Panel Ii Data Driven Performance Marketing


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Panel Ii Data Driven Performance Marketing

  1. 1. Jefferies & Company, Inc. Jefferies 3 rd Annual Internet Conference February 28, 2007 CONFIDENTIAL DRAFT Member, SIPC Panel II: Data Driven Performance Marketing
  2. 2. Panelists Joe Davis CEO David Liu Managing Director Internet & Digital Media Group Gurbaksh Chahal CEO Josh James CEO Art Shaw CEO <ul><li>Panelists are </li></ul><ul><li>representative of the </li></ul><ul><li>data driven performance </li></ul><ul><li>marketing industry </li></ul><ul><li>Advertising Networks </li></ul><ul><li>Web Analytics </li></ul><ul><li>Content Sites </li></ul>1
  3. 3. Sector Snapshot 2
  4. 4. What Problem are We Solving? <ul><ul><li>&quot;I know half the money I spend on advertising is wasted, but I can never find out which half&quot; - John Wanamaker </li></ul></ul><ul><ul><li>“ Let advertisers spend the same amount of money improving their product that they do on advertising and they wouldn't have to advertise it ” - Will Rogers </li></ul></ul><ul><ul><li>&quot;Advertising is on its deathbed and it will not survive long, having contracted a fatal case of new technology&quot; - Roland T. Rust and Richard W. Oliver </li></ul></ul>3
  5. 5. What is the Online Marketing Opportunity? Online Advertising Revenue 2005-2010E 1 Web Analytics Software Revenue, 2005-2010E 2 <ul><li>Source: Jefferies Research, 2006. Revenues include ad spend on search, display, text, and other advertising media. Does not include web analytics spend. </li></ul><ul><li>Source: IDC, 2006. </li></ul>($ billions) ($ millions) 21.4% CAGR 15.5% CAGR 4
  6. 6. How Are Advertisers Spending Their Money? Direct Response Display Paid Search Branded Display <ul><li>Source: MediaPost & InsightExpress survey of 39 online media profiessionals, July 2006. </li></ul>Affiliate E-mail Other Advertising Spend Allocation – Q2 2006 1 5
  7. 7. 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 2007. </li></ul><ul><li>* January 2006 statistics not available - DRIVEpm growth from March 2006; Euroclick growth from November 2006. </li></ul>(millions) Total Unique Visitors – January 2007 1 ValueClick Tribal Fusion Casale Media VendareNetblue Blue Lithium 24/7 Real Media DRIVEpm* Burst Media Euroclick* <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>6 29% 39%* 25% 29%* YoY Growth 23% 7% 15% 42% 58% 34% 148.4 129.7 115.9 109.9 101.1 94.9 90.5 88.2 77.0 75.1 0 20 40 60 80 100 120 140 160
  8. 8. Who are the Web Analytics Players? Omniture WebSideStory Coremetrics / Surfaid SAS Institute Sane Solutions Other SPSS WebTrends <ul><li>Source: IDC, June 2006. </li></ul>Web Analytics Market Share – 2005 1 Note: Public companies labeled black; private companies labeled blue. <ul><li>Role of Web Analytics </li></ul><ul><li>Provide visitor behavior metrics to online marketers </li></ul><ul><li>Marketers leverage these metrics to make data driven decisions resulting in more efficient spending and higher conversion rates </li></ul><ul><li>Ensure advertisers and publishers are staying honest! </li></ul>9.5% 12.9% 16.0% 9.7% 43.5% 4.4% 1.9% 2.1% 7
  9. 9. Meet the Panelists 8
  10. 10. Dave’s Top Ten 9
  11. 11. Dave’s Top Ten <ul><ul><li>We keep hearing about behavioral targeting. Are there any privacy concerns? </li></ul></ul><ul><ul><li>Will all advertising go performance based? </li></ul></ul><ul><ul><li>Agree or disagree? </li></ul></ul><ul><ul><ul><li>“ Online fraud is out of control!” </li></ul></ul></ul><ul><ul><ul><li>“ Getting an accurate ROI is a pipe dream” </li></ul></ul></ul><ul><ul><ul><li>“ Online marketing will always suffer from leakage ” </li></ul></ul></ul><ul><ul><li>Do you believe advertising networks and Web analytics companies compete? Why or why not? </li></ul></ul><ul><ul><li>10. How are you exploiting the proliferation of rich media and video on the Web? </li></ul></ul><ul><ul><li>1995 </li></ul></ul><ul><ul><li>1996 </li></ul></ul><ul><ul><li>1997 </li></ul></ul><ul><ul><li>1998 </li></ul></ul><ul><ul><li>1999 </li></ul></ul><ul><ul><li>2000 </li></ul></ul>10
  12. 12. Dave’s Top Ten (Cont.) <ul><ul><li>If you could LONG or SHORT any stock to exploit the next phase of data driven performance marketing what would it be? </li></ul></ul><ul><ul><li>If you could start ANY Internet based business in 2007 what would it be? </li></ul></ul><ul><ul><li>Hot or not? </li></ul></ul><ul><ul><ul><li>Yahoo’s Panama </li></ul></ul></ul><ul><ul><ul><li>Microsoft’s adCenter </li></ul></ul></ul><ul><ul><ul><li>Auction based online advertising models </li></ul></ul></ul><ul><ul><li>Who loses the most if you gain? </li></ul></ul><ul><ul><ul><li>Traditional media? </li></ul></ul></ul><ul><ul><ul><li>Other online marketers? </li></ul></ul></ul><ul><ul><li>What is your biggest competitive threat? </li></ul></ul><ul><ul><ul><li>What are the big Internet companies doing? Worried? </li></ul></ul></ul><ul><ul><li>2001 </li></ul></ul><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>11