Newsletter on innovative business models leverage digital capabilities. Issue #2, led by Hugo Azerad

1. IMAGINE THE FUTURE
Leveraging innovative business models
Behavioral targeting advertising across the Internet
- Newsletter # 2, 2008 -
Context
In search of enhanced advertising investment performance, some advertisers
are exploring new approaches to target internet users’ interests, well beyond
contextual ad placement.
wunderloop, for instance, has developed a technology, and the associated
commercial offer, allowing behavioral targeting through the analysis of
user’s browsing history while preserving his privacy
Innovative Media planning framework
T ra d itio na l C o n tex tu a l A d v ertis in g B e h a v io ra l T a rge te d A dv e rtis in g
A D V E R T IS E R S A D V E R T IS E R S
T arge ted T arge ted
audience audience
M e dia plan ning A B C A B C
C
L e a d in g C o n te xtu a l N e tw o rk o f
B Key Highlights
... A S elect o nly A ,B ,C p ro files
W eb site W eb site W eb site s
= A udienc e re ache d
S tatic ads • Advertisers are increasingly
P rofile's individual b row sing
A C D E F C
seeking ROI performance in
B D
A udience re ache d W ebsite W ebsite W ebsite … their Internet campaigns
D yna m ic ad display fo r A p rofile
w ithin a ffiliated w ebsites • With traditional media
planning tools, advertisers
have to combine leading
Innovative Enabling Technology (example of wunderloop) websites & networks’
purchasing for a full coverage,
with targeted contextual
A ffiliated
W ebsite placement for ad
A d m atching effectiveness, relying on a
3 N on a ffiliated
A pro file W ebsite good mix of the two for
T a rg e te d A d .
campaign success
U ser P ro file
A ffiliated 2 qualification / upda te
In tern e t U ser A ffiliated
A ffiliated
W ebsite A ffiliated • Behavioral targeting
W ebsite (e .g . P ro file A )
Ide ntified
W ebsites W ebsite technologies and offers now
and trac ked
1 U ser's allow advertisers to serve the
w ith co okie
bro w sing d ata right ad to the right prospect
collection
… across a large scope of
affiliated websites
• Internet users are profiled
Business opportunities combining their sociological
characteristics (when
• Generalist websites / large audience websites: available) with their web
- Increase audience valuation through target profile selling all over browsing history and their
the website current search interests on
• Specialized websites / small websites: affiliated websites
- Enlarge potential advertisers outside website’s contextual topic
• Behavioral targeting
- Maximize ad inventory value and limit recourse to “bulk” network
advertising is a growing part
selling
of e-advertising and is
• Advertisers:
expected to reach 8% of it by
- Optimize Return On Investment for targeted campaigns
2011 (vs.3.4% in 2008)

2. wunderloop profile Website
• Launched in 1999
• Employees: over 80
• Founders: Ulrich Hegge & Frank Conrad
• CEO: Torsten Ahlers
• Source of revenue: Monthly technical fee paid by affiliated
website publishers or Revenue share of targeted ad sales
(online B2B)
A.T. Kearney's interview of wunderloop CEO - Torsten Ahlers
• “Timing and precision are the factors that make online advertising so successful: wunderloop Integrated
Targeting reaches the right users in the right place at the right time”
• “wunderloop is not a one-trick pony, we have expertise in many different variations, areas and business
models in the field of targeting”
• “Privacy protection is a top priority at wunderloop: we are the first company in Germany to have been
awarded the European Commission-backed EuroPrise seal for exemplary privacy protection”
Example of alternative offers
BlueLithium (Yahoo!) Revenue Science TACODA (AOL) weborama
• Founded in 2004 • Active in advertising • Founded in 2001 • Founded in 1998
(acquired by Yahoo in 2007) since 2000 (acquired by AOL • weborama has more
• BlueLithium reaches • Revenue Science in 2007) than 300 paying clients
155 million monthly unique reaches more than • TACODA has more reaching more than
users 120 million monthly than 4000 websites 22 million active profiles
• BlueLithium has offices unique users reaching more than in main European
in US, Europe and Asia • Revenue Science 140 million monthly countries, North Africa
originated in the US unique users and North America
and is present in
Europe since 2004
About A.T. Kearney
A.T. Kearney is a global strategic management consulting firm known for helping clients gain leading results through a
unique combination of strategic insight and collaborative working style. We serve the largest global clients in all major
industries from our offices located in 34 countries. We have developed a leading Communications and Media practice
with more than 600 dedicated professionals worldwide, focusing on addressing strategic and operational issues of the
Telecom, Media and High Technology industry
For further information about the A.T.Kearney CHT practice please visit: www.atkearney.com
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This newsletter represents our best independent judgment based on information made available to us at the relevant time. No responsibility or liability will be accepted as to the accuracy or completeness of featured statements.