2005-2010E 1 <ul><li>Source: Jefferies Research, 2007. </li></ul>($ billions) ($ billions) 22% CAGR 22% CAGR 3
    5. 5. How Are Advertisers Spending Their Money? <ul><li>Source: IAB. </li></ul>Advertising Spend Allocation – Q2 2007 1 4
    6. 6. Who are the Advertising Network Players? <ul><li>Note: Public companies labeled black; private companies labeled blue. </li></ul><ul><li>Source: comScore Media Metrix, February 2008. </li></ul><ul><li>* January 2007 statistics not available – Yahoo! Network growth from November 2007; Google Ad Network growth from July 2007; Specific Media growth from February 2007. </li></ul>(millions) Total Unique Visitors – January 2008 1 <ul><li>Role of Ad Networks </li></ul><ul><li>Marketplace matching advertisers and Website publishers </li></ul><ul><li>For Advertisers </li></ul><ul><li>Outsourced placement and distribution of ads </li></ul><ul><li>Create, plan, optimize, and report campaigns </li></ul><ul><li>Broad reach and price economies of scale </li></ul><ul><li>For Publishers </li></ul><ul><li>Cost-effective means of selling inventory </li></ul><ul><li>Handle payment, processing: “love those checks!” </li></ul>Platform-A Yahoo! Network* Google Ad Network* Specific Media* ValueClick Tribal Fusion Casale Media DRIVEpm adconion media group Connexus 5
    7. 7. Meet the Panelists 6
    8. 8. John Ardis VP, Corporate Strategy 7
    9. 9. Integrated Interactive Services ValueClick, Inc. is literally the only online marketing services provider who covers all online marketing channels in-house , in volume and with 10 years experience in doing so <ul><li>Display/Rich Media/Video Advertising </li></ul><ul><li>CPA Lead/Action Generation Programs </li></ul><ul><li>Behavioral Marketing </li></ul><ul><li>Third-Party & Site-Side Ad Serving </li></ul><ul><li>Email Management </li></ul><ul><li>Advertising Management Software </li></ul><ul><li>Affiliate Marketing Services </li></ul><ul><li>Managed Search Services </li></ul><ul><li>CPA Media Programs </li></ul><ul><li>Comparison Shopping </li></ul><ul><li>Mobile Comparison Shopping </li></ul><ul><li>Consumer Reviews </li></ul>
    10. 10. Covering All Client Objectives AWARENESS LEADS SALES CRM Email Marketing CPL/CPA Programs Display/Rich Media/Video Behavioral Marketing Technology (Ad Serving, Email Deployment) Affiliate Marketing Search Marketing Comparison Shopping
    11. 11. <ul><li>#1 independent online display ad network </li></ul><ul><ul><li>Reaching ~75% of U.S. Internet audience each month </li></ul></ul><ul><li>#1 lead-generation provider in U.S. </li></ul><ul><ul><li>Generating millions of qualified multi-channel leads each month </li></ul></ul><ul><li>#1 in Affiliate Marketing globally </li></ul><ul><ul><li>More than 45% of top 500 online retailers with 3rd-party affiliate program – more than next two providers combined </li></ul></ul><ul><ul><li>Billions in ecommerce transactions enabled each year </li></ul></ul><ul><li>#1 independent advertising technology provider </li></ul><ul><li>#4 consumer comparison shopping properties </li></ul><ul><li>5,000+ clients worldwide </li></ul>ValueClick by the Numbers
    12. 12. Don Mathis President 11
    13. 13. Don Mathis President February 2008
    14. 14. <ul><li>Company snapshot </li></ul><ul><ul><li>Strong revenues / highly profitable </li></ul></ul><ul><ul><li>Reach = 75% of addressable Internet </li></ul></ul><ul><ul><li>Patent-Pending proprietary technology -- Display Ad Serving/Optimization/Targeting and Search </li></ul></ul><ul><ul><li>30,000+ Websites, search partners and email publishers </li></ul></ul><ul><li>Core Revenue model: Cost Per Action / Direct Response </li></ul><ul><ul><li>CPA is only pure “performance based” advertising </li></ul></ul><ul><ul><li>Measurable ROI </li></ul></ul><ul><ul><li>Strong “down market” characteristics </li></ul></ul><ul><ul><li>Little advertiser risk / deep advertiser integration </li></ul></ul>A Performance-based Ad Network
    15. 15. CPA Performance Marketing: The Nexus of Acquisition and Conversion Discovery Identify the Right Inventory / Mine the Torso & Tail Price Point Management Pay the Right Price Offer Testing Create the Conversion Consumers Point of Inspiration Action Point of Fulfillment Acquisition <ul><li>Technology-driven </li></ul><ul><li>Via the Publisher Network </li></ul><ul><li>Via in-house search & </li></ul><ul><li>media buying </li></ul>Conversion <ul><li>Technology-enabled </li></ul><ul><li>Via in-house creative team </li></ul><ul><li>Via rigorous testing </li></ul><ul><li>Mini-site development </li></ul>
    16. 16. National Advertisers Small/Local Advertisers Self Serve (Ad Center) In-house Agency Services Outside Ad Agencies AD TYPE: TECHNOLOGY: “ ENTRY POINT”: IN-HOUSE OR NETWORK?: Text Ads Coupon Ads Search Display Email Widget/Apps Video DATA-LAYER: OPTIMIZATION & TARGETING Behavioral / Contextual / Geographic / Demographic / Time of Day
    17. 17. Casper Seifert CFO 12
    18. 19. TradeDoubler in brief TradeDoubler generates over € 300 Million in revenue for our customers each month Independent market leading solutions within Affiliate, Campaigns, Search and Technology Over 12 Billion impressions and 7.6 Million leads per month Unrivalled experience with presence in Europe and Japan
    19. 20. The strategic assets An extensive pan- European network of advertisers and publishers Local presence in 18 European Countries and Japan Proven and flexible technolgy platform supporting business model Superior knowledge in online marketing Independent internet marketing solutions provider Products in Search, Technology, Campaigns and Affiliate. Covering +80% of total online adspend
    20. 21. Our Business ” To redefine the marketing landscape.&quot; ” We create results Through our knowledge For advertisers, publishers and agencies Globally Through marketing technology &quot; Vision Mission
    21. 22. Art Shaw CEO 13
    22. 23. Media Business Search Ad Network Media and Monetization Company © 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential.
    23. 24. <ul><li>Domain portfolio </li></ul><ul><li>700,000+ generic domain names </li></ul><ul><li>99% organic, type-in traffic </li></ul><ul><li>Optimize URL parsing, template, content </li></ul><ul><li>Search assistant software </li></ul><ul><li>Keyword search through address bar </li></ul><ul><li>Broad reach of consumer households </li></ul><ul><li>Media properties </li></ul><ul><li>Original editorial content </li></ul><ul><li>SEO-optimized </li></ul>© 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential.
    24. 25. <ul><li>Powerful optimization and delivery </li></ul><ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Psychographics </li></ul></ul><ul><ul><li>Purchase behavior </li></ul></ul><ul><ul><li>Ad views, clicks and conversions </li></ul></ul><ul><li>Supports all ad types, sizes, formats </li></ul>© 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential. Drag-and-drop form builder Web development services Conversion path optimization Lead scrubbing, validation, de-duplication and real-time delivery Male, 33, single HHI $50k, ZIP 10583 Owns iPhone Likes Coldplay, Radiohead Light drinker Female, 28, married w/ kids HHI $160k, ZIP 60647 Good credit Concerned about car safety Visited DVD review site Audience Profiles Form Builder Custom Form
    25. 26. Platform scales to any product, service or business, national or local Local exchange Advertisers bid for highly qualified, relevant leads Consumers protected with full privacy Publisher captures search revenue © 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential.
    26. 27. Dave’s Top Five 14
    27. 28. Dave’s Top Five <ul><ul><li>2002 </li></ul></ul><ul><ul><li>2003 </li></ul></ul><ul><ul><li>2004 </li></ul></ul><ul><ul><li>2005 </li></ul></ul><ul><ul><li>2006 </li></ul></ul>16 <ul><ul><li>2007 </li></ul></ul><ul><li>If you could LONG or SHORT any stock to exploit the next phase of advertising networks what would it be? </li></ul><ul><li>Weakening economy: near-term impact? Long-term impact? </li></ul><ul><li>Thoughts on these ad networks making news? </li></ul><ul><ul><li>Newspapers (Gannett, Tribune, Hearst, NYTimes) </li></ul></ul><ul><ul><li>Cable (Comcast) </li></ul></ul><ul><ul><li>Female (Glam) </li></ul></ul><ul><li>Microsoft acquires Yahoo, who wins? Who loses? </li></ul><ul><ul><li>Google/DoubleClick? </li></ul></ul><ul><li>What are the fundamental advantages and disadvantages of broad reach versus deep niche expertise? </li></ul>
    28. 29. Dave’s Top Five Back-up <ul><ul><li>Is Facebook worth $15BN? </li></ul></ul><ul><ul><li>Isn’t international where all the action will be in 2008? </li></ul></ul><ul><ul><li>Is conversion enhanced by combining both “reach” and “niche” capabilities? </li></ul></ul><ul><ul><li>Will all advertising go performance based? </li></ul></ul><ul><ul><li>What is the role of the vertical/niche ad networks? </li></ul></ul>15 <ul><ul><li>2002 </li></ul></ul><ul><ul><li>2003 </li></ul></ul><ul><ul><li>2004 </li></ul></ul><ul><ul><li>2005 </li></ul></ul><ul><ul><li>2006 </li></ul></ul><ul><ul><li>2007 </li></ul></ul>